sustainability report

stakeholder engagement

In the past year Woolworths has embarked on an active stakeholder engagement process, in order to identify, focus and deepen many of our stakeholder relationships. Woolworths conducted a comprehensive review of all stakeholder needs and engagements.

The key drivers for Woolworths stakeholder engagement are:

  • to understand key issues and related stakeholders in the economic, social and environmental context in which we operate;
  • to influence outcomes through sustainable problem solving;
  • to anticipate changes and challenges and thereby optimise opportunities and minimise risk;
  • to entrench our brand; and
  • to influence the social, economic and environmental framework within which we operate and support the country’s growth strategy.

Key stakeholders include: customers, employees, shareholders, suppliers, franchisees, government, organised business, unions, media, NGO’s and community interest groups.

In the year under review, we have had a particular focus on identifying and deepening our stakeholder relationships and engagement with key areas of government and organised business. We have been directly involved in engagements with government on the following: content of the Wholesale and Retail Sectoral Determination at the Employment Conditions Commission; the task team on the Consumer Protection Bill at NEDLAC; the Labour Law Review under ASGISA; the workgroup on a sector strategy for the local Textiles and Clothing industry under the dti; and the President’s Big Business working group. Woolworths has also provided extensive input to the Business Against Crime initiatives via our work with the Consumer Goods Council SA.

2007 focus

The focus for the next period will be to embed stakeholder engagement as an integral part of our business operations and at different levels within the business, and to continue to extend and deepen our relationships with our stakeholders.

