Sustainability Reporting Practice Group Report

A C C T2 10 5 A C C O U N TIN G IN
O R G A N IS A TIO N S A N D S O C IE TY

Sust ainabil it y
Repor t ing
Wal mar t -
Wool wor t hs
LE C TU R E R

S TU D E N T N A M E A N D ID N U M B E R

H N - 0 2 TE A M 1

A P R IL 2 0 2 1 - S E M E S TE R 1
1
 Sustainability Reporting Practice Group Report

ACCT2105 ACCOUNTING IN
ORGANISATIONS AND SOCIETY

Semester 1, 2021

Title of Assignment Sustainability Reporting Practice Group Report

S3877153_Mai Ngoc Phuong Thao

Name and Student ID S3877115_Tran Hoang Dat
S3864023_Bui Nhat Minh
S3864015_Nguyen Phuong Uyen

Signature

Location RMIT Hanoi

Class Group HN-02 Team 1

Lecturer Marlehan Bin Mohamed

Word Count
(Main content without list of 1, 2021
references, cover page, etc.)

IMPORTANT NOTICE: All students listed on this page declare that they have read and agree to
the statement of authorship on the next page.

Declaration and Statement of Authorship

1. I/we hold a soft copy of this assignment which can be produced if the original is

2
Sustainability Reporting Practice Group Report
lost/damaged.

2. This assignment is my/our original work and no part of it has been copied from any
other student’s work or from any other source except where due acknowledgement
is made.

3. No part of this assignment has been written for me/us by any other person
except where such collaboration has been authorised by the academic/teacher
concerned and as detailed in the assignment.

4. I/we have not previously submitted this work for any other course/unit.

5. I give permission for my assignment to be scanned for electronic checking of

plagiarism.

6. I give permission for a copy of my/our marked work to be retained by the

Department for review by external examiners.

I/we understand that:

Plagiarism is the presentation of the work, idea or creation of another person as though it is
one’s own. It is a form of cheating and is a very serious academic offence which may lead to
expulsion from the University.

Plagiarised material can be drawn from, and presented in, written, graphic and visual form,
including electronic data, and oral presentations. Plagiarism occurs when the origin of the
material used is not appropriately cited.

Enabling Plagiarism is the act of assisting or allowing another person to plagiarise or to copy
one’s work; this is not acceptable and is also subject to penalty.

Further information relating to the penalties for plagiarism, which range from a notation on
your student file to expulsion from the University, is contained in RMIT Statute 6.1 Student
Discipline (see Appendix in Student Guide or consult Turing.)

3
Sustainability Reporting Practice Group Report

Table of Contents
I. Introduction..........................................................................................................................5

II. Company background....................................................................................................5

1. Walmart...........................................................................................................................5

2. Woolworths....................................................................................................................5

III. Analysis..............................................................................................................................6

1. What are they being reporting?................................................................................6

2. To whom are the companies reporting to?...........................................................7

3. Why are they reporting it?.........................................................................................7

4. How are they reporting it?.........................................................................................8

IV. Evaluation..........................................................................................................................9

1. Transparency................................................................................................................9

2. Comprehensive.............................................................................................................9

V. Reflection.........................................................................................................................10

VI. Conclusion......................................................................................................................10

VII. Reference.........................................................................................................................11

4
 Sustainability Reporting Practice Group Report

I. Introduction

Sustainability is recognized as a business strategy to generating permanent value in which an

organization’s performances are considered in three aspects: economic, environmental and
social through their daily activities (GRI n.d.; Haanaes 2016). Sustainability not only benefits
organizations in developing a stronger ‘companionship’ with stakeholders and community, but
also helps improve managing operational risks and enable businesses to develop more
competitive advantages in the market and augment productivity (Bateh et al. 2013, p. 1;
International Finance Corporation n.d.). This report will compare sustainability reports of two
companies in the retail industry, which are Walmart and Woolworths.

II. Company background

1. Walmart
Walmart is the world largest retailer and a chain of supercentre, discount stores and
neighbourhood market, which provides a wide range of goods such as comestibles, clothes,
household appliances, electronic devices and furniture (Walmart n.d; Statista Research
Department 2021).

2. Woolworths
Woolworths is a chain biggest chain of supermarkets in Australia, they supply a large
variety of merchandises which includes foods, domestic appliances, cosmetic supplies, pet and
baby supplies and homewares (Smith 2018; Woolworths n.d.).

5
 Sustainability Reporting Practice Group Report

III. Analysis

Because consumers seem to be paying more attention to the environment and the
society, the needs for companies to communicate their Corporate Social Responsibility (CSR)
efforts effectively to stakeholders is of utmost importance (Grimmer & Bingham 2013; (Stolz et
al. 2013).

