Sustainability Reporting and Accounting Practices of Woolworths

This report provides a comprehensive analysis of Woolworths' sustainability reporting practices. It examines the company's approach to environmental, social, and ethical issues within its accounting framework. The report discusses Woolworths' implementation of the triple bottom line, stakehold...Read More

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Sustainability Reporting in Accounting of Woolworths 1
Executive Summary
With the ramified economic changes, sustainability in business organization is gaining
momentum throughout the time. Woolworths Company has implemented strong sustainable
business functioning with a view to establish strong brand image on domestic and international
level. Sustainability reporting is accompanied by the process in which organization
communicates all the financial and non-financial information with its stakeholders either through
annual report or other financial statements. This report has put emphasis upon social and
environmental accounting which showcases the process used by organization to communicate its
social and environmental effects to particular interest group within the society at large. This
report has shown how sustainability reporting is used by Woolworths to showcase
environmental, social and ethical issues arise from its daily business activities.

Sustainability Reporting in Accounting of Woolworths 2
Table of Contents
Executive Summary.........................................................................................................................1
1 Introduction..............................................................................................................................3
2 Discuss the Sustainability Reporting in Accounting of Woolworths......................................3
Analyse current social issues in accounting and sustainability and their impact on various
stakeholders.....................................................................................................................................3
3 Analysing the current and social issues in context with Sustainability Reporting in
Accounting of Woolworths..............................................................................................................4
4 Recommendation.....................................................................................................................7
5 Conclusion...............................................................................................................................9
6 References..............................................................................................................................10

Sustainability Reporting in Accounting of Woolworths 3
1 Introduction
With the ramified economic changes and complex business structure, sustainability
reporting on international level has been gaining momentum throughout the time. In the starting
of this report, sustainability reporting of Woolworth has been discussed. This sustainability
reporting in Accounting of Woolworths Company also denotes information about economic,
environmental, social and governance performance of company. Woolworth has improved its
sustainability reporting by measuring, controlling and evaluating the business concepts and
governance program in determined approach. This report has shown the deep understanding on
the sustainability reporting of Woolworth and how it has implemented effective sustainability
reporting in determined approach. The main focus of sustainability reporting of Woolworth is
related to implementing triple bottom line in business.
Present description of organization
This Woolworths limited is major Australian company indulged in extensive retail interest
throughout the time to run its retail business on international level. The main headquarter of
company is in Bella, Australia having more than 67 subsidiaries (Woolworths, 2017).
2 Discuss the Sustainability Reporting in Accounting of Woolworths
The retail sector continues to be in main spotlight due to its direct and indirect supply chain
impacts on the society and environment at large. Woolworths Company has planned to
implement effective activities with a view to increase its overall productivity of organization. In
the Sustainability report of Woolworths Company has highlighted the main focus on
transformation, social development, health and wellness of employees, ethical consideration in
its working, sustainable farming. In addition to this, the good business journey index of
Woolworths have been evaluated which reflects company has efficient business in terms of
social, economic, governance, transformational and environmental in determined approach
(Ehrhardt and Brigham, 2016).

Sustainability Reporting in Accounting of Woolworths 4
Analyse current social issues in accounting and sustainability and their
impact on various stakeholders.
Managing sustainability by the Woolworths
This part of the analysis reflects how well Woolworths has managed its supply chain activities
and logistic works in the betterment of economic and environment at large. The corporate
governance of company in sustainability Reporting in Accounting of Woolworths is also strong.
In the sustainability report of Woolworths, it is observed that company has complied with the all
the rules and regulation. This regulatory compliance program of Woolworth has reflected that it
has maintained high level of integrity in its business. After evaluating its policies and program, it
is considered that company has undertaken the best interest of its stakeholders (Gitman, Juchau
and Flanagan, 2015).
There are several sustainable programs which have been implemented with a view to increase the
sustainability of organization.
Green stores – Woolworths Company has set several green stores which have been given high
rating according to the green sores models (Woolworths, 2017).
Water usage program- In order to reduce the wastage of water in head office, stores and other
distributable centres’, company has installed water control mechanism.
Woolworths company has also implemented independent carbon foot print program in
confirmation with ISO 14064-3 international standards for GHG verifications performed by the
global carbon exchange department. This has increased the carbon efficiency program and
establishes positive environmental program for society at large.
3 Analysing the current and social issues in context with Sustainability
Reporting in Accounting of Woolworths
Stakeholder engagement and sustainability

