Report: Ethics, Responsibility, and Sustainability in Woolworth Group

This report provides a comprehensive analysis of ethics, responsibility, and sustainability within the context of the Woolworth Group. It begins by exploring various theories related to duties, morals, and sustainability, including corporate social responsibility, ethical theories such as deontology and utilitarianism, and sustainability models like the three pillars and prism models. The report then assesses Woolworth's potential for leading and implementing sustainability and governance policies, emphasizing the importance of corporate governance and stakeholder engagement. Furthermore, it examines the role of stakeholders and strategic collaboration opportunities within the organization, highlighting the benefits of strategic alliances. Finally, the report analyzes the impact of Woolworth's current organizational practices on sustainable development, concluding with key insights and recommendations for future improvements. The report underscores the importance of ethical behavior, CSR, and sustainability for long-term business success.

Ethics, Responsibility and
sustainability

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1) Analyse theories related to duties, morals and sustainability.................................................1
2. Assessing the potential for leading and implementing sustainability and governance
policies........................................................................................................................................3
3. Stakeholders and strategic collaboration opportunities in organisation..................................4
4. Impact of current organisation practices on sustainable development for future ..................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Every organization faces some challenges while going at global level. These challenges
may be related with ethics, corporate social responsibility or sustainability. Ethics can be defined
as the principles related with moral values that guides the behavior (Waddock, 2018). Business
ethics means, the study of correct practices and policies in respect of various subjects like
corporate social responsibility, corporate governance etc. The objective of firm is not only
maximizing revenue but also to protect the interest of society like consumers and community as
a whole. Sustainability means the ability to uphold. Business should make efforts for controlling
the negative effects of activities on environment. The Report is based on Woolworth Group. It
belongs to retail industry. It was founded in year 1924. Headquarter of company is located at
South Wales, Australia. It operates supermarkets, hotels, Woolworth online etc. The Report will
outline theories related to ethics, responsibility and sustainability. The potential of business for
leading sustainability and governance policies in organization. It will also describe stakeholders
for business and determine the impact of organizational practices on sustainable development in
the future.
MAIN BODY
1) Analyze theories related to duties, morals and sustainability.
Corporate Social Responsibility: It refers to self-regulated model for the business that assist the
firm to remain socially accountable to itself, public and other stakeholders. With the help of
CSR, business provides various benefits to society as well as it also helps to boost the brand
image of firm (Purvis, Mao and Robinson, 2019).
There are various CSR challenges that Woolworth may have to face in diverse global-
local context such as lack of transparency, ignorance of main areas of the society etc. Woolworth
should use the following model of social responsibility of the firm. Presently Woolworth is
facing the major challenge in meeting its lofty sustainability targets and this affected its sales
revenue and growth within the market. It is described below -
The socio-economic model of corporate social responsibility -
The traditional view of social responsibility of company is based on economic model.
Whereas, modern authors of corporate social responsibility believes that organization have a
responsibility not only towards shareholders but also towards customers, suppliers, employees
and public etc. This view of modern proponents is based on socio-economic model of CSR
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(Tran, 2019). According to this theory, the activities of business also have an impact on the
society. Therefore, Woolworths should consider the impact of activities before taking decisions.
Nowadays, there are various firms that are using this model due to various reasons. Firstly, it will
be in the foremost interest of the company because of challenges in global local context. This
will also help firm to avert any type of problem that may arise due to legal action taken by the
stakeholders.
Ethics: It refers to the branch of moral beliefs that includes defending, ordering and suggesting
the concepts of right or wrong. Ethical behaviour of the business helps to attract large number of
clients towards the product of firm therefore, it helps to increase sale and profit of the
organization (Mudrack and Mason, 2019). The areas of business in Woolworth will be affected
by global perception of socially, ethical and moral responsible behaviour. Such as ethics and
management, corporate social responsibility, ethics and corruption etc.
There are various types of ethical theories that Woolworth may follow such as
Deontology, Utilitarianism, rights and virtues etc.
Deontology -
The theory of deontology says that, people and business should comply to their duties
and obligations when they are involved in decision-making when ethics are involved. The theory
involves various positive attributes but, it also involves various flaws. One limitation of this
theory is that, there is no rationale for deciding duties (Davies, 2016).
