Assessment Solutions-The Retail Sector is Changing Rapidly:ACCT5001

Running Head: FOUNDATIONS OF ACCOUNTING
FOUNDATIONS OF ACCOUNTING
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1 FOUNDATIONS OF ACCO …

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Running Head: FOUNDATIONS OF ACCOUNTING
FOUNDATIONS OF ACCOUNTING
Name of the Student:
Name of the University:
Author Note:
1 FOUNDATIONS OF ACCOUNTING
Table of Contents
Introduction ……………………………………………………………………………………………………………….. 2
Company Background ……………………………………………………………………………………………… 2
Stakeholder Theory …………………………………………………………………………………………………. 2
Purpose of the Report ………………………………………………………………………………………………. 3
Discussion …………………………………………………………………………………………………………………. 3
Sustainability Concept …………………………………………………………………………………………….. 3
Social …………………………………………………………………………………………………………………. 3
Economic ……………………………………………………………………………………………………………. 5
Environmental …………………………………………………………………………………………………….. 6
Conclusion …………………………………………………………………………………………………………………. 7
References …………………………………………………………………………………………………………………. 9
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Introduction
Company Background
Woolworths Group Ltd. is involved in the retail business operations and its segment
contain Australian Food, New Zealand Food, Australian B2B, and BIG W. Thus, it is
considered to be the greatest supermarket chain with the share market of around 33% in
FY2019. The company was established in the year 1924 by Australian entrepreneurs and is
mainly specialized in groceries, but on the other hand italso sells beauty products, magazines,
DVDs, and health products. Hence, at the end of 2020, there were 64 Woolworths
convenience stores and 987 Woolworths supermarkets. The group also has an online business
operation for its major trading divisions. By the end of FY2020, the company generated anet
revenue of around A$42.151 billion and the total number of employees employed by the
company is approximately 225,000.
Stakeholder Theory
Stakeholder theory is the ethical concept that speaks the result of the business
decisions, net profits, trends, & its cooperative influence on all the stakeholders which
includes shareholders, financers, government, suppliers, employees, and customers. It mainly
concentrates on the communications between the businesses & all those who has abet in it
and thus the businesses provide the requirements of the stakeholders & not only the
shareholders (Vandchali, Cahoon & Chen, 2021) . The stakeholder theory attempts to
recognise the firm ’sstakeholders. An approach of stakeholder may be beneficial in that it
indorses the report of how the company works as section of its larger environment & how its
general processes of business operation influence the firm ’s stakeholders. Inspecting the
stakeholder ’sinterest is unethical and unwise.
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Purpose of the Report
The primary purpose of this report is to measure critically from the sustainability
viewpoint as ASX-listed organization. Thus, the organizations selected for this report is the
“Woolworths Group Limited ” and the company ’smethod to sustainability with respect to
economic, environmental, and social has been discussed in this report with the help of recent
annual report, website, and sustainability report. Lastly, aconclusion has been provided on
the basis of discussion mentioned in the report.
Discussion
Sustainability Concept
Sustainability is the capability to support or maintain aprocedure continuously over
time. Thus, in policy and business contexts, sustainability pursues to avoid the physical or
natural resources depletion, so that they would remain accessible for the long-run.
Appropriately, sustainable policies concentrate the further influence of any provided business
practice or policy on humans, wider economy, and the ecosystems (Shaikh & Shaikh, 2021) .
Hence, the concept frequently resembles to the truth that without primary alterations to the
method the planet is operating, it would deteriorate irreplaceable damage. However, the
sustainability is frequently divided into three essential concepts that is social, environmental,
and economic.
Social
Woolworths aim to create abetter future for the public by building aplace where they
could work to provide brighter tomorrow. The company understands the value that diversity
and inclusion brings to a company ’s performance (Rajabian Tabesh et al., 2016) .All
employees, regardless of their gender within the Woolworths have same access to
possibilities and acceptance and support from their team members and superiors. In 2021, the
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company has been honoured as “Workplace Gender Equality Agency ’sEmployer of Choice
for Gender Equality ” (EOCGE). This award has been created to promote, identify, and
encourage dedication in order to attain gender equality in companies.
