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  1. 1. WOOLWORTH SOUTH AFRICA : MAKING SUSTAINABILITY SUSTAINABLE
  2. 2. <ul><li>Woolworths was founded in 1931 by Max Sonnenberg. </li></ul><ul><li>by2009.,it had 408 retail stores ,making it one of the largest retail chain in South Africe . </li></ul><ul><li>Main product are food ,clothing, and home goods. targeted people in upper-middle to high income range . </li></ul><ul><li>the company's core values were quality and style, value for money, service, innovation, integrity Energy and sustainability </li></ul>
  3. 3. <ul><li>Woolworths' Good business journey program was launched in April 2007 as a formalization of the existing Woolworths sustainability initiatives . </li></ul><ul><li>The GBJ consisted of a comprehensive five-year plan (from 2007 to 2012) aimed at improving the company sustainability performance ,changing the way to do business, and incorporating a series of challenging targets and commitments, impact as it continues to grow and meet the increasing needs of South African consumers </li></ul><ul><li>. </li></ul>
  4. 4. <ul><li>It is centered on four keys priorities : </li></ul><ul><li>Transformation of the business according to employment equity and black economic empowerment (BEE) requirement . </li></ul><ul><li>Driving social development . </li></ul><ul><li>Enhancing environmental focus . </li></ul><ul><li>Addressing climate change. </li></ul>
  5. 5. <ul><li>Large south Africa corporation were legally obliged to comply with BEE requirements . </li></ul><ul><li>Transformation including: equity ownership, employment equity, skills development, preferential procurement, enterprise development and socio-economic development. </li></ul><ul><li>Transformation involved three main areas : direct empowerment through ownership ,employment equity ,and indirect empowerment through preferential procurement and enterprise development . </li></ul>
  6. 6. <ul><li>There is growing empowerment of: </li></ul><ul><li>black employees, women and people with disabilities through the BEE employee share ownership scheme, focused recruitment,, promotions, development and retention mechanisms; </li></ul><ul><li>black and female unemployed communities ,through learning and job creation opportunities; </li></ul><ul><li>black owned and small enterprises through supplier support, coaching and development and opportunities to join the Woolworths supply chain; and </li></ul><ul><li>communities through sustainable food security and nutrition initiatives in schools across the country, as well support for orphaned children. </li></ul>
  7. 7. <ul><li>By2012 Woolworth pledged to advance skills development and equity ownership by filling leadership positions with people from previously disadvantaged groups . </li></ul>
  8. 8. <ul><li>Woolworths identified the environment as a key focus for the business when announcing the Good business journey. </li></ul><ul><li>Woolworth committed to increasing organic and free-range food sales fourfold by 2012. </li></ul><ul><li>This would result in a reduction in the use of harmful pesticides and chemicals .,which would benefit consumers and improve water quality . </li></ul><ul><li>Woolworth committed to supporting free-range farming method and animal welfare . </li></ul><ul><li>The company pledged to reduce product packaging . </li></ul>
  9. 9. <ul><li>Woolworths recognizes that climate change is a major issue that affects the retail sector both directly through the operations they run, and indirectly through their supply chains and the use of our products and services by customers . </li></ul><ul><li>Woolworth make a firm commitment by 2010 to : </li></ul><ul><ul><li>reduce relative transport emissions by 20%; </li></ul></ul><ul><ul><li>reduce relative electricity usage by 30%; </li></ul></ul><ul><ul><li>open a trial green store; – source food regionally wherever possible, reducing reliance on long-distance road transport; </li></ul></ul>
  10. 10. <ul><ul><li>restrict airfreight of food products; </li></ul></ul><ul><ul><li>help set up model ‘green’ factories with selected suppliers and work closely with suppliers to reduce their carbon footprint. </li></ul></ul><ul><ul><li>work with soil scientists to regularly monitor their farmers’ soil sustainability, increasing its CO2 absorption abilities. </li></ul></ul>
