Woolworths Sustainability Practices Analysis

This assignment requires an in-depth analysis of Woolworths' sustainability practices. Students must examine the company's Corporate Social Responsibility (CSR) strategy, its environmental impact, and how it engages with stakeholders. The task involves evaluating Woolworths' initiatives, policies, and performance in areas such as waste management, carbon emissions, ethical sourcing, and community engagement. The analysis should consider both successes and challenges faced by Woolworths in its sustainability journey.

Running Head: Corporate Sustainability 1
Corporate Sustainability

Corporate sustainability
Executive summary:
Corporate sustainability is considered as business approach which creates value for long term
shareholders in the organization by grabbing the opportunities and managing the risk which is
derived from economic, environment and social development. Concept of corporate
sustainability is mainly relying on two guidelines principles, and these principles are stated
below:
 Sustainable business practices are most important for the purpose of creating long term
value for shareholders in this resource constrained environment.
 Sustainability factors also represent various opportunities and identify risks which must
be addressed by the competitive companies.
Megatrends related to corporate sustainability are changing our world and it has major impact
on the companies. Company face various long term challenges such as scarcity of resources,
demographic shifts, expectations of society, public policy, etc.. These long term challenges
create new opportunities and risks that must be addressed by the companies today for the
purpose of remaining competitive tomorrow. It becomes necessary for the companies to manage
the present and future opportunities and risk related to economic, environmental and social by
mainly focusing on the quality, innovation and productivity. All these activities emerge this
company as leader and result in long term stakeholder value and competitive advantage in the
company.
Quality related to the strategy, management, and performance of the company in terms of
opportunities and risks related to economic, environment, and social can be quantified, and it
can also be used for the purpose of identifying the leading companies for investment purposes.
For assessing all these things, corporate sustainability assessment is developed for the purpose
of helping the investors as well as consumers, and also for dealing the sustainability issues.

Corporate sustainability
Contents
Executive summary:....................................................................................................................................2
Introduction:...............................................................................................................................................4
Objective:....................................................................................................................................................5
Situational Analysis:.....................................................................................................................................6
Strategy of Woolworth:...............................................................................................................................8
People:.....................................................................................................................................................8
Planet:.....................................................................................................................................................9
Prosperity:...............................................................................................................................................9
Competitive advantage:............................................................................................................................10
Conclusion and Recommendations...........................................................................................................10
References:................................................................................................................................................11

Corporate sustainability
Introduction:
Corporate sustainability is introduced as new and innovative corporate management structure,
and this approach is used in deliberate manner, and considered as alternative in terms of both
models that are growth and profit-maximization. Corporate sustainability also stated that both
growth and profitability are most important factors of organization to survive. Corporate
sustainability also stated that corporation must consider societal goals, especially those goals
which are directly relating to the sustainable development, protection of environment, social
justice and equity, and development of economy (Robecosam, n.d.).
As per literature, concept of corporate sustainability is mixture of four other elements, and these
elements are sustainable development, corporate social responsibility, stakeholder theory, and
corporate accountability theory. In these elements the most important element are sustainable
development and corporate sustainability.
Sustainable development is a broad and dialectical concept which mainly balances the need of
the economic growth, environmental protection, and social equity. The contribution of
sustainable development to corporate sustainability is two-fold. Firstly, it established those areas
which must be considered by the organization at priority basis, and these areas are
environmental, social, and economic performance. Secondly, it provides the common societal
goal for corporations, governments, and civil society to work toward: ecological, social, and
economic sustainability.
Corporate sustainability is also a broad and wider concept, and it mainly deals with the role of
business in the society. The basic principle of this CSR states that managers of the corporate are
under ethical obligation to consider the needs and requirement of society also and not only the
needs of the shareholder of the company. There are number of ways through which CSR is
addressed, but in actual corporate managers are not under obligation to consider the needs of the
society, but the extent to which they must be considered these needs (Wilson, 2003).
On the other hand, stakeholder theory states any group or individual who can affect or is affected
by the achievement of the objectives of the organization. The basic principle behind this theory is
that if company builds stronger relations with outsider parties, then it became easy for company

