Question

Select a major brand that has been featured in the news for its sustainability efforts and explore its practices more broadly and deeply via Internet searches.  

1. What claims does the company make about social and environmental responsibility?
2. What evidence does it offer to back up its claims?
3. What do watchdog agencies have to say about company practices?
4. Does the company appear to operate from a culture of sustainability?

Answer 1

Select a major brand that has been featured in the news for its sustainability efforts and explores its practices more broadly and deeply via Internet searches.

Since its inception Walmart has been reportedly raising its standards of working and their sustained efforts of improvement. Wal-Mart was launched in 1962 by retailer Sam Walton, who then owned a small franchised variety store. The journey started from opening the first Walmart discounted city store and within the first 5 years, the company expanded to 24 stores and today the scenario is they are having 11,348 stores worldwide.

In Feb. 2019, Walmart Announces New Plastic Packaging Waste Reduction Commitments; they Introduce Increased Rewards and Protected PTO for Associates Nationwide. Also, The Board of Directors of Walmart Inc. (NYSE: WMT) approved an annual cash dividend for the fiscal year 2020 of $2.12 per share, an increase of approximately two percent from the $2.08 per share paid for the last fiscal year.

1. What claims does the company make about social and environmental responsibility?

As per the Walmart sustainability report “Walmart’s approach accelerates towards three aspirational goals: to create zero waste, operate with 100% renewable energy and sell products that sustain resources and the environment. “

Walmart Invested $2 million in renewable innovation their first core environmental goal is to be supplied 100 percent by renewable energy. In August 2011 Walmart took concrete steps towards achieving the goal – by investing $2 million in two separate projects to test the viability of solar power and wind energy.

2. What evidence does it offer to back up its claims?

Walton changed the face of retail through his commitment to managing the purpose and execution of the business. The brand promise would be worthless if they promise low prices and provides a poor execution of the business activities. The potential market would have been lost. Wal-Mart leads the pack because of its focus and commitment to its purpose and its ability to execute its competition in line with that purpose.

Wal-Mart’s Execution

Every action Wal-Mart takes — at every level of the organization — supports the retailer’s purpose. To sell its products for a lower cost, Wal-Mart tries to keeping its costs down. Stores resemble warehouses, outfitted with only what is needed to hold and sell products. Extra trimmings are simply not part of Wal-Mart’s formula.

3. What do watchdog agencies have to say about company practices?

• (i) Walmart's acquisition of Flipkart in USD 16 billion, fair trade watchdog CCI (Competition commission of India) has opined the complaints about the deal violating FDI rules "may merit policy intervention" but do not fall under its ambit. The Competition Commission also observed that the complaint about Flipkart's discounting practice is not specific to this merger deal. Also, more than 100 trader organizations opposed the deal stating it will cause "irreversible damage" too small traders and endanger jobs for thousands.
  (ii) Ad group Truth in Advertising (TINA) has alerted the Federal Trade Commission of "deceptive" "Made in the USA" claims on Wal-Mart's website.
• TINA says its investigation of items available on Walmart.com found more than 100 products mislabeled "Made in the USA." According to the group, these products are either manufactured outside the country, made of imported parts and assembled in the U.S., or have conflicting origin information on the webpage.
• Wal-Mart dropped all "Made in USA" logos from its website following an FTC probe into its manufacturing claims. Since then the retailer has redesigned the logo, according to the FTC, detailing how much of a product was made domestically and how much was manufactured overseas.

4. Does the company appear to operate from a culture of sustainability?

Mr. Sam's Legacy

Sam Walton legacy lives on To this day. Walmart remains a leader in the retail industry since the day of its inspection. He believed that Walmart is committed not just to expanding the business, but also to improving the communities they serve through their efforts to constantly improve what they do and how they do it.

In 1970 Walmart becomes a publicly traded company. The first stock is sold at $16.50 per share.

In 1972 Walmart is listed on the New York Stock Exchange (WMT). With 51 stores, Walmart records sales of $78 million.

1993 Walmart celebrates its first $1 billion sales week.

2002 For the first time, Walmart tops the Fortune 500 ranking of America's largest companies. Walmart enters the Japanese market through its investment in Seiyu.

Present

Leading the Future of Retail. Walmart continues to pave the way in retail innovation, benefiting customers and associates alike by leveraging new technology and learning from its expanding family of brands.