Woolworths' Corporate Social Responsibility

This assignment requires you to analyze Woolworths' approach to Corporate Social Responsibility (CSR) and sustainable development. It asks you to examine their specific policies, initiatives, and impact within the context of environmental, social, and economic factors. You will need to draw upon provided resources and research to support your analysis.

Running head: CSR 0
Management Theory and Practice

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Table of Contents
Introduction................................................................................................................................2
Woolworths Limited..................................................................................................................3
Significance of Stakeholder Theory in Sustainability................................................................3
Stakeholders Conflicting Interest...............................................................................................4
CSR Practices of Woolworths....................................................................................................4
Role of CSR Practices on Sustainability....................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Introduction
Corporate Social Responsibility (CSR) is defined as a business approach that focuses
towards sustainable development of various stakeholders of a company by delivering social,
economic and environmental benefits. The role of CSR approach has grown substantially
between modern corporations, and they implement this approach to increase their brand
reputation and sustain their future growth. CSR policies provide guidelines for corporations
in order to perform their duties in an ethical manner which assists in the development of
employees and society. This report will analyse the CSR activities of ‘Woolworths Limited’
which is an Australian supermarket chain that offers high-quality products to its customers
based on their requirements. Modern corporations focus towards needs of consumers and
offer products based on their requirements; the firms primary motive is customer satisfaction
rather than increasing profitability. This report will focus on analysing whether sustainability
is a significant social responsibility objective for ‘Woolworths’ by evaluating various
management theories. Further, the report will examine the CSR framework of ‘Woolworths’
and evaluate the organisational theories in the context of society and social values.

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Woolworths Limited
Woolworths operates in the retailing industry, and it is Australia’s largest supermarket
chain with services in 995 locations (Woolworths Group, 2017a). The company was founded
in 1924, and it operates in multiple locations of Australia, New Zealand and India. The firm
is known for offering high-quality products to its customers throughout its stores based on
their preferences. The corporation has implemented an effective CSR model which focuses
on sustainable development of its stakeholders. The firm generated revenue of AU$55 billion
in 2017 financial year (Woolworths Group, 2017b). The stakeholders in the company include
customers, employees, suppliers, shareholders, environment, and local communities.
Effective CSR model allows the corporation to perform sustainable practices that
improve its brand image and enhance market share. Woolworths Limited has implemented
‘Triple bottom line’ CSR theory which focuses on sustainable development three main parts
including social, environmental and financial (Solomon, 2016). Organisations implement this
framework to evaluate their performance in a broader perspective in order to create better and
greater business value. The CSR report of Woolworths provides that it has established an
effective CSR framework that focuses on sustainable development of people, planet and
prosperity.
Significance of Stakeholder Theory in Sustainability
Traditionally, the primary objective of companies was to increase shareholders value
at any costs. In case of ‘Shareholder Theory’, shareholders were considered as owners of the
corporation since they take the risk of investing in firm’s operations, therefore, company give
preference to their interest and every other stakeholders’ interest were considered as
secondary (Tse, 2011). In recent years, companies focus on sustainable stakeholders’
development rather than shareholders’ value maximisation approach. The corporations
ethically perform their activities to ensure that they are fulfilling stakeholders’ interest while
at the same time contributing to the development of local communities which sustain their
future growth. Leading organisations adopt stakeholder development approach because
customers prefer to buy products from corporations that are performing their duties in an
ethical manner (Dos Santos, Svensson & Padin, 2013).

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As per the 2015 Global CSR study of Cone Communications, more than 91 percent
customers expect companies to be more socially responsible, 84 percent provided they seek
responsible products and 90 percent stated that they boycott an irresponsible corporation’s
products (Cone Communications, 2015). Woolworths has implemented stakeholder approach
to fulfil their corporate responsibilities ethically. The company offer high-quality products to
its customers based on their requirements and focus on reducing its carbon footprint. This
approach creates a positive brand image of the enterprise which assists in the sustainable
development of the firm.
Stakeholders Conflicting Interest
In Stakeholder approach, company focus towards fulfilling the interest of each
stakeholder but several times executives faces the problem when one’s gain is another’s loss.
For example, shareholders might not prefer that company invest heavily on environmental
factors such as recycling instead of shareholder’s value maximisation. Owners generally seek
higher profits which mean corporation have to reduce its staff salary (Carney, Gedajlovic &
Sur, 2011). The decision of outsourcing secondary activities can result in substantially
reducing company’s expenses, but it is not in the interest of employees since they will losses
their jobs. Therefore, executive of Woolworths has to ensure that company is considering the
interest of each stakeholder while taking an important business decision to avoid taking
actions that are detrimental to their growth.
CSR Practices of Woolworths
Woolworths has adopted ‘triple bottom line’ approach to fulfil its corporate
responsibilities which focus on the interest of people, planet and prosperity. The Annual CSR
Report of Woolworths provides that corporation perform following activities to ensure that it
is fulfilling stakeholders’ interest which assists in sustainable development (Woolworths
Group, 2017c).
People
 The company is Australia’s second largest private employer with more than 202,000
employees working across its stores including more than 77 thousand young workers
below the age of 25. The firm is ‘closing the gap’ between Aboriginal and non-
Indigenous people by providing them jobs and healthcare facilities. The corporation

