Woolworths may have acted legally, but that doesn’t make it right

 In Australia, NewZealand, Woolworths
There’s a big difference between something being legal and being morally right. That’s demonstrated by Woolworths’ win in the Federal Court against the Australian Competition and Consumer Commission over the retail giant retrospectively squeezing suppliers to make up for its profit shortfall.
It turns out that, under existing Australian competition law, Woolworths did nothing illegal by telling suppliers to cough up extra cash because, in Woolworths’ opinion, the suppliers had been doing all right and Woolies needed the money to meet its failing profit forecasts.
Despite Thursday’s legal win, Woolworths as good as admitted the difference between legal and moral at its annual general meeting last month. Chairman Gordon Cairns defended his company’s decision to fight the ACCC while effectively acknowledging its treatment of suppliers had not been right. Sydney Morning Herald – Read more…

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