Post on 05-Feb-2023
INVESTEC BUSINESS SCHOOL
ASSIGNMENT COVER SHEET
MBA
NAME : GEORGE O. KWATENG
STUDENT NO. : 607K5593
MBA YEAR : 2007
MODULE : SUSTAINABILITY REPORTING
ASSIGNMENT TITLE : A CRITICAL ASSESSMENT OF THE
“TRIPLE BOTTOMLINE/SUSTANAIBILITY
REPORTING” OF PEPPER GROVE PICK n PAY
GRAHAMSTOWN.
LECTURER : DR. KEVIN WHITTINGTON-JONES
1
DUE DATE : 14 APRIL 2008
TABLE OF CONTENTS
1. Executive Summary
3
2. Introduction
3
3. Organisational Structure
4
4. Scope of Sustainability Reporting
5
5. Selection Methodology 5
5.1. Corporate Governance
6
5.1.1. Management and Performance
6
5.2. Environmental Sustainability
7
5.2.1. Policy 7
5.2.2. Management and Performance
9
2
5.2.3. Reporting and Consultation
12
5.3. Social Sustainability
12
5.3.1. Policy 12
5.3.2. Management and Performance
15
6. Challenges facing Pepper Grove Pick n Pay
16
7. Practical Suggestions to Sustainable Business
17
8. Conclusion 21
9. References 22
10. Appendix: JSE SRI
23
1. EXECUTIVE SUMMARY
Pick n Pay Grahamstown established more than ten years ago is
a branch of Pick n Pay Retailing (SA) (Pty) Ltd. The business
has wholeheartedly embraced the national policy on Sustainable
Business though on a limited scale and it tends to achieve a
long-term growth and survival. The major consideration here is3
the critical analysis of its Triple Bottom Line Reporting, the
assessment of the impacts on its policies, management and
implementation as well as the significance of its reporting.
2. INTRODUCTION
Pepper Grove Pick n Pay is situated at African Street in
Grahamstown and it is a Family Supermarket dealing in four
main classes of delicacies, fruits and vegetables, butchery
and bakery. It is a privately owned franchise trading under
Pick n Pay Retailers (Pty) Ltd. It has a strong and appealing
owner management role which underpins business growth and
success. By virtue of its franchising position, it does not
need to obtain approval from the Corporate Head Office in its
undertakings except in limited instances. Though the
principles of Corporate Governance are applied, its uniqueness
lies in its autonomy.
The business has two owners or directors namely Messrs Mark
Shelton and John Campbell with a branch in Port Alfred while
the Grahamstown Manager, Mr Shaun Cerini is a young,
enthusiastic, hardworking married gentleman who has built up
his career in retailing business.
The business has a philosophy of customer-centeredness and its
sustainable theme as: “Without the environment, the business cannot make a
profit and without a profit the business cannot support and promote social and
community development”.
4
Pick n Pay Grahamstown is a Corporate Citizen as defined in
the King II Report on Corporate Governance of South Africa
(Institute of Directors, 2001). This is due to its commitment
to contribute to sustainable economic development working with
its employees, the local community and society at large to
improve their quality of life. Triple Bottom Line Reporting
phrased by John Elkington in 1994 means expanding the
traditional reporting framework to take into account
environmental and social performance in addition to financial
performance. It is succinctly described as People, Planet and
Profit (World Business Council for Sustainable Development,
1999; World Wide Fund for Nature, 1999).
Pick n Pay Grahamstown has a Unitary Board structure which
conforms to King II Report on Corporate Governance because
there is a clearly defined line of hierarchical reporting
though at a limited scale. The diagram below illustrates its
organisational structure.
3. PICK N PAY RETAILING GRAHAMSTOWN ORGANISATIONAL STRUCTURE
5
OWNERS /DIRECTORS
[MARK SHELTON & JOHN CAMPBELL]
MANAGER
[SHAUN CERINI]
ASSISTANT MANAGERS
[CHRISTO PIENAAR & JOHAN BOSCH]
MANAGER
[SHAUN CERINI]
ASSISTANT MANAGERS
[CHRISTO PIENAAR & JOHAN BOSCH]
4. THE SCOPE OF SUSTAINABILITY REPORTING
I have limited the scope of 3BL–Reporting to the environmental
and social sustainanbility because:
- Pepper Grove Pick n Pay is a franchise and privately
owned and the management are not obliged by legislation
to provide public disclosure of its financial
information.
