Coles vs. Loblaw: Business, Society, and Planet Analysis Report

This report provides a comparative analysis of two major retailers, Coles and Loblaw, examining their approaches to business, society, and the planet. It delves into their social reports, highlighting similarities and differences in their commitments to animal welfare, environmental protection, and l...Read More

Running head: BUSINESS, SOCIETY AND PLANET 1
Business Society and Planet
Student’s name
Institution affiliation
Date

BUSINESS, SOCITEY AND PLANET 2
About the companies, Industries and Social reporting
Coles has been ranked as the leading Australian retailer with more than 2500 retail outlets
distributed all over Australia (Colesgroup, 2019). Coles has made it easier for Australians
through providing quality products, value, and dedicated service to more than 21 million who
shop with the supermarket weekly.
Coles businesses
Coles supermarkets
Coles supermarkets are categorized as a national full-package supermarket retailer and
has at least 800 supermarkets.
Coles online
Coles online offers customers with shopping proposition where they can shop anywhere
and at any time by providing a variety of home delivery based on same-day or overnight drops.
Coles liquor
It is a national liquor with more than 900 stores selling as Liquorland.
Coles financial services
Is supported by some of the reputable companies in financial services, Coles Financial
Services offers insurance and individual loans to Australian families.
Social responsibility
Coles has been associated with social issues such as establishing long-term relationships
with suppliers. The company also values the need for protecting the environment as it protects
marine life through controlled fishing.
Loblaw companies limited

BUSINESS, SOCITEY AND PLANET 3
It has been ranked as Canada’s leader in both food and pharmacy sectors and has a
network involving corporate and autonomous store that operates among communities across
Canada and has employed more than 200,000 Canadians (Loblaw, 2019).
Loblaw divisions
Market
The market has more than 400 stores offering customers a variety of quality products and
peculiar food experiences.
Shoppers drug mart
The drug mart has been ranked as the most extensive pharmacy network in Canada with
over 1300 locations providing customized services and availability through health, grocery
products, and beauty.
PC Financial
This Financial has helped Canadians by providing a variety of services such as daily
banking, insurance, and mortgages.
The social report Coles entails protecting the environment by reducing the use of plastic
bags. It also involves the use of energy efficient methods such as the use of Tesla made trucks
that will be using electricity.
Differences and similarities in social reports
Both companies share similarities in their animal welfare. For instance, at Coles, they
care about how the food they sell to customers gets produced and where it originates from. Coles
is also committed to ensuring that it is dedicated to enhancing a sustainable future that promotes
farmers locally and producers of food while observing the welfare of the animals. Coles has a
brand for pork known as sow stall-free that is produced without the use of synthetic growth

BUSINESS, SOCITEY AND PLANET 4
boosters. Coles animal welfare policy stipulates the expectations entailing the treatment of
animals in the production of meat, fresh food, and grocery products in the supply chain that is
used for Coles brand commodities (Coles, 2019). Coles’ animal policy welfare is a clear
indication of the company’s dedication to obtaining meat and animal products from farming
activities that meet the set threshold and entail welfare certification. Similarly, Loblaw’s animal
welfare principles enable it to cultivate a positive influence in the way animals are catered for.
Despite the fact the company is not involved directly in the processing of animal products, it
believes that it is the responsibility of suppliers to exercise care when dealing with the animals in
compliance with the government and industry framework regarding humane treatment.
Both companies also support produce grown locally where Loblaw takes reputation in
providing a variety of fresh fruits and vegetables that are grown locally streamlined to Canadian
purchasing dedication (Loblaw, 2017). Coles also supports the locally produced farm products
by engaging with the farmers who are the suppliers of grocery and fruits as one of the ways the
company takes pride in its locally produced commodities.
On the part of the environment, Loblaw seems to have a different approach to the use of
plastic bags (Loblaw, 2017). Loblaw businesses have been associated with producing a lot of
plastic waste. However, Loblaw has made efforts at improving the diversion rates associated
with wastes. Loblaw has targeted a diversion rate of about 80% in the long-term at the corporate
level by 2030. On the other hand, Coles removed the use of plastic bags used as shopping bags in
all its Coles businesses in mid-2018 (Coles, 2019). The move was aligned with states such as
Tasmania, South Australia and the Northern Territory for Coles complying with the bans
implemented on the single use of bans. Coles encourages its customers to use reusable bags
when shopping in its stores as it provides a variety of reusable bags for customers to buy.

