Assignment 2 - Sustainability Report Practice Group Report PDF

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this is a group report...

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ACCT2105 ACCOUNTING IN ORGANISATIONS AND SOCIETY

Semester

3

Title of Assignment

Sustainability Report practice Group Report

Name and Student ID

Bui Quang Khai - s3752113 Nguyen Lan Phuong - s3726725 Khuu Khoi – s3756989

Signature Location

South Saigon Rmit

Class Group

ACCT2105, Group 7

Lecturer

Tran Phuc Vinh

Word Count (Main content without list of references, cover page, etc.)

1553 words

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1. Introduction: Sustainability report is a report about a company or organization's environmental and social performance. According to the Global Reporting Initiative (GRI), it can help organizations measure and understand their economic, ecological, and social goals and then set goals and manage change more effectively in the future. Meanwhile, some companies are using Corporate Social Responsibility (CRS) as the main report for them. A self-regulating business model focuses on the Community, which is equally valuable for the company, forge a better connection between employees and corporations with the world around them. Due to the impact of negative environments and social nowadays, every report needs to add information about environmental sustainability and social sustainability. Therefore, this analysis will focus on the ground and social sector in a sustainability report and CSR report from 2 organizations: Forterra - the manufacturing New Zealander company, and Loblaw Limited - the Canadian retail company. 2. Overview of two companies: a. Fonterra: For 150 years, the dairy industry has been a huge part of New Zealand for most of the land being able to grow grass all-year-round beneficial for cow consumption; thus, the cow produces delicious and fresh milk. Hence, form a dairy cooperative that bring together farmers called Fonterra. Fonterra manufacturing high quality product which are sold in more than 130 countries under NZMP™ brand name all over the world. b. Loblaw Companies Limited in Canada: Loblaw Companies Limited is a Canada's leading food and pharmaceutical company. They offer innovative e-commerce services as well as Canada's leading portfolio of controlled brands. From coast to coast, their community-based network has over 190,000 full and part-time employees in more than 2400 company stores and pharmacies, operating independently to provide consumers with products and services, including grocery, health and wellness, beauty, clothing, general merchandise, wireless mobility, and finance. The company has a developing digital retail business and is a member of the national top loyalty programs, PC OptimumTM. The company receives both strategic and social guidance which is in accordance with the company's purpose - helping Canadians Live Life Well.

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3. Sustainability reporting: a. Fonterra: 1. What: Social: Fonterra perceives that engaging stakeholders is critical for their cooperatives' long-term success as in their belief, these individuals' and entities' activities and interests have an impactful influence on their business strategy. Thus, Fonterra's head policy is to show their goodwill in supporting the surrounding communities. Employees health, safety and wellbeing: -The company especially respects the contribution that the workforce having been brought through years. Promises is made that Fonterra takes responsibility for every employees' health, safety and wellbeing. Every year, Fonterra runs a program called Safe Home Assurance Audits. They do a complete sweeping through the facility throughout their 39 sites checking for areas of vulnerability and identifying improvements to help provide the safest possible working environment. Caring for consumers: Guarantee is made that Fonterra food product is completely safe and nutritious. Fonterra is sure to bring to customers and their families a healthy, enjoyable and sustainable diets now and into the future. The company account management teams actively have close engagement with customers and receive both positive and negative through email, social, and consumer research daily. The information is shared through programs such as SEDEX and the Carbon Disclosure Project then so the company can have an insight analysis to provide the customers the best experiences.

In-school nutrition: -According to the Fonterra sustainability report, they demonstrate that their interest not only for generating profit but also investing time and resources to make differences for local 3

communities. Thus the company has a project that contributes to local school nutrition called Fonterra's Milk for school initiatives. Fonterra's milk for school initiatives confirmed that it is available to all New Zealand schools with kids from ages 5-11. The initiatives offering 200ml serving of Anchor™ lite (reduced fat) milk to every child, every day.

Environments: Improve the health and biodiversity of our land and waters: Fonterra believed to achieve healthy and enjoyable lives, we must maintain a fresh and healthy environment. As wastewater get discharged there is a number of excess nutrients that have been utilized effectively, the nutrients which primarily came from the collected milk; thus these excess amount use to improve soil health that will eventually grow nutritious grass and maize silage, these grass and maize silage is for cow consumption and the cow will produce quality milk. Fonterra also have plan for water usage efficiency, at Whoareroa site successfully collected and reuse water sources from water evaporators and osmosis plants in their boiling and cooling towers, by execute this strategy resulting in that they have reduce water usage by 30% and if keep on following this procedure will save over 300 million liters of water per year. 2. To whom: Loblaw Companies Limited is responsible to provide the company's information and performance to these stakeholders: 

Farmer



Consumers and consumers



Employees



Investors



Central and regional governments



NGOs

b. Lobaw Company Ltd: 3.

What:

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In the Loblaw's sustainability report, Loblaw Companies Ltd presented the responsibility and contribution among the relation in the firm's target and its achievement. By the slogan of helping the Canadians Live Life Well, there are three important pillars that Loblaw Companies Limited illustrates in the 13th annual Corporate Social Responsibility (CSR), including Environment, Sourcing, and Community. First of all, as for the environment sector, Loblaw focuses on repercussions and sets strategies to protect the environment, including carbon reduction, climate change risk mitigation, food waste reduction, plastics and textiles. The firm set detailed progress and achieved ambitious goals to reduce to approximately 50 percent of carbon emissions by 2030, which particularly affects climate change - the potential impact on the Canadian retail industry. To specify, in Loblaw grocery stores, they have replaced some program characteristics such as door on refrigerated cases in reducing electricity consumption, plastic bag recycling, electric refrigeration on trucks to reduce fossil fuels. Moreover, it is undeniable to mention that Loblaw has lots of efficient solutions for food waste. By investing in inventory systems and using data tracking tools which easily analyze product lifecycle, linking to the third partnership like Foodflash, which can be sold up to 50 percent off the regular retail price for the date before products, donating more 5.4 millions kilograms for food banks and food recovery agencies. Secondly, Sourcing plays a vital role in customers' expectations as for the biggest food and drugs. Loblaw has implemented a commitment to human rights, food safety, animal welfare, and sustainability. Instead of protecting human rights and collaborating with other stakeholders to improve the lives of workers worldwide, they have banned fur from all of their textile products. This means that it guarantees the quality of its products and the reliability of consumers. Last but not least, Loblaw pays more attention to Community, the company is proud of great employees across Canada, and they commit to invest over 250 million dollars over the next five years in growth and developing the health and wellbeing of their employees, partners, colleagues, consumers and all of Canadian.

4. To whom: Loblaw Companies Limited is responsible to provide the company's information and performance to these stakeholders: 

Customers 5



Consumers



Employees



Colleagues



Partners



Suppliers



Investors and shareholders



Governments and community organizations

5.

Why:

As corporate social and environmental duties become more remarkable to partners, the partners try to see how corporate techniques to coordinate social and natural improvement into the firm's monetary objectives (Zadek 2004, Konrad et al.2006). Also, buyers are requesting that organizations produce excellent, safe, and earthly benevolent items with assembling measures that are less hurtful to the climate and communities. (Lash & Wellington 2007). An association's capacity to viably impart corporate social obligation (CSR) techniques and arrangements can upgrade partner fulfillment, add to communities, improve working environment conditions or secure the environment. (Tate et al. 2010).

Loblaw Companies Limited has reacted to stakeholders desires by distributing yearly CSR reports that convey the exercises and systems being utilized to address social and ecological issues. (Esrock & Leichty 1998). These supportable reports fill in as an indicator of an association's mentalities toward social and ecological obligation, vital arranging and the degree of coordination in the association's business vital plans, both at the corporate level and utilitarian levels. (Kolk 2003; Jose & Lee 2007).

6. How/ Where: Loblaw Companies Limited has adopted a Triple Bottom Line (TBL) framework because the enterprise wants to achieve environmental, social, and economic sustainability. The TBL approach has currently defined Corporate Social Responsibility (CSR) and becomes a communication tool for this report (Moravcikova et al. 2015). The TBL refers to a comprehensive

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assessment of an organization's overall performance, measured by the three aspects, including the environmental, social, and economic sustainability (Elkington 1998, cited in Tate et al. 2010)

In terms of economic sustainability, Uddin et al. (2008) argue that CSR is related to both the direct and indirect economic influence of a company's activity on the local Community and other stakeholders.

Relating to social sustainability, it depends on improving the living standard of the local Community. CSR is a tool that is used to develop and strengthen the relationships between society and an enterprise (Księżak & Fischbach 2017). Regarding environmental sustainability, the natural environment is the responsibility of everyone; thus, companies need to minimize or eliminate the detrimental environmental impact in which they are operating (Gupta 2011; cited in Księżak & Fischbach 2017).

3. Conclusion: In conclusion, Loblaw Companies Limited and Fonterra showed their environmental and social responsibility for their annual report. The reports have provided readers a useful information in economic, the impact of environment and the change of social as well as what they have done in the past few days has made the environment and society a better day. 4. Reference: Global reporting 2020, The global standards for sustainability reporting, globalreporting.org, viewed 3 Ded 2020, < Standards (globalreporting.org)> Jason Fernando 2020, Corporate Social Responsibility (CSR), Investopedia, view 4 December 2020, < Corporate Social Responsibility (CSR) Definition (investopedia.com)> Fonterra 2020, Sustainability Report 2019, Fonterra, viewed 3 Dec 2020, < Sustainability Report 2019 (fonterra.com)> Loblaw 2020, Corporate Social Responsibility Report 2019, Loblaw Companies Limited, viewed 3 Dec 2020, < Responsibility | Loblaw Companies Ltd.> 7

Moravcikova, K, Stefanikova, L & Rypakova, M 2015, "CSR reporting as an important tool of CSR communication", Procedia Economics and Finance, vol. 26, pp. 332-338, Elsevier ScienceDirect Database. Tate, W.L, Ellram, L.M & Kirchoff, J.F 2010, "Corporate Social Responsibility Report: A Thematic Analysis Related To Supply Chain Management", Journal of Supply Chain Management, vol. 46, no. 1, pp. 19-44, Online Wiley Library, Księżak, P & Fischbach, B 2017, 'Triple Bottom Line: The Pillars of CSR', Journal of Corporate Responsibility and Leadership, vol. 4, no. 3, pp. 96-110. Uddin, M.B, Hassan, M.R & Tarique, K.M 2008, 'Three Dimensional Aspects of Corporate Social Responsibility', International University Journal of Business and Economics, vol. 3, no. 1, pp. 199–212. Konrad, A, Steurer, R, Langer, M & Martinuzzi, A 2006, 'Empirical Findings on Business–Society Relations in Europe', Journal of Business Ethics, vol. 63, pp. 57–67, Springer Link, Zadek, S 2004, 'The Path to Corporate Responsibility', Harvard Business Review, vol. 82, no. 12, pp. 125-132. Lash, J & Wellington, F 2007, 'Competitive Advantage on a Warming Planet', Harvard Business Review, vol. 85, no. 3, pp. 94-102. Esrock, S.L & Leichty, G.B 1998, 'Social Responsibility and Corporate Web Pages: SelfPresentation or AgendaSetting?', Public Relations Review, vol. 24, no. 3, pp. 305-319.

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