6
DELICACIES
LINDA KHOLA
GENERAL STAFF
DEPARTMENT SPECIALISTS
TRAINEE SPECIALISTS
BAKERY
CHARLES OPPERMAN
BUTCHERY
RUSSEL SHELTON
FRUIT &VEGETABLE
CHARL SWART
DEPARTMENT SPECIALISTS
TRAINEE SPECIALISTS
SUPERVISORS
DEPARTMENT SPECIALISTS
TRAINEE SPECIALISTS
- The business is limited in organisation and management to
an extent that some elements of the JSE SRIs Index and
Guidelines might not be applicable.
- Its business operations are confined to a limited local
environment on a limited scale.
And the direct impact of the business will include indicators
such as energy, water, lightings, physical area and size,
business restructuring, sanitation, waste, fuel usage, safety
and workplace etc. The indirect impacts will include
contractual obligations with specialised services such as its
auditors, suppliers and government. However, the economic,
environmental and social impacts are highlighted.
5. SELECTION METHODOLOGY
RATING SYSTEM
The evaluation, assessment and rating is undertaken only
qualitatively and not numerically and quantitatively due
to benchmarking limitations such as lack of industry
norms and data and appropriateness of measurement models
having meaningful empirical interpretation. How shall we
establish the relationship between energy and the size of
the market or quantity of water used in food processing
with number of sales?
Basically my assessment is broadly related to the JSE SRI
Selection Criteria and benchmarked against stated
commitment, policy, procedure etc of the very business.
7
The national key of measurement and rating used by the
entire Pick n Pay (South Africa) Ltd is applied here:
KEY
HIGH= Good progress/ ongoing high standards.
MEDIUM= Adequate progress.
LOW= Limited progress/ scope for improvement.
In the following tables below, the “Stated Commitments
for 2008” are the criteria used for rating Pick n Pay and
they have been adopted from JSE SRI document attached in
the appendix.
5.1. CORPORATE GOVERNANCE
5.1.1. CORPORATE GOVERNANCE- MANAGEMENT AND PERFORMANCE
STATED COMMITMENT
FOR 2008
WHAT IS DONE RATING
Processes and
Structures in
place for internal
auditing,
reporting and
review of business
operations and
management.
Weekly stock takings are done
to check targets and growth.
Internal checks are done and
reported to the manager and
directors by the Accountant.
HIGH
Internal reporting
processes and
structures and
review of Board
Managerial checklist is only
done by manager daily and he
reports findings to the
director but contingency plan
MEDIUM
8
and Management
performance in
place.
must be in place in case of
manager’s absence.
Identification and
management of
legislative
requirements,
risks and
opportunities.
Management addresses all
weaknesses identified by the
accountant or internal
auditor as well as
environmental auditors,
suppliers and the community.
MEDIUM
Measures taken to
eliminate
unethical and
corrupt practices.
Casual staff found being
unethical and doing corrupt
practices are faced with
disciplinary actions via
their employment agency and
the permanent staff: action
is handled by the Store’s
Labour representatives
(SEESA). It has instilled
discipline within the staff
as well as awareness and
created job opportunities for
others. Cases of shoplifting
are handled by the SAPS.
MEDIUM
9
5.2. ENVIRONMENTAL SUSTAINABILITY
The business is a medium-impact trading activity because
environmentally, it is other retailing business according
to JSE SRI Guidelines.
5.2.1. ENVIRONMENTAL SUSTAINABILITY- POLICY
STATED COMMITMENT
FOR 2008
WHAT IS DONE RATING
Demonstrated
commitment to set
objectives and
targets for
management of
direct
environmental
impact.
The store has the highest
rated score in Eastern Cape
with an average of always
above 95%. The audit by HACCP
is done once a month and they
are the government
recommended environmental
auditors.
HIGH
Demonstrated
commitment to
reduce or minimise
negative impact of
products and
services.
