Business and Sustainable Development: A Comparative Study of Woolworths and BHP

This report compares the sustainable development practices of Woolworths and BHP, two leading companies in Australia. It discusses their business activities, social responsibility, and sustainability goals. The report also evaluates their sustainability reports and key performance indicators.

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Contents
An ersw 1................................................................................................................................................2
An ersw 2................................................................................................................................................2
An ersw 3................................................................................................................................................4
An ersw 4................................................................................................................................................8
An ersw 5................................................................................................................................................9
An ersw 6..............................................................................................................................................10
References...........................................................................................................................................12

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Answer 1
Both BHP and Woolworths are the leading companies of an Australian market. BHP
is an Anglo-Australian multinational company that is having its head office in Melbourne,
Victoria, Australia. BHP is the Australian registered Limited company that is listed on the
Securities Exchange of Australia and considers to be the widest company in Australia in
terms of market capitalisation (BHP, 2018). The industry in which the company conduct
their business is metals, mining and petroleum industry. The company is a dual listed
company of Australia. BHP was founded in 1885 in the isolated mining town of Broken Hill
of New South Wales (BHP, 2018). However, in 2017 BHP arrived as largest mining
company on the bases of market capitalization and on the bases of revenue the company is
ranked third in Australia. The core product in which the company deals are uranium, nickel,
natural gas, copper, petroleum, coal and iron core (BHP, 2018).
Woolworth Group is a multinational company it is having its head office at Bella
Vista, New South Wales, Australia. Woolworths Groups falls under the Retail industry. The
company is having its retail stores throughout Australia and New Zealand (Woolworths,
2018). In terms of revenue, Woolworth is considered to be the second largest company in
Australia after Wesfarmers. Woolworths Group is the leading liquor takeaway retailer of
Australia. The company is also operating hotels and Game zones in Australia. In the world,
the Woolworths Group was ranked 19th in the retail industry. The core business of the
Woolworths is operating supermarket, and liquor retailing, petrol, general merchandise, home
improvement, hotels, and gaming (Woolworths, 2018).

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Answer 2
Both BHP and Woolworths have accepted the responsibility of Sustainability
development. The practice of sustainability development is a basic requirement that each
registered company has to follow and both the company are following this practice in respect
of their industry. The sign of following the sustainability development is mentioned in the
code of ethics conducted by the business.
In 2017, the Woolworths mainly deals in the following issues relating to the
environment and society- climate change resilience, diversity, human rights, ethical sourcing
and safety. The areas of sustainability that BHP has selected for performing corporate social
responsibility are health and safety at workplace, social contribution and investment,
greenhouse gas emission, and occupational exposures (BHP, 2017).
Moreover, both Woolworths and BHP contributing equally to the security, safety and
wellbeing of the particular employees and people associated with them with the help of
various policies and practices designed for aboriginal employment, development, training,
recruitment and more. Coles, Target, Kmart, Bunning in UK, Bunning in New Zealand and
Australia in terms of their office works adopted the sustainability practice of Woolworths
(Woolworths, 2018). The product wise assessment of the company is done in respect of
timber, cocoa and agricultural products this empowers the internal comparisons. The
company has incorporated a separate division of industrial product evaluation along with the
value of supply chain. Supply chain management is the chief component of the Woolworths
business operation. The Sustainability report of Woolworths is more detailed and
comprehensive. However, internal comparisons is not much made in terms of regional
performance in the BHP sustainability reports, the report of on BHP is less detailed (BHP,
2017).

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Both Woolworths and BHP are actively publishing their reports on their contribution
toward the cultural development of the regions of operations, climate change, human rights,
bio diversity, and environment practices. In whole in terms of the content of the sustainability
report, Woolworths has provided more insight of its activates in comparison to the BHP.
To save the resources for the future generation it is important for the companies to use
the resources efficiently and try to save the resources for the future. The sustainability not
only include the use age of resources it also include the effect of industrial waste on the
environment. Both companies are taking the topic of sustainability very seriously and while
conducting the various business activities they always to keep the use of resources effectively
and always try to keep the inner as well as external environment maintained. In the present
condition maintain the Sustainability report has become very important which will help the
companies in managing brand image for the stakeholders.
Answer 3
It was stated by the Woolworths that, Mr Brad Banducci the CEO of the company has
signed the CEO statement by stating its Support towards the Sustainable Development Goals
(Woolworths, 2018). The CEO of BHP Mr Andrew Mackenzie has also signed their Support
for the Sustainable Development Goals. As per the requirement of the assignment, there are
eight Sustainable Development Goals is been find out that are required by the business and
the industries of both the companies.
S. No Sustainable
Development
Goals
Segments Glimpse of the
manner in which
the goal is
addressed

