How sustainability reporting is used by Woolworth? Discuss.
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.
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).
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).
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.
Stakeholder engagement and sustainability
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.
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 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 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).
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.
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).
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.
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
Zhu, J., 2014. Quantitative models for performance evaluation and benchmarking: data envelopment analysis with spreadsheets (Vol. 213). Spring
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