7001MKT: Woolworths' CSR, Issues Management, Communication

This report provides an analysis of Woolworths' Corporate Social Responsibility (CSR) initiatives and communication strategies, integrating the concepts of CSR and issues management. It examines the role of CSR within the organization, focusing on CSR practices, communication activities, and key stakeholders. The report also discusses the impact of CSR on Woolworths' brand image and reputation, highlighting the importance of managing CSR-related issues. Furthermore, it evaluates the consistency of corporate communication messages conveyed to key stakeholders and offers recommendations for improvement, emphasizing the need for ethical practices and sustainability. The analysis covers various aspects such as working conditions, environmental responsibility, and combating corruption, providing a comprehensive overview of Woolworths' approach to CSR and its impact on the organization's overall performance and reputation. Desklib offers a wealth of similar documents and study tools to aid students in their academic pursuits.

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Management
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Executive Summary
The report has thrown light on analyzing the importance of CSR in the different organizations
as they play a vital role in managing the various operations successfully. CSR is the efforts
of the organization as to improve the society in some manner and the company taken in the
report is Woolworths. Woolworths have initiated different CSR related activities that have
helped them in managing the operations successfully and gain competitive advantage. The
CSR is essential in organizations as it will improve the overall sustainability-related practices
in the organization and improve the overall welfare of the organization. The potential benefits
of CSR in an organization is the better recognition of the brand along with a positive
business reputation that has assisted them in managing operations in a successful manner.
Additionally, the CSR related activities have been unethical at Woolworths in which
recommendations have been provided to improve their status.

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Table of Contents
Introduction............................................................................................................................ 3
Overview of Organization....................................................................................................3
Integrating CSR and Issues Management..............................................................................3
Definition of CSR................................................................................................................3
Theories Related to CSR....................................................................................................3
Definition of Issues Management........................................................................................4
Theories Related to Issues Management............................................................................4
CSR Issues Management...................................................................................................4
The role of CSR within your organization...............................................................................5
Features of CSR Practices and Communication in Woolworths..........................................5
Communication Activities and Tools...................................................................................5
Key Stakeholders concerning CSR Program Issues Communicated by Woolworths..........5
Impact of CSR on Brand Image and Reputation.................................................................6
Role of CSR Issues Management for your organization.........................................................6
Features of CSR Issues Required to be Managed by Woolworths.....................................6
Role of Media Relations in CSR Issues..............................................................................6
Impact of CSR Issues on Organization’s Brand Image and Reputation..............................7
The consistency of company corporate communication messages........................................7
Discussion on Consistency of Messages Being Communicated to Key Stakeholders........7
Overall evaluation of communication in the organization and your specific recommendations
............................................................................................................................................... 8
Conclusion............................................................................................................................. 9
References........................................................................................................................... 11

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Introduction
The report throws light on analyzing and integrating the role of CSR and Issues
management which are required in the organizations. The purpose of CSR issues
management is analyzed within the company as this will provide analysis of the effects of the
CSR on the brand image and reputation of the organization. Moreover, the consistency of
the corporate communication strategies of the company is analyzed which is necessary to
be communicated to the stakeholders of the company.
Overview of Organization
Woolworths Supermarket is an Australian supermarket store which was founded in
the year 1924, and they are earning more than 80% of the shares of the company in the
Australian market. The headquarter of the company is at New South Wales, Australia and
the number of locations wherein Woolworths is operating is 995. The number of employees
working at Woolworths is 115000, and the revenue earned by them is A$56.726 billion till the
year 2017 (Woolworthsgroup.com.au, 2019).
Integrating CSR and Issues Management
Definition of CSR
Corporate Social Responsibility is the type of international private business self-
regulation. Social Responsibility is defined as the principle wherein the different
organizations need to contribute towards maximizing the profits. Furthermore, Watson
(2015), has opined that during the last few years, CSR has been developed and
implemented in many big and SMEs as it has been treated as the marketing strategy which
has been widespread as the factor of differentiation along with awareness for the customers.
Theories Related to CSR
Stakeholder Theory of CSR- Belal (2016), has commented that since the 1990s,
the particular theory has become famous as the direct type of alternative along with a
challenge too as the shareholder value theory. It has been argued that the number of
different stakeholder pressure groups. The stakeholder view of strategy helps in integrating
both market-based view and resource-based view, and it adds to the socio-political aspects.
Business Ethics Theory of CSR- As commented by Wang et al. (2016), the
business ethics theory is based on the more general social kind of obligation along with an
analysis of the moral duty of the business which has towards the entire society. The