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1 Life on Land  Timber
procurement
 Waste and water
 Climate change
resilience
The timber
production of the
company is
legally verified
responsible and
certified sources.
2 Climate Action  Climate change
resilience
In the financial
Disclosure the
companies has
shown their
support for the
recommendations
of climate related
task force
3 Reduced
Inequalities
 Community
Contributions
 Human rights
and Ethical
Sourcing and
Application of
ethical sourcing
and human right
audit report
4 Decent Work
and Economic
Growth
 Ethical Sourcing
 Suppliers
 People
Development
 Diversity
The Woolworths
has paid in total
8.7$ billion to the
workers in terms
of wages, salaries
and benefits. The

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total number of
the employees
across the
Australia is
Approx. 203000.
BHP has invested
6.5 $ billion for
the benefits of
the employees
5 Sanitation and
Clean Water
 Waste and
Water
BHP has invested
$ 16.7 for the
treatment of
Disposable of
Non-Hazardous
Waste.
Woolworths has
used 16000 mega
litre of water and
has recycled 32%
of water
6 Gender
Equality
 Diversity Both the
companies has
developed their
own gender
diversity policies,

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transition
guidelines and
gender
affirmation
7 Zero Hunger  Commitment
towards
Suppliers
Woolworths has
the policy of
Australian source
food first to
maximum extent
possible
8 No Poverty  Ethical Sourcing
 Community
Contributions
In 2017
Woolworths has
contributed $ 73
million as direct
funding to
community
organisation in
New Zealand and
Australia
(Source: BHP, 2017: Woolworths, 2018)
Both the companies are governed by the Sustainable Development Goals such as
strong institution, justice, peace, life on land, climate action, reduced inequalities, economic
growth, decent work, sanitation, clean water, gender equality, quality education, good health
zero hunger, and no poverty (Sustainable Development Knowledge Platform, 2018). The
companies adopt these goals as an openly in a form of product render activities and direct

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business activities or through employment opportunities generation or through various taxes
payment for resources used by the company and through social investment programmes.
Answer 4
According to the Zadek et. al, (1997), there are eight key standards of quality is been
prescribed that will provide aid in the evaluation of social accounting procedures of the
companies. The procedures that is been prescribed to provide a necessity guideline of
reporting and auditing the social activates, to identify the risk, and the interest of the
stakeholders and will help in making suitability activates transparent. Both BHP and
Woolworths has provided a detailed report on the activities performed under the social
responsibility. Both companies has identify and include the groups for continuing their
business activities such as shareholders, regulators, suppliers, customers, employees and
other stakeholders. Moreover, both BHP and Woolworths has prescribed their code of ethics
according to which every member of the company has to performance their duties. As per the
Dow Jones Sustainability index Woolworths was ranked 78.
In business reconstruction activities Woolworths has been continuously engaged. In
the sustainability report of the company is been mentioned that they perfume the social
activities as per their Brand value (Woolworths, 2018). The more details restated to social
reporting is mentioned in their sustainability report. For fulfilling the sustainability
development responsibility both the companies has identified their respective areas such as in
case of Woolworth’s timber and palm oil and in case of BHP greenhouse emission and
occupational hazards.
In the Financial report and in the Annual report for the year 2017 both the companies
have made a full disclosure of their mandatory data. Moreover, the companies have also
prepared their sustainability report for the disclosure of their ethical issues. The sustainability

