Woolworths' Good Business Journey: CSR, Sustainability and Governance

This report provides a comprehensive analysis of Woolworths' 'Good Business Journey,' examining its corporate social responsibility (CSR) and sustainability initiatives. It evaluates whether CSR or sustainability is fundamental to a company's governance, assesses Woolworths' integration with the 2009 King III report, and determines if the 'Good Business Journey' demonstrates social responsibility or merely good business practice. The report also evaluates the initiative in terms of the four priorities (Accelerate Transformation, Drive Social Development, Impact on Environment, and Climate Change) and the 2020 goals. The analysis utilizes the 'Capability Framework' to assess Woolworths' approach to CSR, highlighting areas of strength and areas needing improvement. The report concludes with an overview of the company's progress and recommendations for future development, emphasizing the importance of stakeholder involvement and effective performance management. The report covers areas such as the company's strategies, training, and impact on the community and environment.

Running head: THE WOOLWORTHS GOOD BUSINESS JOURNEY
The Woolworths Good Business Journey
Name of the student:
Name of the university:
Author note:

1THE WOOLWORTHS GOOD BUSINESS JOURNEY
Table of Contents
1. Introduction..................................................................................................................................2
2. Evaluate whether 'Corporate Responsibility' or 'Sustainability' is a fundamental part of a
company's governance practices......................................................................................................2
3. With respect to "The 2009 King III report" critically discuss whether Woolworths has
achieved the integration as mentioned in the chosen report with the "Good Business Journey"....4
4. In consideration with Corporate Social Responsibility (CSR) assess whether the "Good
Business Journey" demonstrates social responsibility or just good business practice....................5
5. Evaluate the Woolworths' 'Good Business Journey' initiative in terms of the four priorities and
the 2020 goals..................................................................................................................................7
6. Conclusion.................................................................................................................................10
References......................................................................................................................................12

2THE WOOLWORTHS GOOD BUSINESS JOURNEY
1. Introduction
‘Corporate responsibility’ or ‘Sustainability’ can be considered as fundamental to any
company’s responsibilities. On the other hand, these responsibilities create some real
opportunities to the company to establish its good market image. The image thus created will
definitely drive customers’ and shareholders’ trust towards the company. Moreover, the
opportunities will be realised in terms of new products and services, and new markets. New
markets could be considered for business expansion (Crowther and Seifi 2018). The purpose of
this assignment is also in the line of the facts so far being mentioned. More specifically the
assignment analyses the ‘Good Business Journey of Woolworths’ from various aspects such as
those mentioned under the different headings of the assignment.
2. Evaluate whether 'Corporate Responsibility' or 'Sustainability' is a fundamental part of
a company's governance practices
It is important for each company particularly to reputed companies to tackle corporate
governance. However, there is no easy or certain way to go about this. Corporate governance is
actually tiresome and complex subject. This requires companies to plan, develop and closely
monitor robust and comprehensive programs and thereby mitigating possible risk factors
(Trujillo-Barrera, Pennings and Hofenk 2016). ‘Corporate Responsibility’ or ‘Sustainability’ is
one of such governance practices to have caught the attention of worldwide business leaders. The
popularity of CSR works has increased in recent times with leading firms heading to range of
sustainable practices. They aspire these practices to be able to commission sustainable business
practices and so improve their brand image. There are many other benefits as well of governing

3THE WOOLWORTHS GOOD BUSINESS JOURNEY
corporate social responsibility (CSR) practices. These benefits such as those mentioned below
would make it evident why CSR is now a fundamental part of the governance practices of a
company (Vartiak 2016):
Improved image: If a company is involved in some kind of charity causes the reputation
of the company as a generous and caring corporate citizen will go up. Similarly, if a company is
engaged in improving one of the communities with which it works the company’s image as a
social leader will become popular.
Beneficial impacts: CSR practices help serve the inner sense of ethics and justice by
helping the community, treating one or more social issues and the environment. CSR practices
do serve a dual purpose. It benefits the company by improving its social image. It benefits the
community being targeted with CSR activities.
Differentiation: CSR provides a good way to stand out from the competitors. CSR can be
used and incorporated with the company’s sustainable business model. A company can use CSR
to act differently than its competitors. For an example, offering one shoe free to a child from the
chosen community on every single purchase. Strategies like these are hard to be imitated by
competitors.
Financial sustainability: Millennials in the coming future will represent a larger part of
the workforce and so of the consumer base (Maiers 2017). Millennials have high regards and
respects to companies those engage in some sort of social activities. They also see opportunities
working with such employers. For an example, a company is engaged in providing business
means to people who are uneducated. In doing so the company will create living means to these
people. This might become a news across popular daily newspapers as there are very few

