It is competing for the title with six companies from across the globe which have been short-listed by the World Retail Awards 2008.
Woolworths is only one of two retailers to be selected from outside Europe. The other five retailers are C&A Europe in Germany, Carrefour Group in France, Sainsburys and Tesco in the UK, and The Warehouse Group in New Zealand. Last year's winner was UK-based retailer Marks and Spencer.
"Woolworths is delighted to be short-listed. This recognises that our Good Business Journey is a timely and correct strategy," said Woolworths CEO Simon Susman.
He added: "We know that sustainable growth can only be achieved through paying greater attention to the world around us than has been the case in the past. The links between economic growth, transformation, social development, the environment and climate change must create a better world for everyone, and we believe that this is part of our responsibility to the communities in which we trade. Together we can and will make a difference."
The candidates will be reviewed at the World Retail Congress in Barcelona, Spain by a jury of the world's most respected retailers and industry experts, and the winner will be announced in April 2008.
The panel considered retailers which demonstrated an overall strategy and approach towards corporate responsibility that was embedded in their business and its operations.
They sought companies who set new world-class standards of good practice through initiatives that "added ethical value" and represented a long-term commitment in the areas of employment practices, sourcing, environmental policies, fair trade and supply chain.