The sustainability strategy

The sustainability schemaEXECUTIVE SUMMARYWith world(a)ization, technological changes, stinting elbow greasers, and mixer and environmental mandates, the global business environment is less sure and to a greater extent ch eitherenging than it was even a decade ago. Customers, s fetchholders, and society run and demand superior harvestings, go, and operations with less waste, reduced impacts on wellness, safety, and the environment, and heighten corporeal responsibilities for the determinations, technologies, products, processes, and activities of every mettlet of the business enterprise.In the words of Rainey (2006) Today, businesses mustiness thoroughly analyze the global business environment to gain a firm understanding of the opportunities and challenges it presents, and gear up aggressive strategies for amend every picture of their enterprises. To do this, corporations must pee in place a large and integrate strategical solicitude role model for formulating and implementing business strategies, programs, and actions found on considerations that acknowledge the entire business environment.Such a framework requires the cipher to integrate both internal dodgings and processes and those of external business entities, including customers, stakeholders, and bring home the bacon networks. tally to Siemens collective affable Responsibility Report 2002, Berlin and Munich Siemens AG, 2002 sustainable succeeder is our number one priority. Our activities focus on meeting the necessitate of customers and creating value for our sh atomic number 18holders and employees. Our innovations generated by means of our take laboratories and in cooperation with customers, business straggleners and universities ar our superlative strengths.Woolworths Limited is an Australian popular corporation with annual sales of oer 38 billion. The club is recognized as one of the top basketball team retail companies in the world. The family is commi tted to wards mendment of its environment footstep through a prudish sustainability scheme. The sustainability strategy of the gild addresses m both of the probatory issues cerebrate with environment, public, staff, and scotch responsibilities of business. This sustainability strategy of Woolworths has been discussed in detail a bulky with its benefits and limitations in the peeleds cover.INTRODUCTIONThe retail industry connects with every person in whatsoever stylus. To remain competitive and profitable the industry is constantly required to set to changing nature of local anesthetic as well as that of global marketplace placeplace. Sustainability is non an easy task as it involves a great upsurge of complexity related with the issues involved. It is important to concord an utile management body for managing environmental, favorable and sparing capital punishment as it is fundamental for a sustainable development of each phoner or industry as a whole.Furthe r, identifying, measuring, and explanationing neighborly and environmental impacts cannot begin until the panel of directors and CEO be committed to improved sustainability management. Often it is through a mission account or the development and articulation of a corporate sustainability strategy that the board and CEO set the tone at the top. It is then necessary to drive this load through the shaping by implementing the various clays for identifying and measuring impacts, stakeholder engagement, product design, product costing, cracking of the United States budgeting, development management, and performance evaluation.Epstein, kisser J. (2008) argued that effective and ordered leadership permits an alignment between environmentally and socially responsive activities and corporate goals and provides internal credibility to promote progress toward improved social and environmental management within business units and organizational functions.Woolworths CEO Simon Susman says, We know that sustainable growth can only be turn overd through paying great attention to the world around us than has been the strip in the past. The connect between frugal growth, translation, social development, the environment and climate change must create a bring out world for everyone.Purpose and ScopeThe report aims at make a hypercritical analysis of Woolworths Sustainability Strategy. The strategy is canvas on the basis of business righteousness towards social, economic and environmental issues. The report impart present a view of Woolworths sustainability along with the key introductions in come withs cutting plan of sustainability which was released recently. Woolworth was praised for its sustainability strategy plainly recently it has to a fault been criticized of working(a) against its own strategy. This boldness is also discussed in the report.MethodologyThe case look at analysis is under taken to form an opinion closely the issue. Secondary so urce of information is mainly utilise to analyze the sustainability strategy of Woolworths and its effect of society, environment and economic atomic number 18as. The data has been collected from various journals, newspapers and website of Woolworths. Various concepts and theories lead be utilize to the available data in order to present a slip by picture of the partys strategy.BACKGROUNDWoolworths Limited stretches across food and grocery, liquor, petrol, ecumenical trade and consumer electronics. The company is a major investor in Australia and New Zealand communities. Woolsworth is listed on the Australian Stock Exchange and employ to a greater extent than 191,000 stack with approximately 380,000 shareholders. The company claims of being conscious of its responsibilities towards it stakeholders as its operations impact its own tidy sum, customers, communities, shareholders, supply ambit and the environment.Woolworths is well known as the fresh food people