1. What are they being reporting?

Walmart Woolworth
Similarities
In terms of ‘environmental’, both Woolworths and Walmart agree on a few
problems that their firms have to face to ensure the sustainability of their
businesses, these include: Climate change, wastes, and developing
sustainable sources of product supplies.
For examples, both companies are committed to reducing greenhouse gas
emissions and minimize the potential effects of global warming. They have
also tackled problems regarding indirect sources of greenhouse gas such
as energy and fuel-related emissions (Walmart 2020; Woolworths 2020).
Not only that, to manage possible risks due to climate change, multiple
measurements have been taken to improve business resilience like
acquiring a sustainable supply of products and goods as well as product
Environmental
sourcing (Walmart 2020; Woolworths 2020 ).
To reduce food and plastic waste, Walmart and Woolworths have started
different campaigns throughout 2020 like recycling, re-using, or redirecting
these wasted materials into new products that may benefit the community.

Differences
Walmart’s ESG report addresses Woolworths’ annual report mentions
issues regarding climate change their projects of supporting
with more specification. regenerative agriculture, promoting
ocean health.

6
Sustainability Reporting Practice Group Report

Similarities
As of Human Rights, both companies confirm their support on the diversity
in the workplace, provide gender equity or equality to promote a fair and
inclusive working environment (Walmart 2020; Woolworths 2020). Both
companies not only prioritize food safety and constantly seek for quality
products, but also support their customers to perceive a healthier diet
(Walmart 2020; Woolworths 2020). Walmart and Woolworths (2020)
reported to be occupying large scales of Community activities such as
natural disaster aid and cash donations.
Differences
Walmart concentrates on food Woolworths’ report concentrates more
safety substantially by participating on human rights and community
in the Global Food Safety Initiative engagements (Woolworths 2020). The
Social
(GFSI), which provides them intention of Woolworths on Human
certified status of food safety Rights is respectively focused. It is
(Walmart 2020). The company designed as one in four primary
opened a number of small sectors in the report (Woolworths
organizations and facilities on food 2020).
safety (Walmart 2020). Walmart
established its view on the
company’s’ management and the
vision on human resources,
however, the explanation was not
as deeply analyzed as
Woolworths’ (Walmart 2020).

2. Why are they reporting it?

Research claimed that the awareness about sustainability of customers and other
stakeholders has grown in recent years (Saber & Weber 2019). Hence, both companies have
approached toward more sustainable retailing (Haanaes n.d.). Along with other associations, to
enhance clarity and improve business’s prestige between stakeholders (shareholders,

7
Sustainability Reporting Practice Group Report
consumers, local communities and environmentalists), retailers like Walmart and Woolworths
disclose their socially responsible behaviour to the public (Jones et al., 2011; Schramm-Klein et
al., 2015). In addition, sustainability reports can also affect retailer’s financial and nonmonetary
performance like consumer gratification (Saber & Weber 2019).

3. How are they reporting it?

Walmart Woolworths
Both companies’ sustainability reports are uploaded on their websites and can
be viewed digitally or downloaded as PDF files, which facilitatively provide
information to stakeholders (Walmart n.d.; Woolworth n.d.). They both use the
Similarities
Global Reporting Initiative (GRI) reporting framework.
Each reports are divided into sections for difference topics like social,
environmental, or governance which makes it more user-friendly.
Difference Time
s Walmart’s report includes the latest Woolworths provides data from 1
information on 31 January 2020 July 2019 to 30 June 2020
(Walmart 2020). (Woolworths 2020). Because of the
  differences between the United
States and Australia fiscal year,
Woolworths provides more updated
information, especially the impacts of
the Covid-19 pandemic on its
performance.

Guidance
Walmart has reported numerous ESG
topics under the guidance of various Woolworths’ sustainability report is
frameworks, including Global Reporting guided by GRI standards and based
Initiative (GRI) Standards, the United on the United Nations Global
Nations (U.N.) Sustainable Development Compact (UNGC) core values
Goals (SDGs), the Sustainability (Woolworths 2020).
Accounting Standards Board (SASB),  
and

the Task Force on Climate-related

8
 Sustainability Reporting Practice Group Report
Financial Disclosures (TCFD) (Walmart
2020).

IV. Evaluation

This report evaluates Walmart’s and Woolworths’ reports on two factors: Transparency
and Comprehensiveness.

