...rationalize its seafood supply chain to reduce costs and promote sustainability? Walmart has a large retail seafood business and it is always a challenge to reduce cost and promote sustainability. With upward trend for the demand of sea-food, depletion of the seafood supply is inevitable unless Walmart have a deep engagement of their supply chain. One strategy that Walmart wants to promote to their suppliers is for all of them to take up the Marine Stewardship Council’s certification program. This process will be time consuming, expensive and complex. The depletion of some fish poses a threat to Walmart and its seafood supply chain. Many challenges exists that will lead to indirect or direct increases in the cost of the supply chain. Because of the lengthy supply chain, with the fish travelling through many parties who are involved in catching, packaging, forwarding, and labeling, cost increases drastically. Wal-Mart’s customers are uneducated about the MSC Eco Label. Therefore, it will be costly to invest in certifying their fish with this standard while it may not boost their sales. While seafood supply can be sustainable by establishing fishing farms, there is always the concern for retaining the same quality as wild-caught fish. Therefore, Walmart needs solutions for the continuous supply of wild-caught fish while retaining its sustainability. In an effort to promote its sustainability, Walmart started to carry MSC certified Chilean Sea Bass in three hundred...
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...Ethics and Enterprise BUS4801 Ned Preble Ethical Motives u3a1 Sustainability Ethical Motives Sustainability Ethical Motives There is a massive ethical dilemma concerning sustainability. This the fact that without utilizing sustainable practices the earth is suffering, this has a direct impact on our lives. From using up our earth’s natural resources for power, we have created pollution and increased global warming effects. Besides everyone on an individual basis needing to practice sustainability, it is highly important for companies to utilize sustainability ethics. Companies big and small have immensely contributed to dwindling our natural resources and polluting our planet. Raw material suppliers, manufacturers, distributers and the companies they operate for all need held accountable for their part, and each link in the chain needs to develop and implement a sustainable ethics policy. Walmart has been a big contributor to this ethical dilemma. Walmart not only operates unethically regarding sustainability in their retail, warehouse and distribution locations; they also are responsible for the unethical actions of their suppliers. Walmart has received many different scolding from activists and has been boycotted for many different unethical actions and inactions. The company has decided to tackle the ethical dilemma of sustainability directly. Walmart is taking steps to develop a standing sustainability ethics policy throughout their entire supply chain. The results...
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...The parties involved in manufacturing, selling, and purchasing the product become a good steward of the environment by engaging in the commerce of such a product. Sustainability should be measured by a third party with no conflict of interest such as a tax auditor. A third party should define the standards of what counts as sustainable with the involvement of NGOs, market players, consumers, and activists in order to define an agreed upon set of standards that will be adopted by all. 2. Assume you are the senior Vice President for Sustainability at Walmart. What is your analysis of the problem (from Walmart's perspective) of defining sustainable products? Selling sustainable products was not possible unless Walmart could find a means of defining, measuring, and communicating its chosen environmental or sustainable standards. Walmart debated whether or not it should "establish a new set of product standards in-house, buy or license an existing set of standards on the open market, or lead a collaborative effort to develop public standards, together with other large corporations and stakeholder groups?" Sustainable products are not consistent across industries, geographic regions, or companies. Standards for what is a sustainable product are not defined. Environmental advocacy groups had attacked Walmart and its suppliers after making an effort to introduce sustainable products. These groups would assert that "some of the products simply did not live up to their...