Utilitarianism -
This theory is based on the power to forecast the impact of various actions. For
utilitarian, the option that offers the greatest advantage to most of the people is ethically correct.
The theory is divided into two categories that are rule and act utilitarianism. These theories also
have certain limitations. Firstly, no one can accurately predict the consequences of their actions.
Further, comparing material gain is very difficult because their qualities differ at large extent
(Seifi and Crowther, 2018).
Sustainability:
It refers to ensuring that the health of human beings is being protected, and they will have
access to basic resources and enjoy better quality of life. Sustainability has three different
elements such as economy, environment and society. Woolworth may use different models for
sustainable development (Ralegaonkar and Ram, 2020). These are as follows -
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Three pillars model:
This model is also known as triple bottom line. It is the most widely used model for
sustainable development. Here, term pillar means change in different versions include social
capital, environmental resources, environmental protection etc. The model takes the dimension s
of social resources, environmental and economic and all these things are the basis for sustainable
development. Some authors argue that, there are various types of resources that are used by
human beings in relation to the formation of ecosystem services (Purvis, Mao and Robinson,
2019).
Prism model:
Like three pillars model, this model also defines a set of interrelated elements. The prism
includes social, economic, institutional and environment. But, the model suffers from various
limitations as similar to three pillars model. This model assumes different types of pillars which
are independent and there is no time dimension involved in the model (Schaltegger, Hansen and
Lüdeke-Freund, 2016).
2. Assessing the potential for leading and implementing sustainability and governance policies.
Global companies and societies are facing increased risks from more resources and with
the greater impacts on climate change, unsafe supply, potentially dangerous products, global
poverty, premature death and illness, consumer reactions and child labor (Joss and Cowley,
2017). With the rapid development of international communication but also as organizations able
to achieve more global reach, operate with global networks, apply financial instruments and use
of new technologies. Ignoring these issues cause some devastating consequences for companies
and for equity and debt holder (Boström and et.al., 2015). Woolworth believed that for moving
forward becoming sustainable is the way to get succeed.
Their approach towards sustainability is the customers, communities and team. They
understand their responsibilities and commitment while working with shareholders for creating
better experience with them, which made the lives of people's better. They are providing reliable
and safe product to their customers. Maintaining trusted and long term relationships with the
suppliers. They achieved the status of Gold Tier Employer in Australian Workplace Index for
removing plastic bags from their all stores situated in Australia. Equally, in other areas which are
in respect of improving the representation of women in their organization.
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Corporate governance policies become an essential part of managing modern sectors and
organizations (Crane, Glozer and Spence, 2019). Today's global business world is not just
business governments. Corporate governance best practices which address sustainable business
development and corporate responsibility help in securing organization's long term future and
making organization a part of solutions for pressing human challenges. Governance should focus
on implementing the values of transparency, fairness lead to further corporate governance
reforms. The leadership of company required modification in governance improvement plans
which fit with the current working framework. Boosting board performances with corporate
governance best practices by developing strong understanding of and successfully implementing
corporate governance plan to provide a strong leadership structure (Du Plessis, Hargovan and
Harris, 2018).
The adaptation and implementation of governance practices increasingly demanded by
regulators, shareholders and the market become challenging. Practical comprehensive training
for enhancing, introducing and updating governance policies in organisations in the emerging
and developed markets. Certified governance trainer and governance consultants guide the
leaders through the complexities of implementing and developing good governance policies
which ultimately lead to more effective organizations. These principles enclose framework and
standards with which an organization's leader able in doing more than executing effectively with
using a well-developed strategic plans. Corporate governance standards established the
expectations and needs of stakeholder. That not only effective but it is also responsible in order
to meets stakeholders needs (Ghauri and et.al., 2016). The willingness of organization is to apply
corporate governance policies which impact more than short term performances and strategic
planning.
