Sustainability of Global Enterprise: Srishti Rai J074110024
Sustainability of Global Enterprise: Srishti Rai J074110024
Sustainability of Global Enterprise: Srishti Rai J074110024
ENTERPRISE
Srishti Rai
J074110024
!1
TABLE OF CONTENTS
2. SUSTAINABILITY ISSUES………………………………. …5
3. SUSTAINABILITY TRIANGLE……………………………6-7
5. SOCIAL SUSTAINABILITY..………………………………9-10
7. CORPORATE GOVERNANCE……………………………12-13
!2
“Look Good, Feel Great.”
Company Profile
Watson is Asias largest beauty and health care retailers with over 7,200 stores amongst which
over 1,500 Pharmacies are serving 13 Asian and European markets, including China, Singapore,
Thailand, Malaysia, The Philippines, Korea, Indonesia, Turkey and Ukraine. It is a subsidiary of
and the flagship health and beauty brand of the A.S. Watson Group where the majority is owned
by CK Hutchinson Holdings.
HISTORY :
Dr. Thomas Boswell Watson was the first member of the Watson family to arrive in the Far East,
where in 1845 he set up a private practice in Macau. After selling his practice he moved to Hong
Kong in 1856 where he became part owner of Hong Kong Dispensary. Known as the “Big
Medicine Shop”, the dispensaries main customers were soldiers and sailors. In 1858, Alexander
Skirving Watson made the management changes and named it A.S Watson. Retail outlets were
known as “Watson the Chemist”. The current owners, Hutchison Group, acquired a controlling
interest in A.S. Watson & Co., Ltd in 1963. In 1981, it became a wholly owned subsidiary of
Hutchison Whampoa Ltd. At this time, the group had 75 retail outlets.
!3
ABOUT THE COMPANY :
With over 175 years of history, A.S. Watson has evolved from a local dispensary to become the
world’s largest international health and beauty retailer. At A.S. Watson, their vision is to be the
world’s leading health, beauty and lifestyle retailer, and with such ambition in mind they focus
on delivering their promise.“We bring MORE to LIFE” – to our customers, colleagues,
communities and shareholders.
The Group has one of the world's biggest arrangement of retail organizes, retail marks and land
nearness. Gladly upheld by a worldwide group of more than 120,000 staff, the Group is likewise
an individual from the widely acclaimed global aggregate CK Hutchison Limited, which has five
center organizations - ports and related administrations, retail, framework, vitality and media
communications in more than 50 nations.
From healthcare products to daily essentials, Watsons is the go to place for everything rear we
need. With over thousands of stores, one would think getting to a Watson store should be
incredibly convenient. But to ensure further convenience, Watson also has an online store That
will allow you to grab all the necessities anywhere and anytime we want with free delivery when
we purchase over NT$450. Watson guarantees for outstanding Quality, Value and Trust. Behind
every product being developed by Watson is a long intensive research, customer feedback and
independent testing. Watson also has their own labelled products and have successfully sold
more than 280 million products of their own. To improve and enhance their healthcare platform,
the pharmacies offers services such as medication dispensing, health screening packaged and
even provides counseling on smoke cessation on minor ailments.
A.S Watsons mainly aims at Commitment , by having the company’s interests at heart and the
dedication to go the extra mile and in the end, to have a positive impact. Teamwork, By
achieving more through Synergy and collaboration by working with Openness, Trust and respect.
Innovation, By creating more value and better results from new ideas or ways of doing things.
Passion, By having a desire to constantly learn and improve and a joy in exceeding customers
expectations. The Group recognizes that every market is unique and different in its Social,
Economic and Environmental needs. That’s why their Global CSR Committee outlines the CSR
Priorities from the Group’s perspective.
!4
SUSTAINABILITY ISSUES
In recent years, sustainability has become a key concern for many businesses in the cosmetics
and personal care industry. Because consumers have become more concerned about health,
wellness and issues such as natural resource depletion and environmental degradation, the
environmental performance of products and processes has become a key consideration. At the
same time, due to the rising number of beauty blogs, social media accounts and YouTube
Channels dedicated to going chemical-free, consumers have access to more information than
ever before. Many consumers are now turning to ‘greener’ alternatives when it comes to beauty
and personal care products. They are demanding products that do not harm their skin, nor the
environment or society; as well as products that are natural, traceable and free from modified
ingredients.
1. Creepy Chemicals
Cosmetics contain a host of chemicals that may damage the environment and even the human
health. A simple stroll down the cosmetic or shampoo aisle will reveal just how prevalent these
chemicals are. P-phenylenediamine, derived from coal tar, poisons plankton and other small
marine animals. Hand sanitizers and deodorants often contain Triclocan, a chemical which can
destroy the entire ecosystems. Dioxane in shampoo and bubble bath disrupts the endocrine
system and kills insects like bees. These chemicals make up just a few of the known toxic
cosmetics contain.
