Comparative Analysis: Commonwealth Bank and Woolworths CSR Reports

This report provides a comprehensive analysis of the corporate social responsibility (CSR) reports of Commonwealth Bank (CBA) and Woolworths. It begins with an introduction to both companies, detailing their business operations and industries. The report then compares the CSR reports, highlighting differences in the range of issues addressed and the depth of coverage, with Woolworths emphasizing ecological and human sustainability, while CBA focuses more on human sustainability. It identifies relevant Sustainable Development Goals (SDGs) for each company, considering their sector-specific roles and responsibilities. Furthermore, the report analyzes the companies' sustainability phases based on the Dunphy, Griffiths & Benn model, placing CBA in the strategic pro-activity phase and Woolworths in the sustaining corporation phase. The analysis also assesses the extent to which the social reports reflect the companies' values, missions, and principles. The report concludes with a reflection on the group's discussion and a list of references.

BUSINESS, SOCIETY
AND PLANET

Table of Contents
INTRODUCTION...........................................................................................................................1
Q1. Detail about selected organisations ................................................................................1
Q2. Differences evident between the companies in terms of the range of issues dealt with in
report and depth of coverage..................................................................................................2
Q3. Sustainable Development Goals for companies .............................................................3
Q4. Sustainability Phases.......................................................................................................4
Q5. Extent to which Social Reports Reflect on Values..........................................................6
Q6. Reflection on Group’s Discussion...................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Corporate Social responsibility and Sustainability practices are crucial for an organisation
to consider performing business activities effectively and achieving competitive advantage. The
involvement of organisation within CSR practices supports a company to get acceptance within
the society by its contribution toward the development of ecological and human beings (Stead &
Stead, 2017). This report is based on sustainability report of Commonwealth Bank which offer
financial services and Woolworth Group Limited that work toward retailing of Liquor as well as
leisure related services throughout Australia. In this report there is a detail introduction of both
the companies along with the differences between the CSR report of them in term of issues
handle and depth of its coverage. It further includes relevant Sustainable Development Goals for
both of them. It also includes analysis of company’s’ sustainability phase and reflection over
stated values.
Q1. Detail about selected organisations
Under this report a detail research has been performed over two companies named as
Commonwealth bank and Woolworth company both belongs to Australia but deals in different
sectors. The detail of both the organisations are explained below:
Commonwealth bank: - It is a multinational bank, headquartered within Australia and
perform operation within several countries like New Zealand, US, Asia and UK. It belongs to
banking or financial service industry. The finance industry contains group of banks as well as
financial institutions that offer services regarding the management of finance, investment, loan,
capital market and many more. Commonwealth Bank is a greatest financial service provider
which offer services such as retail banking, institutional banking, investment, funds
management, superannuation, insurance and broking services etc. throughout the world.
Commonwealth Bank maintain approx. 800000 shareholders and around 52000 employees
(Commonwealth Bank: 2017 Corporate Social Responsibility Report. 2018). It is active in
performing sustainability practices and deal with issues like eduction, bringing innovation,
balancing stakeholder need and development of future workforce.
Woolworth group limited: - It is a second largest Australian retail company in term of
revenue which operates its business throughout Australia and New Zealand by maintaining retail
store. Retailing is consider as one of the biggest industry which deal in manufacturing and
marketing of product or services that are related with the daily routine essentials of human
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beings. Woolworth Company belongs to retailing and is consider as biggest takeaway liquor
retailer, largest hotel as well as gaming poker machine operator within Australia. This company
performs main operations such as operating supermarkets, liquor retailing and maintaining hotels
as well as pubs under the Australian Leisure and Hospitality Group umbrella and discount
department stores under the name of Big W within Australia (Dyllick and Muff, 2016). Company
is active in its corporate social responsibility by addressing issues related with recycling,
reducing carbon emission, reducing gender discrimination etc.
