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 States in order to increase its visibility and enhance
its public image.
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
 No legislation
Analysis P requiring CSR

Cheap prices, good Increasing HH Increasing PR presence

S

quality
Low operating cost
International
expansion
E
disposable income in
UK and USA
Increase in drive for
O to increase awareness

sustainability
Existing CSR practices
Competition

T
No advertising Growing demand for

W

Low market share
Ambience S
packaged food and
beverages
Increase in popularity
of social responsibility

Online shopping

T
market is increasing
Self check out in most
retail grocery stores
Value Chain Analysis
Aldis value creating activities

Low product cost Good quality Location strategy Existing CSR

Differentiation opportunities for improving customer value

Lower costs Increase quality Expand locations Increase

awareness
Sustainable differentiation and added customer value

Decreases profits Increases costs Increases cost and Fixed annual cost
investments
Lower product Higher quality Ease of Sustainability
cost product accessibility exposure
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
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)
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
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
Workers
Employee Satisfaction
Ex: Based on the results of your Year 2014
employee satisfaction assessment % of employees
(conducted within the past two fiscal whoagreed or fully
years), what percent of your employees agreed with statement: 80.25
are satisfied or engaged? "In general, Aldi is an
excellent employer"
High employee satifaction is part of Aldis
culture
Community
Women in Management Positions
Ex: What % of management is from Year 2015
underrepresented populations? (includes Share of female employees in
women, minorities, people with the total number of 65.91
disabilities) employees in %
Share of female employees in
the total number of
Over half of total employees are female
employees in management 39.21
There is room for improvement in positions (store management
management representation and above) in %
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
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 companys reputation
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
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 Americas 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 Aldis 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