Business Ethics: CSR and Sustainability Reporting Analysis Report

This report analyzes the CSR and sustainability reporting of Coles Group and Commonwealth Bank of Australia, examining their core business activities, industries, and countries of operation. It compares their social reports, highlighting differences in issue coverage and presentation. The report identifies relevant Sustainable Development Goals (SDGs) for each company, assessing the extent to which these goals are addressed in their CSR/Sustainability reports. It then evaluates each company's position within the Dunphy, Griffiths & Benn organizational change phases for corporate sustainability. The analysis further explores how the companies' social reports reflect their stated values. Finally, the report reflects on group discussions, noting how the ideas presented either confirmed, influenced, or presented alternative perspectives to the author's conclusions regarding the companies' ethical and sustainable practices.

Running head: BUSINESS ETHICS
BUSINESS ETHICS
Name of the Student
Name of the University
Author Note

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Q1. Identify and describe the two companies I have researched; their core business activities
and the countries and/or industries in which they operate.
The two companies selected by me are Coles and Commonwealth Bank of Australia.
Both the organizations are from Australia, but from different industries. Coles Group is a
public company from Australia, which operates various retail chains providing services
within the country. It was founded in the year of 1914, and the headquarter is in Hawthorn
East, Victoria. The industry from where the company belongs is the retail and consumer
services. Coles supermarket is the second largest supermarket chain in Australia, and the
group was the second largest retailer after Woolworths Limited, until and unless it was
acquired Wesfarmers. Steven Cain is the current CEO of the group. On the other hand, the
Commonwealth Bank of Australia is a multinational organization and the industry from
where it belongs is the banking and financial services. The company was founded in 1911,
and it has more than 1,100 branches and 4,300 ATMs worldwide. The bank operates in Asia,
the United Kingdom, New Zealand, the United States and Asia apart from Australia. The
headquarter of the bank is in Darling Harbour, Sydney. Catherine Livingstone is the
Chairman and Matt Comyn is the CEO and Managing director of the company. It is the
largest Australian company listed in the Australian Securities Exchange. The company
provides a range of financial services, which includes business, retail and institutional
banking.
Q2. What differences are evident between the two companies in terms of the range of issues
dealt with in their social reports and the depth of coverage on specific issues?
The report of the Coles Group and the Commonwealth Bank of Australia reflects the
descriptive information of the company, which includes the review of the year on which the
report is based, along with the statement from the chairman or chief executive director or

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manager’s messages towards the society regarding the business they are operating in their
respective industry. Both the reports of the companies review the business they have done as
the operating and financial review. But the report is the Commonwealth Bank reflects the
colour of their logo in their report, which helps to engage the readers of the report more than
that of the Coles Group. Apart from this, the Commonwealth Bank provides a business
overview of the year in a nutshell, which is attractive and smartly represented and also helps
the readers to go through it before reading the business report in details. The same thing is
also provided by the Commonwealth Bank, but in a bit lengthy way. The Coles Group
reviews the approach of delivering satisfactory returns to its shareholders along with the core
values of the company. Usage of graphical presentation is properly given in the report of the
Coles Group, whereas the usage of small pictures is done by the Commonwealth Bank in
their data representation in the report, which is very attractive and easy to read and eye
catchy. Usage of images are beautifully done by the Commonwealth Bank, whereas the
report of the Coles Group is a bit descriptive and lengthy. But one thing is beautifully
maintained by both the companies, and that is the business operations what they have done
and what are their planning in future to grow their respective business (Schlagwein,
Thorogood & Willcocks, 2014).
Q3. Discuss which of the Sustainable Development Goals you believe are most relevant to
these companies, their industries and the countries in which they operate. Discuss the extent
to which these SDGs were addressed, explicitly or implicitly, in the CSR/Sustainability
reports of your companies?
The Coles Group, now Wesfarmers, supports the Sustainable Development Goals
(SDGs). The most relevant SDG that should be followed by the Coles Group according to me
is the focus to end the poverty, inequality and injustice once and for all, as well as responding
o the climate change by 2030. These will help the organization to focus efficiently and try to

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achieve them, which will help the business to flourish. The same should be followed by the
Commonwealth Bank of Australia. The one thing both the companies have to follow and that
is to protect the planet and assure prosperity for all the people engaged with the organizations
as well as the customers of both the customers. Sustainable Development Goals will help the
organizations to tackle the situations implicitly, and promote peaceful and inclusive societies,
to create better job facilities and tackle the challenges faced in the environment. The
corporate social responsibilities should be properly followed by both the companies to help to
create a sustainable environment to work for within the organizations for the employees as
well as to entertain a wide range of customers to get attracted by them, to achieve the aim or
goal of the companies. To assure a healthy and life and sustainable environment for the
society is the major duty of the organizations, which includes to treat all the customers
equally for their respective businesses.
Q4. Based on your analyses of your companies’ sustainability/CSR reporting, identify in
which Sustainability Phase/s (Dunphy, Griffiths & Benn) each of your companies sit. Explain
your reasons for these assessments.
The phase model of Organizational Change for Corporate Sustainability features 6
types, namely Rejection, Non-responsiveness, Compliance, Efficiency, Strategic pro-activity
and The sustaining corporation. According to me, the Commonwealth Bank of Australia sits
at the stage of competitive advantage, they focus on innovation. Innovation is hugely required
in a banking service provider, as the competition is very high in this sector. Customer
retention as well as customer attraction is only possible when innovative services need to be
launched on regular basis, which will help to attract new people to avail their services and
become customers. They also seek the engagement of the shareholder to provide safe and
environmentally friendly services as well as services to the customers. This also helps to
promote better citizenship to increase the revenue margin of the company. On the other hand,

