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Monday, May 5, 2014

Walmart :Future is sustainability

Walmart :Future is sustainability
* Plenty of criticism regarding its treatment of employees, suppliers, and economic impact on communities

1. Relationship with Supplier stockholders

    - 20% improvement in the energy efficiency inside the top 200 factors in. China      by 2012
  - Eliminate defective merchandise from Walmart supply chain.
  - All suppliers must source 95% of their production from factories that receives the highest ratings on environment and social practices.
Note: pressures to achieve these standards will shift more of a cost burden into suppliers.
    - Walmart ranks as China's eighth largest trading partner. (At the expense of US jobs)

2. Employees
  - criticized for its low wages and benefits
  - failing to provide health insurance to more than 60%  of its employees.
    -Many part timers are not eligible
Improved : health benefit package, raised pay tied with performance 

Unions have been discouraged by Sam Walton since it's foundation
- To grow in China, it appeared necessary to accept union. (forced by ACFTU)

3. Work place conditions and Discrimination
  - allergen denying employees lunch break and rest breaks. Which costed $649 million to settle 63 such lawsuits
- granted class section status to a sex discrimination lawsuit. (Plaintiffs claimed that Walmart discriminated against them regard promotions, pay, training, and job assignments.)
- Good received recognition for its good treatment of female workers. (3years)

4. Illegal Immigrants
- Several Walmart contractors’ higher undocumented workers from Mexico, Eastern Europe etc.

5. Sweatshop workers
- 2003 hired an anti-sweatshop expert to expand its global inspection program.

6. Ethical Leadership issues.
- Resignation of a board of director coughing 2005, due to theft of $500,000 in form of Bogus expense, unauthorized gift cards, reimbursement
- the 2nd highest ranking Walmart executive and candidate for CEO = poor leadership, corporate governance, and ethical culture of Wal-Mart

7. Environmental issues
  - EPA has cited Walmart for violating storm water regulation and air quality restrictions. 
- Greatest environment concern = Urban Sprawl
The construction of Walmart can stress a city's infrastructure of roads, parking, and traffic flow.

*SUSTAINABILITY 360
Working on recycling, waste improvement, energy & social impact
- Reduce greenhouse gases by 20% by 2012
- design new prototypes 25-30% more efficient by 2009
- Developing and implementing innovative energy- efficient technology 
-Reduce amount of packaging by 5% by 2013

SUSTAINABILITY LEADERSHIP
-  100% renewable energy
- new stores have "daylighting"
- manage energy consumption by centrally controlling the heating & cooling system.
- sell more green products
- reduction of phosphates (water pollutant) -growth of algae
- get associates involved with Personal Sustainability Project (PSP)
- Walmart Sustainability Live Better Index = measure how ecofriendly products are faring with consumers. Based on states, consumer demand for products.
- 10% of job growth in US will be in "green-collar" by 2032.

* Savings by going green  = cost-effective + secured the goodwill of many environmental conscious consumers.

* IMPROVE ETHICS AND SOCIAL RESPONSIBILITY
  - contributed significantly to disaster management projects eg. Hurricane Katrina
- increased spending on employee health insurance.
- Coughlin Scandal
- Lee Scott,(2008 most Influential person in Business Ethics) recognized as leader in investing in clean energy.
- Reputation of low prices.
- Improving living standard for customers’ worldwide - charitable donations
-Leadership advantage pod affordability.
- Donating to social service program eg.Nassau country.
- Walmart Money card, a reload able visa debit card to help lower income consumers who don't use traditional checking accounts.

* Financial Crisis 2008-2009 May enhanced Walmart reputation.

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