Have a look the woolworths annul report 2014 and prepare the report for the clients. Essay Example

Issues from the Chairman’s Report 2014

To a typical shareholder, the Chairman’s Report is positive with an increased net profit by 4.2% and increased sales by 3.9% The dividends increased by 3 cents from 133 cents in FY 2013 (Annual Report 2014). However, some apart from the positive parameters reported, there are significant issues related to considerations of managerial and subordinate staffs, unethical sales of liquor and appointment.

Management part has focused on building a world class retailing team in the company. The management plays a crucial role through dedication to continued growth and improvements. It has focused on appointment of senior executives such as Managing Director and Director of Home Improvement. More improvements are expected with a well blend team with local and international talent. However, the report has only concentrated on executive team alone without highlighting some issues facing those in managerial and subordinate levels.

The chairman attributes the solid growth in the year to particular segments like Australian Food, petrol and Liquor. However, the liquor sale in the supermarkets has continually received criticism due to potential excessive consumption and potential injury to consumers. Advertising of such products has some cultural influences where consumers fail to make informed choice. Alcohol contributes significantly to the growth of Woolworths but marketing encourages overconsumption.

The retirement of Tom Pockett from the Board in July raises a question of the reason why Scott Perkins was appointed as a Non-executive Director to replace him.

Issues from Managing Director’s Report

The director has highlighted the pride of Woolworths as a major employer across Australia. It has also highlighted how it gives diverse range of people a place to get a flexible job, vocational skills and progress in career. However, it has obscured that most young people start in some of its sector with poor staff treatment, with pay below the award levels, contract and causal labor. The issue is not how many employees the company takes but how does it rate as an employer of choice.

Though the Ethical Australia is pushing for supermarkets to ensure restrictions to products it sells, the director has insisted that they are extending their leadership in food and liquor. The questions frequently asked is which product lines the company earns most revenue from.

Social Responsible Investing

Australian Ethical has not invested in two Australian supermarkets including Coles and Woolworths though they measure well in terms of sales volumes and other metrics of investment. Woolworths has been accessed not to align with the Ethical Charter. Woolworths owning pubs and having poker machines in its premises is not the only a negatives but it is said to harm people, animals and environment. Harm result from its hard, soft and slippery selling approach leading to overconsumption and others such as alcohol marketing. Collateral damages to animals are noted due to intensive factory farming practices which are never environmentally sustainable. Woolworths exercise unprecedented power by imposing unfair trading terms and uneconomic process to suppliers, farmers and manufacturers. Also, there has been a poor record in how it treats its staff with payment below award rates and increased casual and contract labor (Australian Ethical Investment Ltd, 2015).

References

Annual Report 2014. Woolworths Limited. Retrieved from http://www.woolworthslimited.com.au/annualreport/2014/files/Woolworths_Annual_Report_2014.pdf.

Australian Ethical Investment Ltd, 2015, Why we don’t invest in Coles or Woolworths Australian Ethical Accessed 20 October 2015 from https://wwwaustralianethicalcomau/news/why-we-dont-invest-coles-or-woolworths/.