The indicators and facilities
that have direct impact on
the environment such as fire
hazards; energy (cooking and
heating; paraffin usage
(baking ovens), gas (deli
Burners) etc). And the
following are measures to
arrest or minimise the
impacts;
MEDIUM
10
1. Evaluation plan
2. SABS approved fire
equipment.
3. Trained staff to deal
with hazard.
4. Chevron tape for
demarcations in or
around affected area.
There are plans of actions
and procedures in place to
arrest these problems. No
need for the company to
panic and be at risk.
Demonstrated
commitment to the
use of management
systems and target
including
resource-
efficiency targets
appropriate to the
stores.
1. Availability of capital
budget for purchases of
equipments for
replacement.
2. Contingency plan and
allocated funds for
commitments.
3. For example, the store
purchased an automatic
generator as a back-up
facility as an
alternative to
electricity constraint
at the moment. This
LOW
11
enables them to make
maximum economic use of
their resources without
any waste.
4. Purchase of generator at
an amount of +/-
R750 000.00.
5. Contractual relationship
with National Head
Office on behalf of the
store to source and
supply certain produce
in bulk at volume
discounts from specified
producers and suppliers.
Demonstrated
commitment to
monitoring the use
of natural
resources and
development of
indicators to
assess progress
against recognised
standards.
Human Resource Development
Periodic Review of staff
performance and benchmarking
against targets. Compilation
and documentation of daily
readings of energy, water and
waste. Electronic monitoring
board to assess readings at
the generators sub-station.
HIGH
12
5.2.2. ENVIRONMENTAL SUSTAINABILITY - MANAGEMENT AND
PERFORMANCE.
STATED COMMITMENT
FOR 2008
WHAT IS DONE RATING
Demonstrated
rising of internal
awareness of the
company’s
significant direct
and indirect
impacts.
On induction, new employees
are made aware of the
store’s commitment the
environmental responsibility
as inherent and intrinsic
element function. Effective
communication such as
environmental fact sheets
and recognising major
environmental events. All
staff are trained and made
aware of the impacts of the
various indicators on the
environment such as adverse
consequences of misuse of
energy, water and
accumulation of waste to the
health of the clients, staff
and the products.
Installation of fire
extinguisher and blanket,
MEDIUM
13
danger sign at the specified
places. Potential sales of
contaminated product to
customers and consequences
are highlighted. Designation
of prohibited areas.
Demonstrated
management systems
which include
targets,
initiatives and
programmes
appropriate to the
business to
address and
monitor direct
impacts.
The store by government law
gets audited once a month by
a representative of health
organisation called HACCP
(FOOD STRATEGY
ORGANIZATION). The store has
never fallen below an
Average Standard Pass Rate
of 90% at any given time.
The manager’s wife (Maria
Cerini) heads up the Food
Strategy Checklist of the
entire store e.g. Service
departments, sales floor,
expiry dates of products,
checkouts, quality control
etc.
Categorisation of general
merchandise e.g. toiletries,
perishables, service
department, groceries, non-
HIGH
14
foods: TV, radios, batteries
etc; cigarettes, wine
(Alcoholic beverages), etc.
Sanitising equipment gets
supplied only by a
registered dealer who
supplies industrial cleaning
materials.
Temperature control
systems.
Refrigeration Usage.
Clean As You Go Strategy.
Gas Emission Mechanism.
Installation of huge
Generator at +/- R750 000 as
a back- up facility to the
current countrywide Eskom
power outages.
Receiving Air-lock System.
Noise Management System.
Use of diesel fuel.
Documented
management systems
including targets,
initiatives or
programmes
appropriate to the
Monthly HACCP evaluation.
External Pest Control
Evaluation fortnightly;
South African Bureau of
Statistics Inspection
(Scales, appliances, etc)
HIGH
15
business to
address and
monitor direct
impacts.
quarterly.
Evidence of
achievement of
targets or
continual
improvement, or
measures to move
towards this.
Auditor’s Reports (HACCP)
pass rate 95%+.
Targets in sales increasing.
Monthly Growth Targets
graphs (+25%).
Maintaining expenses
regularly (Buy-ins).
