We will focus on positive relationships with suppliers, give back to the communities in which we operate, and rebuild trust with our customers.
An ambitious target has been set for 2020 that 'We will achieve a top quartile ranking in how we engage fairly and equitably with our suppliers as measured by independent supplier surveys'. In support of this target we are moving from Annual Surveys to Biannual Surveys, and have developed a bimonthly ‘Voice of Supplier’ pulse survey. This will support closer, more timely feedback to enable improved relationships with suppliers.
This Corporate Responsibility Strategy acknowledges the need for a cultural shift in the business to recognise the value of positive and productive relationships with our suppliers. To achieve this, we will undertake a review of KPIs, targets, processes and expectations set by management.
We want to build on our progress to date by improving our audit and compliance system to be broader and more comprehensive, with on-going monitoring and follow‑up on corrective actions. Our goal is that 'We will focus on a best practice compliance system according to the Global Social Compliance Program. We will collaborate with peak organisations to improve workers' lives'. A review of auditing frequency commenced in 2016. Improvement areas for the compliance program will be identified through a gap analysis to the Global Social Compliance Program (GSCP) reference codes. Woolworths will develop supporting guidelines, instruction on key risks, continual risk monitoring, clear governance, roles and accountabilities, supplier engagement, follow-up audits and regular reviews.
With our presence across cities, regions and remote areas, we are a part of the fabric of society. We use our resources and skills to partner with the communities that we are part of to improve the health and well-being of our customers, creating employment opportunities for young Australians and New Zealanders, and supporting communities facing natural disasters with emergency relief and post‑disaster recovery. Some of our initiatives include Free Fruit for Kids, Earn and Learn, S.T.A.N.D. (see next page), White Ribbon and programs with our food rescue partners such as OzHarvest and Foodbank. Our target is to ‘Invest the equivalent of 1 per cent of a three year rolling average of total Group Earnings Before Interest and Tax (EBIT) in community partnerships and programs’.
We will manage our community investments under a best practice social accounting framework, such as the London Benchmarking Group (LBG) methodology, to ensure that we meet the targets we set.
Reporting social impacts shows how our community partners are improving and transforming lives, including those of our team members and customers. This will allow us to highlight the impacts of ‘Good Acts’, raising the awareness of our community partners’ work.
We recognise that trust, and being valued as a customer, are the cornerstones of our customers’ satisfaction. We are listening to our customers and rolling out initiatives to rebuild trust and reward our customers. We will continue to innovate for customers to deliver value for money while contributing to the community. Our target for 2020 is ‘We will achieve leading customer satisfaction scores’. We will track our progress by reporting customer satisfaction metrics.
Our customers are increasingly concerned about their health and wellness and are seeking nourishing food and drinks. There has been a strong growth in demand for health food and organic products and the trend is arguably becoming mainstream with over half of shoppers (52 per cent) buying health food products weekly (i.e. sugar free, additive free, gluten free, dairy free, organic, raw, salt free or vegan). 1
Our customers and communities are ethically diverse and come from a wide range of backgrounds. We are determined to answer the needs of customers by delivering variety, value, good pricing, and by helping them to make healthy food choices.
1 The Shopper's Pick: Understanding Australia's new village green; July 2016.