Integrating CSR and Issues Management in Woolworths
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This report analyzes the role of CSR and Issues Management in Woolworths, an Australian supermarket store. It discusses the impact of CSR on brand image and reputation, and the role of media relations in CSR issues. The report also provides recommendations to improve the CSR status of Woolworths.
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Running head: MANAGEMENT Management Name of the Student Name of the University Author note
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1 MANAGEMENT Executive Summary The report has thrown light on analyzing the importance of CSR in the different organizations as they play a vital role in managing the various operations successfully. CSR is the efforts of the organization as to improve the society in some manner and the company taken in the report is Woolworths. Woolworths have initiated different CSR related activities that have helped them in managing the operations successfully and gain competitive advantage. The CSR is essential in organizations as it will improve the overall sustainability-related practices in the organization and improve the overall welfare of the organization. The potential benefits of CSR in an organization is the better recognition of the brand along with a positive business reputation that has assisted them in managing operations in a successful manner. Additionally,theCSRrelatedactivitieshavebeenunethicalatWoolworthsinwhich recommendations have been provided to improve their status.
2 MANAGEMENT Table of Contents Introduction............................................................................................................................3 Overview of Organization....................................................................................................3 Integrating CSR and Issues Management..............................................................................3 Definition of CSR................................................................................................................3 Theories Related to CSR....................................................................................................3 Definition of Issues Management........................................................................................4 Theories Related to Issues Management............................................................................4 CSR Issues Management...................................................................................................4 The role of CSR within your organization...............................................................................5 Features of CSR Practices and Communication in Woolworths..........................................5 Communication Activities and Tools...................................................................................5 Key Stakeholders concerning CSR Program Issues Communicated by Woolworths..........5 Impact of CSR on Brand Image and Reputation.................................................................6 Role of CSR Issues Management for your organization.........................................................6 Features of CSR Issues Required to be Managed by Woolworths.....................................6 Role of Media Relations in CSR Issues..............................................................................6 Impact of CSR Issues on Organization’s Brand Image and Reputation..............................7 The consistency of company corporate communication messages........................................7 Discussion on Consistency of Messages Being Communicated to Key Stakeholders........7 Overall evaluation of communication in the organization and your specific recommendations ...............................................................................................................................................8 Conclusion.............................................................................................................................9 References...........................................................................................................................11
3 MANAGEMENT Introduction The report throws light on analyzing and integrating the role of CSR and Issues managementwhicharerequiredintheorganizations.ThepurposeofCSRissues management is analyzed within the company as this will provide analysis of the effects of the CSR on the brand image and reputation of the organization. Moreover, the consistency of the corporate communication strategies of the company is analyzed which is necessary to be communicated to the stakeholders of the company. Overview of Organization Woolworths Supermarket is an Australian supermarket store which was founded in the year 1924, and they are earning more than 80% of the shares of the company in the Australian market. The headquarter of the company is at New South Wales, Australia and the number of locations wherein Woolworths is operating is 995. The number of employees working at Woolworths is 115000, and the revenue earned by them is A$56.726 billion till the year 2017 (Woolworthsgroup.com.au, 