Analysis of Loblaws Corporate Social Responsibility - Case Study Example

Task: “Analysis of Loblaw’s Corporate Social Responsibility Report Introduction Loblaw Companies Limited was selected for analysis because of certain reasons. It is Canada’s biggest food retailer and a market leader in the provision of drugstore, financial products and services, and general merchandize. The Company has a wide range of stores that range from conventional supermarkets to discount grocery stores as well as large and small franchise and corporate stores across Canada. The company prides itself in providing its customers with an exceptional shopping experience that is based on understanding customer needs. It is especially renowned for providing its customers with high-quality products and services, and exceptional value through Canada’s most respectable control label program through popular brands such as President’s Choice, Joe, Fresh, and no name (Loblaw Companies Limited 4). Loblaw was seen as a suitable company for analysis because it has been actively contributing for decades, in the communities in which it operates through various innovative corporate social responsibility programs. Highlights of the Report Non-expectations of the Report It was surprising to find out that Loblaw Companies Limited has a wide range of corporate social responsibility programs that are designed to positively impact not only on the lives of the communities in which it operates, but also on customers, employees, the environment, and even its suppliers. The link between health and diet is becoming increasingly evident. It is also apparent that in the future, society will be challenged to offer sustainable healthcare for its citizens. Loblaw’s intention to offer solutions to this challenge is evident in the company’s stores (Loblaw Companies Limited 3). It was interesting to note that Loblaw is very passionate about providing customers with healthy foodstuffs and generally supporting its customers to maintain healthy lifestyles. The company is continuously adding products, programs, and resources for empowering its customers to lead healthier lifestyles and make healthier choices. At many of Loblaw’s stores, customers have access to in-store health experts like dieticians, healthcare providers, and pharmacists. For example, the company has entered into an innovative collaborative partnership with the Canadian Diabetes Association. The company’s pharmacists performed more than 19,000 personalized diabetes risk assessments as at 2011(Loblaw Companies Limited 3). Another thing that was not expected in the report is the fact that in the year 2011 Loblaw became the first food retailer in Canada to conform to the Global Food Safety Initiative (GFSI). The adoption of this safety standard helps to ensure that Loblaw’s control brand food vendors apply the best food safety standards to their products. Loblaw is a major player in The Conference Board of Canada’s Centre for Food, which aims to come up with a national food strategy (Loblaw Companies Limited 3). It is also surprising to learn from the report that since the launch of President’s Choice Children’s Charity in 1989, the company has been able to raise and grant over $72 million to children and families across Canada. In fact, the year 2011 alone was very impressive given the fact that $10.6 million was granted to disabled children and another $2.75 million donated to various programs targeting children’s nutrition issues (Loblaw Companies Limited 3). In 2008, Loblaw Companies Limited introduced Canada’s first and only national recycling program for gardeners. The program is exclusive to the company’s stores and gardeners across Canada can deliver their used plastic flats and pots, which are not acceptable by Blue Box programs. These plastic products are recycled to come up with new flats and pots for the next season. The program also allows gardeners to return to Loblaw stores used flats and pots that are purchased at any garden centre. Through this unique program, the company managed to divert 4.1 million pounds of flats and pots from landfills between 2008 and 2011 (Loblaw Companies Limited 11). Expectations of the Report The first major thing that was expected in the report is Loblaw’s achievements in terms of reducing plastic shopping bags that end up in landfills. Since the publication of the company’s first CSR Report, the first key initiative was to reduce the amount of plastic shopping bags that ended up in landfills by 1 billion by the year 2009. It is commendable that by the end of 2011, the company has successfully managed to divert 3.8 billion plastic shopping bags from landfills (Loblaw Companies Limited 3). The company is also making significant steps in packaging reduction. Packaging reduction is one of the main priorities that Loblaw’s customers want to see something being done. In 2011, the company initiated measures to increase the recyclability of most of its products’ packaging. The company look a leadership role in an industry project to eliminate barriers to recycling thermoformed clamshell packaging and currently the Loblaw boasts of having over 250 control brand products that are packed