Q2. Differences evident between the companies in terms of the range of issues dealt with in
report and depth of coverage
Both the organisations i.e. Commonwealth Bank as well as Woolworth are involve in CSR
practices and contribute toward the welfare of society by involving sustainability practices. The
main difference between the report presented by companies is that Woolworth put more
emphasis toward ecological sustainability as well as human sustainability and on the other hand
Commonwealth Bank focuses toward working only over human sustainability. As the report
presented by Woolworth it has been identified that it involves business stakeholders in their
practices to perform sustainability activities much effectively toward the welfare of all the
partners. This is because company is working over the issues related with employment biasness,
energy wastage, increase in carbon footprint etc. By performing CSR practices, it become able to
reduce carbon emission by 13%, include around 50% board members as women.
The theme of report is based over the environmental safety and stakeholder welfare as
well as safety. In addition to this report presented all the information regarding each activity
performed by Woolworth in the direction of corporate social responsibility practices. This
information is presented in concise but meaningful manner which creates a point of attraction for
viewer that in turn help in creating positive brand image. Hence it can be said that presentation is
more appropriate and attractive with proper formatting which present information in
systematically manner. On the other side the theme of report present by Commonwealth Bank is
about the welfare and development of society by contributing toward improving educational as
financial access to people. Major issues over which Commonwealth bank focuses by performing
CSR activities are workforce wellbeing, responsible lending, diversity, customer experience and
digital innovation. These issues get covered up to a great extend through CSR practices as it
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makes company able to reduce educational gap by providing 1.5 million students enrolled into
start smart (Upward and Jones, 2016). The information involved in report related with several
programs organisation conducted to reduce educational gap, brining innovation, contribution in
community development etc. The presentation of report is performed in systematic manner as
firstly it presented issues covered by company and then activities perform along with extend to
which it gets accomplished.
Q3. Sustainable Development Goals for companies
Sustainability development goal is referring to the series of measures that are undertaken
to end social issues, protect planet and ensure the well-being of humans globally. Both the
organisations, Commonwealth Bank as well as Woolworth operates their business within
Australia but belongs to different sector apart from this major Sustainability goals that these
organisations must consider are given below:
 Achieving a workplace environment which resist gender inequality.
 Good Health and well-being of each individual.
 Bringing innovation for community welfare and contributing toward country
development
 Put efforts toward reducing harmful toxics that may affect environment as well as
climatic misbalance (Mazutis and Slawinski, 2015).
These are some sustainable development goals that organisations operating business within
Australia should focus and support country in its development. But as both the organisations
belongs to different sector their role and responsibilities toward environment as well as society is
also different. In term of Commonwealth Bank, it must focuses toward performing its
responsibility toward removing gender biasness from workplace by providing equal opportunity
to all and working toward bringing innovation in its services in order to work toward
development as well as well-being of society (Commonwealth Bank: 2017 Corporate Social
Responsibility Report, 2018). The main reason behind suggesting these goals is that bank earn
high amount of interest over their services, a percent of which can be invested over the welfare
of society. In order to accomplish such goals Commonwealth bank has also contributed in this
direction by working toward it by teaching students value of money through school banking and
making them ready for future workforce. Along with this, by providing at least 40% women
executive manager position by 2020.
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On the other side Woolworth belongs to retail industry and its main sustainability goal
must be its contribution toward health and well-being of each individual and improving
environmental condition. The main reason behind suggesting these goals is that company deals
in alcohol production of which affect the environment and health of individuals too. The
Woolworth has performed several activities in this direction to perform its sustainability
objective much effectively. For this it started using natural refrigerants to reduced CO2 leakage
by 15% and also support Aboriginal & Torres Strait islander by [proving them employment in
order to work toward their well-being.
Q4. Sustainability Phases
Sustainability Phases Model was developed by Dunphy, Griffiths & Benn, which is a
comprehensive outlay regarding human as well as ecological sustainability. Each organisation is
expected to maintain an effective balance between the sustainability of both these elements.