MEDIUM
Processes and
structures in
place for internal
auditing of
environmental
practices,
including remedial
action to review
and implement
results or
findings.
Internal Auditor or
Accountant who routinely
audits internal control
systems on environmental
issue, documenting them and
reviewing them with the
management or directors and
external auditors [(Chateris
and Barnes) East London and
Rosy Walker (Internal)].
MEDIUM
5.2.3. ENVIRONMENTAL SUSTAINABILITY- REPORTING AND
CONSULTATION.
STATED COMMITMENT WHAT IS DONE RATING
16
FOR 2008
Regular, clear and
comprehensive
disclosure of
environmental
sustainability
objectives
relevant to the
company including
performance
against
environmental
target.
Internal publications are
made of the environmental
objectives relevant to the
business. With time
environment changes due to
certain unknown events and
objectives are revised and
modified to suit a standard
business environment.
Regular disclosure of all
environmental objectives
against sanitation,
diseases, absolute health
standards (e.g. healthy
clothing and healthy body
etc.) against targets of the
company to owners/
directors, internal and
external accountants.
MEDIUM
Public disclosure
of quantitative,
comparable data on
major
environmental
issues relevant to
the company.
Media played a major role
during restructuring and
updating environmental
system in the business.
Media informing the public
of what was happening and
what was going to happen
HIGH
17
within the next two weeks.
Media was a powerful tool to
give to the public (national
resources) disclosure on
what was happening behind
the scenes.
Independent
verification by
suitably qualified
persons.
Written report sent to
chartered accountants
(Chateris and Barnes) East
London and environmental
auditors on monthly basis.
MEDIUM.
Disclosure of
major
environmental
violations or non-
compliance,
prosecution fines,
accidents.
Written reports to owners/
directors, management and
staff representatives
(Committees).
LOW
Stakeholder
Engagement.
Written reports to limited
persons i.e. owners/
directors, accountants and
management and suppliers but
not customers.
LOW
5.3. SOCIAL SUSTAINABILITY
5.3.1. SOCIAL SUSTAINABILITY- POLICY
18
STATED COMMITMENT
FOR 2008
WHAT IS DONE RATING
Demonstrated
commitment to set
objectives
relating to
employee
upliftment and
skills
development.
There are objectives for
career path development.
Employment of skilled and
unskilled employees training
and motivation policy.
Relevant position for
rightly skilled people.
MEDIUM
Demonstrated
commitment to set
objectives
relating to equal
opportunities
(including gender
equity), non-
discrimination and
empowerment such
as BEE and
Affirmative
procurement.
Upholding Employment Equity
Act.
Certain positions allocated
to gender equity e.g.
position of storekeeper is
not occupied by a female due
to masculine nature of the
functions.
Employment and maintenance
of more females than males
in the sales department.
MEDIUM
Demonstrated core
set of company
principles to
address the issues
The permanent staff has a
set of contracts of
employment and attached
thereto are the company’s
MEDIUM
19
set out in the
social pillars
such as labour
standards,
disciplinary,
corporate social
responsibility
undertakings etc.
rules and regulations which
have to be adhered to at all
times otherwise the relative
action will be taken e.g.
written warnings, verbal
counselling or disciplinary
hearings (hearings will be
handled by the SEESA).
Corporate social
responsibility – Funeral
Policy for permanent staff
paid by the business. Non-
contributory provident Fund
for employees, maternity
benefits. Sponsorship of
social events.
Demonstrated
commitment to
stakeholder
involvement on
social
sustainability
issues.
Complete stakeholder
involvement in social events
to raise awareness of health
issues such as HIV/ Aids;
Cancer, TB, public display
and education of staff,
suppliers and customers by
printing leaflets for
distribution bearing the
name of the store.
HIGH
20
Energy saving measures and
strategy such as power
pledge to economise
electricity. Energy saving
tit bits for the customers
and the public at large.
Demonstrated
objectives
relating to
employee
occupational
health and safety
including
HIV/AIDS.
Medical assistance to all
employees.
Emergency evacuation
procedure.
The National Occupational
Health and Safety Policy for
implementation is observed
by the stores and constant
reference to its written
document. Reduction or
curtailing HIV/AIDS pandemic
by 100% through counselling.
