Does Shoprite positively contribute to the environment and the socio-economic wellbeing of the societies it trades in?
Shoprite Group is by far the biggest business unity which caters for middle to lower-income consumers (Shoprite Annual Report. 2007:6; Shoprite Annual Report. 2010:18). Africa’s largest store has more than 1068 corporate and 275 franchise outlets in 17 countries across Africa, the Indian Ocean Islands and southern Asia. The Group is listed on the JSE Securities Exchange and also has secondary listings on both the Namibian and Zambian stock exchanges.
According to (Shoprite Annual Report. 2010:32 & 50) Shoprite is very much aware of its role as a business operating in a society. The Group takes its sustainability aspect as a core element of its corporate governance. The Group also clearly realises that strategically managing sustainability-correlated issues adds value to the long-term success of the business. (Shoprite Annual Report. 2009) stipulates that Shoprite perceives itself as a responsible corporate citizen that continuously contributes to the wellbeing of the communities in which it operates. However, the Group acknowledges that other vital essentials such as increasing aid to a wide range of stakeholders, dropping the negative effects that its operations has on the environment and communities etc needs to be reconsidered if the business is to continue managing its operations wholly and sustainably (Shoprite Annual Report. 2010:32). It is clear that Shoprite’s core target audience in its corporate social investment (CSI) is specifically women, children and senior citizens. This can be seen from a number of CSI programmes the Group has implemented and continuously manage (Shoprite Annual Report. 2009:36; Shoprite Annual Report. 2010:50).
Moreover, the Group knows the power of CSR and therefore, its long-term capability on the business. (Shoprite Annual Report. 2010:50-51) asserts, it is for this reason that the Group has put in place an auditing strategy and risk committee that manages sustainability governance and reviews all risks on a continuous basis. Particular CSR matters are tackled by the respective members of top management. Under the CSR policy, the Group also states how it will partner with other governmental and non-governmental entities to ensure social development and security. Most importantly, the Group’s CSR report covers not only its community involvement policy but includes reports on economic contribution, employees, products, customers, suppliers, biophysical environment and the Global reporting Initiative (GRI) content index (Shoprite Annual Report. 2010:32-51.
Shoprite is explicit in its sustainability report on South Africa, although, it is evident that Shoprite poses doubts in the manner in which it handles CSR reports in other countries in Africa. In the report titled “Report Punches Holes on Shoprite’s CSR Sustainability Report” (Newman, 2009) revealed that the Group did not report on any CSI projects in any of the countries in the SADC region. It is noted that CSR is largely focused on South Africa alone which made other countries feel mistreated. The 2010 Shoprite’s Annual Report is its own proof as indeed, it does not have a section/s for CSR reports on other countries but South Africa (Shoprite Annual Report. 2010). Miller (2008:36); Quo Vadis Communications (2009) concurs that Shoprite was not only seen as irresponsible but as an enemy to the Zambian local supermarkets and farmers because it robbed them of their livelihoods. In this report it is claimed that Shoprite did not buy local farmers’ vegetables but imported them from South Africa and on top of it attracted more people in the market.
Besides, Muneku (2003:85) revealed that Shoprite’s community involvement was restricted in Zambia and that its SI policy was controlled from the head office. This could be the reason for limitations in being socially responsible as all decisions are made by people who far away from the communities in which their business operates. In the current study, Mawson (2010) supports that Shoprite did not give back to the local economies as it did not promote local economic development, therefore, underpaid staff and did not report on CSR but notes that the Group was up-to-date with its HIV/AIDS projects in Malawi, Swaziland and Zambia.
Shoprite should not be partial in reporting on its CSR but should ensure that information is made available about all its CSI activities in every community it operates. Shoprite should regard all societies it operates in with equal value as failure to do so may lead the business’ fall. Shoprite should also adhere to King ll reporting on corporate governance to meet the Global Reporting Initiative (GRI) and therefore, to be globally and socially accepted.
According to (Shoprite Annual Report. 2010:32 & 50) Shoprite is very much aware of its role as a business operating in a society. The Group takes its sustainability aspect as a core element of its corporate governance. The Group also clearly realises that strategically managing sustainability-correlated issues adds value to the long-term success of the business. (Shoprite Annual Report. 2009) stipulates that Shoprite perceives itself as a responsible corporate citizen that continuously contributes to the wellbeing of the communities in which it operates. However, the Group acknowledges that other vital essentials such as increasing aid to a wide range of stakeholders, dropping the negative effects that its operations has on the environment and communities etc needs to be reconsidered if the business is to continue managing its operations wholly and sustainably (Shoprite Annual Report. 2010:32). It is clear that Shoprite’s core target audience in its corporate social investment (CSI) is specifically women, children and senior citizens. This can be seen from a number of CSI programmes the Group has implemented and continuously manage (Shoprite Annual Report. 2009:36; Shoprite Annual Report. 2010:50).
Moreover, the Group knows the power of CSR and therefore, its long-term capability on the business. (Shoprite Annual Report. 2010:50-51) asserts, it is for this reason that the Group has put in place an auditing strategy and risk committee that manages sustainability governance and reviews all risks on a continuous basis. Particular CSR matters are tackled by the respective members of top management. Under the CSR policy, the Group also states how it will partner with other governmental and non-governmental entities to ensure social development and security. Most importantly, the Group’s CSR report covers not only its community involvement policy but includes reports on economic contribution, employees, products, customers, suppliers, biophysical environment and the Global reporting Initiative (GRI) content index (Shoprite Annual Report. 2010:32-51.
Shoprite is explicit in its sustainability report on South Africa, although, it is evident that Shoprite poses doubts in the manner in which it handles CSR reports in other countries in Africa. In the report titled “Report Punches Holes on Shoprite’s CSR Sustainability Report” (Newman, 2009) revealed that the Group did not report on any CSI projects in any of the countries in the SADC region. It is noted that CSR is largely focused on South Africa alone which made other countries feel mistreated. The 2010 Shoprite’s Annual Report is its own proof as indeed, it does not have a section/s for CSR reports on other countries but South Africa (Shoprite Annual Report. 2010). Miller (2008:36); Quo Vadis Communications (2009) concurs that Shoprite was not only seen as irresponsible but as an enemy to the Zambian local supermarkets and farmers because it robbed them of their livelihoods. In this report it is claimed that Shoprite did not buy local farmers’ vegetables but imported them from South Africa and on top of it attracted more people in the market.
Besides, Muneku (2003:85) revealed that Shoprite’s community involvement was restricted in Zambia and that its SI policy was controlled from the head office. This could be the reason for limitations in being socially responsible as all decisions are made by people who far away from the communities in which their business operates. In the current study, Mawson (2010) supports that Shoprite did not give back to the local economies as it did not promote local economic development, therefore, underpaid staff and did not report on CSR but notes that the Group was up-to-date with its HIV/AIDS projects in Malawi, Swaziland and Zambia.
Shoprite should not be partial in reporting on its CSR but should ensure that information is made available about all its CSI activities in every community it operates. Shoprite should regard all societies it operates in with equal value as failure to do so may lead the business’ fall. Shoprite should also adhere to King ll reporting on corporate governance to meet the Global Reporting Initiative (GRI) and therefore, to be globally and socially accepted.
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