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Principles of Business: Wal-Mart and CSR

Today's changing legal, economic, and social environments require ethics programs aimed at protecting the company and its stakeholders, including stockholders, customers, employees, and others. Study the Web site and annual report of the company you selected, (Wal-Mart in this case) and provide a brief overview:

1. Describe the company's stance on corporate social responsibility (CSR).
2. Discuss the connection between the CSR program and why it is necessary to the specific industry.
3. How does the CSR program apply to today's trends and current issues in the global marketplace?
4. Whom is the company responsible to?
5. Why should a company implement a CSR program?

Solution Preview

1. Describe the company's stance on corporate social responsibility (CSR).

Wal-Mart strives to be corporately responsible. Walmart is one of the largest private employers in the United States and Canada and the largest in Mexico. It offers an average full-time hourly wages of $11.75, and provides 1.2 million employees with health insurance (Walmart Corporate Facts, 2011). Walmart pays above retail standards for employees that have little experience, low levels of skill, and often demand part-time work due to other commitments.

In addition to providing employment, health care and other benefits, Walmart also provides Americans products at prices that "are 8 percent to 39 percent below the prices of its competitors" (Furman, 2006). This helps all of us, as overall costs are driven down by the company's masterful negotiation and sourcing techniques. The company works to provide responsible sourcing, utilizing suppliers that share similar values, to provide safe, long lasting, quality products. This shows a responsibility to stakeholders throughout the supply chain.

In addition, Walmart works on improving the quality of life in communities, by "creating zero landfill waste and selling products that sustain our environment" (Walmart Corporate Facts, 2011). When Walmart moves to a different location within a town it works diligently to fill the previous space with a different business to prevent urban blight. It also responds quickly to ...

Solution Summary

This detailed solution provides overview of Walmart and its' stance on corporate social responsibility (CSR). It details why the CSR program is necessary, how it aplies to today's trends and current issues, and whom the company is responsible to. Examples and APA references are included.