Woolworths aims to develop asurrounding which values and understands capabilities
of all employees. By 2025, they aim to accomplish gender biased leadership teams in ration
of 40: 40: 20. The ratio is for every leadership role be itaboard members or senior leadership
roles. Woolworths reported 36.54 per cent of women employees in the financial year 2021.
The company signed an agreement “UN Women ’sEmpowerment Principles ”in November
2020 that directs companies to encourage women empowerment and gender equality in the
community, marketplace, and workplace (Naidoo & Gasparatos, 2018) .As a part of this
agreement, the company is dedicated to work together in the multi stakeholder networks in
order to promote activities which empower females.
Further Woolworths have also made considerate growth in LGBTQ+ inclusion in last
5years. This growth has been acknowledged by “Australian Workplace Equality Index ”and
for the four successive years has been rewarded “Gold Employer Status for LGBTQ+
workplace inclusion ”.Further, the company for 3consecutive years has been acknowledged
with “Rainbow Tick accreditation ” (Nilssen, Bick & Abratt, 2019) .In the pride month of
2021, the company raised over $123,000 (NZD) for acampaign in order to support takat āpui,
gender equality and queer. These raised funds would be utilised to employ afresh employee
in order to significantly assist to rainbow individuals throughout Aotearoa.
Further Woolworths also understands the importance of wellbeing and safety of the
employees. The company has endeavoured to prioritise the psychological and physical safety
of the employees, while further helping the society they operate in. They understand the
significance of psychological health and have been developed aWellbeing council. Moreover,
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the company is aboard member and afounding member of the “Corporate Mental Health
Alliance Australia ”that was introduced in October, 2020. The Mental Health Alliance is a
union of Australian businesses committed to create apsychologically fit place of work for
every employee. The alliance intends to target the initial year involving addressing leadership
capabilities, data and research and psychosocial risk assessment.
Moreover, Woolworths is also aiming to accomplish favourable influence throughout
New Zealand and Australia and invest funds in programs and develop their partnerships in
order to deliver relief during natural calamity (Devin & Richards, 2018) .Natural calamities
are an adverse reality and Woolworths ’s “Support Through Australian Natural Disasters ”
program is collaborating with rural aid, food bank, lifeline, and salvation army in order to
deliver relief to people during natural disasters.
Economic
The retail sector is changing rapidly and Woolworths is dedicated to change in the
same pace. In the financial year 2020, the company structured plans in order to alter in a
more emphasised “everyday needs ecosystem ” through providing services and establishing
partnerships and has made considerate growth in the financial year 2021.
In the financial year 2021, the company reported an increase in EBIT 1 by 13.7 per
cent, and 5.7 per cent sales growth. As an outcome of increased demand because of Covid 19,
glass container campaigns and Disney + Ooshies, H1, in Australian food accounted strong
growth in sales. On the other hand, sales of H2 were affected due to pandemic in the last four
months of the year. In the whole year, the EBIT of Australian Food raised by 9per cent and
sales raised by 5.4 per cent. The ecommerce of Woolworths and Woolies X digital had
outstanding progress with sales of ecommerce raised by 74.7 per cent as contrasted to the
previous year. In order to satisfy the demand of the customers, Woolworths intends to
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enhance their convenience propositions with an enhanced variety of Pick up and home
delivery choices.
In H1, the growth of sales in New Zealand food was affected by less market growth,
especially in summer tourist season (Bepari & Mollik, 2016) .On the other hand, there was a
decrease in the sales by 5.5 per cent in H2, since the company cycled lockdown period in
New Zealand. Further, in 2021, there was a decrease in EBIT by 4.6 per cent indicating
decline in total sales.