BUSINESS, SOCITEY AND PLANET 5
Sustainable development goals relevant to the business
The sustainable development goals commonly referred to as SDGs promises substantial
economic gains for firms and enterprises that invest in providing innovative deliverables and
transformative change (Verles & Vellacott, 2018). In one of the reports, it asserts that the
achievement of SDGs will create more than 350 million jobs which will be crucial in unlocking
more than $12 trillion in business opportunities come 2030.
Reduced inequality
Loblaw has been recognized and served in the Canada-United States Council for the
Advancement of Women Leaders which was a partnership funded by the federal state in both
nations (Loblaw, 2017). The council seeks to establish advice and techniques to boost women’s
financial engagements focusing on several pillars:
One of the cornerstones is focusing on increasing the number of women in science,
technology, engineering and math (STEM). The company also supports and invests in businesses
owned by women.
Zero hunger
In 2017, Loblaw launched a children’s charity that dedicates $150 million to help in both
the fundraising and corporate support in the next ten years to curb hunger and poor nutrition
associated with childhood (Loblaw, 2017). Loblaw’s approach is established upon two
foundations:
One is the feed kids good food that aims at feeding and giving children access to food
enabling them to grow and reach their maximum potential. The other is the feed kids food
knowledge where Loblaw emphasizes on food-based education to strengthen the kids to make
healthier, more responsible and informed decisions.

BUSINESS, SOCITEY AND PLANET 6
The company is passionate in ensuring that the children have the nourishment they
require to grow, endure and succeed. Loblaw believes that feeding children will assist in
developing a better Canada for everyone.
Life below water
Coles believes in its seafood being sourced responsibly. Coles fathom that it is through
well-controlled and responsible fishing is vital in sustaining healthy fish populations and habitats
along with ensuring the future sustainability of Australia’s marine ecosystems.
Affordable and clean energy
Loblaw has been vocal in lobbying for Canada’s position in the Paris Agreement and its
perspective that businesses can reduce carbon emissions without comprising on the consumer
sacrifice. Loblaw announced in 2016 of its goal to limit ca1rbon footprint by 30% with regards
to vision 2030. In 2017, as part of Loblaw’s carbon reduction dedication, Loblaw demonstrated
attention to its corporate trucking fleet through pledging to electrify it come 2030. In marking its
commitment, Loblaw was the pioneer of zero-emission delivery with regards to grocery and
made international news by ordering more than 25 Tesla trucks. Coles, on the other hand, has
adopted an efficiency strategy with regards to energy aimed at curbing the use of energy in
heating, air-conditioning and refrigeration systems. In 2017, Coles invested roughly $15 million
in projects entailing energy efficiency and this was equated to 1000 installations. Such projects
involved hot water controls, electrical infrastructure upgrades and installations involving solar
power. Coles has also ensured that its carbon emissions have been reduced in the past five years
despite the growing network of its business due to a variety of energy saving initiatives that aim
at reducing emissions from the refrigerant gases.
Sustainability Phase/s (Dunphy, Griffiths & Benn)

BUSINESS, SOCITEY AND PLANET 7
Phase 1: Eco-efficiencies and risk reduction
Both companies are in the first phase that is the Eco-efficiencies and risk reduction
The first phase entails cleaning up messes through reducing effects and addressing any public
relations debacles and evaluating risks (Hitchcock, 2015). For instance, Loblaw through its
subsidiary Fresh promised not to source cotton from Turkmenistan and Uzbekistan as both
countries were alleged to force children into forced labor during the autumn cotton harvests. The
company also supported its efforts in a country such as Bangladesh and other nations in the same
region by putting people on the ground where 25 managers in the field of compliance visited and
engaged with the factories to ascertain that the factories were ensuring that quality standards are
met and that workers are safe and treated well.
Coles as part of its ethical sourcing policy focused on child labor, bonded, and safe
working conditions among other issues. In 2015, Coles signed the Australian Business Pledge
that was against forced, and this was an industry-driven initiative bring an end to forced labor.
The pledge aligned with Coles ethical sourcing policy.
Also, organizations in this phase engage in sustainability to help them save money though
they may not be aware that they are funding projects linked to sustainability (University of South
Australia, n.d.). They perceive it as trying to save energy, reduce waste and cut back on water
consumption. However, this becomes a crucial foray in the sustainability field. Such companies
gain recognition regarding their endeavors, their image as environmentally-conscious companies
inspire them. In this phase, social matters take a back seat since environmental issues tend to be
more critical. Regarding energy saving, Coles in 2017, increased the number of supermarkets by
14 more while the liquor and convenience outlets got increased by 30 with the gross floor area
increased by more than 3.7%. Thus, Coles was able to reduce its total consumption level by more

