Business Values Assessment: Anz Bank and Westfarmers
Wesfarmers will be able to sustain as a corporation through continued financial success and productivity. It is important to address and examine the range of problems which are both significant and contribute to possible financial outcomes. ANZ has been trying to shape its production and performance by restructuring its existing work structure and create balanced and sustainable economy in enhancing future productivity and long term profit. The report has been structured into several forms that provide the CSR report of ANZs framework and performance and Wesfarmers report including the risks and management structure. The report identifies the issue and uses the secondary sources in forming the clear idea about the responsibility and management about the two companies and provide an analysis of the whole study while providing effective suggestions including management approach and performance that will be best applicable in resolving and limiting the issues that Wesfarmers is facing of unable to recycle its waste products.
Corporate social responsibility or CSR is referred to as the corporate notion, corporate citizenship and business responsibility in the form of corporate self-regulation implemented in the structure of a business model. As examined often there are less number of consensuses in defining responsible business methods and process. ANZ The business need to have clear understanding of the several business processes in relation to ethical, social, environmental and community objectives that will help in gaining maximum profit. ANZ attempts to foster social and environmental that will help in attaining sustainability and benefit the long term usage of resources as well as stakeholders (Anon, 2017). The Wesfarmers Limited is one of the supermarkets that branches towards coal and chemical production, safety and industrial products adhering to the emergence of Wesfarmers departmental stores (Wesfarmers.com.au, 2017). Wesfarmers is known for its largest number of employers and shareholders. The diverse business operations of Wesfarmers have been impacting the environment negatively. The CSR report of eth study of ANZ and Wesfarmers will help in the understanding of the current issues such as Wes farmer doesn't recycle their waste and are dumped as garbage causing environmental and economic risks. The report will help in identifying the company’s performance against the sustainability and help in providing sustainable and possible solutions of the recognized issues.
The report studies the secondary sources and examines the business operations of ANZ and Wesfarmers and examining the ways the companies can enhance its strength, performance, and limit the impacts of diverse issues generated from external and internal factors. The method applied in gaining qualitative assessment through the study of the secondary sources. The study of the secondary sources will help in reporting the performance identifying the corporate social responsibility and help the shareholders, employees, mangers, management team in identifying the issues and formulate constructive design in limiting the issues. With the help of corporate social responsibility review, ANZ and Wesfarmers sustainability report, and business value report in gaining the appropriate and effective CSR report and analysis.
There are several limitations in regards to the ANZ and Wesfarmers Company such as organizational mismanagement that leads to unemployment, entry of threats and risks and other factors affecting the performance of the company. Often limitations are caused due to mismanagement and misunderstanding between employees and managers. This occurs when the company fails to update its employees with the necessary data and information. Scholars and entrepreneurs have been reviewing the limitations in the companies caused due to multi faceted factors affecting between social and economic performance of Wesfarmers (Lozano, 2015). Often companies fail in understanding to produce policy results against public welfare. Due to the certain disputes and organizational impacts, the Wesfarmers are unable to use environmental beneficiary products that will keep the balance within the eco system. Wesfarmers need to assess the packaging and product that can be recycled. It is important for the corporate decision-makers in looking towards the conflicts emerging due to public and private issues and integrates the understanding of the limitations of CSR (Hahn et al. 2015). This will help the employees and the stakeholders in understanding of the business activity with the broader public interest. Often the people are unable to understand the concept of CSR, it needs to be used as a tool of stakeholder management that will limit and reduce the political impact by dividing the political constituencies and help the people in perceiving ideologies that will shape the employees and stakeholders’ perceptions of the relative merits of multiple established competitive approach initiated by the company in regards to ANZ (Jones, Comfort & Hillier, 2014). However, the most important is Wesfarmers inefficiency in not recycling the waste and turning term to garbage.
It is assumed from the finding of the CSR study of ANZ and Wesfarmers is that there have been problem of identifying of the problems that often do not comply with the principles, policy, and concept of the CSR and deteriorates the social and economic doctrine and factors. It is assumed that the Wesfarmers is unable to recycle the wastage due to un-identification of effective strategies. Therefore, the company needs to apply the concept of CSR that will help them in maximizing future profitability.
Figure 1: corporate social responsibility
(Source- Jones et al. 2014)
Wesfarmers Limited is one of the Australian conglomerates that is headquartered in Perth, Western Australia. It manufacture with the specialization in , chemicals, fertilizers, coal mining and industrial and safety products with maximum Australian company by revenue. With its maximum revenue and profit, product quality and performance it has been successfully defeated the major companies like Woolworths and BHP Billiton (Wesfarmers.com.au, 2017). It falls under the industry of conglomerates and product manufacturing. Australia and New Zealand Banking Group Limited referred to as ANZ, is the fourth largest bank in relation to market capitalization in Australia. It has been competing the Commonwealth Bank, Westpac Banking Corporation and National Australia Bank and has been able to raise its opposition to the rising bank (Anon, 2017). The largest part of ANZ's business is the commercial and retail banking dominating. Wesfarmers have been challenged against unable to recycle its products and serving it as wastage affecting the environment while ANZ have been facing impact through the products and services that is provided to the customers.
