Distribution Network
Content
Has the leopard changed its spots? Last autumn Wal-Mart announced a dramatic conversion to corporate social responsibility, following the positive public response to the company’s efforts to help those affected by Hurricane Katrina. Non-governmental organizations at the time were highly sceptical and remain so (see page eight). One can hardly blame them. The world’s largest retailer has an inglorious record, stretching back over decades, of riding roughshod over local communities, labour interests and the environment.
In just a few months, there has been good progress in a wide range of areas, from health provision and energy efficiency to the sourcing of sustainable products. Turning a supertanker around, though, takes time. Some of the targets are straightforward, such as those for energy efficiency. Others will be more demanding. Wal-Mart has given itself five years to procure all wild-caught seafood for its North American stores from fisheries independently certified as sustainable. During this period, critics will still be able to claim that Wal-Mart actively supports unsustainable fishing. The timetable looks optimistic, too. Unilever, easily the most experienced company in this area, last year failed to meet a similar target for all its fish products after a decade of sustained effort. Other parties – independent certifiers, the fishing industry and governments – while within Unilever’s sphere of influence, were ultimately beyond its control. Equally, talking to local interests before putting up large stores – a central plank of Wal-Mart’s new community strategy – brings mixed results, as Tesco has found.
NGOs will continue to play a key role. Having forced Wal-Mart to jump, they need to keep up the pressure in selected areas while giving the company a decent interval to get a more sustainable footing. The temptation to continue attacking Wal-Mart on all fronts must be resisted. Indeed, more dialogue with NGOs will be needed for the company to achieve its declared aims. Chiquita, which in its previous reincarnation as United Fruit gave Central America its reputation as a bunch of ‘banana republics’, arguably could not have embraced sustainability without help from civil society in the form of the Rainforest Foundation. Nor is Chiquita alone.
If Wal-Mart can apply the focus that enabled it to become the low-cost retail leader to its sustainability goals, there is a real chance of restoring the social mission of its founder. But if the company continues to take flak in areas where it has made genuine progress, executives might reasonably ask why they bother. Ultimately, the surest test of whether Wal-Mart’s transformation is complete will be measured not by the figures in its sustainability report, but by what its critics are saying.
In just a few months, there has been good progress in a wide range of areas, from health provision and energy efficiency to the sourcing of sustainable products. Turning a supertanker around, though, takes time. Some of the targets are straightforward, such as those for energy efficiency. Others will be more demanding. Wal-Mart has given itself five years to procure all wild-caught seafood for its North American stores from fisheries independently certified as sustainable. During this period, critics will still be able to claim that Wal-Mart actively supports unsustainable fishing. The timetable looks optimistic, too. Unilever, easily the most experienced company in this area, last year failed to meet a similar target for all its fish products after a decade of sustained effort. Other parties – independent certifiers, the fishing industry and governments – while within Unilever’s sphere of influence, were ultimately beyond its control. Equally, talking to local interests before putting up large stores – a central plank of Wal-Mart’s new community strategy – brings mixed results, as Tesco has found.
NGOs will continue to play a key role. Having forced Wal-Mart to jump, they need to keep up the pressure in selected areas while giving the company a decent interval to get a more sustainable footing. The temptation to continue attacking Wal-Mart on all fronts must be resisted. Indeed, more dialogue with NGOs will be needed for the company to achieve its declared aims. Chiquita, which in its previous reincarnation as United Fruit gave Central America its reputation as a bunch of ‘banana republics’, arguably could not have embraced sustainability without help from civil society in the form of the Rainforest Foundation. Nor is Chiquita alone.
If Wal-Mart can apply the focus that enabled it to become the low-cost retail leader to its sustainability goals, there is a real chance of restoring the social mission of its founder. But if the company continues to take flak in areas where it has made genuine progress, executives might reasonably ask why they bother. Ultimately, the surest test of whether Wal-Mart’s transformation is complete will be measured not by the figures in its sustainability report, but by what its critics are saying.
Super Featured
No
Featured
No