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...Walmart Manages Ethics and Compliance Challenges Sanelesia Hawkins West Georgia Technical College Abstract Despite its financial success and international proliferation, Walmart and its business practices have generated controversy and divided public opinion. Supporters praise Walmart’s sales of needed household items and groceries at relatively low prices, while critics condemn the corporation’s generally low wages paid to employees and its tendency, as a big-box retailer, to put small, community-based stores out of business. As a result, Walmart is often the subject of intense social and political debates pertaining to capitalistic practices and ethical treatment of workers. Another major criticism of the company pertains to its long history of allegedly “invading” smaller towns and communities, establishing stores, and thereby driving small, family-owned and -operated stores out of business because they were unable to compete financially. Walmart Manages Ethics and Compliance Challenges Walmart has been criticized by many groups and individuals, including labor unions and other groups. It has been accused of selling merchandise at such low costs that competitors have tried to sue it for predatory pricing (intentionally selling a product at low cost in order to drive competitors out of the market). Over the last decade or so Walmart has become involved in numerous lawsuits for a variety of reasons. The majority of the suits are class action lawsuits in which employees...
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...“WALMART’S SUSTAINABILITY STRATEGY” Wal-Mart developed a new sustainability strategy to deal with the environmental issues the company caused. The strategy based on the efforts to develop and implement goals of zero waste, selling sustainable products and using 100 percent renewable energy. With this strategy the company not only aimed to resolve the problem of paying fines to state and federal regulators for its environmental damage but also change its bad reputation among customers. The company also realized its sustainability strategy creates cost advantages and this should turn out an opportunity to maintain its lower price strategy. Customers’ reactions to Wal-Mart’s new sustainability strategy showed that low or middle class consumers’ expectations are not limited to purchase only low price products; they are also willing to buy green, sustainable ones when they find them in affordable prices. This was a sign that Walmart is on the right track. Today’s business practice of Walmart needs to transform more -through quick wins which are actions that makes business sense based on available technologies, products and processes; innovation projects which base on emerging technologies, processes, and innovation; big game challenge which is a way to lead the market works for sustainability, not against it- to complete its sustainable pathway successfully and reach the sustainable business practices level. In this way, they should identify opportunities to develop supply chain...
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...Walmart’s Sustainability Strategy Case Study Question 1: “How is the company deriving value from its sustainability practices?” Walmart has been deriving value from its sustainability strategy through multiple factors. First of all, Walmart was able to create value by introducing new revenue streams from sustainable projects. For example the recycling initiative would create revenue stream that would otherwise not have been realized. Walmart has also created value by creating transparency within its own supply chain. By being directly involved with its suppliers, it was able to manage its supply chain. Walmart’s goal via its networks was to influence stakeholders, primarily its suppliers, to initiate sustainable practices that would be in line with Walmart’s values. By doing so, Walmart has to monitor every supply chain participants, and by doing so, they were able to eliminate redundant channels in the process. For example, instead of having a product manufactured and assembled in two different countries, Walmart was able to eliminate unnecessary channels by understanding the process, and thus creating a more efficient supply chain that is both innovative and cost effective. Another thing that they did was their overall cost reduction in the value chain processes. It was able to reduce inefficiencies in packaging, transportation, and waste, among other factors. By doing so, it sees the potential cost reduction in the long run. Furthermore, Walmart derived future...
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...The Relevance of Sustainability in Marketing Decision Making Introduction Sustainable marketing calls for socially and environmentally responsible actions that meet the present needs of consumers and businesses while preserving and enhancing the ability of future generations to meet their needs (Kotler & Armstrong 2012, p. 582). The aim of sustainable marketing is to satisfy the customer’s the needs and wants while also putting high emphasis on the environment and the social issues and thus creating profits in a socially responible way. Mention triple bottom line While traditional marketing is a process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. (Kotler & Armstrong 2012, p. 5) This essay has been prepared to identify and understand the role of sustainabilty in marketing decision making and its impacts affecting current and future business operations. 1.1. Research Methods Data was collected based on qualitative research. Books, internet and online journals were used to identify different roles of sustainability in marketing. Sustainibilty of marketing by itself is a vast area for study, hence this paper will only focus and critically analysis some of the key aspects of s.m. The topics explored in this research are I. Role of sustainability in marketing II. 1. Sustainable Marketing practices adressing the triple bottom line. Sustainable marketing...