4THE WOOLWORTHS GOOD BUSINESS JOURNEY
companies who really think this way. Additionally, this will also be featured in the company’s
integrated report. These all will add values to the company’s market image. On the contrary, if a
company does not have a CSR policy or if the company is involved in unethical practices,
chances are that the company will lose profits. Moreover, a long-term sustenance to the company
could be difficult (Akhtar et al. 2018).
3. With respect to "The 2009 King III report" critically discuss whether Woolworths has
achieved the integration as mentioned in the chosen report with the "Good Business
Journey"
The 2009 King III report encourages an integration between governance, strategy and
sustainability (Cdn.ymaws.com 2019). This means sustainable business practices need a firm
back up in form of effective governance and strategies of the management. According to three
pillars of the report, the “Good Business Journey” of Woolworths looks on track with few areas
of consideration. Sustainable practices have already been applied to a few areas like spending on
schools to support the orphans and other affected children, and the remodeling of stores into
‘Green Stores’. However, the company does not offer an effective training to people involved in
each of the steps of sustainable practice. Additionally, in the decision-making process there is no
involvement from customers, employees and the other stakeholders (Wnuk 2017). Woolworths
actually need to repair a certain areas to be able to fulfill the areas governed in the 2009 King III
report.

5THE WOOLWORTHS GOOD BUSINESS JOURNEY
4. In consideration with Corporate Social Responsibility (CSR) assess whether the "Good
Business Journey" demonstrates social responsibility or just good business practice
The ‘Good Business Opportunity’ of Woolworths whether or not demonstrates the social
responsibility can be analysed by applying the ‘Capability Framework’ on the CSR process. The
analysis is as below (Watson et al. 2018):
Path-finding: This means identifying, developing, crystallizing and executing new
strategies, directions, purposes and values for the specific company. Woolworths look to have
appropriately studied the environment and its demands in which the company is operating. The
company gives due regards and importance to the people and areas those affected by its business
operations. Woolworths with its continuous and extensive study of the environment in which the
company operates was able to identify ways and act responsibly towards its stakeholders. This
was one of the reasons for its ambitious project the “Good Business Journey”. The company
ensured that a journey towards sustainability faces no divergence from its basic objectives.
‘Woolworths’ has been using several strategies to make it a successful project. These strategies
include but not limited to like quality, principles of innovation, transformation, social
improvement, environment and climate focus.
People engagement: ‘Woolworths’ knew that people engagement is important to make
the “Good Business Journey” a successful project. This was one of the reasons for Woolworths’
strong reliance on training the people. Training remained an essential part of the implementation
process. This helped people know their job responsibilities and perform in-line with the new
objectives. Woolworths launched ‘Employee Matching Award (EMA)’ to address and support
issues, which are of personal and particular concern to its employees (Woolworthsholdings.co.za
2019). This was done to attract their positive contribution to the project. However, the project

6THE WOOLWORTHS GOOD BUSINESS JOURNEY
clearly lacks any involvement of its customers and other stakeholders in the strategy making
process. The company does not entertain any feedback from its stakeholders while designing a
policy.
Performance management: Performance assessment system is not appropriately
conducted at each of the implementation steps. The ‘Good Business Journey’ is an ambitious
project for Woolworths. The company see this is an opportunity to lead the competition for the
most sustainable business. Despite this being a fact the company has not been able to efficiently
manage its performance management system.
Development: Woolworths is engaged developing and procuring physical, personnel or
technological resources to redesign its stores. The redesigning of stores is an initiative to reduce
its waste contribution and facilitate energy-efficient practices. Modernized and upgraded trucks
and cars are replacing many of the old fleet of trucks and cars. This is a one-step towards an
energy-efficient operations.
Identification: Woolworths’ strategy at times is bit confusing and does not clearly
indicate the reason behind the change. This makes it difficult to understand about which plan will
go on or else.
Marketing strategy: ‘Woolworths’ lacks in effectively communicating its project to the
target market. Despite a fact that marketing is essential to popularise an event or a plan
‘Woolworths’ seems like missing on this part. The fact is evidenced from its ‘Good Business
Strategy’ plan.
To summarize, this can be said that the ‘Good Business Journey’ of Woolworths shows
its social responsibility towards the selected community. The project can be considered a part of

