Kmart CSR: Analysis of Current Activities and Future Plan

This report provides a comprehensive analysis of Kmart's Corporate Social Responsibility (CSR) activities, examining its current initiatives, stakeholder engagement, and sustainability plan. The report begins with an abstract and table of contents, followed by an introduction outlining the importance of CSR for businesses. A situational analysis, including PESTEL and SWOT analyses, is conducted to evaluate the external and internal factors influencing Kmart's operations. The report identifies Kmart's existing CSR and sustainability activities, including its 'Better Together' plan. Stakeholders are identified, and a problem statement is formulated, highlighting the need for improved employee welfare programs. The report proposes a new CSR initiative focused on employee development, outlining SMART goals, tactics, and a key message using the AIDA model. The conclusion summarizes the findings and recommendations, emphasizing the importance of CSR for Kmart's long-term success. The report also references key academic sources to support its analysis and recommendations.

Running head: CSR
CSR
Name of the Student
Name of the University
Author Note

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Abstract
The Corporate Social Responsibility activities form an integral part of any organization and
when a firm aims to ensure considerable success in the long run, then in such a case, it needs to
get involved in viable CSR activities. Hence, this report is based on the current business scenario
of the Australian company Kmart and aims to identify the overall CSR activities which the fir, is
carrying out and also propose a viable and comparatively different CSR activity which can be
carried out by the firm as present. Hence, in line with this, the report shall analyze the different
CSR activities carried out and propose a new CSR activity which it can adopt. The manner in
which the message will be shared amongst the different stakeholders will be identified.

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Table of Contents
Introduction......................................................................................................................................3
Situational Analysis.........................................................................................................................3
External Analysis.........................................................................................................................3
Internal Analysis..........................................................................................................................6
CSR and Sustainability activities.................................................................................................7
Stakeholder identification................................................................................................................7
Problem statement/ Key insights/ Key message..............................................................................8
Problem statement.......................................................................................................................8
CSR Tactics.................................................................................................................................9
Key message....................................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
When a business fucntions in the society, it needs to fulfill its overall duties towards the
firm stakeholders but also fulfill its overall duties towards the different members present in the
society. It can be largely understood that it is because of this reason that, it becomes integral for
the firm to look after its operations in a manner such that it has a positive impact on the different
aspects of the society and the image of the firm in the eyes of the different customers can be
uplifted (Carroll 1991). The organization which has been chosen for the purpose of the study can
be taken to be the Kmart. Hence, the primary aim of the given report can be understood to
provide a scope for the different Corporate Social responsibility activities which can be
essentially carried out by the firm and additionally provide a proposal which can be followed by
the Kmart in order to improve its overall Corporate Social responsibility standing.
Situational Analysis
In order to understand the manner in which the different CSR activities and overall
sustainability operations which can be undertaken by the organization, this section of the report
will be analyzing the overall external forces which have an impact on the overall operations and
additionally, the previous initiatives which have been undertaken by the organization to carry out
the different Corporate Social responsibilities, will also be determined adequately.
External Analysis
PESTEL
The PESTEL analysis can be understood to be an effective strategic management tool
which can be made use of by the different organizations in order to analyze the manner in which
the business has been performing and to determine whether the firm will be able to attain success

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in the long run or not (Morschett, Schramm-Klein and Zentes 2015) . The PESTEL Analysis of
the firm has been done as follows:
Factors present Significance for the business
Political The different revenue enhancing policies,
labor duties and other related aspects relating
to the Political aspect can be understood to be
the main factors which affect the overall
operations of the firm as a whole. The reason
why the political associations need to be
looked out for is because, being unfastened by
the political associations can increase the
impact on the customer sentiments (Garriga
and Melé 2004).
Economic The condition of the overall economy as a
whole tends to have an impact on the different
aspects of purchasing which takes place in the
markets (Hitt and Duane Ireland 2017). In
line with this, it becomes considerably
relevant for the firm to ensure that the
different strategies regarding the pricing and
the product are designed in a manner such
that it can align with the overall economy.
The economy of Australia has been doing

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well.
Social The social factors can be referred to as the
factors which affect the overall consumer
decision which exists. In line of this, it is
crucial to understand that, it is often the social
needs of the business which are required to be
fulfilled and the Corporate social
responsibility needs to be designed in a
manner such that, the social needs of the
different customers can be fulfilled
accordingly (McWilliams, Siegel and Wright
2006).
Technological The advent of social media and related
technology has given rise to the viewpoint of
each of the customers. These days each and
every move undertaken by the firm is
considerably monitored by the different
customers who then expect a certain kind of a
performance by the firm and in case, this is
not fulfilled, it leads to deliberate issues
(Ansoff et al. 2018).
Legal The organization may be required to ensure
that they are essentially able to follow all the