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audit of BHP is done by KPMG as an external verification (BHP, 2017). Both the companies
have a full knowledge about the safety of their employees, climate change resilience,
community contribution and robust governance in terms of the social reporting.
Answer 5
(Source: BHP, 2017)
The sated values of BHP from the first figure states the rate of Total recordable
injuries the total recordable injury for year 2017 is 4.2 per million hours worked the
improvement of 2% is been noticed from the past year and in total 9% improvement in been
noticed from past five years (BHP, 2017). The second figure shows the rate of deaths
occurred at the work place by seen the data of the company it is been noted that the company
is providing better facilities at their work places because the case of death is reduce to 1 in
year 2017 and in 2016 there no case of death is recorded. As per the third figure the
employees occupational illness is been reported illness due to noise-induced hearing loss is
reduced in 2017 in compare to 2016n but the musculoskeletal illness has increased and the
other illness due to work was also increased in 2017 (BHP, 2017).

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(Source: Woolworths, 2018)
The stated value of first figure of Woolworths states that the emission of the Co2 from
the various business activities of the company the maximum amount of Co2 emission is been
released from the supermarket in the year 2018 and same in 2016 and 2017. The least amount
of CO2 is been released from Thomas Dux in 2016, 2017 and 2018. In rest activities in
comparison to supermarket very less CO2 is been released. The second figure of Woolworths
stated the use of electricity in this also the maximum amount of electricity among the various
business activities is been used by Supermarkets and the least amount of electricity is been
used by the Thomas Dux in 2016, 2017 and 2018.
Answer 6
To evaluate the business activities of the chosen companies Woolworths and BHP, to
know the social and sustainable development of the companies, and to evaluate the business
value we have conducted a group discussion. In the first siting, we all have discussed the
business activities of Woolworths while discussing the business few of our team members
has raised a question on the ethical issues of the companies supply chain and on the
agricultural products procurement s these two are the main part of the Woolworths business
activities. we further disused that the company is engaged in the other business activities also
in addition to the supermarket such as hotel and gaming, petroleum, timber procurement and

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few other. In continuation of the discussion, we went on the Sustainability report of the
company in which we have found out the various activities that are performed by the
company for maintaining the environment and workplace balanced. The company was
engaged in the various social activities for generating employment opportunities, region
development, and to supporting the dealers in terms of investment and many more.
In our next setting we has decided to make our disusing on the working of the BHP
the working will include the business values and business activities of the company. The core
activities of the company are mining and extraction of the metals and minerals. The key
factors which is been identified through our discussion is that the main focus of the company
is been provided to the employees security and safety and on the legal obligation in terms of
extraction of the material.
Before starting the report we have compare the Sustainability report of both the
companies by comparing we found that both the companies are using different Sustainability
development goals. The sustainable development goals of the companies are based on their
business activities. While analysing the of the Sustainability report of the companies we have
come to know the importance of the sustainable development and the standards are set by the
UN for the companies to be followed (United nations Development Programme, 2017).

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References
BHP. (2017). BHP Sustainability Report 2017. Retrieved From:
file:///C:/Users/System04089/Downloads/2574690_1664922707_bhpsustainabilityrep
ort2017-42%20(1).pdf
BHP. (2018). BHP Sustainability Report 2017. Retrieved From: https://www.bhp.com/our-
approach
BHP. (2018). Our Business. Retrieved From: https://www.bhp.com/our-businesses
Gray, R., Dey, C., Owen, D., Evans, R., & Zadek, S. (1997). Struggling with the praxis of
social accounting: Stakeholders, accountability, audits and procedures. Accounting,
Auditing & Accountability Journal, 10(3), 325-364.
Sustainable Development Knowledge Platform. (2018). Sustainable Development goals.
Retrieved from: https://sustainabledevelopment.un.org/?menu=1300
United nations Development Programme. (2017). Sustainable Development goals. Retrieved
from: http://www.undp.org/content/undp/en/home/sustainable-development-
goals.html
Woolworths. (2018). About us. Retrieved From:
https://www.woolworthsgroup.com.au/page/about-us
Woolworths. (2018). Our business. Retrieved From:
https://www.woolworthsgroup.com.au/page/about-us/our-brands

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Woolworths. (2018). Woolworths Sustainability Report 2018. Retrieved From:
https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-
report.pdf