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(1)Do

you think Walmart is doing enough to become more sustainable? Using examples

from your research on Walmart, evaluate its sustainability activities regarding


employees, society and the environment.
Yes Walmart is doing enough to become more sustainable. As they are striving towards giving a
better life, both attainable and sustainable for people, by selling not only affordable products, but
products that are safe, responsible and more environmentally sustainable. They have something
called as a sustainable index which helps them keep track of their sustainability, which in turn helps
them improve on how the products are made while still maintaining the same prices of the products.
In order to maintain and improve their sustainability, Walmart is reducing food waste, developing
technologies that can increase the production of crops with minimal usage of pesticides and also
placing strategies to stop deforestation as well as strengthening the food supply chain. It has also
started a Global Ethics Office to monitor the ethical practices of the company since 2004. Walmart
is always changing and adjusting at the same time looking for new areas to improve upon due to the
various scandals and lawsuits. (Anon, 2015)
Walmart has always looked to be more sustainable regarding their employees, the society and the
environment. It has created something called as a SVN(sustainable value networks), which helps to
initiate sustainable practices in all parts of its undertakings(Fast Company, 2015). Below are a few
examples and facts to show what Walmart has been doing to be more sustainable in terms of its:
EMPLOYEES

Over 190k employees get promoted to a higher level every year.

Walmart provides its employees with yearly bonus incentives of up to 6%.

Over 29% of their women employees as well as 24% of the people from other nationalities and
cultures have been promoted to store manager in the last 10 years.

Over 35k women and 25k people of other nationalities working at Walmart, have had the
privilege to become management trainee program graduates.

Offers vision insurance to its employees at a reasonable price. And offers health e-cards on a
fortnightly basis for all its Mexican employees.

SOCIETY

In 2010 a foundation called FIGHTING HUNGER TOGETHER was launched, as it is the


signature initiative by Walmart. Since 2010 around $2 billion in cash and around 1.5 billion
pounds in kind was committed by Walmart to fight hunger.

Making healthier food easier to acquire was also one of the commitments by Walmart.

Walmart has helped in enhancing the growth of female entrepreneurs by sourcing from their
small business.

Walmart offers jobs opportunities to discharged U.S veterans and their spouses within their first
year off active duty.

Walmart has been ranked as a leader in terms of disaster relief. As its philanthropic mission is to
help people live better lives.

ENVIORNMENT

Walmart has been highly efficient in terms of reducing the Greenhouse gas for 7 consecutive
years.

Walmarts vision is to bring the world into a state where people don't have to choice between
affordable energy and energy thats good for the society by scaling renewables and accelerating
efficiencies.

It is driving towards a 7 billion kWh of renewable energy by 2020, by using various strategies
that include both on-site and off-site generation.

Walmart strives at reducing costs by reducing its energy consumption using various
technologies.

It has initiated technologies such as low-flow toilets and high efficiency urinals at all its stores
to reduce water wastage.

Walmart is looking to achieve zero waste to landfill by 2025, by diversifying and reducing
waste.

(2) What are the most significant ethical issues Walmart has faced in the past, and what
has the company done to address them?

Walmart is the world's biggest retail company, with an aggregate income of $421.8 billion and a net
income of $16.4 billion in 2011. It is also the world's biggest business, with 2.1 million
representatives worldwide in 2010, excluding labourers employed by its suppliers. In my
perspective, Walmart gives a crystal clear understanding through which we can see a number of
multinational organisations (MNCs) take part in illicit and unscrupulous conduct. They utilise their
bargaining power and business sector control to weight nations to overlook natural corruption and
infringement of national work laws.

ETHICAL ISSUES

Employees discrimination:
In spite of the fact that Walmart is the biggest retail head honcho on the planet, it has been entirely
reprimanded for low wages and employee benefits. Last September, the International Labor Rights
Fund recorded a legal claim against Walmart for damaging workers' rights in other nations, charging
that Walmart denied the lowest pay permitted by law, obliged extra minutes, and rebuffed union
action. (Workplacefairness.org, 2015)
Anti-union stance:
Walmart's anti-union stance stood out as truly newsworthy at the end of the day this year. After
specialists at a Walmart store in Qubec effectively unionised, Walmart declared that it would close
that store, referring to financial reasons. In August, in the meantime Walmart was consenting to
work with Chinese authorities to build up unions for 30,000 store representatives, the retailer
reaffirmed its anti-union stance in North America. Walmart then clarified that its inspiration for
allowing unions in China was to agree to Chinese laws, while the organisation's commentators
contended that the move was not accomplished for the interests of labourers and rather just showed
Walmart's craving to satisfy its trading partner. (AUSTEN, 2015)
Lack of ethical leadership:

The top leaders of the company themselves lacked ethical leadership skills, which in turn affected
the company as a whole. As everything flows from above and everyone looks up to their leaders,
Walmarts leadership was on the wrong track. As in 2005 board vice chair Thomas Coughlin was
fired, because he was caught stealing from the company through miscellaneous expenses.
Bribery:
The CEO of Walmart in Mexico purposely coordinated influences of Mexican authorities to acquire
building grants and other clearances, furthermore distorted records to conceal these instalments.
This act was reported by the lawyer himself who undertook this bribery activity.
(Corpgov.law.harvard.edu, 2015)
Issues with safety:
On November 24, 2012, due to fire at the production line of Tazreen Fashions in Dhaka, 111 people
died and more than 150 individuals were injured, because it lacked sufficient fire safeties. The
manufacturing plant had a long history both of risky working conditions and of making attire for a
considerable lot of the world's biggest retailers. Even though Walmart does not approve of such
working conditions, it still continued to source its products from them. (Business-ethics.com, 2015)

At this moment, Walmart is elucidating the profession pathways for workers, adding more
adaptability to their scheduling framework and training that will quicken the improvement of our
workers inside Walmart.

(3) Assess Walmarts corporate social responsibility using the four- part CSR model. (For
example, is Walmart socially responsible while it has a devastating impact on small
merchants? What about its impact on communities in terms of sprawl, traffic congestion, and
impact on the environment? What responsibility does the company have to these merchants
or to the communities in which it enters?)

Walmarts main focus is to help their 200 million customers to attain a better
lifestyle at the same time help to save their money. It has a huge reputation
when it comes to providing customer satisfaction, this being the main
advantage of Walmart when compared to all the other retailers. Thus when
Walmart enters a new market, its a threat to other small companies, as it offers
good quality products at the same price range or lesser than its competitors,
while making its products easily available to its customers.
Walmart causes numerous environmental and social threats when it enters a
new market, which are a follows :

hilantropical Responsibilities: Be good corporate citizen.

Ethical Responsibilities: Obligaiton to do what is right and fair.

Legal Responsibilities:Obey the law, law is the society's codification of right &wrong.

Economical responsibilities : Be profitable, the foundaiton up which all others rest.

CSR Model

Economical Responsibilities:
Walmart lacks when it comes to being on point with its economical
surroundings, as its profitability does not lead to the well being of the society.
Due to its immense drive in providing customer satisfaction at lower costs,
Walmart leads other small retailers to a state of bankruptcy. According to
corporate social responsibility Walmart should be working towards enhancing
the society as a whole, not only its profitability. Though, it has a responsibility
to return back to its shareholders, Walmart can do it responsibly by taking the
assistance of numerous accomplices, develop as an organisation and return the
benefits earned, to the partners.
Legal Responsibilities:
Walmart has always made sure that it is legally right in every way. Though it
has been through so many scandals but it still stands strong. Negligible
infringements in the labour laws have been reported, but Walmart is good
when we consider the lawful obligations an organisation needs to take.
Ethical Responsibilities:
Walmart has had problems in the past with maintaining a good relationship
with its board of members. When it comes to being ethically responsible
Walmart has always lagged behind. It has violated a lot of ethical laws, in terms
of bribery, worker discrimination etc. Though, Walmart has had a tough time
when it comes to being ethically responsible, it still has taken initiatives to
improve its ethical business conduct by applying and following numerous
strategies and methods. (Walmartethics.com, 2015)
Philanthropic responsibilities:
Walmarts mission is to provide people with a better lifestyle. It has made
all possible improvements and services to impact the society in a positive way.
Walmart gave $1.4 billion in cash and kind globally in the year 2014. These few

philanthropic responsibilities undertaken by the company, has helped to build


its reputation over the years.

(4) According to Mitchell et als (1997) three key relationship attributes (power, legitimacy
and urgency), who are Walmarts key stakeholders? (For example, did Walmart effectively
manage its relationship with these stakeholders? What type of stakeholder relationship did
Walmart tend to have with its stakeholders?)
Stakeholders can be of two types, internal and external stakeholders. The internal stakeholders are
basically within the company namely the employees and the management, while the external
stakeholders are those that are not directly connected to the company but have indirect connections
namely customers and the community. Hence the key partners of Walmart are the representatives,
the administration, the suppliers and the community. Without a doubt, any organisation can fulfil
their essential objectives by great collaboration with the stakeholders as opposed to making clashes
with them.
Employees:
The main reason why Walmart has certain bad relationships with its associates are because

It promised its workers a hike in wages and other benefits but lacked to do so.

Labour discrimination, specially among the part-time employees.

Not agreeing upon unionisation.

Its suppliers violating the labour and safety laws.

Continuing trade relations even after cancelling the treaty.

Gender discrimination.

Community:
Walmart had a few environmental issues when building the second super centre Walmart store at
Champaign-Urbana. Walmart used inappropriate cleaning methods at the development site, while it
had to use the fitting technique. The huge amounts of silt at the development site would flood the
rivers, thus causing erosion which in turn leads to the different areas of water, thereby affecting the
drinking water that is been consumed by the people. In addition, pesticides and manures were left
unattended at the parking area. Creatures, plants and human wellbeing will be influenced because of

the fact that the chemicals are let to flow in the rivers due to rainfall , thus causing environmental
chaos.