Sustainability Reporting in Accounting of Woolworths 5
It is observed that Woolworth has diverse all of its stakeholders in long term dialogue to
provide important input and running the business with more transparency. The management of
Woolworths company has made its marketing and communication strategy more clients oriented.
In order to increase the overall outcome of its business functioning, Woolworths has established
nexus between stakeholder welfare and company development (Laeven and Valencia, 2013).
Our people and transformation of Woolworth Company
It is the main sustainable activities which are directed to increase the overall outcome of
the organization. It is evaluated that company has implemented value based functioning which
strive to ensure positive value in its each and every activities. Organizational sustainability of
Woolworth has focused on enabling a value based and led organization through its strategy to
attract, develop and retain leaders to create high performance, increasing value and increase the
employees experience by delivering compelling employment brand. (Berghöfer, and Lucey, B.,
2016).
After evaluating the sustainability reporting there are following points are taken into
consideration.
 Woolworths Company has invested 5.3 million in the national education collaboration
trust which will support needy children in their education.
 The education program in which Woolworth invested its capital benefited MY village,
my school program. This has increased the overall outcome of its investment for the
betterment of the society at large.
 The child safety and vulnerability program, product donations and social development in
Africa is the main sustainable activities undertaken by the Woolworth. It is accompanied
 Company has also implemented health and wellness program to promote health and
safety issues for the betterment of the society at large (Sanlorenzo, et al. 2015).
Harmonization in its reporting frameworks
It is observed that Woolworth has complied with the IFRS rule and AASB accounting
standards with a view to establish harmonization in its domestic and international reporting
standards. However it is easy to identify that domestic reporting framework does not math with

Sustainability Reporting in Accounting of Woolworths 6
the international reporting frameworks. Therefore, in order to mitigate these international
reporting frameworks, all the rule and regulations given under IFRS will prevail against domestic
compliance program. .This harmonization program increases the transparency and strengthen the
corporate governance program of company. It will increase the sustainability of the organization
and reduced the non-compliance defaults (Treanor, et al, 2014).
Ethical sourcing
It is related to diverse and complex supply chain activities of the Woolworth and how it
has increased the value to its customers and managed ethical sourcing strategy for the better
satisfaction of clients. Ethical sourcing for Woolworth means building worth full value-sharing
relationship with its stakeholders. It also ensures high integrity, safety and managing dignity of
the employees and supplier in business.
Sustainable framing reporting of Company
A high proportion of environmental impact resulting from Woolworth’s operations is
linked to the framing and selling of its other products in market. The management of Woolworth
Company will have to install new system in its farming process with a view to increase its
overall outcomes in determined approach. As a result Woolworth Company has made priority to
work tighter with its suppliers to minimise these impacts and positively influence the
environment. The main strategy for the framing work of the organization is based on the theme
“the framing with the tomorrow in mind” (Woolworths, 2017).
Woolworths Company has also set ambitious WHL group target to sell its entire fibre sell
from its stores. These all products will be purchased from the suppliers who maintained
sustainable mechanism. In addition to this, company has also installed re-cycling process for
reducing the wastage of its products and increases the overall outcomes of the organization. The
packagings of products which are sold in its stores are also based on climate change and rules
and regulation passed from the AUSTRALIAN PACKAGING COVENANT (Vogel, 2014).
There is another sustainable program which is followed by Woolworths is related to
reducing the food waste. As an ongoing activity, Woolworths donates surplus foods to the needy
people. In 2016, Woolworths donates more than $ 490 million foods to the people on annual