MEDIUM.
Demonstrated
commitment to
practices
recognising
importance of
partnerships in
implementing
corporate social
responsibility
Establishment of partnership
with Eastern Cape Department
of Health to access anti-
retroviral drugs to
employees.
Qualified first aiders and
staff representatives.
Policy of Support for
victims of diseases and
MEDIUM
21
strategies. injuries.
Demonstrated
commitment to
implementation of
corporate social
responsibility
strategies aligned
to business
strategy
reflecting ongoing
commitment from
business.
Strong partnership between
various businesses and
Pepper Grove Pick n Pay.
Association of Retail
Traders Forum. Partnership
with the Municipality.
MEDIUM.
5.3.2. SOCIAL SUSTAINABILITY –MANAGEMENT AND PERFORMANCE
STATED COMMITMENT
FOR 2008
WHAT IS DONE RATING
Documented
initiatives or
Manage the following social
performance indicators:
LOW
22
programmes to
address employee
health and safety,
including impact of
HIV/AIDS on
business
activities.
- Evidence of substantial
compliance with Labour
Department Guidelines for
Occupational Health
Management Systems;
- Number of work place deaths
per year.
- Existence of well-being
programmes to encourage
employees to adopt healthy
lifestyles.
- Percentage of employees
surveyed who agree that
their work place is safe
and comfortable.
Documented targets,
initiatives or
programmes to
address equal
opportunities
(including gender
equity).
Recruitment without
discrimination on the basis of
race, religion, gender etc.
Employment of HDSA people, the
composition of the staff
transcends all demographic
factors.
MEDIUM
Procedures /
systems in place
for stakeholder’s
engagement and
Complete stakeholder involvement
is social events to raise
awareness of health issues such
23
feedback. as HIV/AIDS, Cancer; TB, etc.
Procedures in place
to achieve
resolution of
disciplinary or
grievance issues.
Various disciplinary measures
such as hearings handled by
SEESA. Written warnings, verbal
counselling, and total
dismissal.
LOW
Evidence of
charitable
donations, active
community relations
as corporate social
responsibility
schemes.
There is a strong relationship
between the business and other
local business, e.g. pubs,
clubs, shops, etc. For example a
meeting was held at Rhodes
University with business owners
and organisations and Rhodes
Council to discuss and try to
address issues of student
alcoholism. The business licence
does not allow the business to
stock wine with an alcohol
content of more than 14%.
HIGH
6. THE CHALLENGES FACING PEPPER GROVE PICK N PAY.
The supermarket is a retailing business in the distributive
sector of the economy.
1. Competition
It can be seen that the business is operating in a harsh
business environment due to unhealthy competition. There are
24
equally other businesses and shops in the same industry and
the competitors such as Checkers Stores, Kwik Spar, Steers,
Debonairs are closer to it as well as Shoprite though a bit
further away but in the same geographic area. This places
tremendous pressure upon the business and the natural
tendency might be to trivialize environmental and social
issues and concentrate on the economic aspects in order to
increase bottom-line profit by increasing sales and cutting
costs.
2. Air Pollution
The business has a vast car parking area that can accumulate
more than two hundred vehicles at a time as well as other
businesses as it is sited in a Mall. The store is highly
exposed to air pollution such as the greenhouse gases (GHG)
and other hydrocarbons which pose health risks. In addition,
the business is involved in food processing and the
installation and use of a huge generator as well increases
the air pollution in the area.
3. Water from Municipality .
The substantial volumes of surface water used everyday in
food processing probably might be from within the local
environment although treated by the Water and Sewerage
Department. As at now, it cannot be ascertained that water
in transit has not been contaminated as the pipelines might
equally be punctured by metallic corrosion, abrasion and
rusting, though the water contamination is low but possible.
On inspection, there is no water storage system such as air
25
tight tank as a back-up facility in the event of water
supply disruption.
4. Food Safety
Organic foods including genetically modified food are on
sale and with the current project by the national office
called Organic Food Project; there is a risk and a resultant
loss if the food is eventually withdrawn from the market
though there is no proven scientific evidence to the
contrary. The fact that there is a food safety does not mean
the GM foods which are not processed and made under the
supervision of the food specialist is risk-free. Manual
processing of food has its own inherent risk.
