Coles Supermarkets Australia Pty Ltd: A Comprehensive Essay.

Discuss about the Coles Supermarkets Australia Pty Ltd.

Coles Supermarkets Australia Pty Ltd is a chain of supermarkets under the ownership of Westfarmers. It was founded in the year 1914 and today has 776 supermarkets, 858 liquor stores, 90 hotels, 662 convenience stores totaling to 2,386 retail outlets in Australia. It has over 100,000 employees and accounts for 80% of the Australian Supermarket business along with its competitor Woolworths (Coles, 2015). Coles Online is the online platform that accounts for a sizeable business.  Coles provides groceries, fresh food, liquor, general merchandise, fuel and financial services to more than 20 million customers every week. They aim at delivering quality, fresh products and add value for customers every time. Thus with the determination of the team members, the company continues to grow.

The objective followed by Coles with reference to financial reporting is to provide information that is useful for decision making, helps in prediction of cash flows and provides information about the economic resources and the changes and claims in the same (Choi & Meek, 2011).

The financial statements includes Balance Sheet, Income Statement, Statement of Cash flows and Notes to Accounts which are presented in a way to provide the users understanding of the Assets, Liabilities, Equity, Investment by Owners, Distribution to Owners, Revenues, Expenses, Gains, Losses, Comprehensive Income, so on and so forth.

The recognition and measurement concepts are defined and explained by the accounting assumptions and principles. The Qualitative characteristics to be met are understandability, relevance, reliability, comparability and consistency. The materiality and conservatism principles are guiding in achieving the same (Paradise & Rogoff, 2009).

Coles has diversified well into a lot of businesses ranging from food stuffs to financial services. Thus the organization chart of Coles shows the various departments well categorized and the appropriate reporting authorities and team members in each of these departments (Coles, 2015) Apart from this, the accounts and financial statements of Coles are well in compliance with the Accounting Standards and other applicable provisions from time to time.

(Source: Mitchell, 2015)

As per Brealey et. al (2011) Corporate Governance is the set of rules and regulations by which the company is controlled. The Corporate Governance Statement and Policy of Coles aims at enhancing shareholder value and continued growth. Areas like role of Board and Management, Structure and composition of Board, Director Independence, Remuneration and evaluation of Senior Executives, Governance policies, Risk Management and Anti-Bribery Policies are spelt out. The Role of the Board is the approve the strategic plans and decisions of the company while guiding the business through good governance practices and ensuring shareholder interest and the interests of minority groups, employees and community at large. The Board takes up the ultimate responsibility for strategy implementation. The Board comprises of eleven directors, out of which nine are non-executive directors. The appointment is made by analyzing the skills, experience, expertise and ability to take diverse board decisions. There are separate committees for evaluation of the performance of the Board of Directors. The Directors are expected to make decisions in an independent manner that is free from bias and could materially affect the interests of the stakeholders. Every director is duty bound to disclose any relationship with the company that might be monetary or otherwise (Clarke, 2010). The Board aims to meet the Corporate Governance policies laid down by ASX. Investor engagement, integrity in reporting is a few areas focused on which leads to the establishment of Audit and Risk Committee and establishment of facilities for providing high quality up-to-date information of the stakeholders. The Risk Management policies form a part of the overall risk management process and is updated from time to time to incorporate the new challenges. Thus from the corporate governance angle, it can be seen that Coles has maintained a high standard and the continuous following of the same keeps it strong and trustworthy.

Corporate Governance

Coles is highly committed to follow the rules and regulations of all the countries with which it is doing business. Business ethics is considered to be a primary requirement at Coles. Any action that results in violation of any law or act, for the time being in force like bribery is considered as a serious offence and against the values of the company. The Anti-bribery laws are well in place to ensure that the political donations made should not be under any specific division or business unit (Goergen, 2012). The appropriate disclosures of any such donations should be made as required by law. Apart from this, the quality control standards are also well in place to monitor the output that is being served to the end users and consumers. Thus Coles is an ethically strong company (Coles, 2015).