Figure 2: ANZ
(Source- Lozano, Carpenter & Huisingh, 2015)
Wesfarmers have been trying to amend its issues by maintaining workplace and environmental safety and provide opportunities in providing better performance in relation to the reduction of waste. The company have been trying to create work friendly atmosphere without any disparity between gen der and recruits aboriginal and Torres Strait islander peoples (Wesfarmers.com.au, 2017). Alongside, they have been tried to manage the issues by mutually contributing to in producing in a responsible manner and improve socio-economical as well as environmental practices with the help of shareholders and suppliers. In addition, the company has been committed towards providing their targeted customers with health and safe products resulting in a positive contribution. They have been trying to reduce emissions, reduce waste to landfill and use of high amount of water and improve their resistance in meeting climatic changes (Cheng, Ioannou& Serafeim, 2014). The strengths of Wesfarmers being that they have been dedicated to the community they have been operating for since years playing positive roles in driving sustainability. They have strong bond with the community, society and customers. Wesfarmers have been able to identify its requirement in maintaining economic and social harmony while creating value in the future. However, the weakness being the challenges posed by the climatic change that affects certain production methods with the fall of temperatures. Weather and increase in weather volatility have had negative impact on their supply and distribution chains. Their major weakness is unable to resist such immediate changes causing risks in investments and help in resolving such issues. Therefore, strong management team and training is needed for the company to meet the unnatural changes in retaining significant economic, social and environmental benefits (Zellweger et al. 2013).
Figure 1: Wesfarmers Report
(Source: Lozano, 2015)
According to the sustainability report, ANZ have been able to ensure in managing socio-economic risks that affects the overall operations as well as the targeted customer community. The company will then be benefited following the concept of the CSR in protecting and preserving the customer value and have strong relationships between the shareholders and the investors. In doing so, they need to look out to its weakness that include lack of delivery of business strategy, fulfilling public sustainability targets, risk etc (Lozano, Carpenter & Huisingh, 2015). However, their strength such as effective Risk Management plan have helped the ANZ in examining and reporting their risks and have categories the identification and management of risk under significant committees such as risk committee, environment sustainability committee, audit committee, human resource committee and technological committee (Singh, 2016). Through CSR review ANZ have been able to cover the social, environmental and governmental aspects in relation to the Global Reporting Initiative that is referred to as GRI guidelines that help in fostering business.
Sustainability of ANZ have several difference s that can be easily distinguished to that of Wesfarmers. Both the companies are of different sectors. The Australian division of ANZ deals with the Retail, Corporate and commercial banking and business units while New Zealand deals with the Retail and commercial units. Their services cater towards procuring and delivering shared services and to the targeted customers and determine the regional network and property and strategize the projects across Australia and New Zealand. On the other hand, Wesfarmers manufacturing and resource company have their own marketing, strategy, development and regulations (Zadek, 1998). Such differences have relevant as to their guidelines and objectives are different serving different purpose to their community and customers. ANZ have been investing in the community, making it large, prosper by gaining trust from the community and maintain healthy relations with the shareholder in maintaining social license and meet the community expectations. The differences between both the industries lie in their frameworks such as ratings and recognition, commitment, risk management, customer expectation all that are assessed through the corporate social responsibility report (Hond et al. 2014).
According to Simon Zadek (1997), it is often said that the companies fail to listen and follow its own guidelines. It is important to scrutinize the guidelines of the two companies that are Wesfarmers and ANZ, that have adhered to few such policies among the eight important criteria set by Zadek (1997) in his pat to corporate responsibility. Of the eight criteria’s of Zadek in reference to corporate responsibility the most important are organizational learning and societal learning that have witnessed marked differences in both the companies. According to Wes farmers along with meeting the product profit ad high manufacturing demand they have been lacking against organizational and societal learning for creating mass garbage disposal for which in contemporary times that have been highly challenged (Gray et al. 1997). On the other hand, with ANZ the organizational pathways are complex that brings in organizational attacks reducing their reputation, sales productivity and brand name. in order to mitigate the necessary problems, the company has been able to follow the other five criteria as outlined by Zadek that help them in providing value of ongoing reputation and able to litigate the threats and risks.
According to ANZ’s sustainability report it is evident that there has been a suitable growth in the field of performance and have expanded as super regional bank in the Asia Pacific region and are trying to fulfil the maximum targets while being consistent to its purpose and objectives. On the other hand, Wesfarmers have been able to reduce the waste and use the maximum plastic packaging and have replaced it with paper packaging that can be reused and recycled while addressing eth needs, concerns, along way meeting the needs of the stakeholders (Crane & Matten, 2016).
Wesfarmers have been criticized for not recycling its waste that increased with seventeen percent. The sustainability report help in studying the Kmart review that reviews the status of waste and contamination and provides a number of ways through which eth company will be able to improve its opportunities. It can be suggested that Wesfarmers can recycle its plastic products, cardboard and reduce the use of polystyrene packaging. The officials of the management team need to take improve and implement optimization program that will help in limiting waste size and for that it is important to train and educate the members of the Wesfarmers about the necessity of recycling.
From the analysis it is understood that there can be three possible implications for CSR research and practice that will foster communication, performance of Wesfarmers. First, it formulates the importance of approaching corporate managers’ reviews and feedbacks on CSR in relation to critically examining the economic, political and social dilemmas and factors. Second, the ways it can easily increase its expense through recycling that will adhere to an annual income and profit. Third, the company both ANZ and Wesfarmers need to incorporate CSR practices highlighting and developing the negative social impacts of CSR over the companies.
From the above study, it is understood that ANZ have been trying to apply effective CSR practices in order to provide uncomplicated services while strengthening the business decisions determining the social, economic and social issues. It is important for both the companies in treating their customer’s efficiency and with better service and acre. As per the identification of the issues, it is important for both the companies in implementing Responsible Sourcing Program in preparing best action plans and take initiative in implementation of such strategies. As per both the companies they have complied with the sustainability projects and plan and have been committed to the approach towards environmental and societal benefits while assisting their communities within the international and national markets. They have been directing their approaches towards social and environmental reduction programs.