2. Packaging
“70 Percent of the waste from the beauty industry is from packaging”. Packaging waste is a
major sustainability concern for Watsons, however they are taking some serious steps to reduce
their packaging impacts.
3. Water Management
The beauty industry is a large use of water, in terms of production, processes, as well as finished
products.
4. Air Pollution
Air pollution is another negative impact contributed to by the beauty industry and new research
revealed that perfumes, hairsprays and deodorants pollute the environment as much as car
emissions. The American study, published in the journal Science, found that scented products
emit the same level of chemical vapors as petroleum emissions from cars in the form of ‘volatile
organic compounds’ (VOCs). These interact with other particles in the air to produce harmful
ozone and a type of pollution known as PM2.5, which is very bad news for our lungs.
5. Animal Testing
Most of the products in the beauty industry are first tested on Animals to make sure that they
don’t cause any damage to the human skinner body.
!5
WATSONS TURNING GREEN IN THE NEAR FUTURE
It is true that the Watsons does not develop sustainability in numerous ways but If Watsons
definitely has a green future and can become more earth-friendly. Beauty products can have
some ugly effects on the environment, choking landfills with trash and polluting our waterways.
Thankfully, companies like Watson are stepping up their sustainability game, prioritizing the
responsible sourcing of ingredients, implementing earth-friendly manufacturing processes, and
experimenting with inventive recycling programs.
For example, Watson can follow the few steps taken by L’oreal, which has committed to being
deforestation-free by 2020 and also, Estee Lauder is working closely with the global nonprofit
Roundtable on Sustainable Palm Oil to ensure that their cultivation methods and sourcing have
minimal negative environmental impact.
Turning green in the near future for Watson is no longer a choice but a necessity. Watson is
showing a positive sign as they have also committed to using 100 percent recyclable or
compostable packaging by 2025.
SUSTAINABILITY TRIANGLE
Environment :
Watsons measures the environmental impact generated by their products throughout their entire
life cycle from conception, through production and to the supply chain. To reduce it to the
minimum, Watsons strives to preserve and optimize available resources, minimize emissions and
contain waste production.
Economy :
Watsons dedicate a concrete social commitment, promoting diversity and inclusion, gender
equality, high quality of life and professional growth. Each initiative promoted is measured In
order to be improved over time.
!6
Society :
Watsons is aware of their external social impact, both on local and international communities.
For this reasons, waitrons selects company partners according to social and environmental
criteria and they give life to territorial projects and local incentives with solidarity actions. Their
commitment is transparent, Measurable and aimed at continuous improvement.
Watsons improvement shows that eco efficiency is possible as they also focus on design and
packaging of their products (which is one of the main reason to why a company does not develop
sustainability). Watsons has has replaced the plastic packaged products with a 100% recycled
plastic package, allowing a reduction in the overall impact of the product, resulting in a decrease
of 30% of greenhouse gas emissions, 20% in energy and 40% of water used.
For better sustainability, Watson can make use of Bio-Based Plastic.This is a plastic which
derives from raw materials from renewable sources, such as corn starch, cellulose, glucose and
vegetable oil. Different types exists, recyclable or biodegradable. The Watsons Group can use
non-biodegradable bio based plastics derived from processing sugar cane as it is Eco-friendly
and a better solution to a green environment.
For Watsons, sustainable innovation also implies designing products that are effective while
respecting eco-systems and biodiversity and providing well-being to consumers. In 2011, the
group expanded its efforts in terms of limiting the impact of the ingredients used, selecting raw
materials with a limited environmental footprint, and adopting the principles of green chemistry.
This eco-design approach is applied at all stages of innovation, from Advanced Research to
Development. This centre is where the latest generation of tests is carried out, enabling the safety
and efficacy of ingredients and products to be predicted without using tests on animals. This
represents another milestone in the group’s commitment to promoting responsible beauty.
!7
100
GREEN CHEMISTRY
At Watsons, they operate everyday taking to her the “prosperous longevity” of the company,
through a tangible commitment in favor of our stakeholders, who are :
- Owners
The owners are proud of their company’s tangible and intangible performance, as well
as their sustainability.
- Staff
Working at Watsons is an opportunity for one’s own development.
- Professional Clients
Consider Watsons to be a source of success and satisfaction in their work; we
regard them as a community of travel companions, joined with us to create good
living for the end user.
- End Users
Enjoy a gratifying experience as well as products and services which keep their
promise.
- Distributors
Know they can count on the best and most loyal partner of their company.
!8
- Suppliers
Are treated with fairness and correctness and are protagonists of the increase of
excellence and good living.
