The corporate social responsibility statement for Wal-Mart Stores indicates that “Working with others, we aspire to reshape the way we work to achieve significant and lasting improvement in environmental and social outcomes, in a way that also improves our business. Our approach accelerates us towards our three aspirational goals: to create zero waste, operate with 100% renewable energy and sell products that sustain our resources and the environment. We are using our strengths to not only further work in our operations but to also help create a more sustainable value chain” (Wal-Mart, 2018).
Wal-Mart commitment to ethics is demonstrated by its corporate responsibility statement, which focuses on working with global society. The emphasis is defined towards the attainment of safer environmental and social outcomes. By focusing on renewable energy and marketing products that are sustainable to the environment, the organization significantly describes its commitment towards conservation. Equally important is the zero waste generation policy and the commitment to create sustainable value chains. It implies that the company is committed to non-environmental depletion practices and conservation mechanisms within its operations. Although ethical practices and corporate responsibility programs define an organization culture, the majority of companies continue to focus on growth and profitability, leading to limited environmental protection initiatives and employee welfare support.
The organizations managing their operations in the 21st century have more strategic expectations of corporate responsibility beyond the aspects of profitability. According to Snider, Hill, and Martin (2003), CSR illustrates the relationship an organization has with a society where it operates. A majority of firms have concentrated their operations to growth prospects and profitability. Although a company’s broader objective may be profit-making, the environment that supports the business requires significant attention for the corporate to maintain growth in future (Saeidi, Sofian, Saeidi, Saeidi, & Saaeidi, 2015). The most compelling evidence why strategic focus must be realigned to the CSR approaches is based on the aspect that environment, where natural resources are drawn from, becomes depleted if not conserved. Youssef-Morgan and Stark (2014) aver that companies have enjoyed huge profits and improved growth to the detriment of players who support the operations, including employees, surrounding communities, and the environment. Therefore, an organization should strive to develop a safer working atmosphere, and focus beholds growth and profitability, which can lead to unfair competition and unethical practices.
New CSR Perspectives Affect Wal-Mart Internally and Externally
Companies have misrepresented their CSR activities to seek approvals from the public or industry regulators. Notably, Snider, Hill, and Martin (2003) project a reasonable spectrum by developing four paradigms from which CSR can be defined. The authors observe that the corporate responsibility programs can be categorized into those activities that are legally binding, economically oriented, ethical, and philanthropic or discretionary. With this in mind, Wal-Mart develops its CSR perspectives by conducting its business legally and ethically in the industry, while getting involved in philanthropic works in the society. Even though companies have continued to operate through models that take advantage of both their workers and over depletion of their surroundings, Wal-Mart’s strategic focus on employee welfare improvement and environmental protection systems through clean energy and zero waste is significant to its success (Wal-Mart, 2018). Therefore, it is important for companies to direct their operations in models that follow ethics and are bound to the environmental code and expectations of the industry.
Managing business ethically is a strategy that all modern-day organizations strive to attain. Ethics management involves the balance between competition in the market and the values that influence a positive culture and behavior in the competitive world (Davidson, 2013). Wal-Mart is likely to be affected by profitability meltdown. Escalated costs may alter the internal business environment, especially when applying clean energy and zero waste systems, which might be expensive. Accordingly, the external environment of customers and suppliers will experience adjustment through improved quality of both raw materials and products retailed, leading to their allegiance to the firm. The company will also be bound by employee expectations for better working environments, such as improved salaries or wages, better health insurance, and other work benefits, which will further reduce the profit margins. As such, it is important that the organization concentrate on managing its business ethically, regardless of the cost or benefits that CSR activities accrue to its operations.
New 21-Century CSR Endeavors
Organizations in the 21 century are taking advantage of emerging trends in the market to develop new CSR initiatives. Wal-Mart is focusing on managing digital trends, such as waste reductions and the six sigma, lean management systems based on environmental sustainability (Wal-Mart, 2018). The Wal-Mart’s mission statement, “ to save people money so they can live better” elucidates the approach to CSR by concentrating more on customer value than profitability. The emergent 21-century CSR initiatives acknowledge the significance of the environment and its perspectives in management. In response to the 21-century CSR stances, Wal-Mart Company demonstrates its commitments in clean energy, zero waste policy, while focusing on customer and employee value as illustrated in the mission statement. Therefore, the Wal-Mart Company’s CSR approach has switched from being a peripheral option in business to a strategic standpoint since it defines the future operations of every business and influences the perception of its targeted consumers.
The organizational viewpoints on their CSR have become a part of their public information in the 21century. Just as other companies do, Wal-Mart’s CSR corporate statements have become public documents or information availed to the public. Companies are rated according to their CSR statement, especially in the digital platform, and the extent to which they attain them. CSR is a superior tool that organizations use to define their culture and operational beliefs. Besides deviating from the practices of profit maximization, companies are developing progressive business cultures that appreciate all the participating entities within their operations.
Conclusion
Wal-Mart company appreciates its employees through contemporary incentive structures, such as medical schemes, product discounts, and workplace financial education. There is a significant focus employed in the appreciation of the environmental makeup. Therefore, the organization spends a significant part of its resources to support conservation measures that boost the natural process of environmental replenishment. Such a process leads to reduced incidences of waste generated in the manufacturing sectors and enhances other aspects that boost the operating environment for companies. Wal-Marts CSR is an effective tool that has the potential to change the entire work paradigms for employees, leading to improved levels of satisfaction and environmental protection. Therefore, it is significant that all global companies engage in CSR processes as a model of managing ethics in the workplace to enhance safety and reduce systemic limitations and challenges that exist during business operations.
References
Davidson, L. (2013). 11 misunderstood employee benefits and how to make the most of them. Forbes. Retrieved from http://www.forbes.com/sites/financialfinesse/2013/08/15/what-you-dont-understand-about-your-benefits-could-hurt-you/
Naidoo, M., & Gasparatos, A. (2018). Corporate environmental sustainability in the retail sector: Drivers, strategies and performance measurement. Journal of Cleaner Production. 203(1), 125-142.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341-350.
Snider, J., Hill, R. P., & Martin, D. (2003). Corporate social responsibility in the 21st century: A view from the world’s most successful firms. Journal of Business Ethics, 48(2), 175-187.
Wal-Mart (2018) Global responsibility. Wal-Mart Inc. Retrieved from https://corporate.walmart.com/global-responsibility/sustainability/
Youssef-Morgan, C. M., & Stark. E. (2014). Strategic human Resource Management: Concepts, controversies, and evidence-based applications. Retrieved from https://content.ashford.edu/