Case analysis: Walmart’s Sustainability Strategy
Why Walmart announces sustainability strategy?
There is no need to introduce its background anymore; I think everyone knows the super supermarket leader’s name which is called Walmart. Here is the point that in this case why the CEO of Walmart Scott announced to do the business sustainability strategy in 2005. The sustainability will be the most focused in the 21century when the environment get worse every day. This strategy seems that Walmart will increase its cost and make a great contribution to the world. There is no doubt that the sustainability is quite good for the world environment we live. On the other side, as the Scott said “being a good steward of the environment and
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2. Zero Waste
To reduce the waste of packaging, Walmart try to work with their suppliers to develop solutions to product packaging and developed an online packaging scorecard to gather information and monitor their product packaging. In some extent the saving waste is also making money. Zero waste also means that they can cut down the cost happened.
3. Sustainable Product
Walmart consistently exams the how long the product can work, including the materials which is used in them, the factories or farms where they were made to provide sustainable products. As the world’s largest supermarket retailer, Walmart makes an important impact on the way jewelry goes from individuals to the market. They never stop searching the reform of the retailer. By integrating more sustainable fibers into the clothing and textiles, Walmart is working to provide their customers with both environmentally preferable and fashionable clothing options at the prices which they can afford. Especially for its major products in the supermarket, such as agricultural and seafood, Walmart helps farmers to expand their businesses like cluster farming, mariner reserves, to make more money and reduce the environmental impact of farming. Conclusions
I think every business event happens due to the economic reason so as this case. Walmart announce its sustainability strategy. If the business always keeps the same way to make money, it will never be successful. This innovation
Not only Wal-Mart is saving money for consumers, Wal-Mart creates jobs, improve economic conditions and overall improve the areas in where they operate. Wal-Mart usually open in rural and down trotted areas. A perfect example is Carol Foote. She and her friend Paula Beaulieu started a petition to open a
In terms of labor Wal-Mart ensures that the salaries its pays are typically above minimum wage, with regular semi-annual pay raises. Wal-Mart complies with all labor laws of the United States and has set the standard for many of its competitors. Walmart has also made many triumphs in striving to create zero waste, to operate with 100% renewable energy and sell products that sustain our resources and the environment. Walmart realized the effect the company was having globally which prompted them to continue to work with others to pursue improvements in economic, environmental and social outcomes. Walmart has realized that they can make a difference and work hard to create and be the difference. They have become the most trusted retailer
Perhaps this is giving Walmart a free ride in the media/marketing as being sustainable without any parties doing their due diligence to verify the actual numbers. As Senge explained, perhaps “Walmart is using going green to offset negative press for treatment of its employees” due their recent lawsuit losses and settlements (Senge, 2010, p. 114). Although Walmart should be commended for its sustainability portfolio, I believe the results of their goals need to be looked at from proportional aspect as well as how/where Walmart sources their products.
Wal-mart may be a topic of controversy but they also have a huge effect on the scale of global social responsibility.
Walmart launched a massive business sustainability strategy in October 2005. The initiative strived to reduce the company 's impact on the global environment. In a speech broadcasted to the entire company worldwide, Walmart 's president and CEO Lee Scott pleaded that, "being a good steward of the environment and being profitable are not mutually exclusive. They are one and the same"(pg. 1). He also identified three goals: to be supplied by 100% renewable energy, zero waste and sell products that uphold the environment. It was clear that sustainability in the 21st century was not only for environmental purposes, but also for doing good business.
Wal-Mart now has to rebuild their images, procedures on how they conduct business nationwide and how the use ethical business practices. The New York time article reported, “Wal-Mart announces new ethical and environmental principles complete by 2012”. (Robinson, 2008)
The business reasons for adopting sustainability practices are reducing costs, generating new revenue streams, increasing market share, improving external image, reducing compliance and litigation risks, attracting and retaining labor talent, and attracting capitol. All three of these projects relate to several of these reasons. It is important to consider that Walmart has just recently implemented most of their sustainability projects, there has not been enough time
A. The Wal-Mart China work in co-operation with the government and employees in advancing sustainability. The best practices known by Wal-Mart should be shared with government and employees to reduce carbon footprints. Also Wal-Mart should abide by the regulations of the government pertaining to sustainability and also Wal-Mart should voluntarily adopt best practices which lead to greater sustainability. The employees should be trained for reducing carbon footprints resulting from their actions and should be rewarded to encourage them to continue addressing sustainability issues.
In contrast, many people and organizations have argued that Walmart is not holding true to their original sustainable commitments. According to the Institute for Local Self-Reliance, Walmart's greenhouse gas emissions have continued to grow over the last 10 years, and it’s percentage of renewable energy is inadequate compared to other major corporations. Stacy Mitchell, the author of the report and a senior researcher at the Institute believes that the core issue behind Walmart’s lack of action is that they will not change their unsustainable business model to make sustainable advancements. She says that, "Walmart has a highly unsustainable business model, built on shipping goods long distances, selling mountains of very short-lived products,
Wal-Mart also has a green goal. It claims that their environmental goal is to be supplied 100 percent by renewable energy, to create zero waste and to sell products that sustain our natural resources and the environment(Wal-Mart website 2008).
The company 's culture already is receptive to this type of strategy. They have been expanding their reach in all facets of their business for years. This type of strategy allows for current employees to be promoted by relocating to new stores, have increased roles in the success of new locations, and be a part of a winning organization. Also, because of the societal influence that Wal-Mart has, they can improve the quality of life in the areas of expansion. This is a very important aspect of Wal-Mart as discussed with their scholarship and community donations.
Wal-Mart is a truly global corporation that runs chains of large discount department and warehouse stores across the globe. Wal-Mart is designated by Forbes as the world's 18th largest corporation; Wal-Mart is also the world's biggest private employer in the world, boasting over 2 million employees, making it the world's largest private retailer (Faber, 2012). Wal-Mart emphasizes that its vision is simply saving people money so they can live better, and Wal-Mart leaders have made it their mission to embed this vision in into all aspects of the business. Wal-Mart's business model was developed in a manner that respects customers, shareholders, associates and communities around the world. Its stated philosophy and overall business strategy relies on a simple idea created by founder Sam Walton: offer shoppers lower prices than they can get anywhere else, and it is this basic strategy that has shaped Wal-Mart's culture and driven the company's growth to its position of power within the world market (Walmart Corporate, 2012). Yet Wal-Mart has come under intense criticism for some of their operating practices in regards to their employees and their environmental record. This paper will analyze Wal-Mart's performance over the last couple of years.
Wal-Mart should project a community friendly, environment caring and employee welfare seeking brand image to combat. Emerging threats. Investment in sustainability initiatives like solar energy and recycling could be possible opportunities.
Due to increasing environmental imbalances, it is necessary for firms to achieve competitive advantages in the area of environmental convergence as well. Wal-Mart is putting continuous efforts from a long time for environment sustainability and energy conservation. It also received Aspen Institute Energy and Environment award for Corporate Energy Efficiency in 2009. Here are a few steps that Wal-Mart has taken to encourage environmental sustainability:
Another problem that Wal-Mart faces is one shared by all people. There is a concern for the environmental well-being of the Earth. There is much press about corporations that have violated safe environmental practices. Their “receipt, transportation, handling, identification, recycling, treatment, storage and disposal” of hazardous material has been under scrutiny. Also their greatest associated environmental concern is urban sprawl. They have counteracted these problems by trying to become a greener company. They are working to reduce greenhouse