Question

write 3 pages about Wal-Mart that:

develop a strategic plan for the creation of a socially responsible business initiative. Required components include:

External analysis (identification and definition of the need the business would solve, public policy impacts, primary external stakeholders, and competitive factors)

Internal analysis (description of product/service capabilities)

Answer 1

Corporate Social Responsibility (CSR) is a critical aspect of the business for any company including Walmart.

Walmart CSR strategy relies on the following three principles:

1. Creating economic opportunity for our employees, suppliers and people who work in retail and retail supply chains beyond Walmart

2. Enhancing the sustainability of operations and product supply chains for people and the planet

3. Building strong communities where the retailer operates

Walmart aims to achieve the following 3 aspirational goals formulated in 2005 by Lee Scott, who was Walmart CEO at the time:

• Supply the company with 100 per cent renewable energy.

• Create zero waste.

• Sell products that sustain people and the environment.

Wal-Mart strategic plan for the creation of a socially responsible business initiative can be broken into 3 parts including external as well as internal factors, which I call as 3ps

• People which focuses on the development of the community and adherence to fair labour practices
• Planet focused on the impact on the environment and what is being done to integrate sustainable environmental practices
• Profit the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital

1. People:

Following CSR strategies focuses on development of the community and adherence to fair labour practises

• Educating and empowering workers

• Labour and human rights

• Employee health and safety

• Gender equality and minorities

• Children’s Food Safety & Nutrition

• Women Empowerment

2. Planet:

While providing better service and quality goods to customers, Walmart should shoulder the social responsibility of sustainability and protecting the environment.

• Reducing energy comsupmtion

• Reducing water consumption

• Recycling

• Reducing Carbon Di oxide and other gases emission

• Sustainable Sourcing

• Go Green

3. Profit:

Companies that introduce a sustainability strategy throughout their supply chain generally see a boost in their financial performance — but those that don’t fully commit to the strategy generally see a decline in revenue, according to a study published by Clark University researchers.

• Invest in socially responsible products. Toyota as an example: the automaker markets socially responsible vehicles and is regularly rated as being environmentally responsible.
• Don’t ignore environmental performance. While good environmental performance may not benefit firms financially, lapses in environmentally focused CSR activities can hurt the bottom line.
• Tie environmental performance to other tangible stakeholder interests. Turner suggests linking new supply chain efficiencies to competitive advantages or increased market access, in addition to the more abstract environmental outcomes.

CSR can promote to people, planet and profit and they are all linked to each other. For example, improving efficiency within the organization can lead to energy conservation, and would not only help companies save on costs but promote environmental sustainability as well. Several companies have started using building materials, paints, interiors and windows that are designed to prevent energy loss. Companies have started other initiatives, including the recycling of heavy metals such as mercury from used CFL bulbs/tubes and installing biogas plants that use canteen and kitchen waste.

A CSR activity can be to create a shared value among business vendors and suppliers. For example, Wal-Mart can help farmers in improving their irrigation practices through drip irrigation technique and procures improved quality agricultural produce from them for their other operations. This can result in shared value creation for the company and the farmers. It also promotes water conservation and prevents environmental (land) degradation sustainability and land productivity

Finally, CSR initiatives is an critical component as it improves a company's image and even raise the value of its stock Examples of such reputation benefits include a greater clientele, the ability to charge premium prices, and the retention of more productive workers