in single plastic resin (PET) that is highly being recycled (Loblaw Companies Limited 3). Another thing that was expected in the report is Loblaw’s stand on sourcing of seafood. In 2009, the company took a stand on sourcing of seafood, and it made a commitment to source 100% of its seafood from sustainable sources by the year 2013. The company is currently making significant progress and is extensively collaborating with the Marine Stewardship Council, World Wildlife Fund (WWF), relevant government agencies, seafood scientists, and most of its vendors to realize this goal (Loblaw Companies Limited 3). About CSR Report Loblaw’s 2011 Corporate Social Responsibility (CSR) Report details the CSR performance of the company for the year ending 31st December 2011. The report focuses on CSR activities undertaken by Loblaw and it covers all corporate stores, distribution centres, and store support centres. The 2011 CSR report is the fifth such report that has been published by Loblaw. The report is normally published or issued through the company’s website (Loblaw Companies Limited 5). In preparing the report, Loblaw has aimed to offer a balanced perception of its CSR performance that is designed to meet the interests and expectations of key stakeholders. Such key stakeholders include customers, governments, colleagues, partners, investors, vendors, and non-governmental organizations. Loblaw engages with its stakeholders through such reports as well as through meeting, interviews, and customer surveys (Loblaw Companies Limited 5). The corporate social responsibility report is guided by the Global Reporting Initiatives (GRI) G3 Sustainability Reporting guidelines. Although the company does not include a rating against the GRI, the guidelines are employed as a benchmark in the reported content and in the selection of key performance indicators. Additionally, there have been no major changes with respect to the scope of the report or the methods of data measurement applied since the first report was published (Loblaw Companies Limited 5). The company’s assessment of materiality is based on a variety of factors that include basic expectations that are expressed in international agreements and standards, feedback from stakeholder engagement programs conducted internally and by the Canadian Business for Social Responsibility (CSBR), public policy, customer surveys, media coverage, regulations, and the efforts of leading sustainability institutions like the GRI. The 2011 report is also based on research and analysis that was conducted during the development of the Loblaw’s long-range CSR plan (Loblaw Companies Limited 5). All corporate social responsibility plans, targets, objectives, stated goals, and results are reviewed by the company’s Disclosure Committee as well as by its Legal and Internal Audit departments. External stakeholders also review the CSR report, mainly the Canadian Business for Social Responsibility (CBSR). CBSR has assessed the CSR report against the 10 Global Reporting Initiative Principles for defining content and quality. Additionally, CBSR has conducted outreach to stakeholders on Loblaw’s behalf to gain feedback and recommendations on the CSR report and convey recommendations by stakeholders to the company’s top leadership team (Loblaw Companies Limited 5). Particular Facts of Interest The particular facts of interest in the Loblaw’s CSR report are captures within its five main pillars of corporate social responsibility. Loblaw’s corporate social responsibility commitments link to its business through five pillars. These are respect the environment, source with integrity, make a positive difference in our community, reflect our nation’s diversity, and be a great place to work. Respect the Environment In relation to the first pillar, respect for the environment the company has managed to reduce the amount of plastic shopping bags that end up in landfills from its stores by 3.8 billion since 2007. The company has also managed to divert 78% of waste from its corporate distribution centres. It has also managed to get over 250 control brand products to be packaged in one plastic resin (PET) to improve recyclability of packaging materials for its products. Loblaw has managed to generate 222,780-kilowatt hours of green energy with photovoltaic (PV) rooftop solar panels that have been installed in four corporate stores in Ontario. In addition, Loblaw has converted over 36,000 light fixtures to fluorescent technology and this has resulted in energy savings that are sufficient to provide power to approximately 4,700 homes per year (Loblaw Companies Limited 9). Source with Integrity With respect to the second CSR pillar, source with integrity, Loblaw has achieved a lot. Currently, 30% of the products that are sold in Loblaw’s stores are sourced from Canadian growers. The company has added over 50 new Marine Stewardship Council (MSC) - certified wild-captured seafood products in their stores. Additionally, all control brand food vendors are audited and certified according to the applicable Global Food Safety Initiative (GFSI) standards. Loblaw has also managed to double the number of beef farmers in Ontario who supply its stores