Environmental
In order to create abetter future for the environment, companies have to repair and
protect the world. Woolworths, being alargest food retailer in Australia has aduty to take
actions in terms of climate change. In order to do so, the company has aimed to minimise
greenhouse gas emission to significantly utilise their natural resources as well as to deliver
circular thinking, in every action they take. Further, Woolworths has introduced
Sustainability Plan 2025, the company has emphasised on developing their strategy in order
to strengthen their organizational strategy in terms of climate change and also underpin their
transformation to acarbon constrained future.
The company has aimed for four goals in the Sustainability Plan 2025. The goal
includes:
ï‚· By 2025, the company aims to provide 100 percent green electricity.
ï‚· By 2025, the company aims to provide 100 percent green electricity
ï‚· Woolworths want to run our firm entirely on renewable energy by 2025.
ï‚· Our activities will produce no food waste by 2025. We want to transfer 100%
of edible unsold food with the support of our partners so that itcan be eaten.
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Woolworths plans to cut emissions from the business activities by 63 percent by 2030,
relative to a 2015 baseline, in accordance with climate science. By the end of 2030,
Woolworths want to cut their scope 3emissions by 19% relative to 2015, in accordance with
climate research. In accordance with climate science, we aim to achieve net positive
emissions for our business activities by 2050, if not sooner. All new property projects will
have a 4 Green Star design and as-built certification, with a 5 Green Star minimum level
expected by 2025.
Woolworth will work with farmers, suppliers, and other partners by 2022.
Woolworths will conduct and publish an analysis of the potential for implementing renewable
and reparative agriculture practises throughout the fresh food suppliers to improve high-risk
areas of soil health and water efficiency, it also provides areview which has been conducted
on our implementation efforts. Woolworths’ operations are also becoming more water-
efficient. They have put smart meters in a few of our stores to assist us in better
evaluating our current water usage, and they will disclose that information in 2021, together
with our decrease objectives and action plan to meet them. They will refine their strategy to
include how we might play amore active role in increasing water sustainability throughout
our supply chain. New Zealand: Smart meters will be installed by 2022, and the objectives
and plan of action will be published in 2023.
Conclusion
On the basis of above discussion, it can be concluded that sustainability is the
essential to the better future. Humans ’dependent on the natural resources for activities,
survival, and business. Ignoring sustainability may lead to the natural resource ’sexhaustion.
However, sustainability is extremely significant to investigation even if one is not an
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environmental science. Companies may enhance their sustainability by decreasing their
wasteful practices or carbon footprint.
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References
Bepari, M. K., & Mollik, A. T. (2016). Stakeholders ’interest in sustainability assurance
process: An examination of assurance statements reported by Australian
companies. Managerial Auditing Journal .
Devin, B., & Richards, C. (2018). Food waste, power, and corporate social responsibility in
the Australian food supply chain. Journal of Business Ethics ,150 (1), 199-210.
Donnelly, B. (2018). The path to sustainability. Food Australia ,70 (4), 28.
Naidoo, M., & Gasparatos, A. (2018). Corporate environmental sustainability in the retail
sector: Drivers, strategies and performance measurement. Journal of Cleaner
Production ,203 ,125-142.
Nilssen, R., Bick, G., & Abratt, R. (2019). Comparing the relative importance of
sustainability as a consumer purchase criterion of food and clothing in the retail
sector. Journal of Brand Management ,26 (1), 71-83.
Rajabian Tabesh, A., Batt, P. J., & Butler, B. (2016). Modelling the impact of environmental
and organizational determinants on green supply chain innovation and
performance. Journal of food products marketing ,22 (4), 436-454.
Shaikh, A. A., & Shaikh, M. M. (2021). A VIEWPOINT ON SUSTAINABLE PRACTICES
OF COLES AND WOOLWORTHS DURING COVID-19. Academy of Marketing
Studies Journal ,25 ,1-4.
Vandchali, H. R., Cahoon, S., & Chen, S. L. (2021). The impact of supply chain network
structure on relationship management strategies: An empirical investigation of
sustainability practices in retailers. Sustainable Production and Consumption ,28 ,
281-299.

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