Suppliers:
Walmart has different laws imposed on its suppliers, in order to maintain sustainability and provide
utmost customer satisfaction.

Walmart has executed its worldwide mindful souring activity, which records the approaches and
prerequisites for their suppliers to take after.

Its makers must guarantee consistence with laws,regulations, social and ecological models set
by the administration.

Suppliers must enhance vitality proficiency by 20% by 2012.

119 manufacturing plants out of the 200 in china have enhanced their productivity by 5%

deficient stock ought to be dispensed with by the suppliers.

In a year client returns of deficient stock has diminished by pretty nearly 2%.

Suppliers must source 95% of their production from industrial facilities that get the most
noteworthy rating on natural and social practices.

In 2010 93% of Walmart's direct sourcing items originated from plants with high evaluations.

Management:
Walmart had a set of morals about clash of tolerating gifts. Walmart can't get any endowments or
stimulation that will impact their business choice or exchange from any suppliers, potential
suppliers or any individual. In any case, Julie Roehm, Walmart's previous marketing head, before
naming Draft FCB as an office to handle $570 million worth of publicising, Julie has gotten
extravagant endowments and amusement from the organisation. Also, Julie and one of the
organisation's subordinate had a relationship (Anon, 2007). Subsequently, Julie Roehm had ruptured
the organisational ethics.

(5) What does it mean for an organisation like Walmart to be ethical in its communications
and practice? Discuss with relevant examples, and provide a number of recommendations for
the organisation in order for it to be a more ethical company in the future.
Being ethically sound is very important for top companies, as it helps in building their reputation in
the market. Walmart has to recognise its importance for ethical communication and practices since
its one of the top notch companies. As Walmart is one of the retailers today, a lot of lives depend on
it, thus very decision taken by Walmart will effect the society directly or indirectly. This can be
judged by reviewing the measure of exchange, the historical backdrop of individual connections
within the specific organisation, and in addition numerous different elements may figure out if an
activity will be judged as right or wrong by others. The quality and size of Walmart made it acquire
power on suppliers, that small business enterprises are compelled to change and adjust as per it.
Concerning the matter of trustworthiness and past complying with the law, they can not damage
clients, workers, customers, or contenders intentionally using deception, compulsion, or
segregation.
The conduct of work managers towards clients, suppliers, and others in their working environment
might likewise create moral concerns. Moral conduct inside a business includes keeping
organisation privileged insights, meeting commitments and obligations, and staying away from
pressure that may compel others to act dishonestly.
Examples are:

Law suits filed against Walmart claiming that the companys pricing strategy is predatory, thus
putting competitors at loss

Walmart was given a chance by the supreme court to be heard, regarding the issue about
discriminating about 1.5 million female workers

The 3 key factors that affect an organisations ethical decisions are:

Moral standards of individuals

Workers influence

Participation in misconduct

The recommendations are :

Walmart should recognise its moral and ethical issues

Then it has to gather its facts and datas

Later evaluate the actions taken using different perspectives

Using the various options at hand, make the best decision

Once the decision has been made, it should act on that decision

Analyse and reflect on the action and the decision

After the recent controversy of Chalace Epley Lowry, Walmart must be more
cautious on acting ethically, and their policies must be altered to be more
specific.(Gogoi, 2007). Though Walmart brings all its ethical issues to the
Global Ethics Office, it has to be more cautious, as otherwise its reputation as a
market leader can be at stack.
Since Walmart employees are offered low salaries and less benefits, it becomes difficult for the
employees to live an average life. Because of such discriminations, employees are even sometimes
struggling to attain their basic wants. The health benefits which would move the burden onto the
government as the employees would be grouped under the new medicinal services law. As the
employees are enormous, it is basically not practical to give health benefits to every one of them.
Then again, the wages must be expanded decently so that the employees can meet their basic wants
and needs. Walmart can guarantee to offer the most minimal costs yet surpasses the smaller firms,
which should be minimised.

REFERENCES

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Availableat:http://www.workplacefairness.org/reports/goodbadwalmart/wal
mart.php[Accessed25Sep.2015].
AUSTEN,I.(2015).QuebecRulesAgainstWalMartinClosingofUnionizedStore.
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Corpgov.law.harvard.edu,(2015).WalMartBriberyCaseRaisesFundamental
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governanceissues/[Accessed25Sep.2015].
Businessethics.com,(2015).WalmartAcceptedClothingfromBannedBangladesh
Factories|BusinessEthics.[online]Availableat:http://business
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factories/[Accessed25Sep.2015].
Walmartethics.com,(2015).Home|WalmartGlobalEthicsOffice.[online]Availableat:
http://www.walmartethics.com/home.aspx?LangType=1033[Accessed25Sep.2015].
Gogoi,P.(2007).WalMart'sLatestEthicsControversy.[online]Businessweek.com.
Availableat:http://www.bloomberg.com/bw/stories/20070613/walmartslatestethics
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25Sep.2015].

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