with corn fed beef (Loblaw Companies Limited 9). Reflection of Our Nation’s Diversity In terms of reflecting the nation’s diversity, Loblaw has managed to make significant strides. The company has so far appointed 21 diversity champions to lead diversity initiatives within their respective divisions. Loblaw has also achieved a lot in terms of gender equity. It has managed to raise the percentage of female store managers by 6.4% as at 2010 to 23%. In addition, the company has raised the number of Halal meat products and ethnic produce items in its stores and currently 92% of its stores are stocked with such products (Loblaw Companies Limited 9). Make a Positive Difference in Our Community In terms of making a positive difference in the community, Loblaw boasts of impressive achievements through several charity initiatives. The President’s Choice Charity has granted over $72 million to over 10,000 families and nutrition programs in the country since it was founded in 1989. Along with the company’s colleagues, customers, and vendors, Loblaw made donations worth over $38 million in 2011 to various non-profit organizations and charities across the country. The company also launched the Guiding Stars nutrition scorecard and reformulated more than 200 existing control brand processed products by reducing sodium amounts by an average of 19%. Loblaw also boasts of having 11 more in-store dieticians across 24 of its corporate stores (Loblaw Companies Limited 9). Be A Great Place to Work For With respect to making Loblaw a great place to work for, the company has been successful in a number of ways. The company launched a scholarship program that has so far awarded 200 scholarships worth $1,500 each to customers, colleagues, friends, and family members for post-secondary diploma and degree programs. The company has also managed to reduce workplace accidents in its stores by approximately 19%. Loblaw has also been able to offer retail training to 49, 257 colleagues across its 16 Learning Centres. Finally, Loblaw has been named one of the Country’s top 100 Employers for three consecutive years, and one of Canada’s Top Employers for young people for two consecutive years (Loblaw Companies Limited 9). Besides these five pillars of the Loblaw’s CSR programs, another fact of interest that was noted in the report is Loblaw’s CSR long-range plan (LRP). These are specific issues that have a long-term impact on the company’s CSR and they are new initiatives aimed at contributing to a sustainable society. They include a variety of issues that were assessed with respect to their relevance to Loblaw’s business, importance to Canadians, the urgency of the issues, and the potential for the company to take a leadership role on the issue. They are based on four priority themes, which include health and wellness, environmental footprint, responsible sourcing, and food standards and safety (Loblaw Companies Limited 8). In terms of health and wellness, the CSR long-range plan aims to empower Canadians to make healthy food choices and support them in their efforts towards a healthier lifestyle by integrating health programs with the help of Loblaw’s in-store pharmacists and dieticians. It also aims to forge partnerships with organizations that are health based (Loblaw Companies Limited 8). Loblaw’s CSR long-range plan on the issue of environmental footprint covers three areas. The first one is to collaborate with stakeholders to come up with a waste reduction program that is focused on food waste, packaging, and recycling. The second issue involves focusing on operational efficiencies to reduce its carbon footprint through three primary sources – electricity, energy use, and fuels. The third issue involves managing the company’s water footprint (Loblaw Companies Limited 8). With respect to responsible sourcing, the CSR long-range plan intends to support regional and local Canadian vendors, work with industry experts, associations, and the company’s vendors to set up animal welfare standards and best practices. In addition, the LRP aims to strengthen the company’s commitment to animal welfare, local sourcing, and sustainable palm oil and seafood (Loblaw Companies Limited 8). The final theme in the CSR long-range plan relates to food standards and safety. Loblaw aims to use its size and influence to improve the overall level of food quality and safety standards across its supply chain (Loblaw Companies Limited 8). Conclusion In conclusion, the report is very useful for Loblaw and its stakeholders. The report provides Loblaw with a means of assessing the impact of their business on the lives of stakeholders-namely its customers, employees, vendors, government, the community within which the company operates its business, and non-governmental agencies. The report also offers the company and its stakeholders a chance to assess the impact of the organization on the environment. Additionally, the report offers the company’s stakeholders an opportunity to examine the CSR strategies, challenges, and achievements of the company during a particular period. Works Cited Loblaw Companies Limited The Way We Do Business: 2011 Corporate Social Responsibility Report. Read More