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...lot of research and development, jobs, and relationships were a result of such a massive long term initiative. Fast forward to 2013, Walmart, the largest retailer in the world (If sales was GDP it would be the 19th largest country in the world) is faced with its own design initiative. Walmart wants to implement sustainability strategy into its business model. This is not implementing a new green product into the product offering, this is a project like the earlier example of NASA. Walmart is going to reengineer and re-create the way it does business.Walmart can leverage its current technologies and resources to get sustainability an issue of the past. In order for Walmart to reengineer/re-create it will have to follow 5 steps outlined below. * Step one, Identify all parties who are touched by Walmart. * Step two, understand and identify interactions amongst parties. * Step three, organize group meetings, partnerships, and training * Step four, use ERP, Web 2.0 and other technologies to build platforms that allow cross communication from all parties. * Step five, implement audits and performance reviews to stay on track. The first step Walmart must do is to identify all the parties that are touched by Walmart. This includes customers, employees, distributers, suppliers, countries, NGO’s, and competition. Everyone that Walmart touches is an important asset to leverage in this initiative. The house wife in...
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...provide product or service in an exceptional way to surpass customers’ expectations. Though we appreciate Walmart green and innovative inventions as a part of sustainability initiative but there has been an increased concern that Walmart offers substandard products, inferior quality, poor customer service, obsolete products especially considering clothing line, and overall negatively impacts the health of communities Provide superior customer service and quality There has been an increased concern that Walmart offers substandard products, inferior quality, poor customer service. For example: Adidas AG, the second-largest maker of sporting goods globally, said that a house brand of shoes sold at Wal-Mart may injure those that wear them. Now that's quite a statement about product quality. Providing superior customer service and quality is vital to having success in any business. A customer is prone to buying a product from a company again when it appears that the company has surpassed customer expectations. And, Wal-Mart Inc. one of the most profitable companies in the world, attributes exceeding customer expectation to the deceased CEO and company founder, Sam Walton. Providing superior customer service and quality with cost value proposition will increase profitability, enhance customer relationship and bolster the Walmart objective of sustainability. Pay attention to changing...
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...Introduction With the launch of the Sustainability Strategy in 2005, Walmart was able to generate cost savings and profits from different areas of its supply chain. Having faced challenges to convince all its stakeholders to participate in this strategy, there is long way from setting a firm foundation for their strategy supply chain wide and to reach a consensus with its stakeholders on the need to focus on sustainability. However, with 2006 coming to an end, Ruben and Elm are pressured to evaluate the performance of their sustainability strategy based on both business and sustainability factors, and to decide whether to continue or halt the programme. Analysis of sustainable strategy Being profit-driven, Walmart has to ensure that business value is derived from the sustainability strategy, in order to maintain its dominant retail position. One benefit was cost reduction throughout the value chain of its products. Waste was effectively eliminated and efficiency in production, packaging, transportation, store operations and customer use was realized. There was introduction of an additional revenue stream by selling the firm’s carbon credits through reduction in carbon emissions. Furthermore, it allowed Walmart to seek strategic level input from outside parties, creating collaboration with various companies to come out with new and innovative green products. Assurance of supply is also achieved, where Walmart was able to lock-in available supply or contribute to the preservation...
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...ensure a vast influence of their financial planning. Though Walmart places a massive significance on valuing its goods at very low-slung prices, this also marks their extra actions to be well-organized in a particular mode to exploit on the general earnings (“Walmart”, 2009). The company’s pricing policy has prepared employers in to be the marketplace forerunner in the United States. The tactical preparation creativities of the organization rely an outcome based on its values and total trades. This company consumes segment growth that can be exposed to different supplies that will broaden Walmart’s current stores, and alter the locations of the company distribution centers. In this case it creates a panel that requires a large amount of sum of principal. The high cost load for the extension of their stores has to be less; these initiatives have proven to be highly active on a complete foundation (“Walmart”, 2009). Though this might not build a short-range turnover, this inventiveness has a well-known track record to take in wealth. According to “Walmart, 2013”, “Walmart kept 80.9 percent of surplus of its United States processes out of landfills in 2011, and achieved cost savings over a mixture of improved recycling revenue and diminished expenditures” (Accountability Report). Even though Walmart’s new initiatives have clearly made a huge profit, the company has only seen a 10% growth in net sales since 2007 (“Walmart, 2009”). Additionally, $30 billion in sales was reported...