7THE WOOLWORTHS GOOD BUSINESS JOURNEY
its sustainable business model and an initiative to enhance its business competency. However,
there are areas, which show the implementation phase lack the leadership touch. There is no
involvement of customers and other stakeholders in decision-making. Additionally,
appropriate training is not given to people at each step of the implementation process.
5. Evaluate the Woolworths' 'Good Business Journey' initiative in terms of the four
priorities and the 2020 goals
In terms of four priorities:
The four priorities are as below (Woolworthsholdings.co.za 2019):
Accelerate Transformation: The ‘Good Business Journey’ is a long-term strategy to
attain business sustainability. The main purpose with this project is to drive corporate and social
responsibility of Woolworths towards its stakeholders and also attain business sustainability.
This is only realizable if the company has the appropriate physical, technological and human
infrastructure. ‘Woolworths’ is actively involved in improving its physical, human and
technological infrastructure. Employees are now provided with Woolworths courses to help them
develop the leadership skills. This will benefit the company in case there are shortage of
managerial leadership. In addition, Woolworths is working closely with its suppliers to be able to
understand their needs and expectations from the company, and facilitate the supply of quality
materials at the competitive price. Increased investments will be made in price, quality and
merchandise range (Woolworthsholdings.co.za 2019).

8THE WOOLWORTHS GOOD BUSINESS JOURNEY
There is no sign of technological advancement introduced to the system. Woolworths
should be able to deliver with its dream project provided that emerging technologies are
incorporated with the project.
Drive Social Development: South Africa is the first country of focus with Woolworths’
strategy to drive the social development. The company will keep working with EduPlant and
MySchool to improve the life of orphans and many other vulnerable children. The company
claims to offer job opportunities to people irrespective of color, ethnic and gender. This means
the company conducts an unbiased selection process. Women are given flexible working
patterns. The company invest heavily in many South African schools. The social contributions
will be increased to R300m per year (Woolworthsholdings.co.za 2019). However, the success of
all these initiatives will depend on the rate of uneducated and unemployed people.
Impact on Environment: Woolworths has identified lighting, refrigeration and
temperature control as ways to reduce the amount of energy consumption. Woolworths will be
making all its stores the ‘Green Stores’. This should definitely reduce the carbon footprint of
Woolworths. The use of reusable bags will be promoted. Woolworths is also targeting a
reduction of 30% in water consumption (Woolworthsholdings.co.za 2019).
Climate Change: Woolworths will be using B20 bio-diesel for its range of fleet of trucks
(Woolworthsholdings.co.za 2019). This should impact the carbon footprint contribution of
Woolworths.
In terms of the 2020 goals:
One of the goals is to contribute R3.5 Billon to the communities in South Africa
(Woolworthsholdings.co.za 2019). According to the 2018 ‘Good Business Journey’ Report of

9THE WOOLWORTHS GOOD BUSINESS JOURNEY
Woolworths Holdings Limited, the company has donated R32M to EduPlant
(Woolworthsholdings.co.za 2019). The donation is made to help the community grow their own
food gardens using efficient techniques such as permaculture gardening. To needy communities
the company has donated R570M worth of surplus food (Woolworthsholdings.co.za 2019).
The second ambitious goal is to save 500 Billion Liters of Water
(Woolworthsholdings.co.za 2019). The usage of water across the Woolworths’ stores have
dropped from 647 881 kiloliters in 2017 to 604 562 kiloliters in 2018 (Woolworthsholdings.co.za
2019). 530 Million liters of fresh water has so far been replenished through Woolworths’
partnership with WWF-SA (Woolworthsholdings.co.za 2019).
The third goal is to halve its energy impact by 2020 and source energy entirely from
renewables by 2030 (Woolworthsholdings.co.za 2019). There is an increase about 60% in
renewable energy capacity since 2016 (Woolworthsholdings.co.za 2019). The number of green
stores have increased to 143 (Woolworthsholdings.co.za 2019).
The fourth ambitious goal is responsible sourcing of all key commodities
(Woolworthsholdings.co.za 2019). 50% of Palm Oil sourced from palm oil in CDP forests
(Woolworthsholdings.co.za 2019). 100% of the entire Cocoa is responsibly sourced
(Woolworthsholdings.co.za 2019). 100% organic and African coffee is sold in Woolworths’
coffee carts and cafes (Woolworthsholdings.co.za 2019). 66% of Cotton are sourced responsibly
across the Country Road Group (Woolworthsholdings.co.za 2019). 32% of canopy compliant
cellulosic fabrics are responsibly sourced (Woolworthsholdings.co.za 2019). 40% of LWG
certified leather are responsibly sourced (Woolworthsholdings.co.za 2019).