5. Energy
As the energy crisis seems to have become a national issue
on account of electricity constraint and oil price which are
beyond the control of the business, the business has
purchased three huge automatic generators. However, the
electricity regulator has allowed the business to use only
one now and the generator seems to be a second-hand. This
brings into question the durability, serviceability and
energy–efficiency performance of generators.
7. PRACTICAL SUGGESTIONS TO SUSTAINABLE BUSINESS (PICK N PAY
GRAHAMSTOWN).
Sustainable Development.
- Demonstrate innovative sustainability development
actions.
26
- Source business needs from sustainable producers.
- Recycle.
- Eliminate waste e.g. offset carbon emissions (Carbon
Disclosure Project).
- Reduce energy consumption.
- Optimise resource use e.g. water.
- Employ minority groups- women, disabled, etc.
- Give back to the community.
- Ethical investing.
- Embrace 3BL reporting.
- Adopt a policy of strong sustainability.
- Marketing strategy should have environmental
sustainability and corporate social responsibility as
core objectives.
Carbon Footprint.
- Look for potential sources of CO2 and then estimate the
carbon footprint.
- Establish your boundaries for reporting process.
- Report it by equity ownership of the business.
- Describe what to report:
o Greenhouse gas inventory.
o Carbon footprint.
- Use air-cooling refrigeration system
- Install extractors of gases.
- Set up a Trust or Foundation to access tax incentives
e.g. Ray Ackerman Foundation.
27
- Create environmental initiatives such as “Green Bag”
sales at only a cost.
Reporting Considerations
- Ensure sustainability report is forward-looking.
- Concentrate on relevance in terms of business
sustainability.
- Engage stakeholders.
- Determine the specific indicators to be used to measure
performance: water, energy, waste.
- Define targets and timeframes for future performance.
- Offer report assurance.
Environmental Approach
The business is seriously concerned with environmental and
social issues as its theme is, “Without environment, there is no
profit and without profit, there is no social and community development”. The
business has shown a demonstrated commitment to
environmental, social and economic issues of its operations.
However, I advise the business to consider the following
measures:
1. The business leaders should think systematically and
realistically about the application of traditional
business principles to environmental problems. These
enable some businesses-- those with the right industry
structure, competitive position and managerial skills to
deliver increased value to shareholders while making
improvement in their environmental performance (Starkey
and Welford, 2005:53-54).
28
2. The business should create products or employ processes
that offer greater environmental benefits or impose
smaller environmental costs than those of its competitors
in Grahamstown. Such efforts may raise the business
costs, but they may also enable it to command higher
prices to capture additional market share or both
(Starkey and Welford, 2005: 54).
3. The business should consider Industrial Marketing: adding
value to its customers’ activities and then capture some
of the value itself. Lowering a customer’s environmental
costs adds value to its operations just as surely as a
new machine that enhances labour productivity does.
4. To undertake a successful environmental product
differentiation, the business must:
a. Identify customers who are willing to pay more for
an environmentally friendly product.
b. Communicate the product’s environmental benefits
credibly through leaflets, publications etc.
c. Protect it from imitators for long enough to profit
on its investment through branding and patent.
5. The business should view environmental quality as a
public good and note that people in Grahamstown are
willing to pay for public goods all the time considering
the demographic profile of the Municipality.
6. Develop a loyal base of high-income customers in
Grahamstown by ensuring that the brand identity of the
products and the business includes a commitment to
29
presentation (Starkey and Welford, 2005: 54). This seems
a food strategy because in Grahamstown the most
economically active and high-income earners are the
educated ones.
7. The business should treat environmental problems as part
of serious business issues and consider those problems
are matters of social responsibility (Starkey and
Welford, 2005: 55).
However, there are some common pitfalls in treating
environmental problems:
1. Business interests should not sway management opinion of
scientific and environmental analysis. Managers should not let
the costs of solving an environmental problem affect their
judgement of the scientific evidence that identifies the
problem (Starkey and Welford, 2005: 56). For example the
topical issue of genetic engineering products. Woolworths have
started removing them from their shelves while remaining ones
are clearly labelled (Starkey and Welford, 2005: 56).