1. Transparency
The social contract theory suggests that a firm is responsible to society as a whole. This
societal approach has brought up new challenges for corporations as the concerns of the
public are shifting, one of which is transparency in CSR (Omran & Ramdhony 2015). Through
the two company’s Sustainability Reports, stakeholders could observe the company’s CSR
activities with clear evidence. The information in the reports of both Walmart and Woolworths
are thoroughly open and accessible (Walmart 2020; Woolworths 2020). As a result, the reports
of Walmart and Woolworths hold high levels of transparency, which benefits the companies in
being disclosed with the stakeholders.

2. Comprehensive
In regards to comprehensiveness, companies that utilize the GRI framework are required
to follow the GRI’s reporting principles since it helps define their report content as well as
report quality (GRI Standards 2016). In the case of Woolworths and Walmart, it is indubitably
that all these principles have been successfully applied. To further explain, in respect of the
reports’ contents, both Walmart and Woolworths have sufficiently deliberated to stakeholders
about the organization’s significant environmental and social impacts, thus influencing
stakeholders’ assessments and decisions. Moreover, both reports have also met the GRI
quality requirements, which consist of Accuracy, Balance, Clarity, Comparability, Reliability,
and Timeliness (GRI Standards 2016).

V. Reflection

9
 Sustainability Reporting Practice Group Report

Main social and environmental activities carried out by SEV called Access to Energy
program, cover three pillars, which are 'Solar Offers' giving low-cost solutions for off-grid
areas, 'Impact Investments' funds dedicated to local innovative energy entrepreneurship, and
'Vocational Training' helping resolve local skill shortages in the electricity sector for
underprivileged communities. Compared with Walmart and Woolworths, SEV sustainability
activities are different due to the difference between the two industries' nature; one is about
automation and energy management while the other is supermarket chains. However, SEV
and Woolworth are still similar in terms of focusing more on community engagements, proved
above.

The core lesson we gain from the guest lecture and linked with our learning
experience is that a corporation should bring shared values not only for shareholders but also
our planet and community to succeed because expectations of sustainability are under eyes
everywhere and with everyone. As a sustainability report is the primary platform for
communicating sustainability influences and performance (Deegan 2017), we believe SEV has
done well when publishing its reports and being voted the most sustainable company
worldwide by Corporate Knights. Another lesson is that the Sustainable Development Goals
are not only for companies or nations, but also individuals can contribute to those goals by
adapting behaviours and considering those goals into future life.

VI. Conclusion

As the society evolves, the awareness on company’s social and environmental

activities expands. Walmart published its first Sustainability Report in 2007 and Woolworths
released theirs in 2007 (Walmart 2020; Woolworths 2020). This provides disclosure from the
company to its stakeholders which leads to sustainable business. Although both corporations
contain numerous commonalities as they operate in the same industry, differences stay
prominent. Despite the presented limitations, through analysis, we believe that it is justifiable to
conclude that both companies have well-organized and optimized the Sustainability Reports.

10
 Sustainability Reporting Practice Group Report
VII. Reference

Haanaes, K 2016, Why all businesses should embrace sustainability, viewed 4 April 2021,
<https://www.imd.org/research-knowledge/articles/why-all-businesses-should-embrace-
sustainability/>

GRI n.d., What is Sustainability Reporting?, GRI, viewed 4 April 2021,

<https://database.globalreporting.org/SDG-12-6/about-sustainablility-reporting>

Haessler, P 2021, ‘Strategic Decisions between Short-Term Profit and Sustainability’, Adm. Sci.
2020, 10, 63, viewed 5 April 2021, <https://www.google.com/url?
sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwi0oPSo8uTvAhWUw
YsBHbeKDxkQFjAAegQIAxAD&url=https%3A%2F%2Fwww.mdpi.com%2F2076-
3387%2F10%2F3%2F63%2Fpdf&usg=AOvVaw2YAdgHJUeYTELDcBZaO4xf>

Bateh, J, Heaton, C, Arbogast, G & Broadben, A 2013, ‘Defining Sustainability In The Business
Setting’, American Journal Of Business Education, vol. 6, no. 3, viewed 5 April 2021,
<https://core.ac.uk/download/pdf/268109288.pdf>

Grant, M 2020, What is sustainability?, Investopedia, viewed 5 April 2021,

<https://www.investopedia.com/terms/s/sustainability.asp>

IFC Advisory Services in East Asia and the Pacific n.d., Sustainability Reporting Handbook for
Vietnamese Companies, reporting handbook, IFC Advisory Services in East Asia and the
Pacific, viewed 5 April 2021,
<https://www.ifc.org/wps/wcm/connect/49bf4b6c-9287-4ad1-
91a260badb7aebb3/vietnam_sustainability-reporting handbook.pdf?
MOD=AJPERES&CVID=jSEIeSV>