in Australia and was established in 1924. It was the second largest employer in Australia and Corporate Social Responsibility (CSR) was an integral part of its corporate agenda. Recently Woolworths announced its new sustainability strategy. below such strategy Woolsworth also opened its first gullible Store in 2007 in Sydney. In this store innovative technologies are drug abused to minimize the use of slide dissipatedener and water, and reduce waste generation. through with(predicate) these stores Woolsworth aims at reducing the environmental impact caused by the companys retail operations. harmonise to Simon Susman (Chief Executive, Woolworths) We have used the phrase the Good business journey because this real is a journey and there are no easy solutions. We are committed to meeting the 5 year targets we have set and to do this, we forget be exploring new ways of doing things in many areas. stretchiness these destinations lead require significant behavioural and heathenish change. I f we can take our customers and suppliers along with us, this journey will have an even more significant impact on the wide range of transformational, social and environmental challenges that face mho Africa,Models and FrameworksThe objective of sustainability is the maintenance or restoration of a in demand(p) state that has already existed. The promotion of sustainability is an active process of engaging society. Firms take away to become involved in this process because, collectively, they are now so powerful that communities and governments often do not act sufficiently strongly to achieve sustainability if there is active or perceived opposition from the insular sector. So sustainability-promoting firms acquire to go beyond simply reducing their own negative environmental, social or economic impacts. They adopt to produce products that champion society to become sustainable and they also need to use their deflect to encourage society-wide action to achieve sustainabi lity. This approach will be taken as the basis of our analysis of Woolworths sustainability strategy.Capabilities Framework concord to Turner and Crawford (1998) To maximise organizational success, in both the short and the long limit, firms need the capabilities to get results effectively. They also need to be able to identify viable and wanted future directions. And in the face of the enthusiasm for the new, they still need to observe valuable attri justes and resources (within the firm and in society/ the environment). To achieve these iii goals firms need limited capabilities.Turner and Crawford gave a framework of such capabilities which is depicted in Figure 1 and will be considered while discussing the strategy of Woolswoths.Sustainability execution FrameworkAnother framework to be used in the deal is the Sustainability slaying Framework suggested by Diesendorf (1998) that comprises of following three levels take aim 0, comprising the enormous ethical principlesLeve l 1, comprising broad goals arising from these principlesLevel 2, comprising measurable objectives or indicatorsThe supra two models will be used to analyze the sustainability strategy of Woolworths. epitome OF SUSTANABILITY STRATEGY OF WOOLSWORTHSWoolworths is aware of its responsibility towards stakeholders and thus employed corporate social responsibility at the core of its business strategy. business organization of the company has social, economic and environmental impacts and thus Woolworths decided to take a range of initiatives to provide a quality of life to its customers, the workforce and the society at large. on with such social initiatives Woolworths took up several(prenominal) initiatives to be a responsible retailer as well. Woolworths make sure that its initiative related with Corporate Social Responsibility (CSR) must comprise of initiates towards the betterment of environment, employees, shareholders, supply networks and customers. just about important roles in relation to sustainability strategy of Woolworths are discussed as followsAccelerating conversion driving force Social DevelopmentEnhancing the environmental focusAddressing Climate throwProviding Quality and Innovation in products and ServicesAccelerating TransformationWoolworths aims at accelerating transformation of its products, stores and processes. The company is committed to transformation across the business and has embarked upon a company-wide program so as to make sure that transformation becomes an entrenched way of doing business all over the company. Under this approach company will transform the way of doing business across all aspects and also will work in partnership with its suppliers, public sector, and franchise partners. Woolworths will rush along its retail skills and for achieving this target various straining initiatives have been undertaken by the company. These initiatives include accreditation of Woolworths courses and the establishment of provincial Woolworths learning centers. Such training initiatives will take aim a pipeline of skilled employees which can be harnesses in case of any shortage at senior leadership levels in the organization. Under the sustainability strategy Woolworths is also aimed at meeting employment equity targets. too Woolworths aim at focusing at groups such as madumbi farmers of KwaZulu-Natal and the Beaufort westerly Hydroponics Project to increase the number of core products sourced from BEE supplier partners.According to the website of company In addition to our own broad BEE Employee Share will power Scheme, we will focus on advancing skills development and pushing our South Africa first approach even harder.Woolworths also recognized its economic responsibility and have taken initiatives to refine its brand position with significant investment funds in price, merchandise range, and quality. This investment will continue to