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particular theory justifies the CSR on three varying levels of interrelated ethical aspects
which are described as follows:
 Corporate Citizenship (wherein it consists of the notion that the corporation is
treated as the better citizen in the entire society to contribute towards the social
wellbeing)
 Emerging along with changing social expectations and responsiveness to the
different social problems
 Kantian ethics inspires intrinsic ethical values, and they are being denoted as
universal principles such as justice, fairness along with human rights
Shareholder Value Theory of CSR- As per the own theory, it can be analyzed that
the CSR of the different businesses is to develop the different profits along with following the
different legal kind of norms which will be beneficial for the overall success of the firm
appropriately. The particular theory is a strategic instrument for managing corporate
competitive advantage and more gain in the profit (Saeidi et al., 2015).
Definition of Issues Management
As commented by Waddock, (2017), issues management is the entire process
through which the different companies manage the different policies along with identifying
the different trends and issues which could impact the different activities in the future. There
can be the inclusion of various problems related to staffs or the suppliers which can create a
negative impact on the project.
Theories Related to Issues Management
As commented by Voegtlin & Greenwood, (2016), Structural Functions Systems
Theory is one of the essential elements in the Issues Management as this helps in
managing the issues through environmental scanning. In the particular aspect, it can be
identified that each member in the organization are required to be involved in the decision-
making process as it will help in dealing with crisis and keep the communication lines
transparent and open.
CSR Issues Management
Suliman, Al-Khatib & Thomas, (2016), have opined that the CSR issues management
is inclusive of the different kinds of negative aspects which have been faced by the
organizations in selling various products and services to the customers in the market. For
instance- As per the survey which was conducted, more than 50% of the customers in the

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US have boycotted the organization at some time which was due to the lousy customer
choice, and it was not environmentally sound in the approach as well.
The role of CSR within your organization
Features of CSR Practices and Communication in Woolworths
As commented by Su et al. (2016), Corporate Social Responsibility is a prominent
aspect in the 21st century which helps in heightening the expectations of the different
customers regarding maintaining the environmental and social standards. The Employees
Credit Union of Woolworths is committed to supporting and implementing the effective CSR
program which assists in integrating the social and ecological responsibilities in the daily
operations which are performed by them. The role of the employees of Woolworths is to
communicate with the different stakeholders of the organization towards managing CSR
programs are inclusive of the following:
 Be respectful towards the environment along with leads the environmental influences
in an active manner
 The main aim of Woolworths is to increase the overall awareness of the different
environment-related issues along with providing proper assistance to the members
as to act in a sustainable manner
 Furthermore, the other purpose of Woolworths is to promote the overall financial well-
being along with the literacy of the members working in the company
Communication Activities and Tools
With the implementation of social media channels, Woolworths try to communicate
stakeholders as this will be helpful in promoting corporate trust and transparency.
Woolworths applies the same wherein it is the two-way communication as there will be
mitigation of the risks and there will be increased transparency in the conveying of the
message from one party other. The sustainability of the environment is a big focus for
positioning their brand by aligning the sales of the company by Planting a tree movement.
Woolworths feel that planting of trees is the accurate manner to give back to the planet and
save the earth (Flammer, 2015).
Key Stakeholders concerning CSR Program Issues Communicated by Woolworths
Customers- Throughout over 1500 stores and the company makes an effort to
satisfy the requirements of customers around the sustainability and quality of the product
(Wecu.com.au, 2019)

