Introduction
Woolworths Holdings Limited (WHL) has been in the retail services business for nearly a century: during that time, it has achieved strong profit results. The company uses corporate management strategies to meet its sustainability goals and grow as a business to reach them. WHL competently manages its supply chains, preserves and develops the environment, takes care of energy sources, and minimizes carbon emissions. The company uses practical and ethical leadership principles that make it flexible and adaptive to change to comply with them.
Corporate Governance
WHL’s corporate governance structure is outlined in a series of documents and policies issued in a statement format each year. These include policies on continuous disclosure, securities trading, diversity, and security. In addition, the structure consists of a governance charter and board committees that together make up the approach to creating sustainable growth and long-term shareholder value (Woolworths Group Limited , 2021, p. 2). WHL’s structure is typical: the board of directors is responsible for various departments, each of which must conform to the corporate culture. The effectiveness of corporate governance is achieved by developing employee ambition and building a commitment to improving customer satisfaction. At the same time, WHL’s core value is “We do the right thing,” which is consistent with their ethical leadership (Woolworths Group Limited, 2021, p. 2). The company’s approach to management is flexible and competent because it is based on a culture of commitment. In addition, WHL is engaged in comprehensive development, which allows all employees to grow as individuals and human beings.
WHL corporate governance is governed by a documented program of skills possessed by directors. The skills correspond to the sustainable development regulated by King IVTM (Woolworths Holdings Limited, 2020, p. 8). Economic skills include global retail, finance, and business leadership; societal skills include risk management, governance, strategic capability, and remuneration and performance management. The natural context consists of the Sustainability, Health, and Safety skill, which obliges the board of directors to participate in environmental practices: this indicator is shared among 83% of directors (Woolworths Holdings Limited, 2021b, p. 63). The board of directors is also obliged to examine developed skills and prove their results.
Leadership & Principles
Leadership at WHL occupies a large part of the corporate culture: it is realized through its goals and values. The purpose meets the needs of the up consumer and every member of the organization: “Adding quality to life” (Woolworths Holding Limited, 2021a, p. 7). Such a goal fosters an ethical sense in employees because it guides their activities and preserves one of the capitals IIRC – human capital. Important leadership values include inspiration, collaboration, and responsiveness (Woolworths Holding Limited, 2021a, p. 7). These values develop ethical leadership and enhance the self-organization of each team member. They focus on improving one’s performance and that of the group. In many ways, this meets the requirements for capital IIRC of social relations and production: this is consistent with the triple context of King IVTM.
In many ways, WHL’s principles about leadership meet the requirements for capital IIRC related to social relations and production. In addition, according to the Good Business Journey Report, the company is open about its management approach, which consists of various mechanisms: for example, through People Leadership Teams, Connected People Councils, or human resources forums (Woolworths Holding Limited, 2021b, p. 23). The company pays special attention to its leadership, which positively impacts results, including financial results.
Human capital and social relationship capital are perhaps the essential elements of an organization connected to commerce. The Good Business Journey Report includes extensive principles on people and social development, consisting of company strategies to improve human interactions (Woolworths Holding Limited, 2021b, pp. 23, 31). Human capital is developed through social diversity and investing resources in learning and training (Woolworths Holding Limited, 2021b, p. 26). Social relations capital is realized through connections to community units: education (particularly schools), food security, community resilience, and employee community involvement (Woolworths Holding Limited, 2021b, p. 33). Meanwhile, the company’s work in this area is also linked to natural resources, according to King IVTM and IIRC: the company provides schools with WASH program volunteers. WHL also develops environmental stewardship through the Living Soils Community Learning Farm (Woolworths Holding Limited, 2021b, p. 33). It is worth noting that for all the stated categories, WHL provides reliable reports, which once again proves the coherence of corporate governance.
Conclusion
Thus, WHL has a high level of corporate governance, which is achieved through self-organization and qualified distribution of responsibilities. The WHL board of directors works first and foremost for the benefit of WHL, who must develop skills appropriate to the King IVTM. A cultural attachment to the business ensures coordinated management. Ethical and effective leadership is realized through the company’s values: responsibility, collaboration, and inspiration. In addition, the company engages and comprehensively develops the capital designated IIRC: great attention is paid to the capital of social relationships and the environment. Based on the above data, WHL has become a successful retail company because of its strong corporate culture and management.
References
Woolworths Group Limited. (2021). Live better together: 2021 Corporate governance statement [PDF document]. Web.
Woolworths Holding Limited. (2021a). 2021 Good business journey report [PDF document]. Web.
Woolworths Holdings Limited. (2021b). 2021 Integrated annual report [PDF document]. Web.
Woolworths Holdings Limited. (2020). Register of application of King IVTM 2020 [PDF document]. Web.