Marketing Corporate Communication Report: Coles Supermarket Australia

This report provides an in-depth analysis of Coles Supermarket's corporate social responsibility (CSR) practices and its corporate communication strategies. It begins with an executive summary and table of contents, followed by an introduction that sets the stage for the study. The discussion section integrates CSR and issue management theories, exploring the role of CSR within the organization and examining how Coles manages issues, particularly concerning suppliers and stakeholders. The report also evaluates the consistency of Coles' corporate communication across various platforms. The analysis incorporates business ethics theory and shared value theory, highlighting the ethical and philanthropic responsibilities of the company. Furthermore, the report delves into the positive impact of Coles' CSR initiatives, such as its Nurture fund and Australian First Sourcing Policy, while also addressing existing issues like supplier relations and pricing disputes. The conclusion summarizes the key findings and offers recommendations for enhancing Coles' CSR and communication strategies to maintain a positive brand image and strengthen stakeholder relationships. The report uses APA referencing style and includes an evaluation of Coles' current practices and potential improvements.

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MARKETING CORPORATE COMMUNICATION
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Executive summary
This paper focuses on the importance of corporate social responsibility (CSR) and provides
definition and different CSR approaches made by organizations and incorporated by
organizations that help organizations create a niche for themselves. This paper focuses on the
role of CSR on the company, Coles Supermarkets and the CSR practices incorporated by them
in their business. It also provides the issues regarding CSR in the company that may have
negative impacts on their business. Coles Supermarkets has been successful in incorporating
social responsibility in their business that has paved way for the success and the profits of the
business however there are some issues with their suppliers which they need to fix that will
boost their sales and their name in the market.

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Table of Contents
Introduction....................................................................................................................................3
Discussion......................................................................................................................................3
Integrating CSR and Issues Management............................................................................3
Role of CSR within organization.............................................................................................4
Role of CSR issue management for Coles...........................................................................5
Consistency of company corporate communication............................................................5
Evaluation...................................................................................................................................7
Conclusion......................................................................................................................................8

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Introduction
Corporate social responsibility (CSR) is considered to be a business model which is self-
regulated that helps companies or organisations are accountable socially to their stakeholders,
the public and most importantly themselves as well (Liang & Renneboog, 2017). CSR generally
means the operation of a business in ways that helps in enhancing the environment and the
society along with their general course of business (Herrera, 2015). Most organisations have
been incorporating CSR activities in their business structure to help and contribute to the society
and environment positively and also to make a positive reputation in the market which may
impact the organisation positively. This paper is going to focus on the management of the
company, Coles Supermarket Australia in terms of their corporate social responsibilities and the
existing issues of the organisation in terms of CSR.
Discussion
Integrating CSR and Issues Management
Every organisation these days performs some corporate social responsibility activities as
a payback to the society which paves way for the companies to acquire a positive reputation in
the market. According to the business ethics theory, CSR is based on three varied however,
interrelated ethical grounds (Werhane, 2019). First is the emerging and changing social
expectations and social responsiveness to specific social problems, the next is the intrinsic or
eternal ethical values that is inspired from the ethics laid by Kant and some universal principles
like fairness, human rights and social justice and the last is corporate citizenship which is
organisations or corporate as a good citizen that contribute to the betterment and social well
being of the society (Carroll, 1999). This theory sees CSR as an ethical and philanthropic
responsibility (Werhane, 2019). On the other hand, shared value theory argues that social
responsibility in the business is only performed in order to generate profits while aligning with
legal norms (Visser & Kymal, 2015). Carroll, (1979) has provides a conceptual model which
comprehensively describes the necessary and important aspects of CSR. According to the
model the three aspects address the important questions like what are usually included in CSR,
the social issues that an organisation need to address and the philosophy of an organization.
The model states that there are four types of social responsibilities that every organization
needs to follow which are the ethical responsibilities, legal responsibilities, discretionary