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Employees- There are 46000 employees across the global kind of operations by
creating a conducive environment.
Suppliers- The company strives to develop different activities through the
sustainable manner
Communities- Woolworths is involved in community upliftment activities in areas
within areas wherein they operate
Impact of CSR on Brand Image and Reputation
CSR activities can create a positive and negative effects on the brand reputation of
the organization as it has helped Woolworths in leading to the creation of a better brand
image with the awareness of customers which moderates the relationship. The CSR
activities of 2020 of Woolworths focuses on generating sustainability in the environment and
protecting the planet. CSR is the emotional aspect of the brand image that enhances the
competitive advantage of Woolworths to preserve the brand create values for the customers
in the market (Fatemi, Fooladi & Tehranian, 2015).
Role of CSR Issues Management for your organization
Features of CSR Issues Required to be Managed by Woolworths
The CSR issues which are required to be managed by Woolworths as to reduce the
particular issues and make the environment a better place for living.
Working Conditions- By ensuring the possible employment, as per the application
of provisional and statutory provisions, it can be identified that Woolworths needs to manage
discrimination in the workplace along with constructive cooperation is mandatory with social
partners which is the essential part of the same.
The Environment- It is the other aspect which is required to be managed by
Woolworths as responsible environmental management can continuously improve the
impact of enterprise on the environment. Woolworths needs to include progressive internal
environmental management system which should be based on high standards which will be
responsible for the consistent reduction of greenhouse gases and contingency plan for
reducing harmful effects on the environment.
Combating Corruption- It is the aspect as corruption can have dreadful impacts on
the different functions of the organization. Woolworths can play a significant role in fighting
crime by introducing the different internal control mechanisms which can be done by training
employees accurately.

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Role of Media Relations in CSR Issues
Target Audience- Through social media, the different CSR related activities can be
communicated to the customers regarding the sustainability issues faced by the company.
This will help in analyzing the buying behavior of customers from the respective company
(Petrenko et al., 2016).
Authenticity- Through social media channels, it will help in developing a standard
operating procedure which will be beneficial in making customers understand authentic,
sustainable practices of the company.
Your Story- Through social media platform, there can not be any duplicity of the
story as it will be ethical trading and ethical advertisement which will be showcased.
Impact of CSR Issues on Organization’s Brand Image and Reputation
When there is unethical usage of the different products and services along with
unethical trading, it will affect the brand image of the company negatively. In Woolworths, the
company has been facing issues relating to illegal practices such as workplace bullying and
harassment that affected their reputation in the market. There has been a breach of
industrial law that affected the overall reputation of the company; however, there has been a
change in different practices which helped the company to become ethical in their dealings
and trading.
The consistency of company corporate communication messages
Discussion on Consistency of Messages Being Communicated to Key Stakeholders
The flexibility of the message is essential of the everyday business activities as the
stakeholders’ value the most-up-to-date consistent information. The employees are required
to be trained which is needed to be updated as it will make the content compatible and
regularly updated. Woolworths needs to employ such consistency in messages which will be
useful in managing the overall sustainability in the business activities appropriately.
In the case of Woolworths, the consistency of the message is being maintained
across all facets including departments and the outside stakeholders of the company. The
staffs at Woolworths knows about the latest contacts and issues that help them in
managing the overall activities accurately. While hiring the candidates, Woolworths try to
convey the different rules and regulations regarding the working environment of the
company along with leading trust among the employees (Woolworthsgroup.com.au, 2019).

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In case of the customers, it can be analyzed that Woolworths has been conveying
similar messages regarding the availability of the products and the sustainability practices of
2020 which is correct and it has helped them in building strong relationships with them. The
working towards zero wastage of food is helpful in managing the operations successfully.
The inspiration provided to customers to consume the products sustainably is the other
approach.
In the case of suppliers, the 2020 sustainability approach is to achieve top quartile
ranking to engage themselves with suppliers and generating sustainably sourced food items
to the customers. There have been partnership programs for reducing the carbon emissions
below 10% by 2020 which will be useful in managing the overall indigenous growth and
make the activities more sustainable and prosperous (Quarshie, Salmi & Leuschner, 2016).
Woolworths tries to manage the overall consistency in the message as this will help
in building a better relationship with the stakeholders especially the employees, suppliers,
and customers as they are an integral part of the system. Through the consistent messaging
system, Woolworths have gained the positive brand image as they will be more inclined in
keeping working with the team on future projects and it will help in overcoming the problem
(Fernández‐Kranz & Santaló, 2010). It can be detrimental if there is inconsistency in the
message, it will build a negative impact on the brand image of the firm. In the previous years,
there has been inconsistency in a letter sent to the suppliers that affected their growth, and it
changed their brand image negatively as all suppliers were not provided with similar
information.
Overall evaluation of communication in the organization and your specific
recommendations
Proper communication channel plays a vital role in managing and establishing overall
effectiveness in the organization effectively. In the case of Woolworths, the company needs
to create the proper process of communication with the workforce of the organization
as it will assist them in addressing the conflicts and grievances of employees
positively. In such cases, Woolworths can arrange various meetings by the formulation of
the grievance committee by implementing proper communication process with employees
that will improve the overall working environment of the employees. From the different
survey reports of Woolworths, it can be seen that present employee relationship policies are
successful to a great extent n maintaining relationship with the employees and customers of
Woolworths (Schrempf-Stirling, Palazzo & Phillips, 2016).