2019). Integrating CSR and Issues Management Definition of CSR Corporate Social Responsibility is the type of international private business self- regulation.SocialResponsibilityisdefinedastheprinciplewhereinthedifferent organizationsneedtocontributetowardsmaximizingtheprofits.Furthermore,Watson (2015),hasopinedthatduringthelastfewyears,CSRhasbeendevelopedand implemented in many big and SMEs as it has been treated as the marketing strategy which has been widespread as the factor of differentiation along with awareness for the customers. Theories Related to CSR Stakeholder Theory of CSR-Belal (2016),has commented that since the 1990s, the particular theory has become famous as the direct type of alternative along with a challenge too as the shareholder value theory. It has been argued that the number of different stakeholder pressure groups. The stakeholder view of strategy helps in integrating both market-based view and resource-based view, and it adds to the socio-political aspects. Business Ethics Theory of CSR-As commented byWang et al. (2016),the business ethics theory is based on the more general social kind of obligation along with an analysis of the moral duty of the business which has towards the entire society. The
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4 MANAGEMENT particular theory justifies the CSR on three varying levels of interrelated ethical aspects which are described as follows: Corporate Citizenship(wherein it consists of the notion that the corporation is treated as the better citizen in the entire society to contribute towards the social wellbeing) Emerging along with changing social expectationsand responsiveness to the different social problems Kantian ethicsinspires intrinsic ethical values, and they are being denoted as universal principles such as justice, fairness along with human rights Shareholder Value Theory of CSR-As per the own theory, it can be analyzed that the CSR of the different businesses is to develop the different profits along with following the different legal kind of norms which will be beneficial for the overall success of the firm appropriately.Theparticulartheoryisastrategicinstrumentformanagingcorporate competitive advantage and more gain in the profit (Saeidi et al., 2015). Definition of Issues Management As commented byWaddock, (2017), issues management is the entire process through which the different companies manage the different policies along with identifying the different trends and issues which could impact the different activities in the future. There can be the inclusion of various problems related to staffs or the suppliers which can create a negative impact on the project. Theories Related to Issues Management As commented byVoegtlin & Greenwood, (2016),Structural FunctionsSystems Theoryis one ofthe essentialelements in the Issues Managementas this helpsin managing the issues through environmental scanning. In the particular aspect, it can be identified that each member in the organization are required to be involved in the decision- making process as it will help in dealing with crisis and keep the communication lines transparent and open. CSR Issues Management Suliman, Al-Khatib & Thomas, (2016), haveopined that the CSR issues management is inclusiveof the differentkinds ofnegative aspects whichhave been faced by the organizations in selling various products and services to the customers in the market.For instance-As per the survey which was conducted, more than 50% of the customers in the
5 MANAGEMENT US have boycotted the organization at some time which was due to the lousy customer choice, and it was not environmentally sound in the approach as well. The role of CSR within your organization Features of CSR Practices and Communication in Woolworths As commented bySu et al. (2016), Corporate Social Responsibility is a prominent aspect in the 21stcentury which helps in heightening the expectations of the different customers regarding maintaining the environmental and social standards. The Employees Credit Union of Woolworths is committed to supporting and implementing the effective CSR program which assists in integrating the social and ecological responsibilities in the daily operations which are performed by them. The roleof the employees of Woolworths is to communicatewith the different stakeholders of the organization towards managing CSR programs are inclusive of the following: Be respectful towards the environment along with leads the environmental influences in an active manner The main aim of Woolworths is to increase the overall awareness of the different environment-related issues along with providing proper assistance to the members as to act in a sustainable manner Furthermore, the other purpose of Woolworths is to promote the overall financial well- being along with the literacy of the members working in the company Communication Activities and Tools With the implementation ofsocial media channels, Woolworths try to communicate stakeholdersasthiswillbehelpfulinpromotingcorporatetrustandtransparency. Woolworths applies the same wherein it is the two-way communication as there will be mitigation of the risks and there will be increased transparency in the conveying of the message from one party other. The sustainability of the environment is a big focus for positioning their brand by aligning the sales of the company by Planting a tree movement. Woolworths feel that planting of trees is the accurate manner to give back to the planet and save the earth (Flammer, 2015). Key Stakeholders concerning CSR Program Issues Communicated by Woolworths Customers-Throughout over 1500 stores and the company makes an effort to satisfy the requirements of customers around the sustainability and quality of the product (Wecu.com.au, 2019)