our stakeholders why we engage issues on which we engage how we engage our response
Customers In order to:
  • understand our customer needs;
  • enhance the Woolworths brand; and
  • grow revenue.
  • consumer preferences; and
  • consumer complaints and issues.
Electronic and personal engagement with customers including:
  • focus groups and discussions with 30 000-strong customer panel;
  • desk research providing consumer insights and customer profiles;
  • customer surveys, mystery shopping surveys and research;
  • marketing communication, advertising and direct customer mail;
  • Woolworths call centres; and
  • meeting with consumer pressure groups, for example CGCSA.
  • ongoing product development and innovation; and
  • business focus on key issues, for example availability; product choice, store location and service.
Employees and service providers:
  • individuals;
  • collective;
  • independent contractors; and
  • service providers
In order to:
  • attract and retain talent;
  • develop a high performance organisation;
  • improve competence and skills;
  • optimise delivery and service; and
  • enhance peoples’ sense of value and commitment.
  • business strategy;
  • business issues, developments and new products and campaigns that affect employees;
  • employee development programmes; and
  • employee concerns and issues.
  • ongoing direct and indirect engagement – electronic, verbal and written;
  • communication and involvement forums, for example. Woolies Way; and
  • regular, formal communication including monthly television broadcasts, publications and team meetings.
Ongoing review of:
  • employee health and safety programmes, for example. HIV/Aids programmes;
  • employee development, remuneration and benefits for example. Selling team employment proposition (STEP) programme;
  • communication and its effectiveness; and
  • relevant business issues, for example shrinkage and uniforms.
Shareholders:
  • individual; and
  • institutional.
To create:
  • an informed perception of Woolworths;
  • more accurate expectations;
  • a positive investment environment; and
  • value in the business.
  • business performance;
  • business expectations and strategy; and
  • economic, social and environmental concerns.
  • annual general meeting
  • bi-annual analysts results reviews;
  • individual, documented analysts meetings; and
  • reporting including the annual report, sustainability report, woolworthsholdings.co.za website.
  • revised reporting formats as deemed necessary.
Suppliers:
  • local; and
  • international.
To deliver:
  • new and innovative product;
  • consistent quality and standards; and
  • conformance to Woolworths supplier business principles.
  • issues that pose a risk to the Woolworths business and/or brand;
  • product development; and
  • social responsibility standards.
  • ongoing electronic and personal engagement including supplier conferences and supplier visits; and
  • best practice research international benchmarking.
  • review of product offering;
  • availability strategy; and
  • regular social responsibility audits
Franchisees:
  • local; and
  • International.
To:
  • ensure a consistent customer experience;
  • grow revenue; and
  • build and extend the reach of the Woolworths brand.
  • business issues;
  • initiatives; and
  • opportunities.
  • ongoing electronic and personal engagement including meetings, an annual franchise conference; regular franchise buying weeks; and
  • Franchise Association meetings.
  • reviewing our processes for managing this business.
Government departments of:
  • Trade and industry (dti)
  • Labour
  • Agriculture
  • Water affairs and forestry (DWAF)
  • Environmental affairs and tourism (Deat)
  • Health
  • SANS
In order to:
  • optimise opportunities and minimise risks of regulation; and
  • anticipate and assess potential policy and regulatory impact.
Issues include:
  • trade and industry policy on sector development, trade issues and growth;
  • labour market issues regarding flexibility, skills, minimum standards, labour relations;
  • food standards and agricultural issues;
  • consumer credit and protection issues;
  • education and nutritional development; and
  • environmentally friendly practices.
  • ongoing electronic and personal engagement;
  • drafting of submissions;
  • consolidation of information;
  • participation in research;
  • meetings with government officials and ministers; and
  • negotiations and input via NEDLAC.
  • consolidation of combined retail positions as input to government;
  • sharing of information on business practice with government; and
  • revision of processes to become compliant.
Organised business:
  • BUSA
  • Retailers’ Association
  • Consumer Credit Association
  • Consumer Goods Council SA
  • Business Alliance on Clothing and Textiles
In order to:
  • gain support and leverage on issues of common interest; and
  • get insight into other business and sector approaches.
Issues include:
  • trade and industry policy;
  • crime;
  • labour market regulations;
  • food supply chain regulations;
  • textiles and clothing procurement policies;
  • real estate issues; and
  • consumer credit and protection regulations.
  • ongoing electronic and personal engagement;
  • meetings.
  • negotiations; and
  • drafting and input to documentation.
  • refinement and shifting of positions to accommodate broader interests;
  • greater levels of organisation and alignment of interests within retail;
  • participation in Business Against Crime initiative; and
  • co-ordination of retail input to textile and clothing issues.
Unions and collective employee structures including:
  • internal communication forums
  • SACCAWU
  • COSATU
  • FEDUSA
  • NACTU
To engage on collective employment issues. Issues include:
  • wages and terms and conditions of employment (UPN only);
  • verification of union membership;
  • retail issues; and
  • textiles and clothing Issues.
  • ongoing electronic and personal engagement;
  • meetings; and
  • participation in CCMA, ECC, NEDLAC and other labour market institutions.
  • better understanding and response to employee concerns; and
  • revision of remuneration and benefits policies.
Media:
  • business
  • consumer
  • trade
In order to:
  • influence stakeholder perceptions;
  • build the Woolworths brands; and
  • market the business and products.
Issues include:
  • business issues;
  • consumer issues;
  • macro-economic issues that affect retail;
  • product information.
  • ongoing electronic and personal engagement;
  • interviews;
  • news releases; and
  • publications including printed material and electronic format on websites.
  • ongoing review and challenging of business practices;
  • improved transparency; and
  • improved information provision.
NGOs and community organisations including:
  • Food and Trees for Africa
  • Heartbeat
  • Association of Dieticians (ADSA)
  • SAAFoST (food scientice and technology)
  • Consumer pressure groups, for example SAFeAGE
To contribute to the society in which we trade. Issues include:
  • sustainable development;
  • education and capacity building on relevant community issues, for example nutrition;
  • HIV/AIDS awareness; and
  • input to our product strategy and range.
  • ongoing electronic and personal engagement; and
  • joint projects.
  • ongoing modifications to product strategy and range;
  • modification of HIV/AIDS strategy;
  • greater transparency and communication, for example labelling; and
  • participation in specific initiatives, for example the Energy Accord.