Introduction
Wal-Mart Stores, Inc. came began its operations in 1969 and has retail outlets in different designs around the world. The company endeavors to provide different products at the lowest price possible through its pricing tenet of everyday low prices (EDLP). Wal-Mart operates in three major sections, which include international section, United States of America section and the Sam’s Club section (Reuters, 2020).
Wal-Mart is one of the best performing companies in the retail industry, the biggest retailer in the industry and the greatest employer in the world. The company has various sustainability strategies in place to ensure continued dominance in retail industry around the world (Reuters, 2020). This essay seeks to answer various questions relating to Wal-Mart’s sustainability efforts, challenges facing Wal-Mart and solutions to such challenges.
Is Wal-Mart doing enough to Become More Sustainable?
Wal-Mart Inc. is doing enough to become more sustainable. The company has surmounted challenges related to discrimination of employees. Wal-Mart has embraced diversity concerning both employees and customers. In addition, the company received a commendation from the National Association for Female Executives for treating female staff members with distinguished dignity. This way, the company is able to retain its clients and staff members for longer periods hence enhancing sustainability.
Secondly, Wal-Mart Inc. has earned the goodwill of environmental-conscious customers by adopting green initiatives. Other than receiving such goodwill, green initiatives contributed to massive savings by the company of around 25 million US dollars since the start of the initiatives.
One such initiative involved installation of auxiliary power mechanisms on trucks to run air conditioning systems when the trucks were in stationary position. In addition, Wal-Mart saves 7 million US dollars after installing fluorescent bulbs instead of incandescent ones.
Previous Problems and Solutions
Wal-Mart inc. has faced various problems in the recent past. Such issues include lawsuits filed by employees alleging lack of meal breaks, alteration of meal cards to avoid paying overtime as well as allegations of discrimination of employees based on color and origin.
Studies showed that the company discriminated against women as evidenced by the low number of women in management level compared to male counterparts as well as lower remuneration for women in similar positions with men. In addition, women rarely received promotions, training and pay. Some managers had employed undocumented immigrants and the state sued the company for it.
In trying to solve such problems, Wal-Mart Inc. has worked to enhance its corporate reputation as well as sustainability and corporate governance through the formation of Global Ethics Office. The office offers direction on ethical decisions based on the company’s code of ethics.
Concerning various lawsuits facing Wal-Mart, the company paid out various compensations to discriminated workers and the illegal immigrants. In addition, the ethical code has assisted the company to accord decent treatment to female workers to the extent of receiving recognition from the National Association for Female Executives.
Why has Wal-Mart Tended to Improve Performance While Other Retail Outlets Have Been Suffering Financially?
Wal-Mart’s commitment to providing lowest prices possible to customers is one of the main factors that have enabled the company stay financially afloat. The company’s claim of improving living standards for customers leads to increased number of clients. The green initiatives have led to massive financial savings at Wal-Mart making Wal-Mart more sustainable by directing such saved finances to other important duties like increasing of salaries and purchasing more stock.
Reference
Reuters. (2020). Wal-Mart Stores Inc (WMT.N). Web.