- Environment
Benefits from the positive impacts of our business.
- Community
Considers Watsons as an exemplary model of a sustainable company.
Being responsible also means building solid, transparent relations with the group’s suppliers, and
making them more than just commercial connections. This year, thanks to a new guide, the
Purchasing teams have reaffirmed their ethical commitment in their dealings, and proved their
desire to see suppliers as real partners in shared growth.
Being responsible means that Watsons needs to take account of major global issues in terms of
sustainable growth, and raise awareness in the group’s stakeholders every time the opportunity
arises. For Watsons, attentiveness to others and excellence are inseparable, because the group is
convinced that success in its business lines is also due to the way it runs them: with humanity
and community spirit.
SOCIAL SUSTAINABILITY
!9
- Office, store and Supply chain utilities
- Office stationary and waste
- Store Carrier Bags and waste
- Supply chain waste
- Energy- efficient Transport
4) Community
- Donation and fundraising
- Community
- Development
- Volunteering.
In the retail business, waitrons interacts with millions of customer every week, the frontline staff
are critical to the delivery of the best store experiences to their customers. To reward the best
teams and show appreciation for their efforts, Watsons invited one best store team from each
business unit to the Global Best Store Awards to be honored for their outstanding all-round
performance. To motivate teams further, they also attended a series of trainings and fun visits to
their headquarters in Hong Kong, and in so do doing enhanced their understanding of the group.
Watsons is also proud to be a home of 100,000 staff celebrating diversity, and we continue to
ensure a safe, healthy, supportive, and discrimination-free environment for all.
Watsons is also committed to :Creating a safe, healthy and supportive environment for all
employees.
• Ensuring employees at every level receive an appropriate induction so they have the best
possible start in our organization
• Providing ample opportunities to enhance one’s skill, optimize performance and progress
one’s career through on-the-job training and well-de ned career pathways
• Maintaining proper systems to ensure equal opportunities and competitiveness in staff
remuneration and recognition
• Ensuring the company sets clear expectations for individual behavior
• Providing a working environment that is free from all forms of discrimination
CORPORATE PHILANTROPHY
Watsons gives major importance to mankind. Today, Philantrophy includes the concept of
voluntary giving by an individual or group to promote the common good. It focuses on love for
mankind, Promoting the common good, Improving the quality of life for all citizens. Watsons has
always tried to achieve a positive social impact through strategic and generous use of finances,
employee time, facilities, or their own product and services, to help others in the community and
support beneficial causes.
!10
1) GLOBAL ‘SMILE’ CAMPAIGN
Happiness starts with a smile. ASW believes that smiling is a universal language and one of the
most powerful ways we can influence others and spread positivity. With the increasing use of
technology in daily communications around the world, we are seeing less and less human
interaction in every aspect of our lives, be it with family or friends. As the largest international
health & beauty retailer in Asia and Europe, we want to make a difference. We want to delight
our customers with a simple and magical smile.
Operation Smile is Watsons annual medical mission to transform the lives of Filipino children
with cleft lips and palates. The initiative helps children regain confidence and smile by working
with a global team of doctors
and surgeons. Since 2013,
more than a hundred smiles
and lives have been
wonderfully transformed. Last
year, over 50 children ranging
from 6 months to 8 years old
bene ted from fully-subsidized
surgeries. Watsons covered all
treatment expenses and
hundreds of employees
volunteered their time and assistance to make these children feel great.
And while a new batch of children recovered, the previous year’s beneficiaries also returned for
a celebration party. Far from the shy and insecure faces volunteers saw a year before, these kids
returned with smiles glowing with joy and confidence. Operation Smile has been a resounding
success and Watsons will extend the reach of the programme to help many more children.
Watsons global volunteer day has been a core community event for a few consecutive years,
motivating its global operating markets to engage staff and family members in sharing their care
ad love through volunteering. The beneficiary groups includes :
- Children’s in schools, Orphanages and Hospitals
- Elderly
- Underprivileged families
- Patients and healthcare institutions
- The mentally and physically challenged
- Local communities
- Green groups
!11
3) LOVE YOUR LUNGS
Watsons Introduced the LOVE in HER programme to help women combat daily stress and
challenges with healthy lifestyle initiatives. As an extension of this commitment, it is now raising
awareness for female lung cancer prevention. In partnership with Formosa Cancer Foundation,
Watsons carried out several activities to raise funds and educate Taiwanese women about lung
cancer prevention.
To encourage employees to regularly check their lungs, Watsons also offered discounts on
voluntary health screenings. Staff members are encouraged to go on a weekly “Light Meal Day”
to reduce air pollution, while a number of quit smoking incentives have been launched. In a great
show of support, many employees and suppliers also participated in a charity hike for Lung
Cancer Awareness Day.
