Expert answer:Case study question
Expert answer:Write a 2-4 paragraph response regarding the question below using the articles attachedread pp. 68-71 in Wal-Mart’s 2014 Global Responsibility Report. Address this question – What do you think Wal-Mart’s motives were when they launched this program in 2011? Now, reference the 2016 GRR, as described is Wal-Mart it still accomplishing the goals they set out to do and are WalMart’s motivations the same?
walmart_2014_global_responsibility_report.pdf
2016_walmart_global_responsibility_report.pdf
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So many opportunities to
make a
difference
2014 Glob
al Respon
sibility Re
port
About this report
Content materiality
Currency exchange
The scope and boundaries of the 2014 Walmart
Global Responsibility Report encompass our
corporate efforts related to workplace,
compliance and sourcing, social and
environmental responsibility, while also
providing snapshots into each of our individual
markets around the globe. The report reviews
our progress and performance during FY2014,
reflects areas where we’ve achieved tremendous
positive results and specifies areas of opportunity
we continue to focus on. The social and
environmental indicators were obtained by
internal survey and checks without the
participation of external auditing. The reporting
timeline covers the period of Feb. 1, 2013–
Jan. 31, 2014, and builds on our last report,
issued April 2013. Unless otherwise noted, all
currency is in U.S. dollars.
In addition to tracking media activity and
customer feedback, we engage with internal
and external stakeholders, including government
and NGOs, to define the content included in
this report. We incorporate this input prior to
and during editorial development to ensure
continuous dialogue, relevancy and transparency.
For example, this engagement resulted in the
expansion and positioning of our Workplace
section, influenced our decision to turn
Compliance and Sourcing into its own section,
and to detail our commitment and progress
related to water stewardship.
Foreign currency conversions have been made
using the average exchange rate from
Feb. 1, 2013–Jan. 31, 2014. As a global company,
we highlight the performance of our global
markets, as well as the efforts taking place
throughout our supply chain.
Workplace
18
22 Celebrating a decade of
diversity and inclusion
26
Meeting the needs of our associates
26 Benefits and compensation
29 Associate engagement
30
Committed to ethics and integrity
Social
Compliance
and sourcing
40
Compliance
62
64 Food
64 Hunger relief
66 Healthier foods
40 Compliance program
44 Labor and employment
46
Safety
46
47
47
48
Building for the future
30 Recruiting
32 Talent development
36
38
50
Empowerment
Supply chain capacity building
Worker safety and well-being
Audits
Transparency
Global audit results
Collaboration
Opportunity
68 Women’s economic
empowerment
72 Supplier diversity
73 Veterans
74 U.S. manufacturing
Food safety
Product safety
Environmental compliance
Health and safety
Responsible sourcing
52
53
54
55
56
58
60
68
76
Community
76 Disaster relief
78 Associate volunteerism
79 Local communities
Executive summary
80
Environment
2
3
6
14
15
16
17
Message from Doug McMillon
A conversation with Doug McMillon and Kathleen McLaughlin
The Walmart way
Stakeholder engagement
Political engagement
Governance
Public Policy
Local markets
108
82
166
Our progress
Sustainability 360
83 Sustainable Value Networks
84
Greenhouse gas
86 Energy and facilities
88
91
93
94
96
98
100
110 Our company
166
112
Local markets – International
167 Commitments and progress
112
116
120
124
128
132
136
140
144
148
152
174 Global Reporting Initiative index
Renewable energy
Energy efficiency
Refrigerants
Water
Fleet
Waste
Products
101
102
104
105
106
Sustainability Index
Sustainable food
Consumables
Packaging and materials
General merchandise
Africa
Argentina
Brazil
Canada
Central America
Chile
China
India
Japan
Mexico
United Kingdom
156
Walmart – U.S.
162
Sam’s Club – U.S.
Giving
Message from Doug McMillon
About ten years ago, I asked my sons at dinner: “Do you think Walmart should be working on protecting
the environment?” They were about six and eight at the time. I hardly had the words out of my mouth
when my youngest answered: “Duh, dad.”
It had only taken him a few seconds to reach the right conclusion. Most of us took a little longer.
