ALDI: Corporate Responsibility Strategy Madeline
Description: ALDI: Corporate Responsibility Strategy Madeline Bird, Elaina DeHoratius, Kate Morrison, Helen Phillips-White Theme Aldi must capitalize on opportunities presented by the current zeitgeist of corporate social responsibility in the United
Related Topics
Download Presentation
"ALDI: Corporate Responsibility Strategy Madeline" is the property of its rightful owner. Permission is granted to download and print the materials on this website for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Presentation Transcript
slide1. ALDI: Corporate Responsibility Strategy Madeline Bird, Elaina DeHoratius, Kate Morrison, Helen Phillips-White<br>
slide2. Theme Aldi 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.<br>
slide3. Background Current Sustainable Business Practices
Organic product offerings
Living wages/benefits
Current Low-Cost Business Practices
Low property costs
Low labor costs
Limited product assortment
Marketing and Public Relations
Current policy-no publicity
Cultural Values - vanity highly discouraged
Customer Trust - built through simplicity<br>
slide4. Analysis<br>
slide5. Value Chain Analysis<br>
slide6. Recommendations Attain B-Corp Status
Increase Public Relations Initiatives
Develop strict PR guidelines
Encourage media coverage
Do not increase marketing activities
Let actions speak for Aldi<br>
slide7. B Corp and Aldi B Corp
For profit companies, certified by B Lab
Meet standards
Social/environmental performance
Accountability
Transparency
Aldi
Currently meeting and exceeding standards
Becoming a B Corp will
Generate press and increase positive brand reputation
Save money which is in line with operational model
Hold Aldi accountable to CR principles (est. 2015)<br>
slide8. How to Become a B Corp Meet Performance Requirement
Complete B Impact Assessment 80/200
Governance
Workers
Community
Environment
Meet legal requirement
Determine path for corporate structure and state of incorporation
Make it official
Sign B Corp Declaration of Interdependence and Term Sheet<br>
slide9. Governance Ex: Has the company worked within its industry to develop social and environmental standards for your industry?
Environmental
Aldi has increased # of sustainably produced cocoa products
Similar increases in seafood, coffee, etc.
Social
Partnerships with Feeding America and Action for Healthy Kids in California<br>
slide10. Workers Ex: 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<br>
slide11. Community Ex: What % of management is from underrepresented populations? (includes women, minorities, people with disabilities)
Over half of total employees are female
There is room for improvement in management representation<br>
slide12. Environment Ex: Does your company monitor and record its universal waste?
“Avoid, reuse, recycle” strategy
Recycles nearly 100% of transport packaging
81% of stores donate unsold food<br>
slide13. Value Added Macro trend
Importance 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 performance
Reputation
“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 CSR
CSR efforts (citizenship, governance, workplace) make up 41.2% of a company’s reputation<br>
slide14. Sources Aldi 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-quite
Aldi 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-impact
ALDI 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<br>
slide15. 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/#5c561173e6a4
Loeb, 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/#404e832b1128
Peterson, 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-2016-1
Prado, 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/#5ed8803d6e78
United States Disposable Personal Income | 1959-2016 | Data | Chart. (2016). Retrieved October 03, 2016, from http://www.tradingeconomics.com/united-states/disposable-personal-income<br>
slide2. Theme Aldi 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.<br>
slide3. Background Current Sustainable Business Practices
Organic product offerings
Living wages/benefits
Current Low-Cost Business Practices
Low property costs
Low labor costs
Limited product assortment
Marketing and Public Relations
Current policy-no publicity
Cultural Values - vanity highly discouraged
Customer Trust - built through simplicity<br>
slide4. Analysis<br>
slide5. Value Chain Analysis<br>
slide6. Recommendations Attain B-Corp Status
Increase Public Relations Initiatives
Develop strict PR guidelines
Encourage media coverage
Do not increase marketing activities
Let actions speak for Aldi<br>
slide7. B Corp and Aldi B Corp
For profit companies, certified by B Lab
Meet standards
Social/environmental performance
Accountability
Transparency
Aldi
Currently meeting and exceeding standards
Becoming a B Corp will
Generate press and increase positive brand reputation
Save money which is in line with operational model
Hold Aldi accountable to CR principles (est. 2015)<br>
slide8. How to Become a B Corp Meet Performance Requirement
Complete B Impact Assessment 80/200
Governance
Workers
Community
Environment
Meet legal requirement
Determine path for corporate structure and state of incorporation
Make it official
Sign B Corp Declaration of Interdependence and Term Sheet<br>
slide9. Governance Ex: Has the company worked within its industry to develop social and environmental standards for your industry?
Environmental
Aldi has increased # of sustainably produced cocoa products
Similar increases in seafood, coffee, etc.
Social
Partnerships with Feeding America and Action for Healthy Kids in California<br>
slide10. Workers Ex: 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<br>
slide11. Community Ex: What % of management is from underrepresented populations? (includes women, minorities, people with disabilities)
Over half of total employees are female
There is room for improvement in management representation<br>
slide12. Environment Ex: Does your company monitor and record its universal waste?
“Avoid, reuse, recycle” strategy
Recycles nearly 100% of transport packaging
81% of stores donate unsold food<br>
slide13. Value Added Macro trend
Importance 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 performance
Reputation
“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 CSR
CSR efforts (citizenship, governance, workplace) make up 41.2% of a company’s reputation<br>
slide14. Sources Aldi 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-quite
Aldi 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-impact
ALDI 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<br>
slide15. 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/#5c561173e6a4
Loeb, 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/#404e832b1128
Peterson, 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-2016-1
Prado, 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/#5ed8803d6e78
United States Disposable Personal Income | 1959-2016 | Data | Chart. (2016). Retrieved October 03, 2016, from http://www.tradingeconomics.com/united-states/disposable-personal-income<br>