The Editors of Encyclopaedia Britannica n.d., Walmart, Britannica, viewed 5 April 2021,
<https://www.britannica.com/topic/Walmart>

11
Sustainability Reporting Practice Group Report
Walmart n.d., Walmart U.S, Walmart, viewed 5 April 2021, <https://corporate.walmart.com/our-
story/our-business>

Statista Research Department 2021, Walmart: number of stores in 2021, by country, Statista,
viewed 5 April 2021,
<https://www.statista.com/statistics/269424/total-number-of-stores-of-walmart-international-by-
country/>

Smith, P 2018, ‘Details about Woolworth's company and operations’, AH4ME, viewed 5 April
2021,
<https://assignmenthelp4me.com/article-introduction-to-woolworths-supermarkets-247.html>

Woolworths n.d, Menu, Woolworths, viewed 5 April 2021,

<https://www.woolworths.com.au>

Woolworths n.d, Homeware, Woolworths, viewed 5 April 2021,

<https://www.woolworths.co.za/cat/Online-Feature/Homeware/Made-For-Sharing/_/N-bng82u>

Australian food history timeline n.d, 1957 Woolworths’ first food store, Australian food history
timeline, viewed 5 April 2021,
<https://australianfoodtimeline.com.au/woolworths-first-food-store/>

Jones, P, Comfort, D & Hiller, D 2011, ‘Sustainability in the global shop window’, International
Journal of Retail and Distribution Management, vol. 39, no. 4, pp. 256-271, viewed 5 April 2021,
RMIT University Library database.

Schramn-Klein, H, Morschett, D & Swoboda, B 2015, ‘Retailer corporate social responsibility:

shedding light on CSR’s impact on profit or intermediaries in marketing channels’, International
Journal of Retail and Distribution Management, vol. 43, nos.4/5, pp. 403-431, viewed 5 April
2021, RMIT University Library database.

12
Sustainability Reporting Practice Group Report
Saber, M & Weber, A 2019, ‘How do supermarkets and discounters communicate about
sustainability? A comparative analysis of sustainability reports and in-store communication’,
International Journal of Retail & Distribution Management, vol. 47, issue 11, viewed 5 April
2021, RMIT University Library database.

Grimmer, M & Bingham, T 2013, ‘Company environmental performance and consumer

purchase intentions’, Journal of Business Research, vol. 66, issue 10, pp. 1945-1953, viewed 5
April 2021,
<https://www.sciencedirect.com/science/article/abs/pii/S0148296313000416>

Stolz, J, Molina, H, Ramírez, J & Mohr, N 2013, ‘Consumers' perception of the environmental
performance in retail stores: an analysis of the German and the Spanish consumer’,
International Journal of Consumer Studies, vol. 37, issue 4, pp. 394-399, viewed 6 April 2021,
RMIT University Library database.

GRI n.d, Welcome to GRI, GRI, viewed 5 April 2021,

<https://www.globalreporting.org/>

Woolworths Group 2020, 2020 Sustainability Report Appendix, company report, Woolworths
Group, viewed 6 April 2021,
<https://www.woolworthsgroup.com.au/icms_docs/195784_2020-sustainability-report-
appendix.pdf?fbclid=IwAR3y9a8inKUo-
pknRilwkOdZ6o5SbZ0o5oyN30wceXwPfEgDeXWdPRZxKSs>

Hübner, H 2007, The Communicating Company, RMIT University Library database.

Walmart 2020, 2020 Walmart Environmental, Social & Governance Report, company report,
Walmart, viewed 5 April 2021,
<https://corporate.walmart.com/esgreport/>

Woolworths Group 2020, 2020 Sustainability Report, company report, Woolworths Group,
viewed 5 April 2021,
<https://www.woolworthsgroup.com.au/icms_docs/195782_2020-sustainability-report.pdf>

13
Sustainability Reporting Practice Group Report
Deegan, C 2017, 'Introduction to your course', topic notes, ACCT2105, RMIT University, viewed
9 April 2021,
<https://rmit.instructure.com/courses/86293/pages/w2-social-and-environmental-accounting-
topic-notes?module_item_id=2973404>

GRI Standards 2016, FOUNDATION 2016, GRI 101, viewed 9 April 2021, Global Reporting
database.

Omran, M & Ramdhony, D 2015, ‘Theoretical Perspectives on Corporate Social Responsibility

Disclosure: A Critical Review’, International Journal of Accounting and Financial Reporting, vol.
5, no. 2, viewed 9 April 2021,
<https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.1020.4715&rep=rep1&type=pdf>

14