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Wal-Mart was accused of improperly disposing of pesticide, fertilizer, paint, aerosols and other chemicals. Wal-Mart Stores Inc. has agreed to pay $27.6 million to settle allegations that it improperly handled and dumped hazardous waste at stores across California in a case that led to changes in the retailer's practices nationwide, prosecutors said Monday. California's state investigation started in 2005.

Bentonville, Ark.-based Wal-Mart now identifies which products are hazardous and has nearly 50 new operating procedures detailing how its employees should handle them properly. Wal-Mart spokesman David Tovar said the new practices should put the retailer's stores in compliance across the country. The company will pay $20 million in penalties to the various prosecuting and investigating agencies, more than $1.6 million in investigative costs and $3 million for environmental projects. It also will invest $3 million to guarantee its stores will remain in compliance, prosecutors said.

In 2010, after 5 years of investigations, Wal-Mart agreed to pay $27.6 million in a settlement with the State of California. Wal-Mart had been accused by the State of improperly handling and disposing of hazardous waste material. According to NBC News, as part of the settlement, Wal-Mart agreed to pay $20 million in penalties, $1.6 million in investigative costs, and $3 million in compliance with state environmental laws.

If I was the CFO of a large retail store like Wal-Mart, I would maintain disclosure of green-initiative costs in the company financial statements. I would communicate to employees and investors that the costs of these initiatives will benefit the company in the long run both financially and environmentally. Research into energy efficiency and waste reduction/disposal is also known as sustainability. “Sustainability challenges us to make decisions that simultaneously improve the economy, the community and the environment.” (Hitchcock & Willard, 2009, p. 1). Research into sustainability would help to reduce energy and waste related costs, allow for a better public image of the company, push the company as a pioneer in the green-technology movement, and give the company knowledge of new industries for possible expansion (solar wind energy). The disadvantages of recording these costs in the financial statements is reduced short-term profitability and liquidity should these costs be financed. Reference:
Hitchcock, D. E., & Willard, M. L. (2009). The Business Guide to Sustainability : Practical Strategies and Tools for Organizations. Earthscan.

Being that I was employed in a clothing store we never experienced such problems while I was there, and if they did occur I was a high school student at the time and didn't know much about what was going on, and being a full time student now and a full time stay at home mom I don't experience those problems at all.

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