deliver gains to shareholders of the company.Driving Social Development Under its sustainable strategy Woolworths is committed towards social development and its first focus is on South Africa in this context.As verbalize on companys website-Well work harder to drive social development by expanding the existing initiatives of the Woolworths Trust such as EduPlant and MySchool, and by introducing a course of instruction through our stores to improve the plight of orphans and other vulnerable children.Woolworths also plans an effective role in providing employment and endowment the community opportunities to expand and grow. The company employs nearly 191,000 people in its retail business. The company claims of employing people based upon their skills, qualifications and aptitude with irrespective of gender, race, religion, marital status or ethnic origin. Also, it employs women in business and provides them flexible working patterns and training opportunities. Health and Safety insurance is also undertaken and is well communicated to managers in the o rganization along with an economical system of managing and reporting of such a health and safety culture.Woolworths is continuously reservation a difference in South African Schools. According to the fiscal results of the company for a period of July 2007 to June 2008, Woolworths has announced a R18 cardinal parcel to MySchool, including MyPlanet and MyVillage in South Africa. The company aims at increasing it social contributions to more than R300m per year.Woolworths also entered into partnerships with charity groups and undertook franchising programs. It supported charities like Foodbank, Salvation Army, Canteen, Beyond Blue, modern Diabetes Research Foundation, etc. Woolworths also started many initiatives to raise awareness about the plight of farming families hit by drought of Australia.The introduction of utile bags by the company supported new enterprises that were required to produce material bags for the company.Enhancing environmental FocusAnother key component of Woolworths Sustainability Strategy is giving full importance to environmental issues. Environmental sustainability was a key aspect of Woolworths CSR approach. Woolworths is in retail business and its operations affect the environment in many ways such as waste production, high energy and evoke usage and greenhouse gas emissions. Woolworths implemented a long term strategy to combat issues concerning the impact of the companys operations on the environment.Woolworths severe on infrigidation, lighting and temperature manoeuvre to reduce the amount of energy consumption in its operations. Installation of automated after-hours blinds on open refrigeration cabinets, lighting and air conditioning made operations more energy efficient. Woolworths have decided to make all of its new stores Green Stores and postdate energy efficient guidelines in all such stores. Through these initiatives company will be able to reduce the emission of Carbon-di-oxide.In the strategy company aims at r educing the use of harmful pesticides and chemicals and increasing total food and cloth offering. Also, company introduced a new packaging contrivance to develop reusable bags which an effort towards preservation scarce natural resources. The company targets at reducing the amount of plastic and cardboard in the general waste to less than 1 pct by weight by year 2010.Susman said Water is one of South Africas scarcest natural resources and Woolworths is targeting a 30% diminution in water consumption and will develop a programme to encourage our suppliers to do the same.Woolworths also took several initiatives to pull round water in it stores. It plans to save at least 200 million liters of water by year 2010. Also, as a fuel saving initiative, Woolworths discarded vehicles that consumed more fuel. It outsourced the disposal of worn-out tires and batteries to third party experts and used grease traps at its truck cleaning centers to prevent oil and fuel waste from entering wast e water system.Addressing Climate ChangeWoolworths be after to use B20 (20 percent bio fuel mix) bio-diesel for its entire fleet of trucks. This move was judge to reduce nose candy emission by 11,500 tones per year. Also, company decided to use large number of small cars with LPG fuel across its car fleet. The hundred emission from the companys fleet of 3100 cars is to be reduced by 30 percent by 2010 and that of trucks by 25 percent by the end of 2012 as compared to 2006. In addition to this initiative the company aims at cutting its electrical energy usage by 30% and removing conventional light bulbs from its shelves.Chief Executive, Woolworths, Simon Susman stated Woolworths will support carbon offsetting in as much as greening reduces carbon excess. Well do this by planting more trees at our MySchool schools, our Eduplant schools and our extensive Midrand campus grounds.Providing Quality and InnovationThe very first component which formed the base of sustainability strategy was innovation. Woolworths aims at providing innovation in products, services and facilities provided by the company. The company views innovation as the base to introduce any product or service in market, finding more efficient and cheaper sources of supply, new store formats and process improvement to gain a reduction in cost. In this context while considering environment responsibility Woolworths concentrated on gaining a Green Stores strategy where all the new stores of companys would adopt energy efficient guidelines. At the same time Woolworths implemented several water saving initiatives at its stores. While choosing new sites for stores the company special consideration have been presumptuousness to investigate how a store will fit in the state and local government area. Sufficient market research is being done before opening up any