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...Walmart has been taking the necessary steps to move toward 100% sustainable seafood for the better part of ten years. In working with the MSC they are establishing guidelines for fisheries and encouraging their suppliers to process and distribute sustainable fish, be it wild caught or certain farm raised varieties. As of the end of 2009, “Walmart’s wild seafood was 55% MSC certified… you can’t be 100% certified when you can’t be certified on a number of products. We’re working with MSC to encourage them to build these other certifications standards.” While Walmart is making the necessary changes on the back end to improve the sustainability in their supply chains, they have not truly begun advertising the value of sustainable seafood to their customers. As a result, customers are less likely to pay the higher costs for these “sustainable” alternatives, when they do not recognize the value. In the article outlining Walmart’s Sustainability Strategy specific to inventory management within their seafood supply chain, The Fishin’ Company is one supplier that has embraced Walmart’s asks, spending more time, effort and money to adhere to their sustainability standards. One of the main issues that Walmart faces is the length of time in which it takes for a fishery or supply-company to become MSC certified; the process can take up to two years. Given the increased demand, Walmart cannot afford this lapse in time. Walmart needs to work with the MSC to expedite the process. In order...
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...Integrative Management Exercise Cohort A, Learning Group 8: Shareholder Perspective 1) Why have Wal-Mart shares outperformed the market during the recent crisis recession? a. Investors expect that more people will shop at Walmart and therefore buy more shares b. Compared to the market (when many other areas are down) c. They have a business that performs well when other businesses are down d. Increased unemployment, more people buying groceries at Walmart e. Article on performance compared to Costco in the recession i. http://www.theophania.net/acct5331.tp1.pdf 2) What are the key drivers of Walmart shareholder value going forward? Walmart faces significant headwinds as the #1 retailer in the world. At revenues of 460B annually they’ve operated on very small margins and massive scale while continuing to grow. Their continued growth of net income will be essential to driving shareholder value. This becomes more challenging using the same approach they have in the past. If they fail to maintain their net income they’ll struggle to continue increasing their dividends and share buybacks which have provided a significant amount of value back to shareholders (over 100b). Going forward, Walmart will have to leverage their strengths in new areas. An effective Ecommerce strategy that connects online with their strengths in offline could be a significant sources of additional revenue and income. A successful strategy would need...
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...market or in this case WalMart may not be good for society. WalMart has a global presence which creates negative and positive externalities. WalMart does business with suppliers all over the world and has to obey a variety of government regulations in different countries. A negative externality WalMart is accused of is Pollution. The pollution is created by manufacturers who supply products to WalMart. WalMart has taken the approach not only to comply with regulations set by the governments, they go above and beyond regulations leading other businesses and setting a higher standard than required. WalMart insures their suppliers are also complying with government regulations, if suppliers do not comply they will no longer conduct business with them. WalMart’s model is responsible sourcing; they conduct audits verifying compliance of worker safety, well being and insuring environment friendly programs are enforced. In 2009, WalMart launched the Sustainability Index in collaboration with The Sustainability Consortium which will help WalMart and its suppliers reduce waste in the supply chain and create synergy so that waste can be recycled and eliminated and improve buying and selling of products. WalMart currently has three sustainability goals, they are: Energy – they want to be able to supply 100% of their own energy, Waste – eliminate 100% of all waste and Products – sell products that improve environment and people’s life (WalMart 2014). Aside from WalMart having to comply with...
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...This article is published in a peer-reviewed section of the Utrecht Law Review Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy? Cristina A. Cedillo Torres, Mercedes Garcia-French, Rosemarie Hordijk, Kim Nguyen, Lana Olup* 1. Introduction 1.1. Background and objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. ...
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