Coles have a strong belief in human rights and the principle is followed. The environment is structured in a manner that aims to reduce overextension and brings calmness. The moral traits projects that the company has maintained a strong ethical ground (Fernando, 2009). For instance, in December 2014, Coles had associated with a 10-year partnership with Sun drop Tomatoes, an enterprise in Southern Australia for the supply of sustainable truss tomatoes. And there of from 2016, this deal ensures that Coles has a year-round supply for customers, creating more than construction and full-time jobs in regional Australia  with support on investment for highly innovative technology, including a greenhouse which that will grow tomatoes using solar power and desalinated sea water. These aspects reveal the environmental and sustainable efforts of Coles in dealing with secondary aspect in an organization.

The main objective of Coles is to operate with liberty, as well as non-aggression principle. Therefore, the principle of libertarianism comes into existence. It operates with ease and strives to attain maximum profit (Paradise & Rogoff, 2009). The responsibility of Coles being the leader in the retail is not just reserved in the interest of the public. The inclusive areas that are being engaged by Coles include technological advancements and improvisations that lead better and safer rational for those involved in the business with Coles (Lubatkin, 2009). For instance, the use of Solar Energy that has been endorsed across Australia has been one of the most responsible efforts that indeed reveal the total commitment towards the business, customer and the other people involved. Moreover, most of the supermarkets operated under Coles runs on low-powered LED lighting that uses Solar Energy, lessening the environmental effects that could have been an effective outcome otherwise, to add to the concern Australia has been facing in the recent years (Coles, 2015). Yet another inclusive attribute could be related to the sustainable energy developments of the City FM Energy Centre, which provides 24-hour monitoring of supermarkets for identifying and clear solutions to problems instantly. Moreover, Coles has deservingly been was awarded a 4-Star Green Star rating from the Green Building Council of Australia (GBCA) for outstanding achievement with the use of a natural refrigerant, extra insulation and combined cooling to regulate efficient temperature control.

Ethics

Delivering choices and options in the wide range of products does indicate that the efforts have been up to mark and thereby reserving greater prospects for Australian who prefers economical choices at justified prices. More innovative are the ways the organization source food for the customers by fostering long-term and deeper relationships with the suppliers and hence ensuring that the standards are always on the greatest level (Levine & Prietula, 2013). For instance, if there are many retail outlets around the world that have ceased due to malign ways that include illicit marketing methods and delivering a sole profit based customs and practices within the organizations (Coyne & Garvin, 2013). As far as the Values and Ethics of Coles are considered m the efforts has been the prime source that has been out in the limelight by the management and the staff at Coles. As with the message, Business Values has been the core part of the Coles as the part of the strategy established in 2015 that was focused on the delivering the better share of the profits to their customers. Moreover, the apart from the acumen of delivering high standards in the products, Coles has also kept the better side when it comes to the pricing and stakes associated with these products (Coles, 2015).

As with the virtue that comes as the part of Coles business infrastructure, there has been a better reserve in maintaining social responsibility as Coles’ partnership with national cancer charity Redkite that had initiated in 2013 and has since raised more than $15 million for Redkite and Australian families. Moreover as the part of the ethical venture, the members at Coles has been passionately involved in raising awareness and monetary resources for foundations like Redkite by organizing fundraising activities that take multi-dimensional attributes within the scope of business that is run by Coles (Coles, 2015). The efforts have also been ethically high since there has been more than one instance and associations that has been marked by Coles in terms to provide better and safer means of meeting the larger demands of the community.

It is evident that Coles is determined to deliver what it takes for a clean and professional business, provided there are no problems to the customers (Covington, 2000). The virtue has paid off for Coles in many ways, since they have been actively involved in delivering the best performance and services in Australia and abroad, with the inclusion of presence on the internet, Coles has achieved yet another milestone that allows the company to broaden the target customers and increase the brand value in the international market. Despite the odds, there are numerous positive attributes about the operation and conduct of Coles that indicate the better ways for consumers and the businessmen involved with Coles. And since, every aspect of Coles has been legally bound, there are no threats whatsoever that could tarnish the repute of Coles as one of the better prospects and trustable entity in the Global and Australian context. With major initiatives in terms of Humanitarian considerations, it is evident that Cole is deemed to be one of the better brands for the future (Alter, 2013).