Sustainability Reporting in Accounting of Woolworths 7
basis. This level of strategic program and implemented business functioning reflects the
sustainable business future of company. Nonetheless, with the sustainable business activities and
effective business program has strengthened Woolworth brand image on international level.
The recycling process of Woolworth
Woolworths Company had committed towards national wide supporting program which
emphasis upon recycling of customers waste and increasing overall outcome of the organization.
Company has opened up store operations at various places at which all the wastages would be
sent for the recycling process. This will increase the efficiency of the business and increases the
overall outcome of the organization. The other sustainable working of organization is based on
the use of reusable bags in place of use of plastic bags. This will help company to reduce the cost
of products sell in its retails store and increase the overall profit with determined rate (Weygandt,
Kimmel and Kieso, 2015).
Transparency of the Woolworth Company
Company has been committed to improve disclosure about the financial and non-financial
information about the company. Company has filled its financial statements as per the
international accounting standards. Employee engagement program has also implemented by the
organization to increase the overall outcome of the business and establish nexus between
employee’s development and organizational welfare. Each and every person could easily
download the annual report of company by clicking on its online website. These documents and
paper will help person to check all the financial and non-financial information in determined
approach (Woolworths, 2017).
4 Recommendation
After evaluating all the details and information given in the sustainability report of
Woolworths Company, it could be inferred that company has implemented effective sustainable
business. However, there are several recommendations which should be undertaken by
Woolworths Company in its business.

Sustainability Reporting in Accounting of Woolworths 8
 It should focus on installing new cyber computing advanced resources planning to reduce
the scarcity of resources.
 It should re-structured value chain activities to make it more sustainable and stakeholders
oriented.
 Company needs to arrange proper training and development program to promote
employees in determined approach.
 Carbon footprint index and environmental health program should also be strengthening
by Woolworths Company.
 The main focus of company should be to manage its labour relation by including
employees oriented business policies. Woolworths Company has been facing high level
of employee turnover in its business which may put negative impact on the sustainable
future of organization (Zhu, 2014).

Sustainability Reporting in Accounting of Woolworths 9
5 Conclusion
Woolworths Company is an international company which has been running its business on
international level. There are several stakeholder who influenced by the business functioning of
company such as employees, clients, government and society at large. It is further observed that
sustainable future of company is very strong and managed its business effectively. After
evaluating the sustainability report of Woolworths, it is observed that company has complied
with the all the rules and regulation. It has resulted to reduction in the legal default and increase
the overall efficiency of the business. Woolworth has complied with the IFRS rule and AASB
accounting standards with a view to establish harmonization in its domestic and international
reporting standards to make its sustainability accounting reporting effective.

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6 References
Brigham, E.F. and Ehrhardt, M.C., 2013. Financial management: Theory & practice. Cengage
Learning.
Ehrhardt, M.C. and Brigham, E.F., 2016. Corporate finance: A focused approach. Cengage
learning.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Laeven, L. and Valencia, F., 2013. The real effects of financial sector interventions during
crises. Journal of money, credit and Banking, 45(1), pp.147-177.
Laudon, K.C. and Traver, C.G., 2013. E-commerce. Pearson.
Prasad, E., Rogoff, K., Wei, S.J. and Kose, M.A., 2005. Effects of financial globalization on
developing countries: some empirical evidence. In India’s and China’s Recent Experience with
Reform and Growth (pp. 201-228). Palgrave Macmillan UK.
Sanlorenzo, M., Wehner, M.R., Linos, E., Kornak, J., Kainz, W., Posch, C., Vujic, I., Johnston,
K., Gho, D., Monico, G. and McGrath, J.T., 2015. The risk of melanoma in airline pilots and
cabin crew: a meta-analysis. JAMA dermatology, 151(1), pp.51-58.
Treanor, S.D., Rogers, D.A., Carter, D.A. and Simkins, B.J., 2014. Exposure, hedging, and
value: New evidence from the US airline industry. International Review of Financial
Analysis, 34, pp.200-211.
Vogel, H.L., 2014. Entertainment industry economics: A guide for financial analysis. Cambridge
University Press.
Weygandt, J.J., Kimmel, P.D. and Kieso, D.E., 2015. Financial & Managerial Accounting. John
Wiley & Sons.
Woolworths, 2017, annual report, Retrieved on 19th January, 2018 from file:///C:/Users/Prakash
%20Gupta_JPR/Desktop/Sustainbility/WHL-Good-Business-Journey-Report-2016.pdf

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Zhu, J., 2014. Quantitative models for performance evaluation and benchmarking: data
envelopment analysis with spreadsheets (Vol. 213). Springer
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