Can Walmart practice CSR?

May 3rd, 2010

Walmart is one of the largest corporations in existence today; according to Walmart’s corporate fact sheet the mega chain reported over $370 billion in sales in 2008 and employed 2.1 million associates worldwide as of 2010.  So how does the largest and possibly most influential corporation in North America practice Corporate Social Responsibility? 

Walmart stores in the United States are putting their CSR efforts into community support, job opportunities, sustainability and health and wellness.  Community support includes $467 million in charitable donations.  In order to create job opportunities Walmart is giving $3.4 million in grant money to 7 different organizations that focus on life and job skills that help people gain long-term employment.  Through the use of wind and solar energy used to power their stores, organic products, less packaging and shorter routes for drivers Walmart is making an attempt at being earth friendly.  In terms of health and wellness, Walmart states the every American deserves affordable health insurance and offer options to their employees.  They also remain committed to affordable prescription programs, vision centres and clinics. 

The Corporate Social Responsibility Report 2009 for Walmart Canada focuses on the Environment, People (employees), Responsible Sourcing and Community Investment and Involvement.  Walmart Canada’s Environmental goals includes renewable energy sources for their stores as well as striving for zero landfill waste and selling environmentally friendly products.   Employees are rewarded with opportunities for promotion and training.  Responsible sourcing includes supplier and manufacturer audits, factories are required to meet criteria that address social and environmental concerns.  In 2007 and 2008 a total of 41 factories were disapproved over social and environmental concerns discovered in the audit program.  Community investment includes the creation of jobs both internally and through suppliers and trades.  Community involvement focuses on fundraising and donations, according to Walmart Canada’s 2008 figures a total of $22.5 million was raised either through fundraising or through donations.   

But are these high priced CSR campaigns really just a wash?  Walmart has a fairly poor track record in terms of human rights and the environment.  Activists claim that Walmart contributes to urban sprawl, destruction of open space, lack of local sourcing, air pollution, deterioration of the downtown, human rights concerns in third world countries and the giant retailer has repeatedly violated water regulations.  Many experts are not convinced by Walmart’s new found environmental outlook simply because of what Walmart sells; it sells cheap commodities designed to wear out quickly and become garbage and in turn it requires more raw materials to build more goods. 

The CEO of Walmart Mr. Lee Scott admits that Walmart is changing to accommodate public concerns.  The fact remains that Walmart exists and plans to expand even more.  The Walmart of today can perform better, in terms of CSR, and as one of the most profitable companies in the world it is their responsibility and duty to lead by example through the responsible stewardship of our environment and through a commitment to social and community programs. 

 References

1. “Gone Tmorrow - The Hidden Life of Garbage” Heather Rogers

2. March 2010 “Walmart Corporate Fact Sheet” www.walmartstores.com

3. “Corporate Social Responsibility Report July 2009″  http://www.walmart.ca/wms/microsite/CSR_Report/pdf/CSR_Report.pdf

4.  “Is Walmart going green?” MSNBC Report http://www.msnbc.msn.com/id/9815727/

THE STARBUCKS CASE - Corporate Social Responsibility

April 26th, 2010

Where do you buy your coffee? Does it really make a difference?  YES!

More companies are embracing Corporate Social Responsibility.  One of the biggest players is Starbucks, with the largest buying power of any coffee chain in the US.  On April 19th, 2010 Starbucks released its 9th annual Global Responsibility Report, outlining the company’s performance in ethical sourcing, environmental stewardship and community involvement (1).  So what exactly has one of the largest coffee companies in America been doing to improve their impacts on the community, economy, and environment?

Starbuck’s trademark “Shared Planet” program concentrates on the community, the environment and ethical sourcing.   

Starbucks Community Involvement:

Through the community program Starbucks has created a number of programs to encourage community involvement.  Through the program Starbucks encourages young people to take action through youth action grants and partnering with “Youth Venture” and the “International Youth Foundation, where young people help communities and gain leadership skills.  The community program also supports the Ethos water fund; from every bottle of water that is purchased Starbucks donates 5 cents to the program that goes to support water, sanitation and hygiene education programs in water-stressed countries.  The Starbucks Red program helps support people suffering with HIV/AIDS in Africa, when a customer purchases a Red product they are helping fund the program.  Starbucks also helps fund social development projects in communities that supply their coffee as well as education in China and support for rebuilding efforts on the golf coast where hurricanes Katrina and Rita hit.  Although community service hours from employees and customers decreased in 2009 Starbucks is looking at new ways to reach their goal of 1 million community service hours per year by 2015 