Deontology

Coles is well known for supporting fund raising and donation campaigns from many years. During the year 2001, the direct community contributions were $36.5 million and an additional $7.2 million was raised by team members, customers and suppliers. Coles has entered into partnership with Redkite during the year 2013, a society for supporting children, young people with cancer and their families. Coles has raised more than $15 million for Redkites due to which Redkites has been able to almost double its services (Kruger, 2015).

Coles has also associated with Second Bite from the year 2011 to distribute surplus, healthy food to the disadvantaged sections of the society. This was done with an aim of reducing food waste on one hand and providing access to healthy food for those who cannot afford. In 2012, Coles established Bravery Trust to support the current and former defense members who were suffering as a result of the service (Albuquerque, 2013).

A unique recycling program undertaken by Coles led to the recycling of over 100 million units of soft plastic. As human resources are the most valuable asset for any company, Coles has celebrated the longest services team members by various rewards thus valuing their continued dedication for the company (Kruger, 2015).

(Source: Mitchell, 2015)

Conclusion

It can thus be seen that the strong policies with reference to corporate governance and ethics have helped Coles remain on the top. The increased focus on society and community development also makes Coles distinguished from the rest. Coles has been one of the better sides of socially retailing business that has withstood the long trail of excellence and class in Australia (Mark, 2010). With the recent years, Coles has managed to secure an international reputation that is equally vibrant in the mode of operation, class, and consistency in the standards that are being put forward by Coles as an integrated organization. What makes Coles stand out in the niche of Market As with the diversification based on the ethics there are varied highlights that come out from the growth of Coles as an enterprising standard on a global scale.

References

Albuquerque, R., Durnev, A., Koskinen, Y 2013, Corporate social responsibility and firm risk: theory and empirical evidence, Boston University.

Alter, S 2013, Work System Theory: Overview of Core Concepts, Extensions, and Challenges for the Future, Journal of the Association for Information Systems, vol. 14, no. 1, pp. 72-121.

Brealey, R., Myers, S. & Allen, F 2011, Principles of corporate finance, New York: McGraw-Hill/Irwin.

Choi, R.D. & Meek, G.K 2011, International accounting, Pearson.

Clarke, T 2010,  International Corporate Governance, London and New York: Routledge

Coles 2015, Coles annual report and accounts 2015, viewed 28 August 2015, https://www.coles.com.au/about-coles/annual-reports

Covington, M. V 2000, ‘Goal theory, motivation, and school achievement: An integrative review’, Annual Review of Psychology, vol. 5, no. 51, pp. 171–200.

Coyne, I., & Garvin, F 2013, ‘Employee relations, and motivation. Work and Occupational Psychology’, vol. 22, no.10, pp. 23-46

Fernando, A C 2009, Corporate Governance Policies and Principles, Oxford University Press

Goergen , M 2012,  International Corporate Governance, Prentice Hall.

Kruger, P 2015, ‘Corporate goodness and shareholder wealth’, Journal of Financial economics, pp. 304-329

Levine, S. S., & Prietula, M. J 2013, Open Collaboration for Innovation: Principles and Performance, Organization Science, Harvard Press

Lubatkin, M.H 2009, ‘One more time: What is a realistic theory of corporate governance?’, Journal of Organizational Behaviour, vol.28, pp. 59-67

Mark, J. R 2010, Political Determinants of Corporate Governance - Political Context, Corporate Impact, Oxford University Press.

Mitchell, S 2015, 75pc of Australians want more competition for Coles and Woolworths, Masters Grocer survey shows, Retrieved 30 August 2016,
https://www.smh.com.au/business/75pc-of-australians-want-more-competition-for-coles-and-woolworths-masters-grocer-survey-shows-20150331-1mbjul.html

Paradise, R & Rogoff, B 2009, Side by Side: Learning by Observing and Pitching In’, Ethos, vol. 37, pp. 102–138