Sustainable Enterprise In Business Organization – Analysis Of Woolworths Limited

Sustainability Dimensions

Discuss about the Sustainable Enterprise in Business Organization.

Among the various concepts of a business organization, one of the most attentions grabbing aspect was the issue of sustainability. According to AO Dos Santos, Svensson & Padin (2014), being faced with several internal and external factors, managers tend to focus on ensuring a long run by integrating various necessities in the business framework. It is noted that with a diversification of the concept, there is a consequent differentiation in the tracking systems as well. In addition to sorting out priorities, the mechanism greatly contribute towards ensuring stability and removal of negatively impacting practices from the business (Peterson et al., 2016). Further, characteristics of effective indicators are the following:

Features of Sustainability Indicators	Relevancy Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper
Easy to Understand
Accuracy
Reliability
Accessibility

Table: Sustainability Indicator Features

(Source: Methner, Hamann & Nilsson, 2015)

For this particular project, a well known Australian brand named Woolworths Limited has been taken into consideration. Apart from a check on the firm`s ongoing practices and existing conditions, the report tends to be specific about the sustainability areas and further concentrates on assigning indicators along with a future developmental plan.

As opined by Rajabian Tabesh, Batt & Butler (2015), the three dimensions of sustainability also known as the pillars of a company are divided into three different segments, which are the following:

1. Social

2. Environmental

3. Economic

Concerning Woolworths Limited, the firm actively takes part in maintaining the three dimensions as well. In addition to developing profit figures and expanding business, the management tends to fulfil social and ecological demands (Rose, Hawryszkiewycz & Kang, 2015). Based on the firm`s perceptions, sustainability dimensions can be divided further into the following subsections:

Sustainability Dimensions	Woolworth`s Roles
Social Dimensions	Product Development
Diversity
Engagement with People
Training
Safety and Health
Environmental Dimensions	Carbon Emissions
Packaging
Waste Recycling
Deforestation
Resource Utilization
Reduce, Reuse and Recycle
Economic Dimensions	Law Compliance
Cost Management
Market Penetration
Diversification
Social Welfare
Jobs and Employment
Benefit Stakeholders

Table: Sustainability Dimensions of Woolworths Ltd.

(Source: Griggs et al., 2013)

According to Warburton (2013), in terms of social and cultural sustainability, the brand tends to provide the people with their most demanded goods at a comparatively lower price than the competitors. Further, along with ensuring high satisfaction of the customers, the management of the firm also works on developing a safe and highly motivated workplace for the employees. Not only does the supervisor accepts innovation and creativity in the organization, but also enhances safety and security in the work environment (Woolworths Group: Quality Brands and Trusted Retailing., 2017). Moreover, the presence of a positive atmosphere enhances engagement and value of the taskforce. It is noted that the brand over the past few years have spent over $28.2 million in training and development of more than 2000 courses which has significantly build up potentiality of the staff members (Environment and sustainability – Woolworths Group., 2017).

Specific Sustainability Area

On the other hand, various initiatives and programs have been developed by the highly skilled business experts in order to develop environmental and economic sustainability concerns (Opp & Saunders (2013). In addition to focussing on an optimum utilization of resources, the brand works towards lowering carbon emissions, reducing packaging materials and deforestation levels. Moreover, a concentration is laid on waste and recycling as well (Strategy and objectives – Woolworths Group., 2017).

Environmental Dimensions	2011	2012	2013	2014	2015
Carbon Intensity (t CO2-e / $m EBIT)	881	838	841	793	808
Energy Intensity (GJ / $m EBIT)	3,325	3,227	3,097	3,019	3,100
Water Intensity (KL / $m EBIT)	560	600	600	655	655
Waste Intensity (T / $m EBIT)	45	38	36	28	29

Table: Environmental Dimensions

(Source: Focus Areas., 2017)

Furthermore, it is noted that the management tends to benefit the stakeholders and society by opening up employment opportunities and enhancing shareholder value (Grubb, 2014). Woolworths have provided jobs to a large number of people and provided developed supply chain situations to the people. A focus on the legality and economic factors of Australia, New Zealand and other regions of performance also increasingly helps in building up revenue conditions. Also, donations to charities tend to benefit the community as a whole (About Us – Woolworths Group., 2017).

Justin Smith`s business case for sustainability has been focussed on in this report.

Based on Woolworths Limited prevailing conditions, the economic dimensions are focussed on to reach from Point A to Point B on the Dunphy Scale.

As stated by Devin & Richards (2016), Woolworths Limited is Australia`s one of the most renowned and extensive retail outlet. Apart from providing the people with a diversity of products under a single head, the brand also in recognized as the largest liquor retailer. Moreover, the enterprise also successfully made its name in the hospitality industry with the biggest hotel and poker gaming services. The company actively serves New Zealand and all parts of Australia with its headquarters in the South Wales. In addition to diversifying services, the highly skilled management team of the brand seeks to maintain position in the market and further make an optimum use of the available opportunities (Klettner, Clarke & Boersma, 2014).

Additionally, with a taskforce of more than 202,000 employees serving a larger number of customers every day, Woolworths along with a focus on revenue generation concentrate on achieving sustainability targets as well.  On the other hand, based on the mission statement of the firm it can be inferred that the brand tends to ensure an increased level of convenience and value for money to the visitors (Padin & Svensson, 2015). Based on the Dunphy Scale it can be understood that the organization maintains its position at Phase 5 of Strategic Sustainability (Point A). In addition to fulfilling the needs and demands of the people in a best possible manner, the management also takes care of the staff members. It is noted that with a proper management, control, coordination and diversity of business scopes, the sustainability scale can be shifted to Phase 6 of the sustaining corporation (Point B) on the Dunphy Scale. 