Corporate sustainability
to achieve its target. If company builds week relations with outsider parties, then it became hard
for company to achieve its target.
This paper defines the concept of corporate sustainability and also the strategy plan to achieve
the corporate strategy. For the purpose of making strategic plan, we choose Woolworths Limited.
Woolworth Limited is a retail chain which is made from some trusting brands.
Objective:
In 2007, Woolworths introduce its first Sustainability Strategy, called "Doing the Right Thing,".
From that time, company also primarily focus on corporate responsibility and sustainability
programs, and also ensures that company focus on this issue in future also.
Current strategy of Woolworth’s group related to Corporate Responsibility identified 20
corporate responsibilities, sustainability goals, and commitments that Woolworths decide to
achieve by the end of FY’20. This strategy is named as Corporate Responsibility strategy 2020.
The goals and objectives of this strategy covers wide range of stakeholder’s of Woolworth such
as customers, team members, suppliers and the communities in which Woolworths conduct its
operations. This strategy uses Corporate Responsibility framework of Woolworth’s that is
People, Planet, and Prosperity. This framework was introduced by the company in 2015, and this
framework includes following goals in its ambit.
People - encouraging diversity:
 Company ensures gender equality in the organization, and targeted that at least 40%
position of executives and senior executives must be held by woman.
 There must be no salary wage gap between the male and female employees of the
organization at equivalent positions, which means wages at per hour rate at all the levels
of the company.
 Increase diversity in the working by increasing the indigenous people in the team in
context of commitment made by Woolworth’s under the Federal Government's
Employment Parity Initiative.
Planet- Healthy Australia:

Corporate sustainability
 Company targeted zero wastage of food which is going to landfill.
 Company committed to reduce the carbon emission up to 10% in comparison of 2015
levels.
Prosperity:
 Organization targets to achieve top ranking in the fairness and equity, which means how
Woolworth’s engages fairly and equitably with the suppliers of Woolworths, and this is
measured by independent supplier surveys.
 Woolworth inspires the consumer to consume all the products of the Woolworth in
healthy and sustainable way.
 Investing the equivalent of almost 1% of 3 year rolling average of total Group Earnings
before Interest and Tax (EBIT) in community partnerships and programs (Woolworths,
n.d.; AFN, 2017).
Situational Analysis:
This section of the report includes the strategic analysis with respect to the strategy conducted by
the Woolworth in achieving its target of corporate sustainability:
SWOT Analysis:
Strength Weakness
Woolworth is the one of the oldest and well-
known brand in Australia.
This company has large number of
supermarkets and also has big share in market.
Company offers wide range of products and
services.
Efficient and effective CSR program is
Company has very low presence at
international level.
Losing competitive advantage in terms of
competition.
Company took very late entry in online retail
market.

Corporate sustainability
operated by the company.
Strong commitment of the organization
towards environment and safety.
A good amalgamation in terms of online and
brick and motor based sales channel.
Opportunity Threats
Growth in the retail sector, and company can
ensures this growth by framing effective
policies and procedures.
Company can make better promotions for the
purpose of getting their customers back and
increase the loyalty of consumers.
Company can ensure huge retail market
because of the emerging economies.
Company can use the social media as a tool for
the purpose of engaging the consumers.
Company can also introduce new and
innovative products in the market, for meeting
the changing needs of the consumer (FernFort
University, n.d.).
The biggest threat for Woolworth is
discounting wars and coles.
In last few years, company lost various
consumers because of the changing trends of
the shopping.
Expansion of competitors of Woolworth, such
as Aldi.
In Australia, there is slow growth of online
retail industry.

Corporate sustainability
PESTEL Analysis:
political Economic factors
Woolworths is the big name in retail industry,
and this organization is fulfilling the needs of
its customers through its different retail outlets.
Woolworth get benefit from the economic
relations of Australia and New-Zealand, named
as Australia-New Zealand Closer Economic
Relations Trade Agreement (ANZCERTA).
This trading cooperation gets two economies to
Woolworth at that time when Woolworth is
operating in single economy (Woolworth
Limited, 2015).
Two economic factors that are recession and
unemployment strongly affect the financial
performance of the business entity because
both the factors result in lower sale which
ultimately decrease the financial performance
of the company.
Condition of Woolworth also decline because
of the global financial crises which cause
severe effect on the financial aspects of the
business (Hall, 2009).
Company also suffers major loss at the time
when it has to close its operations to UK,
which result in unemployment of around
30000 people.
Social factors Technological factors
Customers are considered as important source
of revenue in the business and for the purpose
of sustained profitability in the business, it is
necessary that organization identifies the needs
of the target market and also develop the plan
which mainly focuses on the fulfillment of
those needs. This concept was recognized by
the Woolworth, and companies include the
experience of customer as part of the sales
strategy and profitability. Company introduce
new and innovative ways foe fulfilling the
needs of the customers and encourage the
In case of retail sectors, the new form of
technology that increase the shopping
experience of the consumers can be considered
as great source of profitability in the
organization. This can be understood through
example, such as RFID has long been part of
the retail stores and it mainly helps in
managing the inventory and keep check on the
stock availability. Woolworths also involve
SOA while conducting the operations for the
purpose of supporting this technology (Wynne,
2015).

