Ethics and Sustainability in Coles Australia

Running head: ETHICS AND SUSTAINABILITY IN COLES AUTRALIA
ETHICS AND SUSTAINABILITY IN COLES AUTRALIA
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ETHICS AND SUSTAINABILITY IN COLES AUTRALIA1
Executive Summary
Ethics and sustainability play an important role in determining the activities and decisions of
any business organization. Such business ethics aims towards establishing a sustainability in
the social and environmental relations of the organization. The significant objective of this
report is to analyze the ethical and sustainability problems faced by Coles Supermarket in
Australia, regarding the launch of their promotional campaign Little Shop. This campaign
contributed in increasing plastic pollution in the country, which goes against their
sustainability goals. Furthermore, this problem has been analyzed using the Stakeholder
theory, measuring the impact of the campaign on the organization’s internal and external
stakeholders. Additionally three alternative solutions have been provided along with
recommendations as to how this problem can be efficiently tackled. In conclusion, it is
mentioned how ethics and sustainability are essential for an organization in developing a
sustainable relation with its customers.

ETHICS AND SUSTAINABILITY IN COLES AUTRALIA2
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Scenario at Coles Supermarkets Australia.............................................................................3
Stakeholder theory and Business ethics.................................................................................4
Analysis of Coles Supermarket promotional strategy............................................................6
Impact on Stakeholders......................................................................................................6
Analysis of problem through Stakeholder Approach.........................................................7
Alternative solutions..............................................................................................................8
Recommendations......................................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................10

ETHICS AND SUSTAINABILITY IN COLES AUTRALIA3
Introduction
Business organizations are expected to follow certain ethics that can be either
normative or descriptive. Normative business ethics refer to the standards that depict the
manner in which the business entity must act (Michaelson, Pratt, Grant & Dunn, 2014). On
the other hand, descriptive business ethics refer to the analysis of beliefs of morality that
govern the behavior and actions of the business entity. In order to ensure ethical behavior and
actions, various business organizations formulate strategies that aim towards sustainability.
Ethics and sustainability are correlated in the operation of business procedures and aim at
benefitting either the society or environment, or both (Crane, Matten, Glozer & Spence,
2019). The report will analyze the defects of ethics and sustainability in Coles Supermarkets
Australia and will provide alternatives that can resolve the issue. Additionally, certain
recommendations will also be provided that can help in improving the organizations social
and environmental responsibilities towards sustainability.
Discussion
Scenario at Coles Supermarkets Australia
Coles Supermarkets Australia Proprietary Limited, better known as Coles, is a
renowned Australian retail, supermarket and consumer services provider with its
headquarters in Melbourne (Colesgroup.com.au, 2019). Along with its prime competitor
Woolworths, Coles accounts for almost 87% of the market in Australia (James, 2016). Being
a leading firm in the industry, the organization has social and environmental responsibilities
towards its customers.
With climate change emerging as a major global issue, various organizations around
the world are involving in corporate social responsibility programs that aim to contribute
towards sustainability (Allen & Craig, 2016). However, one of the leading agents of plastic