Starbucks Environmental Stewardship: 

Starbucks efforts in Environmental Stewardship involve goals in the areas of energy conservation, water conservation and waste reduction.  In terms of waste reduction their goal is to have recycling available in all of their stores where they control waste collection and serve 25% of beverages in reusable cups.  The consumer saves 10 cents on a cup of coffee if they use a reusable cup. They are also exploring different options for recyclable cups. By the end of 2010 Starbucks aims to reduce energy usage by 25% as well as purchasing 50% of their energy from renewable sources. All new company owned properties plan to be LEED® certified, green building. The water conservation goal is to reduce water usage by 25% in company-owned stores beginning in late 2015.   

Starbucks Ethical Sourcing: 

At Starbucks ethical sourcing starts with the farmer.  Conservation international has helped Starbucks develop “Coffee and Farmer Equity (C.A.F.E)” practices that help farmers grow coffee in a way that’s better for people and the planet.  It measures standards in the following key areas; product quality, economic accountability (transparency), social responsibility (safe, fair and humane working conditions) and environmental leadership (conserve water, energy, biodiversity and reduce chemical usage).  Starbucks also purchases Fair Trade Certified coffee that empowers small scale farmers to compete in a global market, while helping their communities and protecting the environment.  Beginning in 2009 Starbucks worked with Conserve International to help reduce carbon emissions, adapt to climate change and began a pilot program to for forest conservation incentives in Latin America.  Starbucks also applies ethical sourcing to teas, cocoas and other goods.   

So, the answer is yes it does matter where you buy your coffee. Starbucks is the largest coffee chain in the US, with over 8000 locations across the country (2). 

Reference: 

1. Starbucks™ Shared Planet™ Goals and Progress Report 2009                http://www.starbucks.com/responsibility/learn-more/goals-and-progress 

2. “Counting Beans” June 11, 2006 L.A. Times Article; Jerry Hirsch                       http://articles.latimes.com/2006/jun/11/business/fi-peets11/2 

Look who’s 40…EARTH DAY!

April 22nd, 2010

Earth Day is celebrated in thousands of communities on April 22nd every year.  This year marks the 40th anniversary of Earth Day; the first Earth Day was celebrated on April 22nd, 1970.  Over 20 million Americans joined the demonstration.  The founder of Earth Day was Gaylord Nelson, a Democratic Senator from Wisconsin.  Senator Nelson envisioned an environmental demonstration or “teach-in” with a  goal to put environmental concerns on the political radar. In 1969 Gaylord hired Denis Hayes, who left Harvard after being selected by Senator Nelson, as the national coordinator of Earth Day.

The demonstration on April 22, 1970 was a success because it was organized by people on a grassroots level.  People everywhere were talking about it at the kitchen table.  This helped the celebration succeed at making environmental topics a priority nationwide.  It gave the population a venue to express their concerns about the environment, from air, water and the degradation of natural resources and land.  The grassroots initiative was one of the reasons why Earth Day succeeded; people were searching for a venue where they could come together and take action and they found it in Earth Day. 

Gaylord Nelson quote:

“It was truly an astonishing grassroots explosion, … The objective was to get a nationwide demonstration of concern for the environment so large that it would shake the political establishment out of its lethargy.”

To this day communities hold special events in honor of the day.  A rally in Washington, DC is expected to bring tens of thousands of people, including Director James Cameron.  Some Critics such as Alex Steffan from the online magazine “worldchanging” argue that the celebration of Earth Day has outlived its usefulness; he claims it may weaken environmental protection.  The fact still remains that Earth Day helped put Environmental issues on the political agenda and at the family kitchen table throughout the nation and continues to do so.  Earth Day grew to become more than just a demonstration; it has evolved over 40 years into something much bigger.  Earth Day is a day of action, where communities everywhere hold events and take action to protect the planet. The day of action has helped to change human behavior and develop important policies as well as the creation of the Government agency responsible for environmental affairs, the Environmental Protection Agency (EPA).   It is believed that Earth Day is now the most celebrated and observed holiday in the world.

Celebrate Earth Day today, do your part to keep environmental protection on everyone’s mind.  Make everyday, EARTH DAY!