LAWS5027 International Trade Law : Activities and Businesses Conducted

1. Identify a multinational company operating in Australia. Provide a brief description of the company including the following 

• The industry the company operates in

• Number of staff in Australia • Number of staff globally

• Location of global headquarters 

2. Identify any regulatory framework/s affecting the multinational company you have identified operating in Australia and discuss why and how it affects the company. For example, multinational corporations, like local companies, are subject to 30 per cent corporate tax 

3. Identify any treaties, conventions or agreements that have impacted on the products or services that multinational company provides in Australia. How does it impact the goods/services? 

Answer:

1. On 5^th December 1924, first store of Woolworth’s was opened in Imperial Arcade of Sydney for conducting business. As per the wording of founding CEO of Woolworths “Every city needs a Woolworths: Sydney has it now. Every man, woman and child needs a handy place where good things are cheap”. That founding CEO does not know that his words become the values of his team after 92 years. Company never has intention to develop any chain for this business but there intention changes after the opening and success of store on Queen Street in Brisbane. Businesses are shutting down at global level during depression, but in case of Woolworth’s business are continuously growing. In 1929, new store was established by Woolworth’s in New Zealand, and company opened almost 16 stores by the year 1930 in New South Wales, Queensland and Western Australia (Woolworth’s n.d.).

Objectives stated by company are clear, and as per the company’s objective customers is first priority over all the brands of the company. For the purpose of achieving this objective, five targets are set by the company and these targets are:

1. For achieving set goal the main aim of the company is to build customers, store-led culture, and efficient teams for working.


Woolworth’s Group try to generate sales in products related to food, but that sale must be sustainable.
For providing convenience and values to the customers, company tries to evolving their drinks business.
Company sets various other businesses and these businesses are known as portfolio business, and these business are handled by management of the company for the purpose of implementation of strategies and also returning the value of amount invested by shareholders.
Company wants to become the retailer of all products by ensuring the development of their system excellence and end-to-end process (Woolworth’s, n.d.).

Retailing sector is the industry in which Woolworth’s conducting its activities and businesses conducted by Woolworth’s are food group, endeavor drinks, and other portfolio businesses. In the portfolio business of Woolworth’s Big W, EziBuy, and Hotels are included (Woolworths, n.d.).

Almost 111000 employees are employed by Woolworth’s in Australia, in their 961 stores across Australia. These employees are employed in the stores of Woolworth’s, distribution centers, and support offices. Such high numbers of employees are working for giving best services and convenience to the customers (Woolworths’s, n.d.).

Almost 190000 team member are employed by the Woolworth’s Group in their 3000 and more stores. These stores are conducted their activities at global level. These team members serve almost 28 million customers every week (Woolworth’s, n.d.).

In Bella Vista, Australia, headquarter of the company was established.

2. Australian government introduces various policies and framework for reducing the emissions and need of these policies are recognized by government almost before 2 decades. These policies and regulatory frameworks stated various provisions for labeling as well as minimum performance. In 2011, legislation was passed by the government of Australia and this legislation was known as a cap-and-trade emissions trading scheme. For the implementation of direct action plan, government introduces this legislation. There are some important provisions which are introduced by this Act and these provisions are Emissions Reduction Fund. This fund is used to purchase emissions reductions through a reverse auction. In Australia, various policy initiatives are introduced by the government for the purpose of reducing emissions. These initiatives set up various policy measures for deal with various concerns of changes occurred in climate, and it also states different new policies proposed by government of Australia (Australian Government, n.d.).

Adaptation is the best way to deal with the changes occurred in climate. In this strategy government take various actions for the purpose of managing the risks generated from the impacts of climate change, and it also protect the communities and strengthen the resilience of the economy. Generally, adaptation means actions used to deal with the impacts of climate change. On the other hand, mitigation refers to by reducing the emissions dealing with the causes of climate change. Adaptation must be considered as responsibility which must be shared, and it is necessary that all levels of government, businesses, and households must play important role. Usually, both at individual level as well as business level are considered as best place to take adaptation decisions which reduce climate risk up to their assets and livelihoods. For the purpose of reducing emissions, government’s investment related to adaptation research is complementary and it must be parallel to the direct action plan.