My version of Walmart’s Global Responsibility story is that we had a legacy of serving certain
stakeholders really well. We served customers well. We served associates well. And it was our belief
that if we took care of those groups then the rest would fall into place.
But slowly, with the help of some very smart advisors, we realized we weren’t
doing enough. We started asking ourselves: What if we needed to change?
What if we started listening to NGOs and even our critics more closely? And
what if we simply recommitted ourselves to making our company even better?
We went through a significant change in our perspective.
At first, there were some awkward conversations – frank meetings with folks we
had never met with before. But what came out of those conversations was
exhilarating. In fact, some of our critics then are some of our best advisors now.
We’re in a much different place today. We have seen over and over how this
work benefits the environment and our business – whether it’s running our truck fleet more efficiently
or putting more innovative products on our shelves. We have seen we can make a difference for the
environment on energy and on waste, and we’re now really leaning into our work on our supply chain.
Our questions today are about how we can move faster and tackle more big challenges in three core
areas: sustainability, opportunity and local communities. I’m excited to lead Walmart as we write this
next chapter. There are so many ways Walmart can make a difference, and we will.
I share with you all of this history because I want you to know how personally we take what you’ll read
in these pages. We care deeply about the people who are touched by our business, and we want to do
right by them. We’re the world’s largest retailer, but we’re also moms and dads, and we have sons and
daughters who will need this planet long after we will.
And we need your help. We publish this report as part of our commitment to building trust with you
through transparency. We ask in return that you keep engaging with us, keep critiquing us and keep
challenging us. Keep telling us what we can do better – and help us get there.
Doug McMillon
President and Chief Executive Officer – Wal-Mart Stores, Inc.
2 | Walmart 2014 Global Responsibility Report
Walmart 2014 Global Responsibility Report
A conversation with
Doug McMillon, President and Chief Executive Officer
Kathleen McLaughlin, Senior Vice President, Corporate Affairs, and President, Walmart Foundation
Q: As more people around the world aspire to a higher standard of living,
can Walmart’s business model ever be called “sustainable”?
Doug: People everywhere want a better quality of life, and it’s our mission to help them achieve it. We don’t think
Walmart or anyone else should tell those aspiring to join the middle class that they can’t have a refrigerator or a
cell phone or any of the other things we take for granted in some parts of the world.
But we do want the products we sell to be not only affordable, but safe, responsibly made or grown, and more
environmentally sustainable. No one should have to choose between products they can afford and products that are
good for the planet. That’s why the Sustainability Index matters so much. By improving how products are made and still
selling them at Walmart prices, we can make a better life both attainable and sustainable for people around the world.
Q: What’s the biggest lesson you’ve learned during your first year at Walmart?
Kathleen: I have learned that good intentions, high aspirations, passion and tenacity can help people break through
even the toughest challenges. I joined Walmart for two reasons. First, I believe in the core mission of providing
affordable food, apparel and other goods to people around the world. Second, the merchants and field operations
teams in this company work hard every day to carry out that mission in a way that is sustainable, creates economic
opportunity for Walmart associates and people all along our supply chain, and strengthens the communities where we
live and work. I wish others could sit in on the leadership meetings, working sessions and team huddles that take place
here and see that in action.
Q: The recent tragedies in apparel factories in Bangladesh raised questions about
the responsibilities of retailers for their supply chains. What is your view?
Doug: Our hearts go out to the families of those affected by those tragedies. The safety record of Bangladeshi factories
is very troubling, and we are doing something about it. In addition to our own safety audits, the Alliance for Bangladesh
Worker Safety that we announced last July with other retailers and suppliers is providing a results-oriented, measurable
and verifiable way to dramatically improve factory safety conditions. And because transparency is an effective way of
driving accountability in Bangladesh, we have made the results of more than 200 Bangladesh factory safety assessments
publicly available as of March 2014.
Our customers want products that are safe, well-made and produced by people treated with dignity and fairness – and
we will use our leverage to move toward higher standards. We should be able to shine a light on any part of our supply
chain and be proud of what we find. That is our goal, and it’s one worth having.
3
2 Executive summary
|
19 Workplace
|
38 Compliance and sourcing
|
62 Social
|
80 Environment
|
108 Local markets
|
166 Our progress
Q: You recently announced you were removing certain legal chemicals from
the products you sell. Is it the role of business to act when government
can’t or won’t?