Through this model, it is easy to determine the progress of companies on these two fronts along
with the position on which these firms stand as per this model
There are six phases of sustainability which are: rejection, non-responsiveness,
compliance, efficiency, strategic pro-activity and the sustaining corporation. Moreover, the
change which is reflected through this model is either incremental change, which is achieved
through enhancing human sustainability, while transformational change is attained through
increase in both human as well as ecological sustainability.
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Illustration 1: Sustainability Phase Model
(Source: Sustainability Phase Model, 2018)
As for Commonwealth Bank, its Corporate Social Responsibility Report, 2017, has
effective description on its approach to CSR. As per the same, the organisation stands at the 2nd
Wave of Sustainability according to Sustainability Phase Model, more specifically, the company
is at the strategic pro-activity position. Evidence of the same could be provided through its report
where the company has focused on robust innovations recently, an effective example of the same
could be the Quantum Computing Simulator. Another evidence from the report is that the
company as an efficient stakeholder management. This is due to the fact that for each issue
raised by their stakeholders, the company has effective opportunity lined up through good
business practices. Moreover, each of these opportunities has effective benefits for every
stakeholder groups for the company. As for environment, the company’s sustainable report has
focused on developing plans related to greenhouse gas emission. There are several scopes
highlighted in the report which reflects effectively upon the approach of the company in dealing
with greenhouse emissions. However, the organisation emphasises more on incremental change
than transformational.
With respect to Woolworths, the position which the company sit upon is The Sustaining
Corporation. As per its Sustainability Report, 2018, the company along with managing its human
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sustainability, works on environmental sustainability as well (Woolworths Group: 2018
Sustainability Report, 2019). According to the model by Dunphy, Griffiths & Benn,
Woolworths, through its effective operations, have successfully worked upon transformational
change within their organisation. As for human sustainability, the company’s policies are
centralised towards specific elements such as encouraging diversity. Promotion of gender
equality and several programs like refugee employment program, where cultural diversity
communities are provided opportunities. For environmental sustainability however, organisation
has taken several steps such as installing solar panels with Tesla batteries. Another step which
the company has taken for environmental sustainability is waste reduction systems and food
rescue operations along with non-usage of plastic bags. With all such operations the company
effectively stood upon as a benchmark in terms of sustainability and Corporate Social
Responsibility.
Q5. Extent to which Social Reports Reflect on Values
It is very essential for social reports of both the companies to reflect on the values and
principles. Moreover, their approach must effectively work towards fulfilling their missions. In
context with Woolworths, the mission statement of the company focuses on integrity. The firm
operates to deliver most convenience, quality and value to customers (Woolworths Group: About
Us, 2019). Furthermore, its values are focused upon diversity and providing ecological friendly
products to its customers. As for its principles, its Corporate Governance Statement is about is
about effective compliance with ASX Corporate Governance Principles (Woolworths Group:
Corporate governance, 2019). In its sustainability report, each aspect mentioned above is
appropriately reflected and address. It is evident from the policies like Pay Parity Project and
Gender Diversity policy lined up regarding employees and work environment with a goal to
ensure sustainability and growth of its stakeholders. Moreover, it addresses the principles
followed by the firm through its approaches regarding environment such as plastic recycling
programs and container deposit schemes, which ensure an ethical framework for the company
and benefits to stakeholders.
In case of Commonwealth, the bank’s values highlight collaboration, integrity,
accountability, excellence and effective stakeholder management. Moreover, its mission is
consolidated upon operations and functionality which is approved by its people. Transparency,
accountability and dedication are highly valuable within the company. However, the
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sustainability report lacks in effectively addressing the value of this company. While its
strategies and approach to Corporate Social Responsibility is highly showcased throughout the
report such as programs related to enhancing employability through its yearly programs, it limits
its explanation regarding transparency. This is reflected through certain of its issues such as
health and safety are rounded up through a brief description rather than shedding adequate life on
to its risk management strategies.