  11. 11. <ul><ul><li>Woolworths managed the GBJ centrally, through the head of corporate governance and the corporate affairs office . </li></ul></ul><ul><ul><li>In 2006 ,Woolworths created the Woolworth sustainability index ,that measured progress towards achieving 2012 targets by means of weighted measurement and tracking system of over 200 indicators . </li></ul></ul><ul><ul><li>After the announcement of the GBJ, feedback from stakeholders had been mixed. Those already involved in sustainability issue had been supportive ,but some had cautioned that the target were far reaching and would be a challenge for Woolworth to achieve . </li></ul></ul>
  12. 12. <ul><li>  In feburary2009,woolworth announced 10 key sustainability risk areas, grouped into main categories that might impact negatively on the company’s ability to meet the 2012 targets : </li></ul><ul><li>External trading conditions, transformation, the environment ,and the role of suppliers . </li></ul>
  13. 13. <ul><li>The impact of the global economic downtown had been felt by retailers across the globe. </li></ul><ul><li>In late February 2009,the south African economy contracted for the first time in decade . </li></ul><ul><li>Woolworth said that there had been significant changes in spending patterns . </li></ul><ul><li>It seemed that consumer were fast losing interest in sustainability issue and were looking for cheapest price . </li></ul><ul><li>Woolworth believed that their consumers were till concerned with social and environmental issue. </li></ul>
  14. 14. <ul><li>Organic product would retail at higher price than non-organic products, but Woolworth consumers would be willing to pay a small premium for sustainable products . </li></ul><ul><li>In 2008,organic clothing sales were 47persent above target Woolworths become the world’s third –largest consumer of organic cotton behind American giants wall-Mart and Nike . </li></ul><ul><li>In 2008 ,Woolworth headed the JSE’s top 100 carbon disclosure leadership index in the low carbon sector . </li></ul><ul><li>Woolworth commitment to reducing the relative amount of carbon produced directly by business ,by 30 present by 2012. </li></ul>
  15. 15. <ul><li>Woolworths was predominantly an own brand business ,selling product that had been specifically developed for the company under the Woolworth brand ,this was the target of GBJ.. </li></ul><ul><li>The GBJ could not be successful without the commitment of the company’s suppliers ,and this was one of the most difficult areas of control. </li></ul><ul><li>All suppliers were bound by the Woolworths' supplier code of business principle . </li></ul><ul><li>The code covered legal, ethical ,and environmental requirements and helped to ensure that suppliers employees were traded fairly . </li></ul><ul><li>Each supplier was independently audited to ensure compliance with the code . </li></ul>
  16. 16. <ul><li>Woolworth had aimed to achieve 100 present to the code from its clothing suppliers by 2008 but had achieved only 73 present compliance ,due to difficulties in ensuring compliance from international suppliers . </li></ul><ul><li>In 2006 ,Woolworth introduced the Eco-efficiency awards for suppliers and become the first retailer in the world to recognize its suppliers for their contribution to environmental protection . </li></ul><ul><li>The company had also committed to promoting organic farming ,to use more environmentally friendly methods ,including assisting farmers to reduce their water, chemical, and fertilizer usage by 25 present. </li></ul>
  17. 17. <ul><li>Woolworths received a wards for his efforts from the civil organizations was named the 2008 international responsible retailer of the year at the world retail awards. </li></ul><ul><li>Woolworth had beaten both Sainsbury's and Tesco. Two of the united kingdom's largest grocery retailers ,which were regarded as industry leaders with comprehensive corporate social responsibility and sustainability plans . </li></ul>
  18. 18. <ul><li>For Woolworth to keep its public support ,the company had to push the values of the GBJ hard and that now ,more than ever ,Woolworth couldn’t be seen to be backing away from its stated sustainability targets or making too many adjustments to the original target . </li></ul>
  19. 19. <ul><li>THANK YOU FOR YOUR ATTENTION </li></ul>

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