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Corporate responsibility may have won its highest profile convert so
far with a dramatic announcement by the much criticized Wal-Mart group
that it will step up its efforts to improve its social and
environmental performance.
The world's largest retailer has been a target of campaigners for years. But in a 'call to action' speech to staff, chief executive Lee Scott has now promised the company will adopt a more proactive approach to issues on which it has historically taken a 'defensive posture'. Scott told employees that he and other senior managers had experienced personal epiphanies on the subject of responsible business behaviour following Hurricane Katrina this summer.
Wal-Mart was much praised for its quick and efficient response to the disaster. The company gave away millions of dollars of goods, set up temporary stores, and used its logistics chain to get food, bedding and water to victims.
'Nothing brought this home more clearly than Hurricane Katrina,' said Scott. 'We were showered with gratitude, kindness and acknowledgments; this was Wal-Mart at its best. Katrina asked the critical question: what would it take for Wal-Mart to be that company, at our best, all the time?'
Scott added that this had been reinforced by a year of stakeholder dialogue in which he and senior executives had met customers, employees and NGOs. 'We kept talking, and as I learned more, a light bulb came on for me,' said Scott. 'After a year of listening... what became clear is that in order to build a 21st century company, we need to view these ... issues in a different light.'
In the speech, Scott outlined a range of new initiatives for Wal-Mart, including an $11-a-month (£6.30) staff healthcare plan aimed at the 46 per cent of its staff in the US who have no health coverage, 'basic health care clinics' in stores for low-income customers, and incentive bonuses for managers linked to diversity goals. It will also engage in 'community dialogue' before erecting its biggest stores and is to trial this in three regions.
Wal-Mart's move has been treated with caution by some - unions in particular have attacked the company's staff healthcare plans - but with excitement by others. 'If it is truly on the verge of accepting its responsibilities and making real changes, then the potential for positive impact ... around the world is awesome to consider,' said Ethical Funds, a Canadian SRI fund manager.
The world's largest retailer has been a target of campaigners for years. But in a 'call to action' speech to staff, chief executive Lee Scott has now promised the company will adopt a more proactive approach to issues on which it has historically taken a 'defensive posture'. Scott told employees that he and other senior managers had experienced personal epiphanies on the subject of responsible business behaviour following Hurricane Katrina this summer.
Wal-Mart was much praised for its quick and efficient response to the disaster. The company gave away millions of dollars of goods, set up temporary stores, and used its logistics chain to get food, bedding and water to victims.
'Nothing brought this home more clearly than Hurricane Katrina,' said Scott. 'We were showered with gratitude, kindness and acknowledgments; this was Wal-Mart at its best. Katrina asked the critical question: what would it take for Wal-Mart to be that company, at our best, all the time?'
Scott added that this had been reinforced by a year of stakeholder dialogue in which he and senior executives had met customers, employees and NGOs. 'We kept talking, and as I learned more, a light bulb came on for me,' said Scott. 'After a year of listening... what became clear is that in order to build a 21st century company, we need to view these ... issues in a different light.'
In the speech, Scott outlined a range of new initiatives for Wal-Mart, including an $11-a-month (£6.30) staff healthcare plan aimed at the 46 per cent of its staff in the US who have no health coverage, 'basic health care clinics' in stores for low-income customers, and incentive bonuses for managers linked to diversity goals. It will also engage in 'community dialogue' before erecting its biggest stores and is to trial this in three regions.
Wal-Mart's move has been treated with caution by some - unions in particular have attacked the company's staff healthcare plans - but with excitement by others. 'If it is truly on the verge of accepting its responsibilities and making real changes, then the potential for positive impact ... around the world is awesome to consider,' said Ethical Funds, a Canadian SRI fund manager.
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