Adherence of best practices of corporate governance is in itself a form of risk
management which can also prevent from unwanted legal issues. Woolworths group has
followed polices recommend by ASX Corporate governance council's which enhances their
principles and rules to be followed throughout the year. It is the duty of the directors and other
team members act ethically and responsibly at all times. The board received assessment
including both quantitative and qualitative factors, in respect of Group's relationships with and
feedback from their team members, customers and suppliers. A comprehensive review over
complaints and whistle-blower reports managed and reported. The purpose is to create better
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experiences to enhance tomorrow learning and shapes for better commitment to meet needs of
customers, teams and key stakeholders.
Woolworth has adopted various sustainable programs by keeping in mind the needs and
the desire of the stakeholders. Autocratic leadership style has been adopted by Woolworth in
order to improve its CSR practices.
3. Stakeholders and strategic collaboration opportunities in organization
The ability to collaborate becoming an important source of competitive advantage. Effective
stakeholder engagement create more customers, better formulated policy, innovation and well
managed projects (Kolb, Fröhlich and Schmidpeter, 2017). Employees, customers who am
involved with an organization has responsibilities towards success of organization. Organization
by finding the best strategies to engage and communicate with each group helps in constructing
stakeholder engagement strategy. Managing involvement of stakeholder in appropriate way -
working together, keeping them satisfied, informing them and showing consideration. By
improving ability to design effective alliance, and acquire frameworks for partner selection,
alliance design and ecosystem development (Davies, 2016). Collaboration and strategic
partnership are fundamental in improving business outcomes. Strategic collaboration benefited to
every one; employees, businesses and customers. Customers benefit from the offerings and
strengths each organization, businesses can increase their addressable market and broaden their
relevance and employees can expand their development opportunities. Stakeholders provide vast
opportunities for innovation. Organization need innovations in stakeholder’s situational analysis.
Communicating effectively with stakeholders is linked to their motivation. Strategic alliance play
a crucial role in success of any business firm. Through strategic alliance risk and knowledge
sharing happened between firms which boost their business growth (Kopnina and Blewitt, 2018).
Global companies have many alliance on inland market and global partnerships, which leads to
challenges. Managing an alliance focuses on leveraging the differences for creation of values for
the customers, managing daily competition, dealing with internal changes and risk management
become a wide concern. Collaboration become effective when assessment team clearly defines
the objectives, processes and roles.
Woolsworth by strategic collaboration provides the vital resources and extend their skills set into
new areas:
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 Forming economies of scale: partnership nationally and internationally generate
economies of scale in the business which means cost saving happened. This happened
because firm receive technology transfer through strategic alliance.
 Enhancing competitiveness: this increase the technological and administrative
complexity, improvement in their learning (Kudłak and Low, 2015). They are adopting a
strategy of maintaining their core competencies (Waddock, 2018).
 Dividing global business risk: As mentioned above business risk is divided between
business firms through strategic alliance partnership. Under this model firms collaborate
run strategic alliance and mutually share research and development expenditure. Thus, if
loss happened in project it get divide between both firms.
 Setting new standards: By the development of new technologies create new market
opportunities. Creation of new technologies might set the standards for competitors of
same industry (Leipziger, 2017).
Strategic alliance will offer various benefits to the company such as it will help Woolworth
to enter into new foreign market. Partners will be able to establish new distribution system and
marketing channels for distributing the products or services to the customers. Further, another
organization can also provide advice to Woolworth for improving the features of the product that
will help to attract large number of customers (Osagie and et.al., 2016). As a result, it will help to
increase revenue of the company. Another major advantage of strategic alliance is that, company
can easily compete with other companies by entering into strategic alliance with other firm.
Therefore, it will be easy for Woolworths to gain competitive advantage over other companies.
Moreover, other firm may also provide support to Woolworth in respect of various issues such as
translation of the documents. Further, strategic alliance is useful when conditions of the market
or policies of the government present barriers to firm for entering into another market.
Woolworths can overcome these barriers by partnering with other company. By forming alliance,
firm will gain better opportunities for supplying products in international market as well as in
local market (Davies, 2016).
