Role of Stakeholders in Woolworths' Business Operations

Running head: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
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1BUSINESS ENVIRONMENT
Executive Summary
Stakeholders predominantly leaders, consumers, suppliers have expectations that major
corporations will have the ability to show ethical conduct. Through the lens of stakeholder
theory, it is argued that suppliers to the Australian supermarket such as Woolworths are seen as
diminished stakeholders in maintaining its connection with the company. Thus, stakeholders
require the need of urgency, legitimacy, and power. However, a stakeholder perspective
essentially provides a framework for investigating organisational standards, values as well as
ethical business practices. There can be witnessed an augmented demand from a widespread
range of stakeholder groups such as human resources, managers, government, shareholders for
companies to productively accept as well as apply responsible management practices. The report
has analysed functional areas in Woolworth’s business and identified their roles and influence in
the business operations of Woolworths. Additionally, the report has provided insights of the
importance of primary stakeholders’ interests and their implications of contradictory interests in
the business development of Woolworths.

2BUSINESS ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................4
Functional areas and Responsibilities of Woolworths.................................................................4
Stakeholders Value and Role in Woolworths Australia..............................................................5
Internal and external stakeholders and their roles.......................................................................6
Level of main stakeholders’ influence in Woolworths’ Business Sustainability........................6
Role of Employees as Stakeholders.............................................................................................7
Suppliers Role in Woolworths’ Business Operations..................................................................8
Comparison of Stakeholder value between Australian retail and banking sector.......................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

3BUSINESS ENVIRONMENT
Introduction
In business, a stakeholder is typically considered as a financier in organization whose
measures decide the product of business assessment. Stakeholders do not necessarily have to act
as equity shareholders. They can serve the role of employees, who comprise of a particular share
in success and incentives of companies for products and services to be successful. Stakeholders
are recognized as individuals and groups with an interest in the way an organisation is operated
and the results which will be achieved. Contemporary organizations have a two-way relationship
with each of their major stakeholder groups. Hörisch, Freeman & Schaltegger (2014) have noted
that stakeholders are recognized as significant shareholders who aim to boost or decrease their
ventures in the corporation as per their economic performance. Certain stakeholders, known as
activist investors tend to create extensive irregular investments and divestitures to increase the
share cost and further draw media attention to a particular issue. It has been noted that
stakeholders are usually accountable for sustaining, maintaining as well as achieving a return on
investment. According to Upward and Jones (2016), there is an increased pressure from an
extensive array of stakeholder groups such as employees, managers, government, shareholders
for organizations to successfully adopt as well as implement responsible management practices.
This is because, shareholders recently have been demanding thriving economic performance and
furthermore aid organizations to develop into high social as well as environmental sustainable
and adhere to responsible business practices (Harangozó & Zilahy, 2015). The report will
analyse functional areas in Woolworth’s business and identify their roles and influence in the
business operations of Woolworths. Additionally, the report will recognize the nature and extent
of primary stakeholders’ benefit in addition to their repercussions of conflicting welfare in the
business process of Woolworths.