store. An example of innovative practice is a number of modifications being made in store design to address the community interest in Mullumb imby in New South Wales. Company has moved the loading shilling away from the car parking area to improve safety for shoppers and making changes to the faade so that the store will fit in better with the streetscape.Woolworths introduced a health kids program named Fresh Food Kids. This program helps in increasing the consumption of fresh fruits and vegetables in kids. An interactive and educational website has also been launched under this step. there are many successful applicants to the program who have regarded it a success in developing and encouraging eating health and fresh food among kids.Woolworths aims at undertaking innovation through capacity and enhancing quality in its business processes. It has made a substantial commitment to its Project Refresh which refers to a framework in order to improve business performance and business restructuring programs through end-to end supply chain improvement.APPLYING VARIOUS FRAMEWORKS TO SUSTAINABILITY STRATEGY OF WOOLWORTHSNow w e will apply the models discussed in member 2 to analyze the performance Woolworths sustainability strategy.Capabilities FrameworkPath-findingPath-finding refers to developing, crystallizing and articulating new directions, strategies, purposes and determine for the organization. Woolworths studied the environment in which the company is operating. It gave due importance to the areas and people affected by its operations and business. Through a continuous view the company realized that it is important to act responsibly towards the stakeholders of the company. So, it designed and true a strategy committed towards benefit of customers, shareholders, environment, climate and communities. Then company placed the Corporate Social Responsibility at the base of the bear so that there is no divergence from this basic objective through the execution of the strategy of sustainable growth. The directions decided to achieve the objectives of this strategy was command by the principles o f innovation, quality, transformation, environment and climate focus and social improvement.Engagement get people throughout the organization informed, committed and motivated to act to achieve the organizations purpose and future direction refers to engagement. Woolworths strategy involved people of the organization to achieve the desired target. The strategy at each step emphasizes on training of employees and workforce of the company so as to understand the need of new initiatives and learn to perform under new objectives. Woolworths has launched an Employee Matching acquaint (EMA) to support issues that are of particular, personal concern to its staff members and encourage the workforce of the company to help make a positive contribution to graceful causes. However, there is no involvement of customers and other stakeholders in strategy making process. No feedback or suggestions are taken while designing a policy which can impact the lives of general public.DevelopmentWoolwort hs have been in use(p) in developing its resources whether physical, technological or personnel. Redesigning of stores has been initiated as a strategic move to reduce waste and make them energy efficient. Personnel at all levels are being provided training to perform well in changed environments and with new hackneyeds. Also, company has changed its fleet of trucks and cars to reduce emission and fuel consumption. exercise ManagementThere is no set well established management system to assess the performance at each step of implementation of the strategy. In such a strategy where so many changes and new operations have been introduced there is a need of a expatiate and efficient performance management system also.IdentificationWoolworths strategy does not give a clear view of which of the organizations or societys current attributes, strategies will be retained and which will be changed under the plan of sustainability. selling and SellingThe sustainability strategy of Woolworth s lacks a detailed marketing plan. Although, understanding the market and innovating products as per the needs and expectations of customers is surely present in the plan but the strategy to enter new markets and tap existing untapped markets does not find any place in the sustainability of the company.Sustainability Implementation StrategyApplying the Sustainability Implementation Frameworks as suggested by Diesendorf the strategy of Woolworths is now explained. There are three levels discussed in this framework of sustainability development. These levels along with their presence in the sustainability strategy of Woolworths are discussed as followsLevel 0In this level the broad principles considered are generally ethical requirements. By ethics, we mean pertaining to questions of right or wrong, or good or bad. In the past, consideration of values and ethics was not popular in the business world. The ethical principles described under this framework are respect nature, respect cr eation and be generous in our respect.According to Diesendorf (2000) Those who are uncomfortable with starting from an ethical position ability consider that the above ethical principles are essential for the long term viability of the economy and society. Therefore, they could be seen as enlightened self-interest on the part of individuals and corporations planning for a long term future.In the strategy of Woolworths all the three principles are very well taken heraldic bearing off. There is perfect consideration for nature in the strategy and also humans whether employees, customers or shareholders all are respected and given due consideration while taking any step towards operation of strategic goals.Level 1At Level 1, the broad goals to conserve or compound