Kathleen: At Walmart, we take our direction from our customers. They told us they want to be even more confident in
the products they bring home to their families. So we worked with The Sustainability Consortium, the EPA and NGO
partners like the Environmental Defense Fund to develop our sustainable chemicals policy, which works to reduce or
eliminate certain chemicals for which we believe there are more sustainable alternatives.
Now we are working closely with our suppliers to bring enhanced transparency to the ingredients in products and to
transition to better options where appropriate. We’ll report our progress publicly in the next two years.
Q: What are you doing to strengthen your compliance programs?
Doug: In all parts of the world, we’ve found that our people want to do what’s right, and we’re continuing to give them
the tools to do so – especially as we operate across so many complex and varied markets. I credit our previous CEO,
Mike Duke, with launching and investing in a series of significant initiatives to further strengthen our formal compliance
programs, including increased staffing, training and monitoring to help ensure we’re doing the right thing.
Q: You’ve made a lot of progress on big issues, but there is still concern
about your own jobs and wages. What is your reaction to those critics?
Doug: You know, I started out in an entry-level position with this company. Most of us start out in entry-level jobs
somewhere. This is a company that will take you in for your first job, even if you don’t have a lot of skills, and provide
you opportunities to build those skills and advance in your career. In the U.S., for example, 75 percent of our store
management teams started as hourly associates, and we promote about 190,000 people each year. We also offer
bonus opportunities, health care benefits, a 401(k) plan, and a discount on merchandise to our eligible store associates.
But we learn from our critics, and we’re always working to make our jobs better. Right now, we’re clarifying the career
pathways for associates, adding more flexibility to our scheduling system and piloting training that will accelerate the
development of our associates within Walmart. I’ve seen so many associates grow and develop at Walmart – in fact, it’s
my favorite part of my job, and I’m excited about what we can do for them and for retail employment in our markets.
4 | Walmart 2014 Global Responsibility Report
Walmart 2014 Global Responsibility Report
the challenge…
accelerate the pace of innovation through sustainability
Q: Last year you announced new plans for renewable energy and energy
efficiency, but you’re still a long way from 100 percent renewable energy,
your longer-term goal. Are you really leading?
Kathleen: When our energy team started on our 100 percent goal in 2005, we were in uncharted territory. Today, we
have more than 300 renewable energy projects underway around the world, and we are rapidly scaling this work. In
Mexico, for example, we’ll go from two stores powered by renewables in 2010 to more than 1,200 stores this year. Between
our own new projects and the renewables we get from the grid, we will be getting 24 percent of our electricity needs
worldwide from renewables. What’s more, our renewable energy meets or beats market prices from traditional sources.
We hope our commitment to renewables will encourage innovation and new market entries into the sector, which will
help us accelerate our sourcing of renewables while maintaining everyday low cost. There are many markets where
regulatory or market hurdles make it challenging for Walmart to drive change. In those places, we are actively working
with NGOs to overcome these.
At the same time, we are reducing our energy consumption per square foot every year, which could reduce our energy
bill by an estimated $1 billion by 2020. We will achieve our goal of being powered 100 percent by renewable energy
when these two curves – declining energy intensity and rising renewables sourcing – intersect.
Q: Are you comfortable with the pace of progress the world is making
on sustainability? Is change happening quickly enough?
Kathleen: No. Take food, for example. Already, our forests, oceans, waterways and prairies are under pressure. In the
next 40 years, the world population will grow to 9 billion. How will the world produce enough safe, affordable and
nutritious food, in a way that is environmentally and socially sustainable? We are working hard on this problem with
suppliers, NGOs and other partners by pursuing innovation along the entire food chain, from farms and oceans to our
customers’ kitchens. For example, we are reducing food waste, developing and piloting technologies that can enhance
crop yields while reducing fertilizer and pesticide usage, experimenting with new business models and collaborations
with farmers and fisheries, and putting in place policies to prevent deforestation and preserve fish stocks. Increasing
the resilience of the food supply chain – from the farm to the shelf – is right for our business, our customers and future
generations, and you can expect us to move faster here.
Q: What’s next for Walmart?