10THE WOOLWORTHS GOOD BUSINESS JOURNEY
The last and fifth goal is to have at least one sustainability attribute for all directly
sourced products. 83% of WSA Food, 76% of WSA Fashion, 29% of David Jones and 56% of
Country Road Group are with sustainability attributes (Woolworthsholdings.co.za 2019).
All the information furnished as in the above five different paragraphs suggest that
Woolworths is in course to fulfill its “Good Business Journey”. It could additionally consider a
few recommendations given in the conclusion section to all its existing practices to perform even
better than the present.
6. Conclusion
On a concluding note this can be said that the “Woolworths Good Business Journey” is
serving both its corporate and business objectives. Being a corporate firm it has responsibility
towards the community in which it operates. The ‘Good Business Journey’ is especially
dedicated to serve the chosen community in South Africa. However, for a sustained facilitation
of the project the company needs to improve in few areas that averagely contribute to this
journey.
Firstly, Woolworths need to encourage the formation of a social network between
employees and stakeholders of the project by forming a group and engaging in communication
over Twitter. Woolworths should also put messaging in context to every new innovation. This
will encourage consumers sharing their valuable feedbacks.
Secondly, training should be given to people serving different purposes of the project.
Woolworths should assess the project needs and identify the potential skills gaps to be able to
understand the training urgency.

11THE WOOLWORTHS GOOD BUSINESS JOURNEY
Thirdly, emerging technologies such as Customer Relationship Management (CRM),
Enterprise Resource Planning (ERP) and Artificial Intelligence (AI) can be used to access to
large-scale data in real-time and thereby improve the product & service quality.
Lastly, Woolworths should increase its spending in helping education in schools in South
Africa. Additionally, higher studies needs to be aligned to current industry-wide practices. This
is needed to develop industry-relevant skills in students. This will positively impact education in
schools and will also produce more skilled professionals. Hence, the rate of employment will
also improve.

12THE WOOLWORTHS GOOD BUSINESS JOURNEY
References
Akhtar, P., Khan, Z., Frynas, J.G., Tse, Y.K. and Rao‐Nicholson, R., 2018. Essential micro‐
foundations for contemporary business operations: Top management tangible competencies,
relationship‐based business networks and environmental sustainability. British Journal of
Management, 29(1), pp.43-62.
Cdn.ymaws.com 2019. [online] Cdn.ymaws.com. Available at:
https://cdn.ymaws.com/www.iodsa.co.za/resource/resmgr/king_iii/King_Report_on_Governance
_fo.pdf [Accessed 4 Mar. 2019].
Crowther, D. and Seifi, S. eds., 2018. Redefining Corporate Social Responsibility. Emerald
Group Publishing.
Maiers, M., 2017. Our future in the hands of Millennials. The Journal of the Canadian
Chiropractic Association, 61(3), p.212.
Trujillo-Barrera, A., Pennings, J.M. and Hofenk, D., 2016. Understanding producers' motives for
adopting sustainable practices: the role of expected rewards, risk perception and risk tolerance.
European Review of Agricultural Economics, 43(3), pp.359-382.
Vartiak, L., 2016. CSR reporting of companies on a global scale. Procedia Economics and
Finance, 39, pp.176-183.
Watson, R., Wilson, H.N., Smart, P. and Macdonald, E.K., 2018. Harnessing difference: A
capability‐based framework for stakeholder engagement in environmental innovation. Journal of
Product Innovation Management, 35(2), pp.254-279.

13THE WOOLWORTHS GOOD BUSINESS JOURNEY
Wnuk, K., 2017, April. Involving relevant stakeholders into the decision process about software
components. In 2017 IEEE International Conference on Software Architecture Workshops
(ICSAW) (pp. 129-132). IEEE.
Woolworthsholdings.co.za 2019. [online] Woolworthsholdings.co.za. Available at:
https://www.woolworthsholdings.co.za/wp-content/uploads/2018/09/WHL_2018_GBJ_Report_2
018.pdf [Accessed 4 Mar. 2019].
Woolworthsholdings.co.za 2019. Our Good Business Journey – Woolworths Holdings Limited.
[online] Woolworthsholdings.co.za. Available at:
https://www.woolworthsholdings.co.za/sustainability/our-good-business-journey/ [Accessed 4
Mar. 2019].