Wal-Mart, bully for good

The two most influential companies in America, I’d argue, are GE and Wal-Mart. GE has clout because of the respect accorded its managers, even after a tough run under Jeff Immelt. Wal-Mart matters because of its scale, meaning that most everyone in the consumer products business wants to do business with Wal-Mart. Both have wrestled seriously the idea of sustainability in the last few years. I never tire of writing about either company.

You’ll get lots of arguments about Wal-Mart, but I think the company has changed dramatically for the better under Lee Scott, who announced last month that he is stepping down as CEO. The company engaged with its critics, took a systematic look at its environmental impact and began an ambitious and far-reaching effort to become more sustainable. Its impact is felt in unexpected places. Did you know, for example, that Wal-Mart has taken on the repressive government of Uzbekhistan over the issue of child labor? I’ve taken an anecdotal look at a few of Wal-Mart’s initiatives in today’s Sustainability column.

Here’s how the column begins:

Children who are forced to pick cotton in Uzbekistan, farmers scratching out a living in Guatemala and salmon fishermen in Bristol Bay, Alaska, would not seem to have much in common. But all are feeling the global impact of Wal-Mart.

As the world’s largest retailer, with $379 billion in revenues last year, Wal-Mart has long been a powerful force in the global economy – a bully, its critics would say. For years, they assailed Wal-Mart for squeezing suppliers over costs, driving mom-and-pop stores out of business or crushing efforts to organize its workers.

These days, though, the company is winning praise for using its leverage – that’s a polite term for bullying – to protect the environment and help the poor.

The more people I meet who work Wal-Mart, and the more I talk with the company’s critics and partners, whether from environmental NGOS or socially-responsible investment funds–and their role as agents of change is vital–the more I am convinced that Wal-Mart is thinking expansively and creatively about its responsibility.

You can read the rest of the column here.

Comments

  1. Here’s a detailed,quantitative look at Wal-Mart’s reputation – how it treats it’s employees, customers, communities, the environment and society in general. It’s based on a large, diverse sample of opinions, and reinforces the points made here about sustainability and social responsibility.
    Vanno Wal-Mart

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  1. […] chief executive, Jeff Immelt, and the company’s ecomagination initiative. GE and Wal-Mart are, as I have written, the most influential companies in America, and it’s great that they are serious about becoming […]

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