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.