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responsibilities and economic responsibilities. The social issues that arise in the organisations
are usually consumerism, product safety, discrimination, environment and shareholders. The
methods of social responsiveness are proaction, defense, accommodation and reaction (Carroll,
1979). These help an organisation in contributing to the environment as well as the society
positively by aligning their course of business in an ethical manner which is beneficial for the
organization as well as the society.
Issue management is considered to be the process that helps in identifying and
resolving problems. Issues with suppliers, staffs, other technical failures may have a negative
impact on the society. (Cantrell, Kyriazis & Noble, (2015) opines issue management is
detrimental to the society thus CSR measures can be taken in order to overcome issues. It has
been seen that CSR has not only been a strategy for the growth of an organisation and for the
well being of the society but also a great approach to solve issues in an organisation.
Role of CSR within organisation
Coles Supermarket Australia is one of the leading supermarket chains in the country.
The company has acquired a positive reputation in the market because of their organisational
value that influences them to provide their customers with premium quality products and for the
corporate social activities that the company has incorporated. The CSR practices by Coles help
the people of the society and the environment. They provide charities to several NGO’s and
charities both local and national and aim at helping in improving the wellbeing and the health of
the community in the country. Coles Supermarkets in the year 2015, had launched their Nurture
fund of 450 million to help start ups and small businesses to grow, develop and innovate. Since
2015, Coles has helped around 50 different producers by providing them with sufficient funds for
the development of processes and technologies (Coles.com.au, 2019). Coles has come up with
an Australian First Sourcing Policy where the company sources grown food whenever and
wherever possible (Coles.com.au, 2019). Coles makes sure that they provide their customers
with quality products. They make sure and try to grow products mostly in Australia maintaining
the quality and safety standards that are set by the government. The company also contributes
to the welfare of the environment by focusing on recycling, waste management, and ethical
sourcing and resource efficiency (Coles.com.au, 2019). These practices have helped Coles in
making a brand identity for themselves. The practices incorporated by Coles have helped in
sustaining a positive reputation in the long run.

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According to scholars, most people want to identify and associate themselves with a
company having a positive reputation (Tran et al, 2015). Coles has managed to create a niche
for themselves with the ethical practices performed by them and has also helped themselves in
the market that has resulted in the company generating profits.
Role of CSR issue management for Coles
Coles Supermarket has garnered a positive reputation because of their CSR activities
that has helped the employees within the organisation as it has facilitated and encouraged
positive relationship in the workplace however; the company has been seen to be irresponsible
towards their stakeholders in the market. In order to meet their premium standards of their
quality of products and services the company has imposed certain conditions on fishing
companies that operate in the Pacific area that are unrealistic. Coles is said to have threatened
their suppliers to exclude the from the supply chain of the company if their sustainability
standards are not met (Burch, Lawrence & Hattersley, 2013). Coles recently has been going
through issues and has been in the standoff with the food manufacturers globally after they
refused to raise the prices of the popular products like cat food, oats and porridge (Loconto,
Poisot & Santacoloma, 2017). Mars Petcare refused to supply their famous pet food brands
which included My Dog, Dine, Pedigree and Whiskas after the company failed to secure the
raise in the prices of the products. The disputes between the Coles and their stakeholders have
left huge gaps in the shelves of the supermarkets and have led to trigger a huge number of
complaints from their customers who were voicing their anger and distress on various social
media platforms. Coles in an interview said that they were having some issues in terms of
availability of products with their suppliers that led to the stocks of pet food decrease. However,
the issue got solved but it gives an insight of a major problems. Coles did raise the prices of the
products because of the power of the company and it was a big company however, Coles will
have the power to suppress suppliers that are not powerful and which has led Coles to lose
many of their suppliers in the market.
These CSR issues are internal and may have a negative impact on Coles that may harm
the brand image and identity they created for themselves. Thus Coles need to make effective
measures that are ethical and will help them maintain a positive relationship with their suppliers
that will help in bringing organisational gains to both the suppliers as well as the company.
Consistency of company corporate communication

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Corporate communication helps organisations in explaining their goals, combine their
values and visions into cohesive messages to their stakeholders (Ellerup & Thomsen, 2018).
These are corporate messages to their customers, channel partners, general public and their
media. Different stakeholders in an organisation need different messages thus Coles
communicates their goals and vision to their employees, communicate their profits to their
shareholders, communicate their new products and new offers to their customers and the media
as the media is a medium to communicate and out across their messages to a wider range of
audience (Pankhurst, Collins & Macnamara, 2013). According to scholars, company corporate
communication is important for an organisation to ensure their messages and their mission and
vision are forwarded to their important stakeholders to ensure and maintain transparency
between the organisation and their important stakeholders to build trust and a reputation (Albu &
Flyverbom, 2019). However, it has been seen that Coles is consistent in communicating with
their various stakeholders that keeps the company in demand and creates a brand identity and
equity.
Coles Supermarket has a very active website through which they communicate their new
activities that they have incorporated in the business. The official website of the organisation
also provides details about job vacancies in their organizations. The CSR activities performed
and carried out by the company is a type of company corporate communication which
communicates the values and the morals that the company they usually follow in their
operations. The company also provides the ethical sourcing and things they do like ban plastic
to help the environment which paves way for a positive reputation as well as helps in attracting
customers to associate with them. Coles has currently adopted green marketing where they
have focused on several issues and market their products which are considered to be safe
environmentally (Coles.com.au, 2019). The company has taken up initiatives like sustainable
packing and waste recycling which has helped the company build a positive reputation as well
as relationship (Coles.com.au, 2019).
The CSR activities that is currently performed by Coles has been seen to have a positive
impact on the organisation as it has been seen to have built a positive and a fruitful relationship
with their customers. Their CSR activities have not only helped and contributed to the
betterment of the environment but has also helped many people in Australia. This has given the
company a positive brand identity and has contributed to the growth of Australia and that has
become an advantage for the company thus helps the company in generating profits.