Background of the Enterprise

According to Berning (2014), it is noted that customers tend to seek for a continuously developing shopping experience with an increase in quality of goods and downfall in price levels. While, the employees look for a secured workplace, respect and acceptance to innovation and creativity helping them to develop potentiality. Furthermore, the brand also understands its role towards the environment and prosperity of the society it serves (Cheng, Green & Ko, 2014). Stakeholder groups like suppliers, shareholders and the community as a whole also form an integral aspect of Woolworth`s sustainability concern.  It is seen that the managers enhance the concept of sustainable development in the business framework as a strategy itself.

Conclusion

Analyzing the various aspects of the project it can inferred that Woolworths Limited actively involves in developing sustainability concerns in the business framework. In addition to a people`s perspective, the brand concentrates on an environmental and economic view as well. Moreover, with an increase in the competitiveness in the industry, managers seek to monitor and check on development indicators to ensure sustainability as well.

Despite of being inaugurated around 92 years ago, the managers have greatly succeeded in adapting to the changes and further actively involved in modernization. It is noted that a proper balance between the three dimensions of sustainability shall enables Woolworths to not only earn a stable rate of revenue, but also secure long term gains. Reviewing the economic dimension and focussing on shifting the sustainability scale from point A to B, it can be concluded that the management needs to focus on the indicators and developmental plan.

References

About Us – Woolworths Group. (2017). Woolworthsgroup.com.au. Retrieved 3 January 2017, from https://www.woolworthsgroup.com.au/page/about-us/

AO Dos Santos, M., Svensson, G., & Padin, C. (2014). Implementation, monitoring and evaluation of sustainable business practices: framework and empirical illustration. Corporate Governance, 14(4), 515-530.

Berning, A. (2014). Sustainable supply chain engagement in a retail environment: the case of Woolworths food suppliers (Doctoral dissertation, Stellenbosch: Stellenbosch University).

Cheng, M. M., Green, W. J., & Ko, J. C. W. (2014). The impact of strategic relevance and assurance of sustainability indicators on investors’ decisions. Auditing: A Journal of Practice & Theory, 34(1), 131-162.

Devin, B., & Richards, C. (2016). Food Waste, Power, and Corporate Social Responsibility in the Australian Food Supply Chain. Journal of Business Ethics, 1-12.

Environment and sustainability – Woolworths Group. (2017). Woolworthsgroup.com.au. Retrieved 3 January 2017, from https://www.woolworthsgroup.com.au/page/community-and-responsibility/group-responsibility/environment/

Focus Areas. (2017). Woolworthslimited2015.csr-report.com.au. Retrieved 3 January 2017, from https://woolworthslimited2015.csr-report.com.au/focus-areas.html

Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M. C., Shyamsundar, P., … & Noble, I. (2013). Policy: Sustainable development goals for people and planet. Nature, 495(7441), 305-307.

Grubb, M. (2014). Planetary economics: energy, climate change and the three domains of sustainable development. Routledge.

Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), 145-165.

Methner, N., Hamann, R., & Nilsson, W. (2015). The Evolution of a Sustainability Leader: The Development of Strategic and Boundary Spanning Organizational Innovation Capabilities in Woolworths. In The Business of Social and Environmental Innovation (pp. 87-104). Springer International Publishing.

Opp, S. M., & Saunders, K. L. (2013). Pillar talk: local sustainability initiatives and policies in the United States—finding evidence of the “three E’s”: economic development, environmental protection, and social equity. Urban Affairs Review, 1078087412469344.

Padin, C., & Svensson, G. (2015). Intertwining ecologic, social and economic efforts and achievements of business sustainability in business networks. International Journal of Logistics Economics and Globalisation, 6(3), 195-204.

Peterson, N., Pearl-Martinez, R., Stephens, J. C., Serrano, M., Blondet, M., Rubiños, Á., & Mattsson, E. (2016). Introduction to the special issue on social sustainability: integration, context, and governance. Sustainability: Science, Practice, & Policy, 12(1).

Rajabian Tabesh, A., Batt, P. J., & Butler, B. (2015). Modelling the Impact of Environmental and Organizational Determinants on Green Supply Chain Innovation and Performance. Journal of Food Products Marketing, 1-20.

Rose, J. F., Hawryszkiewycz, I., & Kang, K. (2015). Evaluating information systems for collaborative wellness’. In 19th Pacific Asia Conference on Information Systems (PACIS 2015).

Singhry, H. B. (2015). An Extended Model of Sustainable Development from Sustainable Sourcing to Sustainable Reverse Logistics: A Supply Chain Perspective. International Journal of Supply Chain Management, 4(4).

Strategy and objectives – Woolworths Group. (2017). Woolworthsgroup.com.au. Retrieved 3 January 2017, from https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives/

Warburton, D. (2013). Community and sustainable development: participation in the future. Routledge.

Woolworths Group: Quality Brands and Trusted Retailing. (2017). Woolworthsgroup.com.au. Retrieved 3 January 2017, from https://www.woolworthsgroup.com.au/