Wal-Mart – Stakeholder and CSR policies
In this report I’ll try to show why Wal-Mart decision 8 years ago to develop a stakeholder management and a corporate social responsibility plan was a good decision for the company. The company realised that its image wasn’t really good in the public opinion; they were unable to communicate and reach the African-American community, they have a bad reputation toward women and also suffer from a lot of critics about their negative effect on the local community on various point : Economic, environmental, and poverty. In order to protect the business in the long run they had to react. Wal-Mart implementation strategy is about opening store in small and medium cities where there is few and small competitors; thus with their low price the competitors are bankrupt quite easily and Wal-Mart is in a monopolistic situation. This strategy made the success of the company with a very efficient supply chain, thus when local community are resisting Wal-Mart implementation and the company suffer from a bad image relayed by mass media, it’s a direct threat to the business in the long term. This “Wal-Mart effect” has been examined for a long time and it’s hard to tell if the company have a bad or a good effect as the consequences are difficult to assess. Thus the company decided to hire Mrs Silver-Parker with the difficult assignment of bringing back communication between Wal-Mart and the Women and African-American community. She succeeded in this task by putting a face on Wal-Mart, and change people perception of the company. She also introduced the Wal-Mart CEO to different African-American leaders to helps him deal with this community. In order to have a positive impact on the community, Wal-Mart launched a complete Corporate Social responsibility plan; the company apply its knowledge in designing efficient process to makes this plan a success. Within 8 years (most recent data) the company made huge progress and transformed this plan into a competitive advantage. Wal-Mart became a leading company in social responsibility, and encourages other company and suppliers to follow the same track. Wal-Mart shows that CSR policies and Stakeholder management are not a waste of money and will be determinant in the future. Customers are more conscious and are not only looking for cheap product, thus Stakeholder management and CRS Policies can become a competitive advantage for big company.in the long term.
Wal-Mart was founded in 1962 by Sam Walton and has grown significantly over the years to become the biggest US Company in terms of revenues. In 2011 the Company owned more than 8,970 stores across the globe and 63% of its revenue came from the US retail market (Wal-Mart, 2011). Wal-Mart takes advantage of being highly innovative to gain a competitive edge, a good supply chain management, the cost-cutting strategy and the implementation strategy by targeting small and medium town where there is fewer competitors, led the company to the top. In 2005, many critics emerged on Wal-Mart’s effect on the local economy and the working conditions, especially for women. As a consequence, the media broadcast this news and Wal-Mart’s popularity decreased. They discovered through surveys that the company has a bad image in the woman and AfricanAmericans communities. Wal-Mart executives decided to ensure sustainable growth in the future by gaining the appreciation of these communities. Low prices have not helped Wal-Mart to gain the public esteem; one of the main concerns is Wal-Mart destroying the economy of small town with price competition. In order to change this bad image, they decided to build a proper stakeholder management and have a real corporate social responsibility plan for the future.
Local community resistance to Wal-Mart implementation
Wal-Mart stores are still successful thanks to the low cost strategy but suffer greatly of a lack of image and esteem of the citizen....
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