Corporate sustainability
concept of customer’s delight (Woolworth
Limited, 2015; Business Tech, 2015).
Legal factors Environmental factors
The basic legal framework related to retail
industry includes taxation policies, recruitment,
and employee management. Some other
regulations are also important for retail
industry sector such as food safety regulations,
and it becomes compulsory for Woolworth to
meet with these regulations. In other words,
food items available at store must meet the
food regulations of the country and opening of
new stores in any country required the
approval of central government (Research
topics, n.d.).
Retail industry can ensures environmental
factors by adopting the business practices
which are environmental friendly or conduct
activities which cause minimum harm to the
environment. Woolworth tries to conduct such
activities which ultimately reduce the carbon
footprint in the environment (Woolworth
Limited, 2012; Iseal, n.d.).
Strategy of Woolworth:
Strategy of the Woolworth is divided into three sections that are people, planet, and prosperity.
Strategies related to all the sections of Woolworth strategy are stated below:
People:
Gender equity:
The goal of Woolworth is hiring greater number of women’s in the management of Woolworths,
by 2020. For the purpose of achieving this goal Woolworths strongly represent the women in
their business such as in support department as well as in operation department. Almost 50%

Corporate sustainability
workforce includes the women in Woolworths. Woolworths try to improve the representation of
women in management roles by posting the women talent at all the levels of the organization.
Embracing our diversity:
Workforce of Woolworths which understood the needs of the customers can helps the
organization in giving the best experience to the consumers in the shopping. For the purpose of
achieving this target, Woolworth mainly focus on the team members which mainly includes store
teams and these teams must reflect the communities in which the organization is serving. The
2020 goal of the organization is to focus on driving cultural diversity with a commitment that
team members of the organization reflects the community in which organization serves
(Woolworth Group, 2017).
Planet:
Target set by Woolworth ‘Towards zero food waste going to landfill’ is very ambitious in nature,
and this target was also set in the strategy of 07-15 but company does not achieved this target.
Currently, almost half of the waste stream is still wasting the food mainly because of the
insufficient sorting at the stores. Every year till 2020, company achieved a year-on-year increase
in tons of food waste which is diverted from the landfill. Company achieves this target by
continuously make reduction in the stock loss, by improving the behavior of the store
management, and also by improving the effectiveness of the farmers' program and the food
rescue program. There are number of social benefits related to the zero waste because food
rescue programs which offer opportunities on continuous basis for the purpose of contributing to
communities. Customers except from the Woolworth that company provide cooperation to the
community for the purpose of providing support food rescue, farmer and regional support.
Woolworth initiate various programs such as farmer and food rescue programs, and these
programs help the company in reducing the carbon footprint and also add value to the
communities in which company operates.
Australians are considered as serious recyclers, and customers of Woolworth considered it as
their responsibility which helps them in contributing their efforts in protection of environment.
Woolworth targeted to improve the recyclability in their own brand packaging and make their
contribution in the circular economy. Woolworths tries to decrease the non-recyclable packaging

Corporate sustainability
and increase recycled content. This can be understood through example, working towards the
elimination of expanded polystyrene and all these instructions are considered as important
guidelines for environment safety.
Prosperity:
Woolworths share strong relationships with their suppliers which help the organization in
delivering the better value to their customers through the trust, collaboration, and innovation.
Woolworth’s management of supplier’s relationships receives high level of scrutiny. Company
gets success in their 'Good Buyer and Supplier Principles' in our Endeavour Drinks Group, but
still there is scope of improvement. Woolworth’s Corporate Responsibility Strategy 2020 and
new brands help the organization in improving the trust of the consumers. Trust is built through
fair and equitable dealings which provide value to the consumers of the organization and also
fair return to the suppliers. Strategy 2020 set an ambitious target that 'We will achieve a top
quartile ranking in how we engage fairly and equitably with our suppliers as measured by
independent supplier surveys'. While supporting this target, organization is moving from
Annual Surveys to Biannual Surveys, and has developed a bimonthly ‘Voice of Supplier’ pulse
survey (Woolworth, 2017).
Competitive advantage:
Woolworth has trust of the consumers and it is the biggest competitive advantage which
Woolworths have. Woolworths earn the trust of their consumers because of the sustainable
practices conduct by the organization, such as current strategy of Woolworth’s group related to
Corporate Responsibility identified 20 corporate responsibilities, sustainability goals, and
commitments that Woolworths decide to achieve by the end of FY’20.
Woolworth has competitive advantage in Australia because of the size and scale of operations
conducted by Woolworths. Woolworth also holds leadership in the market of food and liquor in
Australia. There are number of house hold brands which are introduced by the Woolworth, and
these brands also help the organization in getting competitive advantage. Some of these brands
include Big W, Dick Smith, Beer Wine Spirits (BWS), Dan Murphys, Cellarmasters,
Caltex/Woolworths petrol offering, Masters home improvement and Danks. Woolworth also

