Can Walmart practice CSR?
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/