Question

                                                                                 

The following is an extract from the latest sustainability report (2019) of the Woolworths Group:

“It is through the power of partnerships that we will be able to amplify our impact and deliver on our bold ambitions to become a more sustainable business. Working together to drive change has helped us achieve many of our results this year. With our customers we have removed over 3 billion single-use plastic bags from our environment. With our team members we are creating an inclusive culture that values diversity in all its forms. With our suppliers we are working together to safeguard the rights of the workers in our supply chain. With our community partners we are changing the lives of Australians and New Zealanders in need. With our shareholders we are creating sustainable long-term value. We are proud of our achievements, but we need to, and want to, do more to make things better. Better for everyone.” Source: Woolworths Group Sustainability report, 2019)

Required

1. What is meant by the term sustainability and explain its 3 aspects? Include an example illustrating your comments.                                                                                
2. Based on the information from the sustainability report above, explain the Woolworths Group approach toward different aspects of sustainability and explain how they link to the 3 aspects discussed in part(a).                                                                                            

 

Answer 1

Answer 1:

Sustainability is the concept which bridges the short term needs with the long term needs. It is actually meeting our todays needs without jeopardising the needs of future, from the entire socio economic standpoint.

Its three aspects are economic (profits), environmental (planet) and social responsibility (people).

Economic - The acts of the organisaion should be economically sustainable and business should be able to generate decent profits which helps the business to thrive and sustain in the long run. It does not mean to earn profits at any cost, rather it is rated lower than environmental and social, but at the end business should be profitable ensuring compliances, governance and risk governance.

Eg: To report business performance fairly to the investors. To pay taxes fairly on the profits earned.

Environmental - This is the most important aspect of Sustainability which centers around reducing carbon footprints, reducing watage of natural resources, less usage or production of harmful products or wastages in terms of environment.

Eg: Less use/production of non biodegradable products like plastics. Carrying out or suporting tree plantation drives

Social - A business should carry out its operations in such a way that it has the trust and confidence of the society overall which includes not only its employees, but also the stakeholders and the community it operates in. The business should be done fairly and with integrity.

Eg Disposal of plastics and other wastages in a proper way such that it is not littered. Provide a clean and safe working environment to employees.

Answer 2:

Woolworths group approach to achieve sustainability seggregated:
With our customers we have removed over 3 billion single-use plastic bags from our environment - Environmental aspect
With our team members we are creating an inclusive culture that values diversity in all its forms - Social aspect
With our suppliers we are working together to safeguard the rights of the workers in our supply chain - Social aspect
With our community partners we are changing the lives of Australians and New Zealanders in need - Social aspect
With our shareholders we are creating sustainable long-term value - Economic aspect