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Furthermore, the different policies implement the active type of initiatives to handle the
grievances and conflicts of employees with success. With the implementation of employee
grievances policies, it has been useful for Woolworths in enhancing the productivity of the of
every employee. Additionally, regarding the customers of Woolworths, they have
communicated the different sustainable practices followed by the company. However, there
are various legislative powers which should be taught by the organization as it will be helpful
in implementing a fair policy for the employees as this will improve the workplace
environment. It has been seen that the safe workplace environment was the primary
concern of Woolworths as there have been different cases of bullying and
harassment among the employees which were the major issue that affected the
growth of organization negatively (Kang, Germann & Grewal, 2016).
From the above, the recommendations which can be provided to Woolworths in
managing the different CSR activities in the organization are described as follows:
Firstly, it can be recommended that Woolworths needs to aim at performing continuous
innovation in the various operations which are being conducted by them by making the
operations sustainable. The main reason is that that the preferences of the customers are
changing through sustainable practices through leveraging the different social media
channels which will encourage the users in taking part to promote the brand initiatives
among the customers. The customers prefer a sustainable image of the organization which
will be helpful in purchasing the different products and services as it will clean up their public
image (Crs.woolworthsgroup.com.au 2019).
On behalf of the employees, Woolworths need to improve the different policies such
as the implementation of various systems namely equal opportunity act and discrimination
act which will play a vital role in managing the motivation among employees. Woolworths
need to enhance support from skilled employees by way of additional training and
development activities mechanism to support the operations. By implementing the CSR
related activities, it will be helpful in creating stable and thriving communities which will
benefit the company and society. Woolworths need to encourage employees to volunteer
their time which will improve the overall local and global community.
These are the two significant recommendations which can be provided to
Woolworths as it will clean up their public brand image and gain sustainability in the different
business-related activities.

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Conclusion
Therefore, it can be concluded that CSR is one of the essential aspects which is
required to be followed by different organizations as it helps in improving public image. The
corporations can educate the public perception by supporting the non-profits through strong
partnerships which will create a positive kind of relationship with the customers.
Furthermore, in case of Woolworths, the CSR activities can play a vital role in increasing the
engagement of the employees as more than 60% of the employees are proud of the different
corporate social responsibility policies as they prefer to dedicate their work towards the
welfare of the communities. There have been various issues related to CSR which can be
implemented by the Woolworths Company to improve the overall situation by increasing the
level of communication towards the different investors and other stakeholders as this will
improve the global efforts of the company positively.

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References
Belal, A. R. (2016). Corporate social responsibility reporting in developing countries: The
case of Bangladesh. Routledge.
Crs.woolworthsgroup.com.au (2019) (Online) Woolworths Group Retrieved from
http://crs.woolworthsgroup.com.au/ [Accessed on 28 January 2019]
Fatemi, A., Fooladi, I., & Tehranian, H. (2015). Valuation effects of corporate social
responsibility. Journal of Banking & Finance, 59, 182-192.
Fernández‐Kranz, D., & Santaló, J. (2010). When necessity becomes a virtue: The effect of
product market competition on corporate social responsibility. Journal of Economics
& Management Strategy, 19(2), 453-487.
Flammer, C. (2015). Does corporate social responsibility lead to superior financial
performance? A regression discontinuity approach. Management Science, 61(11),
2549-2568.
Kang, C., Germann, F., & Grewal, R. (2016). Washing away your sins? Corporate social
responsibility, corporate social irresponsibility, and firm performance. Journal of
Marketing, 80(2), 59-79.
Petrenko, O. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO
narcissism? CSR motivations and organizational performance. Strategic
Management Journal, 37(2), 262-279.
Quarshie, A. M., Salmi, A., & Leuschner, R. (2016). Sustainability and corporate social
responsibility in supply chains: The state of research in supply chain management
and business ethics journals. Journal of Purchasing and Supply Management, 22(2),
82-97.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does
corporate social responsibility contribute to firm financial performance? The
mediating role of competitive advantage, reputation, and customer
satisfaction. Journal of business research, 68(2), 341-350.
Schrempf-Stirling, J., Palazzo, G., & Phillips, R. A. (2016). Historical corporate social
responsibility. Academy of Management Review, 41(4), 700-719.