Reports by both the companies have their own importance in terms of bringing up and
addressing matters of importance, however, where Woolworths take each element from
stakeholders to processes with respect to defining its values, Commonwealth’s Sustainability
report have addressed its values precisely rather than in brief. However, its Annual Report, 2018,
has clearer and in-depth approach in relation to addressing its values and its Corporate
Governance statement is effectively addressed throughout the report (Commonwealth Bank:
2018 Annual Report, 2019).
Q6. Reflection on Group’s Discussion
While working in a group, each member contributes differently in the process of presenting
their perception regarding a common element. While working towards assessment of
Woolworths and Commonwealth’s performance in relation to sustainability and corporate social
responsibility, different arguments were raised with respect to functionalities of the two
companies.
Though distinct in nature, each of the two companies’ reports were compared on similar end
points such as addressing Corporate Social Responsibilities, Waste Management, Sustainability
and use of Innovation and Technology for ensuring all these factors. In my perception,
Commonwealth’s reporting was more precise and included stakeholders as an effective element
regarding Corporate Social Responsibility. On the other hand, I found that social reporting of
Woolworths, as per its nature and business, was consistent in inclusive of all the factors within
their business environment while addressing CSR (Doppelt, 2017).
However, there were several aspects in the group discussion which developed my perception
regarding their social reporting. Majority of members agreed that while stakeholders are an
important element of CSR and sustainability, other factors such as global environment are also
effective factor of the same. Some argued that Commonwealth’s Sustainability report could have
been more effective in case several environmental issues were addressed differently. For
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instance, secure paper has not been included in its 2017 Corporate Social Report, which is a
major issue impacting global warming. This argument developed my perception in relation to
limitations in its reporting. As for Woolworths, each member agreed with its effective focus on
each activity while addressing CSR. It further contributed to my perception of each of these
companies’ performance. Thus, in my humble opinion, while sustainability has been an integral
part of both of these companies social reporting, it is recommended that Woolworths focus more
on provision of effective quality products through environmental-friendly processes and
Commonwealth must also develop more effective policies in relation to saving natural resources.
CONCLUSION
Thus, it could be concluded by the information above that corporate social responsibility and
environmental sustainability are essential elements for companies of every sector. It is a crucial
practice of companies to develop effective social reporting addressing all the relevant and
effective issue related to CSR. Lastly, their reporting must also address their sustainability goals,
values, mission statements and principles.
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REFERENCES
Books and Journals
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Dyllick, T., & Muff, K. (2016). Clarifying the meaning of sustainable business: Introducing a
typology from business-as-usual to true business sustainability. Organization &
Environment/ 29(2). 156-174.
Mazutis, D. D., & Slawinski, N. (2015). Reconnecting business and society: Perceptions of
authenticity in corporate social responsibility. Journal of Business Ethics. 131(1). 137-
150.
Stead, J. G., & Stead, W. E. (2017). Management for a small planet. Routledge.
Upward, A., & Jones, P. (2016). An ontology for strongly sustainable business models: Defining
an enterprise framework compatible with natural and social science. Organization &
Environment. 29(1). 97-123.
Online
Commonwealth Bank: 2017 Corporate Social Responsibility Report. 2018. [Online] Available
Through:
<https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/
corporate-responsibility/2017/2017-corporate-responsibility-report.pdf>
Commonwealth Bank: 2018 Annual Report. 2019. [Online] Available Through: <
https://www.commbank.com.au/content/dam/commbank/about-us/shareholders/pdfs/
results/fy18/cba-annual-report-2018.>
Woolworths Group: 2018 Sustainability Report. 2019. [Online] Available Through: <
https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability-
report.pdf>
Woolworths Group: About Us. 2019. [Online] Available Through: <
https://www.woolworthsgroup.com.au/page/about-us>
Woolworths Group: Corporate governance. 2019. [Online] Available Through: <
https://www.woolworthsgroup.com.au/page/about-us/our-approach/corporate-
governance/>
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