Description:
The article focuses on Wal-Mart’s adoption of eco-friendly initiatives.
Stakeholders involved:
The primary stakeholders were the environment, Unilever, PepsiCo, Universal Music, and Environmental Defense, an environmental group who’s opening a new office new Wal-Mart’s headquarters in Bentonville, Ark.
Ethical issues involved:
Actual and future potential harm to the environment: Sustainability is the key to securing the future of our natural resources and environment. The article focuses on Wal-Mart’s attempts at increasing sustainability through more economically friendly business practices.
Duty to the society: Wal-Mart has a duty to not just Americans but to the rest of the world that can and will ultimately be affected by the greenhouse emissions that the Wal-Mart chain’s stores emit every year.
Key ethical question the company must resolve:
How will Wal-Mart limit the damage it does to the environment through its daily activities?
Manner in which the company managed the issue:
In the article, Wal-Mart claims to have taken two steps in increasing overall sustainability for the future. First, they have outfitted refrigerator cases in over 500 stores with a new LED lighting system. Secondly, Wal-Mart claims to be working with local farmers in producing a “zero waste” alternative to recycling food that isn’t sold. Both efforts claim to increase sustainability, but now I shall evaluate the validity of the claims. In the case of the new lighting system, Wal-Mart claims the plan with save the company “$3.8 million a year and reduce its carbon dioxide emissions by 65 million pounds.” Seeing as the extra money could also be used in further sustainability projects, I would say this effort is definitely very effective, and strong. In the case of zero waste, given that, if the plan succeeds, none of the food that Wal-Mart can’t sell will be wasted, the plan is a good one in terms of recycling. It will aid in fertilizing fields and thereby provide cheaper alternatives for farmers who do fertilize.
Other posts on Wal-Mart financial analysis:
Wal-Mart: Comparison of ROCE for Wal-Mart’s Alternative Cash Management Strategies
Analysis of Wal-Mart Financial Ratios
Analysis of Wal-Mart Financial Ratios, P/E Growth
Analysis of Wal-Mart Financial Ratios, P/B
Wal-Mart: A Potential Management Issue Resulting from Excess Cash
Analysis of Wal-Mart Financial Ratios P/E, V/E
Wal-Mart in the News, Adoption of Eco-Friendly Activities
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