National Climate Resilience and Adaptation Strategy was introduced by government of Australia on 2^nd December 199, and as per this strategy climate risks are managed by the Australian government for the benefit of community, economic, and environment. This strategy frames the set of principles for the purpose of guiding effective adaptation practice and resilience building, and this strategy also state the future vision of the government (Australian Government, n.d.).

For maintaining the adapting research capacity in Australia, government is committed through its renewed funding of the National Climate Change Adaptation Research Facility. However, this research is beneficial for the local decision makers as it provide various helpful tools and information, especially in the coastal zone.

Australia sets target for reducing the emissions to 26-28% by 2030, and this target represents almost 50-52% reduction in emissions per capita and 64-65% reductions in the economic emission intensity by 2030. Many countries are taking actions on climate change, and they are giving their strong commitments to Paris. It is necessary that all countries work in collaboration for reducing emissions, especially those emitters which are major. 1.3% share of global emissions are contributed by Australia, and target for reduction in case of Australia is fair. Target stated by Australia is similar to the target announced by the United States, the European Union, Canada, New Zealand and Japan (Australian Government, n.d.; Australian Government, n.d.).

Target set by Australia for 2030 is achieved by Direct Action, and target for 2020 set by Australia is meeting through the policies related to direct actions that help in reducing emissions, increase the productivity related to energy, and improve the health of environment and soils. These policies are successful, and Australia uses these policies in meeting the target set for 2030. Australia ensures $2.55 billion fund emissions Reduction Fund and Safeguard Mechanism for meeting their targets. These targets are complemented by the target related to Renewable Energy, improvements for energy efficiency, phasing out very potent synthetic greenhouse gases, and direct support for investment in low emissions technologies and practices (Australian Government, n.d.).

3. Some international agreements and treaties are stated below which directly or indirectly affect the activities conducted by Woolworth’s:

1. United Nations Framework Convention on Climate Change– this agreement was created by the parties of UN in 1992, and this treaty is considered as important treaty in context of climate change, and it is also known as UNFCCC and FCCC. The purpose of introduction of this treaty is to protect the environment from greenhouse gas concentrations, and reach it up to that level so that it will prevent the atmosphere from

The main aim of this treaty is to stabilize the atmosphere from greenhouse gas concentrations at that level so that it will be able to prevent the climate system from dangerous anthropogenic interference. This treaty does not state any limit in case of individual countries for greenhouse gas emissions, and there is no mechanism for enforcing the provisions of this treaty. Therefore, there is no legal obligation on parties for the purpose of this international agreement, but parties are liable to submit report related to national inventories in case of greenhouse gas emissions. There are number of frameworks introduced by this treaty which generates particular treaties at international level, and such particular treaties are known as “protocols”. These protocols stated the binding limits for greenhouse gas emissions, and there are number of protocols introduced by this agreement such as Kyoto Protocol. Kyoto protocol was adopted and signed by parties in 1995, and this protocol set the binding limit for greenhouse gas reduction on developed countries (Carbon Expert, n.d.).

2. Cancum Agreements: Cancum Agreements are those agreements which contain significant set of decisions which are taken by the international community, and these decisions are related to challenges of climate change for long time period. These agreements also include the provisions which state that some serious action must be taken on this issue. Cancum Agreements are adopted in Cancun, Mexico at United Nations Climate Change Conference on 11^thDecember 2010. These agreements not only contain the plans for reducing the greenhouse gas emissions in future but it also states the plans which help out the developing countries against the adverse effects of changes occurred in climate. Following are some objectives of this agreement stated below:

• These agreements stated various objectives which directly or indirectly relates with the reduction of greenhouse gas emissions caused by the activities of human beings from many years, and these goals are created for keeping the average temperature below two degrees at global level.
• All countries are encouraged by these agreements for participating in the goal of reducing these emissions. These countries are encouraged by imposing different responsibilities on them, and these responsibilities are divided as per the capability of these countries.
• Transparency in the operations conducted by countries is ensured by the provisions of these agreements, and these agreements also reviewing their goal on time to time and make necessary amendments in their goals.
• Funds are arranged by the members of these agreements for helping the developing countries, and by these funds these countries achieve the objectives set by the agreements. Funds are provided by both long term as well as short term objectives.
• Agreements get assistance of experts at global level for making the necessary amendments in the objectives and strategies of these agreements.
• The main objectives of these agreements are also included protection of global forests, and it is necessary because forest’s and trees are the most important source of carbon repository. These agreements not only protect forest but it also builds the capacities of developing countries in meeting their challenges.
• These objectives are achieved and for making sure that these objectives are achieved, different effective institutions and systems are established by the parties of the agreement (UNFCCC, n.d.; UN, n.d.).