Doug: My hope is that this will be a year of innovation for our customers, driven by our global responsibility efforts.
When I was raised as a merchant, we focused on basics like price leadership, in-stock and strong inventory management.
But it wasn’t until we started to step back and look at the whole system – from the raw material to the supplier to how
the people involved were treated to the waste that was created – that we really started unlocking innovation in a
different way.
It was another key perspective change for us. What I challenge all of us to do today, especially around the supply chain,
is to figure out how to accelerate the pace of innovation by looking through a sustainable lens. That will result in not
only a better planet tomorrow but more inspiring merchandise for our customers today.
5
2 Executive summary
|
19 Workplace
|
38 Compliance and sourcing
|
62 Social
|
80 Environment
|
108 Local markets
|
166 Our progress
The Walmart way:
Where we started
When Sam Walton founded Walmart in 1962, his
mission was to save people money so they could
live better. That mission, in and of itself, creates
tremendous social good. With every one of us
working together – from associates and our
global supply chain, to the very customers and
communities we serve – we accomplished even
more. We drove innovation and reinvented how
the world moves products, from the point of
production into the hands of the people who
use them every day.
6 | Walmart 2014 Global Responsibility Report
Walmart 2014 Global Responsibility Report
7
Continuing to evolve
A new opportunity
emerges
Then, Hurricane Katrina hit. As we mobilized
to provide meals, supplies and cash to support
recovery efforts, our eyes were opened to an
even broader opportunity to make a difference.
We recognized the significance of emergency
preparedness at the local level and how our
experience and expertise in global logistics could
be utilized to provide fast and efficient relief in the
wake of disaster. We asked ourselves, “What if we
used our size and resources to make this country –
and this planet – an even better place for all of us?
And what if we could do that and build a stronger
business at the same time?”
An agenda for the future
We reflected on our heritage of reinvention, our
success, scale and resources and established a bold
vision of what leadership meant for Walmart in the
21st century. Many of the issues our customers and
communities care about most – hunger, access to
healthier food, environmental sustainability, career
opportunity and women’s economic empowerment –
are the same ones where we can make a positive
difference. So Walmart and the Walmart Foundation
have undertaken several ambitious initiatives. Our
executive leadership has set the tone and – in true
Walmart fashion – our associates continue to work
together to embed it in our day-to-day business,
our culture and the collaborations we forge.
2 Executive summary
|
19 Workplace
|
38 Compliance and sourcing
|
62 Social
|
80 Environment
|
108 Local markets
|
166 Our progress
The Walmart way:
The Walmart way = Sustainable Value Networks + Special
To tackle environmental and social issues, we’ve created Sustainable
Value Networks (SVNs), which are global networks of Walmart merchants,
operators and finance leaders. For example, we’ve set up SVNs in food
and agriculture, softlines, general merchandise, consumables, energy and
facilities, transportation, waste and women’s economic empowerment,
among others. SVNs draw on Walmart experience as well as expertise from
suppliers, academia, governments and NGOs to set aspirations and define
initiatives across our markets and product value chains. Example initiatives
include fleet efficiency, chemicals, sustainable seafood, factory energy
efficiency, factory safety, sourcing from women-owned businesses and
product reformulations across our Great Value™ private-label brand and
many national brands.
8 | Walmart 2014 Global Responsibility Report
Walmart 2014 Global Responsibility Report
How we do it
Walmart makes a difference in the
lives of people all over the world
every day.
teams + The Walmart Foundation
Special teams and functions such as food safety,
responsible sourcing, energy, women’s economic
empowerment and product sustainability support
the initiatives launched by the SVNs. These teams
work closely with Walmart associates to develop
solutions and embed them in our day-to-day
operations. For example, our Global Women’s
Economic Empowerment team has developed
a Supplier Academy to remove unique barriers
faced by women-owned businesses in preparing
to become Walmart suppliers. And what gets
measured gets done, so we’ve implemented tools
like the Sustainability Index to measure our progress
and hold merchants and operators accountable
for progress.
While the company naturally takes the lead on
internally powered initiatives such as fleet efficiency,
the Walmart Foundation pursues philanthropic
initiatives that extend beyond Walmart’s operational
sphere of influence. The Foundation can draw on
Walmart� …
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