2. The store should change things on their own without waiting
for bureaucratic blueprint from national Head Office.
3. Managers need to keep their minds open to the new
perspective and new facts that emanate from environmentalists,
governments (Departments of Environment and Tourism) etc
(Starkey and Welford, 2005: 57). This implies that management
and executives should bring to environmental decision-making
the same kind of optimisms, opportunities, analytical thinking
and openness that they instinctively bring to bear on other
30
business problems to benefit their business and the
environment (Starkey and Welford, 2005: 57).
4. The business should manage its competitors such as
Checkers, Kwik Spar and Shoprite by:
- working to change the rules of the game of business to
derive environmental and business profits.
- incurring higher costs to respond to environmental
pressure and develop or edge over its competitors by
forcing them to raise their costs even more. This can be
done by syndication, repositioning the business, punitive
government regulation etc (Starkey and Welford, 2005: 57).
5. Create a special initiative that appeals to the public with
environmental and social thrust and flair that create synergy.
Initiatives that enhance environmental reputation such as
Responsible Care Project to improve competitive position are
needed. This can lead to spending lower percentage of business
revenue to improve safety records, monitoring and compliance
costs (Starkey and Welford, 2005: 57).
6. If a company’s customers are willing to reward it for
improved environmental performance, the business will want to
forestall imitation by competitors. But if its customers
cannot be induced to pay a premium for an environmentally
preferable good, then it may want its competitors to have to
match to its behaviours (Starkey and Welford, 2005: 59).
7. The business should reconcile shareholder value with its
environmental management by focusing not on competitors but on
internal cost reductions. Cut costs and improve environmental
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performance simultaneously and look for opportunities to
improve environmental performance (Starkey and Welford, 2005:
57).
8. Prudent environmental risk management is required. Buy
insurance against environment liability. Improve community
relations and achieve more stable long-term costs.
Environmental risk and environmental performance by management
should be made a factor in determining management incentive
pay. Integrate environmental risk management into overall risk
management approaches which will yield better decisions in the
long-run (Starkey and Welford, 2005: 60-62).
8. Develop research capabilities of new ways of product and
service delivery to customers such as home shopping, pension
payout etc, the staying power to impose business vision of the
future on the markets and resources to manage the inevitable
risks.
8. CONCLUSION
There are beneficial effects of corporate environmental
actions and an environmentally progressive reputation can
improve recruitment, employee morale, investors support,
acceptance by the host community and management’s self-respect
(Starkey and Welford, 2005: 326). Sustainable development is
quite essential in business successes and the corporate world
should embrace the principles of sustainability. The survival
and growth of businesses will be realised when the
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environmental and social implications of businesses are given
equal importance as the economic aspect.
Pick n Pay Grahamstown should adopt all its national corporate
policy on sustainability and also devise its own distinctive
ways of dealing with the three main pillars of sustainability
uniquely.
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9. REFERENCES
INSTITUTE OF DIRECTORS. 2001. King II Report on Corporate Governance of South Africa- Introduction. [Online] Available: WWW.IODSA.CO.ZA [ACCESSED 5 APRIL 2008].
JSE. 2000. JSE SRI INDEX - Background and Selection Criteria. [Online] Available: HTTP://WWW.JSE.CO.ZA/SRI/DOCS/CRITERIA/BACKGROUND%20AND%20CRITERIA.FINAL.06%2010%2003.PDF [Accessed 14 April 2008].
STARKEY, R., and WELFORD, R. The Earthscan Reader in Business and
Sustainable Development. Earthscan. London Sterling, VA.
WORLD BUSINESS COUNCIL FOR SUSTAINABLE DEVELOPMENT. 1999.
Definition of Sustainability Development. [Online] Available:
HTTP://WWW.WBCSD.CH/ABOUTDF.HTM[1/12/99] [Accessed 02 April
2008].
WORLD WIDE FUND FOR NATURE. 1999. Definition of Sustainability
Development. [Online] Available:
HTTP://PANDA.ORG/LIVINGPLANET/LPRREPORT.HTML[1/12/99]
[Accessed 02 April 2008]
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