3. Paris Agreement- 195 countries are agreed to adopt this agreement in December of 2015 at Paris climate conference (COP21). Paris agreements are legally binding on those parties who signed it, and it is recognized as the source which covers the gap between policies framed at present time and neutrality level of climate before the end of the century. Some important factors of this agreement are stated below:

• Mitigation (Reducing Emissions):in Paris agreements all parties of this agreement are agreed to goal which is achievable in long run for raising the average temperature to well below 2°C above pre-industrial levels in global context. They also decided to raise the limit up to 1.5 degree Celsius for the purpose of reducing the risk occurred because of climate change, and lastly parties decide to reduce the emissions with the help of latest technologies.
• Transparency: parties to the agreement decided to gather in every five years for the purpose of stating the targets as per the changes occurred in science, and every party report to other party as well as public on the methods used by them to achieve the targets.
• Adaptation: governments agreed that they take actions to increase the society’s capability for dealing with the changes occurred in climate, and for this purpose developing countries receive public support as well as international support (UNFCCC, n.d.).

Activities conducted by Woolworth’s for environment sustainability are different and for this purpose company develop various unique and new policies and strategies. Through these policies company try to make their supply chains more sustainable and reducing the carbon emissions. For year 2007, various targets are set by the company, and Woolworth’s group try to achieve these targets by 2015 (Woolworth’s, n.d.).

References:

Australian Government. Adapting to climate change. Available at: https://www.environment.gov.au/climate-change/adaptation. Accessed on 26^th April 2017.

Australian Government. Australia’s 2030 climate change target. Available at: https://www.environment.gov.au/system/files/resources/c42c11a8-4df7-4d4f-bf92-4f14735c9baa/files/factsheet-australias-2030-climate-change-target.pdf. Accessed on 26^th April 2017.

Australian Government. Australia’s 2030 climate change target. Available at: https://www.environment.gov.au/climate-change/publications/factsheet-australias-2030-climate-change-target. Accessed on 26^th April 2017.

Australian Government. Chapter 5 Australia’s action on climate change. Available at: https://climatechangeauthority.gov.au/reviews/targets-and-progress-review/part-b. Accessed on 26^th April 2017.

Carbon expert. International Climate Change Legislation. Available at: https://carbonexpert.ro/en/co2-emissions/climate-change-international-treaties/. Accessed on 26^th April 2017.

2017. UN and Climate Change. Available at: https://www.un.org/climatechange/towards-a-climate-agreement/. Accessed on 26^thApril 2017.

UNFCCC. Paris Agreement - Status of Ratification. Available at: https://unfccc.int/2860.php. Accessed on 26^th April 2017.

UNFCCC. The Cancun Agreements. Available at: https://unfccc.int/cancun/cancun-agreements/main-objectives-of-the-agreements/index.html#c33. Accessed on 26^th April 2017.

Woolworth’s Group. Environment and sustainability. Available at: https://www.woolworthsgroup.com.au/page/community-and-responsibility/group-responsibility/environment/. Accessed on 26^th April 2017.

Woolworth’s Group. How we do business. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-approach/how-we-do-business/. Accessed on 26^th April 2017.

Woolworth’s Group. Our History. Available at: https://www.woolworthsgroup.com.au/page/about-us/The_Woolworths_Story/How_We_Were_Founded/. Accessed on 26^th April 2017.

Woolworth’s Group. Strategy and objectives. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives/. Accessed on 26^th April 2017.

Woolworth’s Group. Woolworths Food Group. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/. Accessed on 26^th April 2017.

Woolworth’s Group. Woolworths Supermarkets. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/Woolworths. Accessed on 26^th April 2017.