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the Coles Group also sits at the same stage of the model of Organizational Change for
Corporate Sustainability. Innovative ways of dealing with the suppliers as well as the
customers is maintained, so that people come to them only to purchase the range of products
from their retain chain only. Offers and discounts are given on regular basis on the products
sold from their departmental stores, just to attract people to become their regular customers
and members. Offers are provided to the members also, to serve them efficiently and
generating revenue from them, which will help the grow properly. The shareholders are also
properly engaged with the company to seek advices from them about the ways of maintaining
the environmentally friendly ways of supply chain management and delivering and supplying
the product to the customers. They also motivate enough the employees of the organization to
give their best (Rizzello & Carè, 2016).
Q5. Discuss the extent to which the social reports provided by these companies reflect their
stated values.
They have strategies which aim to prioritize for Coles group to simplify the lives of
their buyers, suppliers, partners and members. They focus on supplying fresh and high-
quality food to attract more customers. They are committed to invest in price and provide
absolute value to the buyers. They also aim at providing several alternatives of shopping by
introducing online shopping facilities, home delivery options etc. They seek to improve their
extensive national store by focusing on customer insights, tailoring stores and range of
products according to local customers. They try to reduce complexity from business
processes by investing more in technology and also recognizes the importance of a great team
work for sustainable outcomes. According to the 2018 financial year there has been a
significant change which has helped in providing sustainable development in earnings and
better shareholder returns. There was a growth in the net profit which reflects a strong
performance by the team chiefly in Australia and New Zealand. There was also a continuous

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improvement in the customer offer by investing in price, services and product range. The
Department Store accounted a great consistent performance giving a positive result. Finally,
with the shareholder approval, Coles group will gain its position as an enlarged union and
reallocate higher capital. On the other hand, Commonwealth Bank of Australia, has an
executive team that ensures that they achieve profitable growth and support and are able to
encourage the workers. The strong corporate team also assures to maintain maximum
professional standards and act sincerely and honestly while carrying out business activities. It
also has a detailed list of code and conduct which gives ideas on how to act, build decisions
and solve problems. The bank also tries to cover the financial needs of the customers
internationally by opening several branches in New Zealand, North America, Europe and
across Asia. It also commits in providing accessibility to its wide range of customers.
According its annual report, they have employed 51,700 people and thus served almost
16million customers. By doing so they fulfil the values of sincerity, coordination, liability,
merit and perfection. One more area of their concern is innovation. Purposeful innovation
which brings profit for the customers remains the core of their strategies. Commonwealth
Bank has unmatchable digital banking facilities including the mobile apps which helps an
easy payment of bills, opening account, transactions and more. They have also worked hard
to provide a sustainable environment with their ESG risk management tool. With the
Financial Inclusion Action plan that contains a series of initiatives they aim help customers
experience economical difficulties and develop financial security for women. One such
example of this is the new Domestic and Family awareness program to assist the workers in
case of any domestic or family violence. The bank also promotes the game of cricket, the
country’s national summer sports so that all citizens can enjoy the game. There are certain
programs which talk about the issues of the employees. They started their plan of Children’s
Financial Education 85 years ago and then strengthened this project by launching a nation-

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wide awareness program. This campaign helped the parents to get information regarding their
children so that they become financially equipped in the future (Zentes, Morschett &
Schramm-Klein, 2017).
Q6. Briefly reflect on your group’s discussions of these companies. In what ways did the
ideas presented by your group confirm your own conclusions, influence your thinking and/or
present another perspective to you? Please note: this question does not ask for a summary of
what your group decided or who said what. This requires reflection on how your thinking,
understandings and perceptions developed through your engagement with your group.
Coles Group seriously takes upon the responsibility to organize and manage
environmental and social impacts. While on one hand this company is making an influential
difference with a deeper focus on resource efficiency, waste and recycling and ethical and
responsible sourcing, on the other hand, they take into consideration the viewpoints of their
members, customers and resource suppliers. All Coles brand food and drinks uses products
that are verified by an authorized body which decreases the number of illegal practices and
environmental degradation in the supply process. They make use of sustainable palm oil,
certified tea, timber and paper products, in all the possible places which in turn motivates
these producers to move to sustainable practices. The Coles group follows an Animal Welfare
Policy which aims to work for a sustainable future that enhances local farmers and food
producers, while looking after the welfare of animals as well as maintaining the quality of the
animal products used. They also follow an Ethical Sourcing Policy which mainly focuses on
legal requirements, forced labour, inhumane treatment, work culture and ethics, wages and
pensions, working hours and regular employment. All their suppliers will have to agree to
this policy as a part of their agreement. Knowing about the present condition of the
environment, Coles group is looking for new methods to preserve and protect this
environment which are to be implemented throughout the supply chain (Popovic et al, 2018).

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Some of them being waste reduction and recycling, efficient use of energy, reduction in
greenhouse gas emissions, as well as sustainable packaging. On the other hand, according to
the 2017 Corporate Responsibility Report, the Commonwealth Bank of Australia has taken
up a number of initiatives which is showing a continuous development in the past years.
Commonwealth Bank has again been named Australia’s most sustainable business on the
Global 100 Index, and is ranked first among banks worldwide. They started their plan of
Children’s Financial Education 85 years ago and strengthened this project by launching a
nation-wide awareness program (Cunninghame & Trinidad 2017). This campaign helped the
parents to get information regarding their children so that they become financially equipped
in the future. Moreover, this bank has introduced an app named Youth app which helps
children under the age of fourteen to learn to earn, save and spend money more responsibly
under the guidance of their parents. They have started new ways to enhance and develop
customer’s financial wellbeing with the help of Harvard University’s STAR Lab. This was
the first Australian bank to carry out a renewable program for their branch networks and by
the end of the 2017 financial year, they had solar panels in 34 locations across the country
which had more than 500kW power all total.

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