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Evaluation
Coles Supermarket is said to be one of the successful organisation in Australia and it
has been seen that the organisation has had a good image in the public eye because of the
corporate social responsibilities performed by them. The company has an influence of the
business ethics theory in their approach which focuses mainly on philanthropic work and also
makes sure they benefit the environment. They have an influence of Kantian ethics which
promotes goodwill and also utilitarianism where they perform CSR activities to do good for the
majority of the people associated with them like the environment, their customers and most of
their stakeholders. However, it has been witnessed that Coles has some issues when it comes
to their suppliers as they have had imposed unrealistic targets for the suppliers that may
develop an unhealthy relationship which later can have negative impacts on the production of
the company (Grimmer, 2018). Porter & Kramer, (2019) states activity and operations of a
business need to make sure that they benefit everyone because if it does not benefit everyone it
might have negative impacts on the operations of the organisation which has the capacity to
contribute to the downfall of the company or decrease the productivity of a company.
It is important for Coles Supermarket to establish a positive relationship with their suppliers.
According to scholars, suppliers are considered to be a integral part of the success of a
business or an organisation as they not only provide the organisation with the necessary
services and goods to run the business but they may act as a source of advice, trade credit and
information. (Teller et al, 2016). Coles Supermarket needs to ensure that the strained
relationship with their suppliers are improved so that they can improve their business and
become stronger that will help them in generating profits but will also help them maintaining a
smooth balance and operations in the organisation. Thus Coles Supermarket should take the
measurable steps that will help the company in overcoming the existing issues and will also help
in improving their operation that will help them acquire a competitive advantage in the market.
 Coles Supermarket is currently facing issues because of the strained relationship with
their suppliers because of the unrealistic deadlines that they have been setting for them.
It is important for Coles Supermarket to come up with plans and projects that set
achievable deadlines for the suppliers. It is important for them to build a positive
relationship with their suppliers because if the suppliers stop providing the necessary
services and the good the company requires then Coles may face a huge loss in the

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market. Unrealistic deadlines may also create a stress in the operations of the company
which may have negative impacts on the production of Coles.
 Coles Supermarket must incorporate certain policies, rules and regulations for the
increase in the prices of the products. The company needs to set a percentage till which
they are going to increase the prices of the products. Products that provide high quality
tend to be expensive and to provide quality products which Coles Supermarket is
famous for must increase by a certain percentage which is feasible for them as well as
satisfies the demands of their suppliers. This will help in maintaining and building a
positive relationship with the suppliers so that they do not stop doing business with the
organisation.
 Coles Supermarket needs to communicate regularly with their suppliers to understand
the new trends and the new prices and their current needs that needs to be satisfied
however needs to be firm at the same time. This will help Coles in maintaining
transparency with the suppliers and also help in building trust with their suppliers. This
will help Coles Supermarket in the long run.
These steps may help Coles Supermarket to overcome the issues that it is currently facing
because of their strained relationship with their suppliers. This will help them fix their
relationship and also be beneficial for them in the long run to strive in the market.
Conclusion
Coles Supermarket is a successful company that has a positive reputation and image in
the market which has helped the company create a successful market for themselves. The CSR
practices undertaken by the organisation has been one of the major reasons that the company
has tasted success. CSR has a huge role to shape up an organisation these days and Coles
has managed to efficiently use CSR activities for the development and betterment of the society
and also for the development of the company. However, Coles has been facing problems
because of their poor relationship with their suppliers which may have negative impacts on the
reputation as well as the sales of the company. Thus, Coles Supermarket needs to consider the
recommendations that have been stated in the paper which will improve their relationship with
their suppliers and will also positively impact their company which will pave way for a smooth
operations, positive reputation, and increase in their productivity and help in generating profits.

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