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has more than 950 Indigenous employees; by 2020, more than 2 percent of company’s
staff will be Aboriginal people (Diversity Dimensions, 2016).
 Closing the gap between male and female employees by providing them equal pay
and growth opportunities. The company also promote LGBT people to maintain
diversity in its operations.
 By 2020, at least 40 percent of company’s senior and executive staff will be female
employees (Woolworths Group, 2017d).
 The company 82 percent positive employee engagement score which means it
continuously engages with employees and consider their opinion while taking key
business decisions.
Planet
 The corporation is committed to reducing food waste in Australia by purchasing less
stock, improving waste management system and implementing food rescue and
farmers programs.
 95 percent of fruits and vegetables offered by the firm are freshly grown in Australian
lands and meat offered by the enterprise is 100 percent fresh or else the company
refund its customers (Woolworths Limited, 2008).
 The corporation is moving to “circular economy” by stop using plastic bags, wasting
energy resources, improving recycling programs, and using recyclable meat trays
(Dos Santos, 2011).
 The firm has taken appropriate steps to improve animal welfare such as banning
caged eggs, implementing higher welfare standards for dairy and no animal testing.
Prosperity
 The company establish a positive relationship with its suppliers and local community
and actively participate in their development.
 The firm follows guidelines for ‘Global Social Compliance Program’ to ensure that it
is ethically performing its practices and developing workers’ lives (Australian Food
News, 2017).
 The corporation gives back to the community by funding various charities and
proving funds for charitable causes such as Cyclone Debbie.

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Role of CSR Practices in Sustainability
Woolworths Limited has implemented an effective CSR framework that focuses on
the development of different stakeholders. Sustainable development is one of the primary
objectives of the enterprise and top-level management ensure that they are implementing
policies to promote sustainability. Organisation offers high-quality fresh products to its
customers throughout its stores and promotes diversity in its workforce. The firm ensures that
it is not polluting the environment and implemented effective recycle programs that reduce
food waste and energy consumption (Orlitzky, Siegel & Waldman, 2011).
The company maintain a positive relationship with suppliers and local community and
implement policies for their development. All these factors assist Woolworths in maintaining
a positive brand image. Customers prefer to buy products from the company because it
ethically performs its duties and contributes to society’s development (Carroll & Shabana,
2010). It provides a competitive advantage to Woolworths and assists them in becoming
Australia’s largest retailer. Effective CSR structure provides company loyal customer base
that increases its sales. The commitment of corporation towards CSR practices assists them in
gaining competitive advantage and sustains its future growth.

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Conclusion
Conclusively, Woolworths has implemented an effective CSR framework by
implementing ‘triple bottom line’ theory which assists in ethically fulfilling its corporate
responsibilities. The top-level executives of the company consider the interest of each
stakeholder while taking a significant business decision which increases firm’s brand image.
The corporation promotes employee diversity, equal pay, better working conditions, equal
growth opportunities and engagement programs. The firm also takes appropriate actions to
reduce environmental pollution, increase energy consumption, and promote recycling. These
factors assist the corporation in maintaining a positive brand image which increases
company’s sales and market share which assist in sustainable development. The growth of
Woolworths proves that effective compliance with CSR policies assists corporations in
achieving sustainable development.

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References
Australian Food News. (2017). Woolworths sets 2020 corporate responsibility strategy.
Retrieved from http://www.ausfoodnews.com.au/2017/02/13/woolworths-sets-2020-
corporate-responsibility-strategy.html
Carney, M., Gedajlovic, E., & Sur, S. (2011). Corporate governance and stakeholder
conflict. Journal of Management & Governance, 15(3), 483-507.
Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social
responsibility: A review of concepts, research and practice. International journal of
management reviews, 12(1), 85-105.
Cone Communications. (2015). 2015 Cone Communications/Ebiquity Global CSR Study.
Retrieved from http://www.conecomm.com/research-blog/2015-cone-
communications-ebiquity-global-csr-study
Diversity Dimension. (2016). Woolworths. Retrieved from http://diversity-
dimensions.com.au/woolworths/
Dos Santos, M. A. (2011). Minimizing the business impact on the natural environment: a case
study of Woolworths South Africa. European Business Review, 23(4), 384-391.
Dos Santos, M.A., Svensson, G. and Padin, C., 2013. Indicators of sustainable business
practices: Woolworths in South Africa. Supply Chain Management: An International
Journal, 18(1), pp.104-108.
Orlitzky, M., Siegel, D. S., & Waldman, D. A. (2011). Strategic corporate social
responsibility and environmental sustainability. Business & society, 50(1), 6-27.
Solomon, D. (2016). Analysis of Woolworths CSR strategy. Retrieved from
http://devsolomon.com/analysis-of-woolworths-csr-strategy/
Tse, T. (2011). Shareholder and stakeholder theory: after the financial crisis. Qualitative
Research in Financial Markets, 3(1), 51-63.

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Woolworth Limited. (2008). The Facts About Grocery Retailing at Woolworths. Retrieved
from http://library.corporate-ir.net/library/14/144/144044/items/287977/
FactsAboutGroceRetailingatWoolworths.pdf
Woolworths Group. (2017a). Woolworths Supermarkets. Retrieved from
https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/
Woolworths/
Woolworths Group. (2017b). Annual Reports. Retrieved from
https://www.woolworthsgroup.com.au/page/investors/our-performance/reports/
Reports/Annual_Reports
Woolworths Group. (2017c). 2017 Corporate Responsibility Report. Retrieved from
https://www.woolworthsgroup.com.au/icms_docs/189425_corporate-responsibility-
report-2017.pdf
Woolworths Group. (2017d). Encouraging Diversity. Retrieved from
http://crs.woolworthsgroup.com.au/page/people/