STATEMENT FROM THE CEO AND CHAIRMAN
MANAGING DIRECTOR AND
CHIEF EXECUTIVE OFFICER
One of the most significant achievements for the year was the introduction of eight weeks paid maternity leave, demonstrating our commitment to supporting new parents.
Welcome to Woolworths Limited’s Corporate Responsibility Report 2007–08.
This is our first integrated Corporate Responsibility Report. It describes the work we are doing, and the results we’ve achieved in the last year, on a wide range of topics within corporate responsibility. It’s about giving life to our philosophy of “Doing the right thing” whilst increasing transparency around our business operations and performance.
Over the past twelve months we have achieved some strong results; however, there is still much work to be done to improve our performance and manage the internal and external factors that shape this.
A number of global issues are impacting significantly on our business. Rising oil prices, the impact of climate change and drought, and higher food prices driven by the growing biofuels market have put upward pressure on food affordability and long term security of food supply.
The current global economic crisis will present additional challenges for Woolworths and our stakeholders over the coming months and years. As the economy slows, we will face a delicate balancing act to remain a profitable business whilst continuing to make a positive impact on the communities and environments in which we operate.
One of the most significant achievements for the year was the introduction of eight weeks paid maternity leave, demonstrating our commitment to supporting new parents.
Our economic performance during the reporting period was strong in terms of our overall impact on the Australian economy and the value we have delivered back to shareholders. The indirect effect of overall economic output and employment generated in Australia resulting from Woolworths retailing activity was estimated to be over $90 billion and just under 696,000 full time equivalent jobs. Our earnings before interest and tax (EBIT) rose by 19.8% to $2,528.8 million and earnings per share (EPS) increased by 24.0% to 134.9 cents.
We continue to support the communities in which we operate, through a range of local programs and national partnerships. During 2007–08 we made community contributions worth $17.5 million through a combination of cash, time, fundraising, in-kind donations and management costs.
In our Sustainability Strategy 2007–15 we analysed the aspects of our business that impact most significantly on the environment, and we set ourselves a tough challenge to better manage and minimise these impacts. Our targets, particularly those aimed at reducing our CO2-e emissions and water use, are ambitious but necessary to ensure that we can minimise our environmental footprint whilst effectively managing the rising costs of doing business.
We have started to implement many of the measures outlined in the Sustainability Strategy, including the use of more energy efficient lighting and refrigeration, alternative refrigerants, and conversion to a more fuel efficient fleet of cars. However, as with any new technology, the results will take some time to flow through to the aggregated data. Although our CO2-e emissions rose overall in 2007–08, we have laid much of the groundwork to work towards meeting our target in future years.
It is clear that we will face many challenges in meeting our environmental, social and governance responsibilities in the coming years. But with strong leadership and a can-do culture, I firmly believe we are more than up to the task.
MICHAEL LUSCOMBE
MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER
CHAIRMAN
When making decisions about where to invest, where to shop and even where to work, shareholders, customers and staff look not only at a company’s profitability, but also its capacity for ethical decision making, leadership and good corporate governance.
On behalf of the Woolworths Limited Board, I am pleased to present the Company’s Corporate Responsibility Report for 2007–08.
Stakeholders are more knowledgeable than ever before about sustainability and corporate responsibility, and consequently they have high expectations of how businesses should manage environmental, social and governance issues.
When making decisions about where to invest, where to shop and even where to work, shareholders, customers and staff look not only at a company’s profitability, but also its capacity for ethical decision making, leadership and good corporate governance.
Any business that wants to succeed should take a broader approach to managing and measuring its performance, and ensure that in doing so it
responds to the needs and expectations of all stakeholders.
The ability to adapt quickly is essential for a company such as Woolworths. We need to be an agile corporation that can foresee potential
challenges and opportunities in our local and global operating environments and respond to minimise risks to our business and maximise opportunities.
In the long term, successful retailers will be those who have robust strategies to deal with the rising cost of oil and commodities, who support suppliers in drought prone and water-scarce areas, and who work to make sustainable products more easily available and affordable to their customers.
Woolworths has a strong track record of approaching its social responsibilities in a holistic manner. We are working hard to meet the expectations of our stakeholders in areas such as the responsible service of alcohol, children’s health, nutrition and workplace diversity.
This Corporate Responsibility Report provides a transparent account of our commitments, policies, strategies and performance in the economic, environmental and social aspects of our business. We believe that by being open and honest about our targets, how we are performing, and the challenges we have faced in reaching our goals, we will not only drive better outcomes, but we will be more accountable to all the stakeholders who contribute to Woolworths every day.
JAMES STRONG
CHAIRMAN