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legal guidelines which they have to follow in
regard to carrying out the different business
operations essentially.
Environmental The environmental aspects which have to be
followed by the Kmart can be understood to
be the need to meet the overall needs of the
general populace and moreover, the
responsibilities regarding waste generation,
overall environment and related recycling
issues need to be discussed in detail (Wang et
al. 2016).
Internal Analysis
SWOT
The SWOT analysis of the firm can be understood to be as follows:
Strengths Weaknesses
Strong Management
Good customer service
Innovative and open ideas
Unique shopping experience
The prepared food can be understood to be
highly priced
Affected by closure of certain stores
The financial position is overleveraged.
Opportunities Threats
The firm can expand abroad to other countries The economic slowdown can be understood

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Opportunity to cater to multi ethnic groups
Acquiring newer labels and new brands
to be going down
External changes by companies can affect the
operations to a great extent.
CSR and Sustainability activities
The Kmart understands the overall role of the stakeholders and the related team
opportunities as well as risks. In line of this, it has to be understood that, the organization has a
series of working groups to review the overall operations of the firm and with respect to this, the
firm has a Better Together, sustainability plan which mixes the work of the People, the partners
as well as the Planets (Kmart.com.au 2019). The plan had aimed to increase the employment of
the Aboriginal and Torres Strait Islander, increase the overall proportion of the women in the
overall leadership roles, partnering with the key suppliers in order to understand the overall
needs of the different employees and the customers as present and lastly, it is also required to
fulfill its personal goals by meeting with the needs of the different societal needs like landfill
aspects, reduction of average store energy and other related aspects (Morden 2016).
Stakeholder identification
The stakeholders form an integral aspect of the organization and hence, the different
stakeholders which Kmart is required to cater to can be taken to be as follows:
 The public: The public tends to form one of the most integral stakeholders from the point
of view of the different CSR activities which have to be undertaken by the firm.
 The suppliers: The suppliers can be understood to be another key stakeholder which the
Kmart needs to serve appropriately.

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 The employees: Kmart has a role to play with respect to the different employees of the
firm as well and the different outlets must come up with programs to uplift their needs as
well (McWilliams and Siegel 2001).
 The government: The government can be understood to be another crucial body which
has a key role to play in the overall business of the brand and hence, Kmart would be
required to look after its needs to ensure success in the long run.
Currently, the customer perception of the different Corporate Social responsibility activities
as undertaken by the Kmart can be understood to be poor in nature due to the Kmart factory
collapse which highlights the poor case of the CSR in the country (Kmart.com.au 2019).
Although it can be understood that the firm has adequate responsibility towards the stakeholders
financially, however, they have to minimize such incidents in the future. However, the firm came
up with considerable initiatives to ensure that they are being able to overcome this perception
and the poor image of the firm in order to be able to improve its CSR standing (Schrempf-
Stirling, Palazzo and Phillips 2016).
Problem statement/ Key insights/ Key message
Problem statement
Hence, from the given analysis as done in the above section, it can be rightfully
understood that, although Kmart has been adopting various initiatives for the overall welfare of
the different stakeholders, however, it can be considered to be crucial for the firm to take
initiatives with respect to the employees of the firm (Carroll 1999). Therefore, this proposal
proposes a Corporate Social responsibility initiative for the different employee welfare programs.
The program shall ensure that the employees are being supported with respect to their overall
development needs and provided a scope for further growth.

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CSR Tactics
The SMART Goals are as follows:
1. The program will specifically focus on the employees of the organization.
2. The program will seek to enroll the employees in various training and development
courses.
3. The employee`s performance will be reviewed annually and this program aims to
improve the overall skills of the employees by 50% in 1 year.
The outlines of the program can be prescribed as follows:
 The employee welfare program will aim to provide a scope for personality development
and overall growth for the employees.
 The program will be reviewed every year.
 In this program, the firm will be allowing the employees a scope for further education
and other vocational training programs to see to it that they are able to perform well.
 An exam to ensure the same shall be conducted with the help of a reputed educational
institute by the firm.
 This will help them in performing well and getting promoted into various managerial
roles (Lasserre 2017).
Key message
The Key message about the program will be forwarded to the different employees as
follows:
The AIDA model has been followed for the framework.

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 Awareness: The different employees as present will be told about the particular program
which exists which would then enable them to understand the CSR intentions of the firm.
 Interest: The benefits and key perks of the program would be communicated to them
(Hassan, Nadzim and Shiratuddin 2015).
 Desire: This ignites a desire amongst the different employees to perform well and be a
part of the CSR program (McWilliams and Siegel 2000).
 Action: The employees will participate in the program and the overall CSR aspect of the
same will improve.
All the employees as present in the firm, would be provided with an opportunity to
engage in the program and ensure that they are being able to take advantage of the given CSR
activity through which the firm has aimed to broaden the scope of its CSR initiatives and extent
the benefits to the employees of the firm who form the backbone of the organization (Porter and
Kramer 2006).
Conclusion
Hence, from the given report it could be rightfully understood that Kmart is an Australian
firm which has been taking considerable initiatives in order to ensure that it is being able to
perform well and that, it is undertaking various initiatives to improve the overall standing in the
business environment. The report proposed a CSR initiative with respect to the employees which
can be adopted by the firm and additionally aimed to lay down the varied tactics which could be
used by the firm.

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References
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