6 MANAGEMENT Employees-There are 46000 employees across the global kind of operations by creating a conducive environment. Suppliers-Thecompanystrivestodevelopdifferentactivitiesthroughthe sustainable manner Communities-Woolworths is involved in community upliftment activities in areas within areas wherein they operate Impact of CSR on Brand Image and Reputation CSR activities can create a positive and negative effects on the brand reputation of the organization as it has helped Woolworths in leading to the creation of a better brand imagewiththeawarenessofcustomerswhichmoderatestherelationship.TheCSR activities of 2020 of Woolworths focuses on generating sustainability in the environment and protecting the planet. CSR is the emotional aspect of the brand image that enhances the competitive advantage of Woolworths to preserve the brand create values for the customers in the market (Fatemi, Fooladi & Tehranian, 2015). Role of CSR Issues Management for your organization Features of CSR Issues Required to be Managed by Woolworths The CSR issues which are required to be managed by Woolworths as to reduce the particular issues and make the environment a better place for living. Working Conditions-By ensuring the possible employment, as per the application of provisional and statutory provisions, it can be identified that Woolworths needs to manage discrimination in the workplace along with constructive cooperation is mandatory with social partners which is the essential part of the same. The Environment-It is the other aspect which is required to be managed by Woolworthsasresponsibleenvironmentalmanagementcancontinuouslyimprovethe impact of enterprise on the environment. Woolworths needs to include progressive internal environmental management system which should be based on high standards which will be responsible for the consistent reduction of greenhouse gases and contingency plan for reducing harmful effects on the environment. Combating Corruption-It is the aspect as corruption can have dreadful impacts on the different functions of the organization. Woolworths can play a significant role in fighting crime by introducing the different internal control mechanisms which can be done by training employees accurately.
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7 MANAGEMENT Role of Media Relations in CSR Issues Target Audience-Through social media, the different CSR related activities can be communicated to the customers regarding the sustainability issues faced by the company. This will help in analyzing the buying behavior of customers from the respective company (Petrenko et al., 2016). Authenticity-Through social media channels, it will help in developing a standard operating procedure which will be beneficial in making customers understand authentic, sustainable practices of the company. Your Story-Through social media platform, there can not be any duplicity of the story as it will be ethical trading and ethical advertisement which will be showcased. Impact of CSR Issues on Organization’s Brand Image and Reputation When there is unethical usage of the different products and services along with unethical trading, it will affect the brand image of the company negatively. In Woolworths, the company has been facing issues relating to illegal practices such as workplace bullying and harassment that affected theirreputationin the market.There has been a breach of industrial law that affected the overall reputation of the company; however, there has been a change in different practices which helped the company to become ethical in their dealings and trading. The consistency of company corporate communication messages Discussion on Consistency of Messages Being Communicated to Key Stakeholders The flexibility of the message is essential of the everyday business activities as the stakeholders’ value the most-up-to-date consistent information. The employees are required to be trained which is needed to be updated as it will make the content compatible and regularly updated. Woolworths needs to employ such consistency in messages which will be useful in managing the overall sustainability in the business activities appropriately. In the case of Woolworths, the consistency of the message is being maintained across all facets including departments and the outside stakeholders of the company. The staffs atWoolworthsknowsaboutthe latestcontacts and issuesthathelpthemin managing the overall activities accurately. While hiring the candidates, Woolworths try to conveythedifferentrulesandregulationsregardingtheworkingenvironmentofthe company along with leading trust among the employees (Woolworthsgroup.com.au, 2019).