Corporate sustainability
used their market position for the purpose of creating new streams in recent years such as
offering financial services and movement into the home improvement sector.
By delivering the better value to the supplier, Woolworths tries to create better relation with their
suppliers which help the organization in creating trust with their customers and provide
competitive advantage to the company. Relationship between company and suppliers is also
considered the most important thing, because it helps the organization in creating competitive
advantage with the company. This can be understood through example, Company gets success in
their 'Good Buyer and Supplier Principles' in our Endeavour Drinks Group, but still there is
scope of improvement.
However, company gets competitive advantage through the value they delivered to their
customers and also by providing the customers all the products on timely manner and this will
only happen when organization creates good relations with their suppliers.
Conclusion and Recommendations:
After conducting thee critical analysis of Woolworth strategic plan, it is clear that company
implement various important strategies for the purpose of achieving corporate sustainability.
These policies are undertaken by the company and the complete performance of the Woolworths
shows that company attains higher level of growth in its operations. This growth of the company
shows higher commitment of the company towards its customers and the employees. Evaluation
of external environment conditions faced by retail industry shows that various factors such as
governmental influences, changing social patterns and trends within customer, adverse economic
conditions have all negatively affected the strategy and growth of the Woolworth. Above facts
also show that internal environmental also affects the growth and profitability of the Woolworth
on the basis of above stated strategies. Following are some recommendations which are essential
in nature, and stated below:
 Woolworth must ensure that strategies framed by the management are consistent with the
political factors such as prevalent across the country, and it must aim in adapting the
strategies of fair pricing policy to its customers.

Corporate sustainability
 It must be aim that Woolworth must ensure innovation in the organization at continuous
basis, and this factor must be included as most important factor in the strategy framed by
the organization. This is mainly because consumer social trends and preferences are
changing on continuous basis can be efficiently addressed through considering this
strategy of higher growth levels.
 Strategy of the Woolworth also considered the future support of the skilled employees
through the way of additional training and development mechanism to its customer.
References:
AFN, 2017. Woolworths sets 2020 corporate responsibility strategy. Retrieved on 25th November
from: http://www.ausfoodnews.com.au/2017/02/13/woolworths-sets-2020-corporate-
responsibility-strategy.html.
Business Tech, 2015. Woolworths takes sweets and chocolates off checkout shelves. Retrieved
on 25th November from: https://businesstech.co.za/news/general/97057/woolworths-takes-
sweets-and-chocolates-off-checkout-shelves/.
Fern Fort university. Woolworths SWOT Analysis / Matrix. Retrieved on 25th November from:
http://fernfortuniversity.com/term-papers/swot/1433/1138-woolworths.php.
GreenBiz, 2008. Corporate Sustainability: It's All About Survival. Retrieved on 25th November
from: https://www.greenbiz.com/news/2008/06/22/corporate-sustainability-its-all-about-survival.
Hall, J. 2009. Woolworths: the failed struggle to save a retail giant. Retrieved on 25th November
from: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/6570626/
Woolworths-the-failed-struggle-to-save-a-retail-giant.html.
Iseal. Woolworths sees benefits of working with sustainability standards. Retrieved on 25th
November from: https://www.isealalliance.org/online-community/blogs/woolworths-sees-
benefits-of-working-with-sustainability-standards.
Research Topics, 2017. Pest Analysis Of Woolworths Limited. Retrieved on 25th November
from: http://research-topics.blogspot.in/2011/07/pest-analysis-of-woolworths-limited.html.
Robecosam. Corporate Sustainability. Retrieved on 25th November from:
http://www.sustainability-indices.com/sustainability-assessment/corporate-sustainability.jsp.
WECU. Corporate Social Responsibility Strategy. Retrieved on 25th November from:
https://www.wecu.com.au/about-us/csr-strategy/.

Corporate sustainability
Wilson, M. 2003. Corporate sustainability: what is it and where does it come from? Retrieved on
25th November from: https://iveybusinessjournal.com/publication/corporate-sustainability-what-
is-it-and-where-does-it-come-from/.
Woolworth Group, (2017). Woolworths Group launches Corporate Responsibility Strategy 2020.
Retrieved on 25th November from:
https://www.woolworthsgroup.com.au/page/media/Latest_News/woolworths-group-launches-
corporate-responsibility-strategy-2020/.
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https://www.woolworthsgroup.com.au/page/community-and-responsibility/group-
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failed-struggle-to-save-a-retail-giant.html.
Woolworth Limited, 2015. Annual Report. Retrieved on 25th November from:
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on 25th November from: http://www.abc.net.au/news/2015-07-21/forcing-shoppers-to-self-
checkout-risks-consumer-backlash/6636702.

Corporate sustainability