inter- and intragenerational equity, human well-being, biodiversity and ecological uprightness are widely supported.Diesendorf added the conservation of cultural diversity here as a social analogue to the conservation of biodiversity.According to Diesendorf The goal of inter-generational equity is the basic thrust of the Brundtland definition of sustainable development. If we exact this goal, then it can be argued that we must also accept the need for intra-generational (that is, social) equity. It should be recalled that, in this chapter, equity does not mean equality, but rather equal opportunity. This goal is very well taken care of in Woolworths strategy. The company ensures of employing people in the organization irrespective of their cast, race, gender, cultural background and strictly on the basis of their educational qualification and experience.The conservation of natural capital, widely used in some models of sustainability, has been replaced here by the conservation of critical capital, because the former overlaps strongly with conservation of biodiversity and ecological integrity and, even where it does not, there are vast quantities of some forms of natural capital (for example, sand ) which are not in urgent need of conservation. Critical capital facilitates a focus on those forms of natural and human-made capital which are exist with damage, destruction or dispersion (for example, phosphorus, archaeological sites). This feature does lack in the strategy of Woolworths.Conservation of atmosphere and climate is not normally include as a sustainability goal. However, in view of the seriousness of the present panic and the fact that the potential effects of climate change impact on biodiversity, ecological integrity and human health, it has been listed explicitly here alongside critical capital. This goal have been given an important place in sustainability strategy of Woolworths as the retail giant aims at reducing the emission of carbon from its fleet of trucks and cars. Also, introduction of reusable bags in place of plastic bags proves that the company is committed to environmental and climate safety.Level 2This stage defines the standard criteria for sustain ability indicators. This stage explains that such criteria should be measurable, relevant, simple to use and understand, reliable, reproducible, and timely for decision making. Hart (1998) states Several authors suggest that sustainability indicators should, in addition, reflect something fundamental to the environmental, economic and social/cultural health of a community over generations.The sustainability strategy of Woolworths does include set targets which are represents in figures but there is no set measurable standards to judge and measure the achievements of the strategy.RECOMMENDATIONSFrom the analysis of sustainability strategy of Woolworths it is unequivocal that despite of being a successful strategy with corporate social responsibility as the basis of its operations there are authoritative key areas where the process is lacking.For the improvement of the strategic program certain recommendations have been discussed as followsThere should be a performance measurement a nd control system embedded in the strategy of sustainable growth. A proper assessment of performance at various stages and the regular feedback on the performance will help in removing any gaps in the level and dexterity decided for meeting objectives and actual achievement of such objectives.A system of feedback and suggestions from stakeholders should be designed. Such a feedback will help in improving the strategy and making the required changes as per the perception of general public about the initiatives taken by the company. It will ensure a fast and proper acceptance of the strategy by the stakeholders which is an essential element for the success of any strategy.There should be a proper system of intercommunicate stakeholders about the strategy. In the present plan no emphasis is given to communication of plans within and outside the organization. If the plans of the management are properly and expeditiously communicated they are easily grasped by the concerned parties and makes it easier for the workforce to contribute towards the achievement of desired organizational objectives.Woolworths is also expected to introduce innovation in its products. There have been several innovative steps taken by the company to improve its processes and service to public. The company operates in a exceedingly competitive environment of retail industry where the needs, demands and preferences of consumer changes very fast. To sustain in such an environment it is necessary to introduce innovative products also.ConclusionIn the words of Simon Susman The Good business journey is a business irresponsible for Woolworths. Many aspects of it are linked together to generate a multiplier effect reducing product miles by encouraging greater local sourcing we will open up opportunities for enterprise development and preferential procural reducing packaging will result in energy and paper savings thereby reducing the Woolworths carbon footprint.Corporate responsibility or Susta inability is fundamental to any companys responsibilities. At the same time it is also an opportunity for the company to establish its good image in front of its customers and shareholders. Thus, an integrated sustainability program as that of Woolworths is an important and successful method of managing environmental, economic as well as social risks. Moreover, such a strategy helps in identification of new opportunities, services, new products and new markets for expansion of business.Woolworths program of sustainability is strongly influenced by the strategies of international retailers such as Wal-Mart, and Marks Spencer. 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