Question

Please answer below question in detail in you own words please

What changes should Tesco make to avoid future, similar scandals?

Answer 1

Tesco is a big name in multinational grocery and general merchandising retailer in the world which was founded by Jack Cohen in 1919 in the East End of London. Tesco employed nearly 476,000 employees and it operates in 11 nations. The success and good reputation of company was shamed by an accounting scandal in 2014. The company revealed an overstatement of £250 million of its expected profit for the half year, principally because of accelerated recognition of commercial revenue and delayed accrual of expenditure. To avoid similar scandals in future Tesco must act with transparency and integrity at all times. The primary issue is rebuilding trust with stakeholders and shareholders, thus the company must work in a business which is transparent, fair, open, and honest. Moreover the scandals can be avoided by adequate book keeping practices performed by an impartial accounting firm, and not an in-house structure of reporting that is vulnerable to pressure from the higher designated people.