Watsons recognize that their operations have an environmental impact and hence, Watsons
focused on new steps towards RESPONSIBLE BEAUTY.
Biodegradability
!12
(mascaras, for example). Historically, this systematic miniaturization was initiated by biology,
which can go as far as conducting tests on a single molecule. Watsons approach thus consisted of
extrapolating these concepts to far more physical tests that are closer to the actual usage
properties of cosmetics products.
Water is not only essential for life, it is also a key resource for the industry. With the ever-
growing issue of water scarcity, Watsons has developed an overall approach to address water
efficiency, improve wastewater quality, and provide better accessibility to water in communities.
It is very clear that Watsons can only be successful if all the partners along the supply chain
contribute to the ambition. Educating the Suppliers, subcontractors and material suppliers,
making them identify and report there water footprint, and acting upon these results is a top
priority for Watsons Sustainability Strategy.
CORPORATE GOVERNANCE
Headed by the chairman and executive director of Watsons, the board of directors of the
foundation consists of 12 members. Their main role is to evaluate the initiatives submitted to
determine the general direction of the foundation, to approve the budget and work on the
projects. It meets twice a year.
The team at Watsons foundation together, they define the strategic orientation of the foundation,
which is the submitted for approval to the board of directors. The team works in close
collaboration with its partners on a day-to-day basis to design, implement and measure the
deployment of its actions developed around its programs.
TRAINING
For Watsons, helping every employee to develop professional is both central to driving
performance and a question of responsibility. The group has committed to ensure 100% of
employees will benefit from at least one training session annually by 2020. In 2018, the
proportion grew to 88%. Its online training portal, is integral to accelerating this ambition.
!13
Available in 27 languages, it had more than 54,100 frequent users in 2018. Employees followed
750,000 modules, which represents 185,000 hours of online training. Overall there were more
than 1000s of registrations and 10000+ hours of training were delivered.
CULTURE
Watsons develops and markets a range of outstanding brands in extremely varied distribution
circuits in a great many countries. Supply Chain therefore plays a key part in the group’s
!14
development. Watsons Supply Chain is
integrated and structured around the main
sectors of business.
Sustainable packaging conception is a key stake in Watsons environmental program. For several
years, the group has been training its Packaging and Development, Marketing and Purchasing
teams in the principles of eco-design. This approach is aimed at reducing the weight and volume
of packaging and improving the environmental impact.
!15
OCCUPATIONAL HEALTH AND SAFETY
Watsons initiatives has been giving wildly successful results and the safety performance which
has continuously been improving year after year. Watson believes that the leadership needs to be
visible and safety seen as a core value. To really make an impact it has to be visible in the field
by Speaking to people, let them know whats happening, make safety personal totem and then
deliver on he promises or on actions that we have agreed to. Because, safety is about credibility;
credibility of the management and safety professionals to deliver.
At Watsons, People get to see their line managers taking care of their safety as individuals, with
their concerns and practices, not just talking about equipment. The success comes from making
safety personal; safety is suddenly physically real and becomes a bigger force in the worker’s
mind because my “boss” cares for me.
Risks : No matter how strong a safety culture, any multinational company has to tackle a lot of
different risks in day-to-day operations. Watsons is no different. You can never truly eliminate
the element of risk. However what you need is to ensure that the risks are identified and are
under control, through procedures, risk assessments etc. You also need provide people with the
training and reflexes so that when faced with a risk they identify it and react accordingly to
manage the risk. This is where safety culture and risk intersect. For example, we have to make
sure we have trained people to drive forklift trucks, we need people to pay attention when
walking down stairs or handling cartons of products. Watsons also acknowledges that keeping
employees safe can also pose internal challenges.
At Watsons, the measures taken are :
• Taking every reasonable precaution to maintain a safe and healthy working environment.
• Ensure that they are not putting themselves or others at risk by their actions.
• Ensure that we know what to do if an emergency occurs at our workplace.
• Report immediately to the safety manager to our management all accidents, however minor
as well as any behavior, installations or items likely to compromise the safety of our working
environment.
At the workplace :
1. STAFF HEALTH SCREENING
Watsons considers the well-being of its employees to be of
utmost importance. To ensure that Watsons staff maintain a
healthy lifestyle, an onsite health screening was organized
to offer them a hassle-free way to assess their health.
Healthy on-the-go breakfast was provided at the end of the
session as part of the wellness program.
!16
2. ALL FOR HEALTH
In conjunction with World Health Day,
Watsons Malaysia organized a series of
activities in the head office to promote a
healthy lifestyle among staff. From health tips
and health checks provided by medical
professionals to stress management and a
group Zumba session, the event was well
received by all participants.
!17