4. Impact of current organization practices on sustainable development for future
Modern economies focus on economic development and obligations for preserving ecosystem
and natural resources. Sustainable development aims to include core competencies which are
collaborative decision-making, critical and systematic thinking and become responsible towards
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present and future generations (Wu and et.al., 2018). Voluntary and regulatory approaches
become more effective in changing firm’s behavior to be sustainable. Considering the different
stakeholder groups those influencing organization’s strategic decisions related CSR (Quarshie,
Salmi and Leuschner, 2016). It is observed that from past time period more focus is on
sustainability of the business and natural environment. This topic is gone popular in domestic
and international platforms. It is important for firms and general public to understand concept of
sustainability development. Term sustainable development reflect the situation where economic
development will happen but not at cost of natural resources (Bendell, 2017). Means that care
will be taken of natural resources and environment and it will be ensured that business operations
are not negatively affecting natural environment. In recent years, regulators emphasize on
inclusion of principle of sustainability in policy making and to the alternatives as a measure of
social progress. Influence on the national and international policy framework for sustainable
development (Charles Jr, Schmidheiny and Watts, 2017). United Nations conference on
sustainable development works on organisation for economic development and cooperation,
international monetary fund and World Bank, Australian government's intergenerational reports,
intergenerational actions on climate change ans measuring sustainability programme (Rendtorff,
2019). Discounting and cost benefit analysis which are determined in respect of the future
impacts had to examined through current plan. Sustainability is undertaken to combine the latest
environmental aspects and enhances the sustainability concepts such as green GDP and provides
growth measures. Improving or maintaining well-being over generations helps in determining the
weaker section wherever possible and adopting strong sustainability in stocks that are not
substitutable. For making effective trade-off, requires focusing on alternative courses of actions.
Future generations' technology and preferences are not known and familiar with its usage not
resulting to bring positive impact of future perspective (Schaltegger, Burritt and Petersen, 2017).
Woolworths adopt some practices on sustainable development for future generations are:
 Empower you employees:
When implementing change in their organization, communicate with the employees. Encourage
employees for providing leadership which brings more sustainability and providing them
opportunity to share their ideas.
 Organization commitment in respect of sustainability:
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In respect of bringing sustainability in organization, they bring various aspects which is
demonstrate that they are committed to make official statement to this. Regarding sustainability,
they become more responsible and aware about the social and environmental aspects as compare
from yesterday (Davies, 2016).
 Switch off lights when not in use:
The best way to save environmental and energy is to turn off lights when they not in use.
The best way adopted by organization for doing this through involving all the employees in this
initiative (Pillai and et.al., 2017).
 Conserve water:
This method is easiest method and also they can save cost and energy in respect of saving water.
Through this procedure they can reduced the container of water and this procedure also helps in
maintaining the high water pressure (Wu and et.al., 2018).
 Recycling the use of paper:
Encouraging employees to identify the wastages of paper before printing any documents
(Storey, Killian and O'Regan, 2017). To save the paper, there are various methods which is to be
used such as the document can be printed on both the sides of paper.
 Saving cost in respective of business travel:
Travelling prevented by raising video conferencing. Its major objective is to reduce the
business travel which indirectly save environment but also save money too (Schaltegger, Hansen
and Lüdeke-Freund, 2016).
Investing in digital filing system:
They consider digital filing systems because of this they used to reduce the need of paper
documents, also they are safer, easier to access and taking up less physical space.
 Organizing the supporting team:
By organizing the supporting team which is elected among employees who present their
thoughts and ideas at the time of discussion. Their duty is not only to give power to employees
not to share ideas in business meetings but also bring new results to sustain in business for longer
time period.
CONCLUSION
The above Report has outlined that every firm have to face certain types of challenges in
global local context. Corporate social responsibility provides benefits to both stakeholders and to
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business. Socio-economic model described that activities of the business also have impact on
people living in the society. Further, Report has explained that, all the models of ethics suffers
from certain type of limitations. There are two major theories for sustainable development like
three pillars model and Prism model etc. Corporate governance policies has become an essential
part of modern organization. Implementation of governance practises has been demanded by
shareholders and regulators. Stakeholders like customers, government etc. offers various benefits
to the company. Strategic alliance offers various opportunities to the business. It helps to expand
the market and increase sales. Moreover, Woolworth has opted for autocratic leadership style
which is counted as the most effective and authentic style in enhancing and improving its CSR
programs.
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