BUSINESS, SOCITEY AND PLANET 8
than 1.3% compared to 2016. Regarding the same, Loblaw ordered more than 25 heavy-trucks
that will be using electricity meaning they are electrified in bid to save on fuel consumption
though the news spread internationally as the company was perceived to be environmentally
friendly.
Question.5 - the values of selected companies.
Loblaw’s primary purpose is well developed, and it states that live life well and aims at
supporting both the needs and the well-being of Canadians (Loblaw, 2019). The central core
values are:
Care where Loblaw aims at improving the health and well-being of its customers. Ownership
entails responding to each day with individual responsibility and dedication (Loblaw, 2019).
Respect according to Loblaw involves acting with respect and transparency each day. Lastly,
there is excellence where the company aims at leading through innovation and superior
performance through teamwork.
Loblaw core value of excellence where it aims at being a leader through innovation is in
line with the sustainability report as Loblaw in 2017 pioneered a wellness application and
website that offered users daily tips and data regarding nutrition and fitness. However, the
company motivated and rewarded the users for being active and making well-informed choices
regarding their health.
Coles values and strategy
Coles strives to deliver value to its customers by reducing prices of the weekly basket,
provide better quality by offering fresh produce and providing a super shopping experience that
is simple in an easier manner daily (Coles, 2019). The core values by Coles underpin the
supermarket's strategy and lead to behaviors that assist in establishing an excellent long-term

BUSINESS, SOCITEY AND PLANET 9
relationship with its suppliers, offer its customers superb shopping experience and have team
members that are passionate and caring. Coles core value of building a long-lasting relationship
is aligned to its sustainable report through the farm program by the company. The farm program
got started in 2014 to reflect the positive operations that its farmers and growers are engaged in
to support the environment and animal welfare. The program also provides a platform for the
exploration of opportunities and encourage best-practice farming. However, the primary focus of
the program is to facilitate working with suppliers to promote continuous improvements.
Groups discussions
According to the group we agreed on several social reporting aspects such as the
environment, community, and sourcing. However, there are some issues we disagreed on for
instance regarding how each company approached the subject of labor as everybody had
different views of their own. Some members asserted that Coles addressed the issue of forced
labor amicably compared to Loblaw. Others contended that Loblaw was covering its track and
building its reputation regarding the Bangladesh issue where it was reported poor working
environment for workers.

BUSINESS, SOCITEY AND PLANET 10
References
Coles. (2019). Our strategy, values and brands. Retrieved from Coles:
https://www.colescareers.com.au/about-us/our-brands
Coles. (2019). Responsible sourcing is focused on animal welfare and the sourcing of raw
materials. Retrieved from Responsible sourcing: https://www.coles.com.au/corporate-
responsibility/sustainability/responsible-sourcing
Colesgroup. (2019). About us. Retrieved from Colesgroup:
https://www.colesgroup.com.au/about-us/?page=about-us
Hitchcock, D. (2015, August 10). Three Phases of Sustainability: Where is Your Organization?
Retrieved from Triple Pundit: http://www.triplepundit.com/story/2015/three-phases-
sustainability-where-your-organization/32711
Loblaw. ( 2017). 2017 Corporate Social Responsibility Report. Retrieved from Loblaw
Companies Limited: https://www.loblaw.ca/CSRReport.pdf
Loblaw. (2019). About Us. Retrieved from Loblaw Companies Limited:
https://www.loblaw.ca/en/about-us.html
Loblaw. (2019). Purpose & Values. Retrieved from Loblaw Companies Limited:
https://www.loblaw.ca/en/about-us/mission---values.html
University of South Australia. (n.d.). Topic 7: Sustainable business (c): The compliance
approach and the efficiency approach to sustainable business. Retrieved from Ethics,
Governance and Sustainability - Study Guide:
https://lo.unisa.edu.au/mod/book/view.php?id=782651&chapterid=121765

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Verles, M., & Vellacott, T. (2018). Business and the Sustainable Development Goals:Best
practices to seize opportunity and maximise credibility. Retrieved from
https://www.goldstandard.org/sites/default/files/documents/sdg_report_optimized.pdf