S trategy Madeline Bird Elaina DeHoratius Kate Morrison Helen PhillipsWhite Theme Aldi must capitalize on opportunities presented by the current zeitgeist of corporate social responsibility in the United States in order to ID: 755643
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ALDI:Corporate Responsibility Strategy
Madeline Bird, Elaina DeHoratius, Kate Morrison, Helen Phillips-White Slide2
ThemeAldi must capitalize on opportunities presented by the current zeitgeist of corporate social responsibility in the United States in order to increase its visibility and enhance its public image.Slide3
BackgroundCurrent Sustainable Business PracticesOrganic product offeringsLiving wages/benefits Current Low-Cost Business Practices
Low property costsLow labor costs Limited product assortmentMarketing and Public RelationsCurrent policy-no publicityCultural Values - vanity highly discouragedCustomer Trust - built through simplicitySlide4
AnalysisSCheap prices, good qualityLow operating costInternational expansion
Existing CSR practicesWNo advertisingLow market shareAmbiencePNo legislation requiring CSREIncreasing HH disposable income in UK and USAIncrease in drive for sustainabilitySGrowing demand for packaged food and beveragesIncrease in popularity of social responsibility
T
Online shopping market is increasing
Self check out in most retail
grocer
y
stores
O
Increasing PR presence to increase awareness
T
CompetitionSlide5
Value Chain AnalysisAldi’s value creating activitiesLow product cost
Good qualityLocation strategyExisting CSRDifferentiation opportunities for improving customer valueLower costsIncrease qualityExpand locationsIncrease awarenessSustainable differentiation and added customer valueDecreases profitsIncreases costsIncreases cost and investmentsFixed annual costLower product costHigher quality productEase of accessibility
Sustainability
exposureSlide6
RecommendationsAttain B-Corp StatusIncrease Public Relations Initiatives
Develop strict PR guidelinesEncourage media coverageDo not increase marketing activitiesLet actions speak for AldiSlide7
B Corp and Aldi B CorpFor profit companies, certified by B LabMeet standardsSocial/environmental performanceAccountability
TransparencyAldiCurrently meeting and exceeding standardsBecoming a B Corp willGenerate press and increase positive brand reputationSave money which is in line with operational modelHold Aldi accountable to CR principles (est. 2015)Slide8
How to Become a B CorpMeet Performance RequirementComplete B Impact Assessment 80/200Governance
WorkersCommunityEnvironmentMeet legal requirementDetermine path for corporate structure and state of incorporationMake it officialSign B Corp Declaration of Interdependence and Term Sheet Slide9
GovernanceEx: Has the company worked within its industry to develop social and environmental standards for your industry? Environmental
Aldi has increased # of sustainably produced cocoa productsSimilar increases in seafood, coffee, etc.SocialPartnerships with Feeding America and Action for Healthy Kids in CaliforniaSlide10
WorkersEx: Based on the results of your employee satisfaction assessment (conducted within the past two fiscal years), what percent of your employees are “satisfied” or “engaged?High employee satifaction is part of Aldi’s culture
Employee SatisfactionYear2014% of employees whoagreed or fully agreed with statement: "In general, Aldi is an excellent employer"80.25Slide11
CommunityEx: What % of management is from underrepresented populations? (includes women, minorities, people with disabilities)Over half of total employees are femaleThere is room for improvement in management representation
Women in Management PositionsYear2015Share of female employees in the total number of employees in %65.91
Share of female employees in the total number of employees in management positions (store management and above) in %
39.21Slide12
EnvironmentEx: Does your company monitor and record its universal waste?“Avoid, reuse, recycle” strategyRecycles nearly 100% of transport packaging81% of stores donate unsold foodSlide13
Value AddedMacro trendImportance of purpose as a purchase factor has risen 26 percent globally since 2010 88 percent of research shows solid ESG practices result in better operational performanceReputation“Word of mouth is becoming your number one marketing tool” -Kaspar Ulf Nielson
73% of global consumers would recommend companies they see as delivering on CSRCSR efforts (citizenship, governance, workplace) make up 41.2% of a company’s reputationSlide14
SourcesAldi and Lidl. (2015). Tomorrow, Not Quite The World. The Economist. Retrieved from http://www.economist.com/news/business/21646224-german-discounters-successful-business-model-only-stretches-so-far-tomorrow-not-quiteAldi einkauf GmbH & co. oHG
: Retailing - company profile & SWOT analysis. (2015). Basingstoke: Progressive Digital Media. Retrieved from http://search.proquest.com/docview/1652863218?accountid=14270 ALDI US - Corporate Responsibility. (2016). Retrieved October 02, 2016, from https://corporate.aldi.us/en/corporate-responsibility/ ALDI SOUTH GROUP corporate responsibility report - Supply chain. (2016). Retrieved October 02, 2016, from https://cr.aldisouthgroup.com/en/cr-report/facts-figures/key-figures/supply-chain/ Assess Your Impact. (2016). Retrieved October 03, 2016, from http://bimpactassessment.net/how-it-works/assess-your-impactALDI SOUTH GROUP corporate responsibility report - CR Report. (2016). Retrieved October 02, 2016, from https://cr.aldisouthgroup.com/en/cr-report/Caruso, A. (2016, January 12). Aldi Hits 'Refresh' So You Can, Too. Retrieved October 02, 2016, from https://corporate.aldi.us/fileadmin/fm-dam/news_and_awards/Press_Release_2016/Feel_Good_Foods_Release_Draft_FINAL.PDF Corporate Responsibility Principles of the ALDI SOUTH Group. (2016). Retrieved October 02, 2016, from Corporate Responsibility Principles of the ALDI SOUTH Group. (n.d.). Retrieved October 01, 2016, from
https://corporate.aldi.us/fileadmin/fm-dam/Corporate_Responsibility/CR_Updates/CR_Principles.pdf
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Sources Cont.Gilbert, J.C., Kassoy, A., Houlahan, B. (2016). Impact Governance and Management: Fulfilling the Promise of Capitalism to Achieve a Shared and Durable Prosperity. Center for Effective Public Management at Brookings. Retrieved from https://www.brookings.edu/wp-content/uploads/2016/07/b_corps.pdf
Hartman, Harvey. (2015). Aldi is a Growing Menace to America’s Grocery Retailers. Forbes.com. Retrieved from http://www.forbes.com/sites/thehartmangroup/2015/04/14/aldi-is-a-growing-menace-to-americas-grocery-retailers/#5c561173e6a4Loeb, Walter. (2016). Lidl and Aldi’s Aggressive U.S. Invasion Spells Trouble For Supermarkets. Forbes.com. Retrieved from http://www.forbes.com/sites/walterloeb/2016/09/27/why-lidl-and-aldi-aggressive-invasion-of-the-united-states-spells-trouble-for-supermarkets/#404e832b1128Peterson, Hayley. (2016). Aldi Is Fixing its Biggest Weakness, and that should Terrify Whole Foods. BusinessInsider.com. Retrieved from http://www.businessinsider.com/aldi-is-fixing-is-biggest-weakness-and-that-should-terrify-whole-foods-2016-1Prado, F. (2016, September 15). 2016 CSR RepTrak® 100. Rodgers, Bruce. (2013). Too Many Feelings and Not Enough Facts in CSR Strategy. Forbes.com. Retrieved from http://www.forbes.com/sites/brucerogers/2013/10/07/too-many-feelings-and-not-enough-facts-in-csr-strategy/#5ed8803d6e78United States Disposable Personal Income | 1959-2016 | Data | Chart. (2016). Retrieved October 03, 2016, from http://www.tradingeconomics.com/united-states/disposable-personal-income