Wal-Mart – Stakeholder and Csr Policies
Wal-Mart – Stakeholder and CSR policies
Executive summary
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
Executive summary
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
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