8 MANAGEMENT In case of thecustomers,it can be analyzed that Woolworths has been conveying similar messages regarding the availability of the products and the sustainability practices of 2020 which is correct and it has helped them in building strong relationships with them. The working towards zero wastage of food is helpful in managing the operations successfully. The inspiration provided to customers to consume the products sustainably is the other approach. In the case ofsuppliers,the 2020 sustainability approach is to achieve top quartile ranking to engage themselves with suppliers and generating sustainably sourced food items to the customers. There have been partnership programs for reducing the carbon emissions below 10% by 2020 which will be useful in managing the overall indigenous growth and make the activities more sustainable and prosperous (Quarshie, Salmi & Leuschner, 2016). Woolworths tries to manage the overall consistency in the message as this will help in building a better relationship with the stakeholders especially the employees, suppliers, and customers as they are an integral part of the system. Through the consistent messaging system, Woolworths have gained the positive brand image as they will be more inclined in keeping working with the team on future projects and it will help in overcoming the problem (Fernández‐Kranz & Santaló, 2010). It can be detrimental if there is inconsistency in the message, it will build a negative impact on the brand image of the firm. In the previous years, there has been inconsistency in a letter sent to the suppliers that affected their growth, and it changedtheirbrandimagenegativelyasallsupplierswerenotprovidedwithsimilar information. Overallevaluationofcommunicationintheorganizationandyourspecific recommendations Proper communication channel plays a vital role in managing and establishing overall effectiveness in the organization effectively. In the case of Woolworths, the company needs tocreate the proper process of communication with the workforce of the organization asitwillassisttheminaddressingtheconflictsandgrievancesofemployees positively. In such cases, Woolworths can arrange various meetings by the formulation of the grievance committee by implementing proper communication process with employees that will improve the overall working environment of the employees. From the different survey reports of Woolworths, it can be seen that present employee relationship policies are successful to a great extent n maintaining relationship with the employees and customers of Woolworths (Schrempf-Stirling, Palazzo & Phillips, 2016).
9 MANAGEMENT Furthermore, the different policies implement the active type of initiatives to handle the grievances and conflicts of employees with success. With the implementation of employee grievances policies, it has been useful for Woolworths in enhancing the productivity of the of everyemployee.Additionally,regardingthecustomersofWoolworths,theyhave communicated the different sustainable practices followed by the company. However, there are various legislative powers which should be taught by the organization as it will be helpful inimplementingafairpolicyfortheemployeesasthiswillimprovetheworkplace environment. Ithas been seen that the safe workplace environment was the primary concernofWoolworthsastherehavebeendifferentcasesofbullyingand harassment among the employees which were the major issue that affected the growthof organization negatively (Kang, Germann & Grewal, 2016). From the above, the recommendations which can be provided to Woolworths in managing the different CSR activities in the organization are described as follows: Firstly, it can be recommended that Woolworths needs to aim at performing continuous innovation in the various operations which are being conducted by them by making the operations sustainable. The main reason is that that the preferences of the customers are changingthroughsustainablepracticesthroughleveragingthedifferentsocialmedia channels which will encourage the users in taking part to promote the brand initiatives among the customers. The customers prefer a sustainable image of the organization which will be helpful in purchasing the different products and services as it will clean up their public image (Crs.woolworthsgroup.com.au 2019). On behalf of the employees, Woolworths need to improve the different policies such as the implementation of various systems namely equal opportunity act and discrimination actwhich will play a vital role in managing the motivation among employees. Woolworths needtoenhancesupportfromskilledemployeesbywayofadditionaltrainingand development activities mechanism to support the operations. By implementing the CSR related activities, it will be helpful in creating stable and thriving communities which will benefit the company and society.Woolworths need to encourage employees to volunteer their time which will improve the overall local and global community. Thesearethetwosignificantrecommendationswhichcanbeprovidedto Woolworths as it will clean up their public brand image and gain sustainability in the different business-related activities.
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10 MANAGEMENT Conclusion Therefore, it can be concluded that CSR is one of the essential aspects which is required to be followed by different organizations as it helps in improving public image. The corporations can educate the public perception by supporting the non-profits through strong partnershipswhichwillcreateapositivekindofrelationshipwiththecustomers. Furthermore, in case of Woolworths, the CSR activities can play a vital role in increasing the engagement of the employees as more than 60% of the employees are proud of the different corporate social responsibility policies as they prefer to dedicate their work towards the welfare of the communities. There have been various issues related to CSR which can be implemented by the Woolworths Company to improve the overall situation by increasing the level of communication towards the different investors and other stakeholders as this will improve the global efforts of the company positively.
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