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Wal-Mart Sustainability
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10/16/2011
Channin Campbell
Campbell
Wal-Mart launched its sustainability efforts in 2005, using an approach
they call “Sustainability 360.” This approach aids the company in taking a
more comprehensive view of the business and engaging more than 100,000
suppliers, more than 2 million associates and millions of customers around the
world in their sustainability efforts. However, to really maximize the
sustainability efforts of Wal-Mart, there are certain codes that can be taken
from The Sustainability Handbook that could improve their commitment across
the board. This paper will explore what codes Wal-Mart should consider, what
they are already practicing within those codes, and on what they could stand to
improve.
Wal-Mart could definitely benefit from some general sustainability codes,
more specifically, codes using the Earth Charter as its basis. The mission of
the Earth Charter Initiative is to promote the transition to sustainable ways of
living and a global society founded on a shared ethical framework that includes
respect and care for the community of life, ecological integrity, universal
human rights, respect for diversity, economic justice, democracy, and a culture
of peace.
Part of Wal-Mart’s commitment to sustainability includes their “Helping
People Live Better” initiative through which Wal-Mart and its domestic and
international foundations donate hundreds of millions of dollars to create
opportunities for people to live better in the communities our business touches
around the world. By helping these communities and the people who live there,
Wal-Mart is keeping its promise to being a good neighbor. The company awards
grants to organizations whose programs address needs that vary from hunger
to educational access. In total around the globe, Wal-Mart, its Foundations, its
customers and associates supported communities with more than $624 million
in charitable contributions during FYE10. While this program is a great start to
sustainability, focusing on the “respect and care for the community of life” and
the “social and economic justice” aspect of the Earth Charter, Wal-Mart must
also take it a few steps further by being committed to “democracy, nonviolence,
and peace” aspect of the charter. This principle states that “everyone should
have the right to receive timely information about environmental matters and
help development plans that may affect them.” Wal-Mart should take on the
duty of the educating the general public on how to begin and maintain a
sustainable way of life. This education should be a part of Wal-Mart’s corporate
culture, just as much as the donating of funds is part of the culture. Wal-Mart
is a global company with great clout and power – with that power comes great
responsibility.
Campbell
Wal-Mart is no stranger to environmental sustainability. In 2009, the
company started using the U.S. EPA Food Waste
Hierarchy to guide our efforts for identifying
solutions for excess food at stores and clubs. Today,
the majority of the excess food is donated to the
Feeding America program. Feeding America
manages incoming food and delivers it to food
banks in every state throughout the U.S., making it
a great partner for Wal-Mart. In 2009, the company
donated more than 127 million pounds of food to
the program, which was distributed to families in need across the nation.
In addition to their food donation efforts, Wal-Mart continued to improve
its recycling and waste redirection efforts. From February 2009 through
January 2010, Wal-Mart redirected more than 64 percent of the waste
generated by stores and Sam’s Club facilities. In 2009 alone, they recycled
more than 1.3 million pounds of aluminum, 120 million pounds of plastics,
11.6 million pounds of mixed paper and 4.6 billion pounds of cardboard. They
have also worked to make paper practices more sustainable by reducing the
number of store reports that are automatically printed. On an annual basis,
Wal-Mart expects that this will eliminate the printing of 350 million pages and
create savings of $20 million.
While Wal-Mart does has taken great strides in being a leader for the
environmental sustainability race, as I peruse their Sustainability report, I see
nothing about their commitment to chemical production or reduction. As large
as Wal-Mart is, it is only safe to assume that some chemicals are being
produced by the company or its suppliers. It is to Wal-Mart’s advantage to
boost the company with more environmental codes, such as the Responsible
Care Global Charter. The charter calls for the continuous improvement in
health, safety and environmental performance, together with open and
transparent communication with stakeholders. It also embraces the
development and application of sustainable chemistry, helping the industry
contribute to sustainable development while allowing it to meet the world’s
growing need for essential chemicals and the products those chemicals make
possible. Wal-Mart has a responsibility to implement initiatives pertaining to
their chemical output, the output of their suppliers, and to also compile this
data and report it to their stakeholders, which include the general public.
With over two million employees worldwide, Wal-Mart has faced a torrent
of lawsuits and issues with regards to its workforce. These issues involve low
Campbell
wages, poor working conditions, inadequate health care, as well as issues
involving the company's strong anti-union policies. Critics point to Wal-Mart’s
high turnover rate as evidence of an unhappy workforce, although other factors
may be involved. Approximately 70% of its employees leave within the first
year. Wal-Mart has also faced accusations involving poor working conditions of
its employees. For example, a 2005 class action lawsuit in Missouri asserted
approximately 160,000 to 200,000 people who were forced to work off-theclock, were denied overtime pay, or were not allowed to take rest and lunch
breaks. Additionally, in January 2004, The New York Times reported on an
internal Wal-Mart audit conducted in July 2000, which examined one week's
time-clock records for roughly 25,000 employees. According to the Times, the
audit, "pointed to extensive violations of child-labor laws and state regulations
requiring time for breaks and meals," including 1,371 instances of minors
working too late, during school hours, or for too many hours in a day. There
were 60,767 missed breaks and 15,705 lost meal times.
Facing those issues as well as others, it is clear that Wal-Mart should
adopt more sound human rights, labor, and social codes. It would be beneficial
to employ codes based upon Amnesty International’s Human Rights Principles
for Companies. Wal-Mart should make an explicit policy concerning its
employees, the benefits, what is expected of them, and what they should be
looking to gain from the company. As the number two employer in the United
States, they have a benchmark standard of employee relations to uphold. While
settling their employee issues out of immediate view of the public might
appease them, consumers are not quick to forget how people are being treated
and this could translate into lost sales, and even loss of stock value. Wal-Mart
must be very careful if it intends to stay at the top of its game.
The Wal-Mart culture is driven by a common purpose – saving people
money so they can live better. It is how they run the business and treat their
customers, communities and each other. It helps them establish priorities and
guides the decisions they make in daily work life. Woven into every facet of
business, the Wal-Mart culture ensures that they get the right results the right
way. It makes them special and sets them apart from the competition. It
appeals to people everywhere, in cultures around the world.
Campbell
Bibliography
Blackburn, W. R. (2007). The sustainability handbook: the complete
management guide to achieving social, economic, and environmental
responsibility. Washington, D.C.:
Greenhouse, S. (2004, January 13). Us: in-house audit says wal-mart violated
labor laws . The New York Times. Retrieved from
http://www.corpwatch.org/article.php?id=9649
ICAA. (n.d.). Responsible care initiative. Retrieved from http://www.iccachem.org/en/Home/Responsible-care/
PBS. (n.d.). Store wars: when wal-mart comes to town. Retrieved from
http://www.pbs.org/itvs/storewars/stores3.html
Staff Writer. (2005, November 02). Wal-mart to face employee suit in
missouri. USA Today. Retrieved from
http://www.usatoday.com/money/companies/management/2005-1102-walmart-employees_x.htm
WalMart. (n.d.) Sustainability Report 2010. Retrieved from
http://walmartstores.com/sites/sustainabilityreport/2010/