Project Report

On

CSR of Wal-Mart

Submitted To Submitted By

Dr.Rajul Singh Manvendra Joshi

FT -10-(RM)-809

Sec: D
Introduction
Corporate Social Responsibility (CSR) pertains to a company’s societal responsibility. The CSR
concept takes the idea of sustainability and combines its three pillars – economy, ecology and
society – with concrete corporate action. CSR is a central economic factor and a sustainable
competition factor, which dictates the future viability of a company.
Corporate Social Responsibility encompasses all activities of the company in the fields of social,
ethical and ecological responsibility, with which sustainable development will be implemented in
the daily life of the business.

Values build the basis of CSR: they create trust and allow a clear positioning in the market. The
recognition of these strengths gives a company a high profile and creates competitive
advantages.
The integration of economic, ecologic and social aspects into the corporate strategy is aimed at a
clear differentiation to other companies. A long-term existence is only possible when a company
can create both social as well as economic value.
Importance of CSR

The following are the importance of CSR

Corporate Social Responsibility attracts and retains staff

Socially responsible companies report increased employee commitment, performance and job
satisfaction

By attracting, retaining and engaging staff, ‘doing good’ for others reduces your recruitment
costs and improves work productivity. It’s just plain good all round!

Customers are attracted to socially responsible companies

Branding your business as ‘socially responsible’ differentiates you from your competitors. The
Body Shop and Westpac are companies who have used this to their advantage. Developing
innovative products that are environmentally or socially responsible adds value and gives people
a good reason to buy from you.

Corporate Social Responsibility attracts investors

Investors and financiers are attracted to companies who are socially responsible. These decision-
makers know this reflects good management and a positive reputation. Don’t underestimate this
influence; it can be just as important as your company’s financial performance. In fact, it may be
the deciding factor in choosing to support your company.

Corporate Social Responsibility encourages professional (and personal) growth

Your staff can develop their leadership and project management skills through a well-designed
corporate social responsibility program. This may be as simple as team building exercises,
encouraging your employees to form relationships with people they would not normally meet
(like disadvantaged groups).

Corporate Social Responsibility helps to cut your business costs

Environmental initiatives such as recycling and conserving energy increase in-house efficiency
and cut costs. Introducing a corporate social responsibility program gives you a good reason to
examine and improve on your spending!
Company Overview
Wal-Mart's history is one of innovation, leadership and success. It started with a single store in
Rogers, Arkansas in 1962 and has grown to what is now the world's largest - and arguably, the
most emulated - retailer. Some researchers refer to Wal-Mart as the industry trendsetter. Today,
this retailing pioneer has annual revenues of over $100 billion, 3,000 stores and more than
750,000 employees worldwide. Wal-Mart operates each store, from the products it stocks, to the
front-end equipment that helps speed checkout, with the same philosophy: provide everyday low
prices and superior customer service. Lower prices also eliminate the expense of frequent sales
promotions and sales are more predictable. Wal-Mart has invested heavily in its unique cross-
docking inventory system. Cross docking has enabled Wal-Mart to achieve economies of scale
which reduce its costs of sales. With this system, goods are continuously delivered to stores
within 48 hours and often without having to inventory them. This allows Wal-Mart to replenish
the shelves 4 times faster than its competition. Wal-Mart's ability to replenish theirs shelves
four times faster than its competition is just another advantage they have over
competition. Wal-Mart leverages its buying power through purchasing in bulks and distributing
the goods on it's own. Wal-Mart guarantees everyday low prices and considers them the one
stop shop. This company has an important place in retail industry and the company is
contributing so much in CSR, Wal-Mart is the dream company to work with.
.
Company Values & Core Ideology
Our unique culture has helped make Wal-Mart one of the world’s most admired companies.
Since Sam Walton opened the first Wal-Mart in 1962, our culture has rested on three basic
beliefs. We live out these beliefs every day in the way we serve our customers and each other.

1. Respect for the Individual

We’re hardworking, ordinary people who’ve teamed up to accomplish extraordinary things.
While our backgrounds and personal beliefs are very different, we never take each other for
granted. We encourage those around us to express their thoughts and ideas. We treat each other
with dignity. This is the most basic way we show respect.

2. Service to our Customers

Our customers are the reason we’re in business, so we should treat them that way. We offer
quality merchandise at the lowest prices, and we do it with the best customer service possible.
We look for every opportunity where we can exceed our customers’ expectations. That’s when
we’re at our very best.

3. Striving for Excellence

We’re proud of our accomplishments but never satisfied. We constantly reach further to bring
new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until
prices were as low as they could be or that a product’s quality was as high as customers deserved
and expected. We always ask: Is this the best I can do? This demonstrates the passion we have
for our business, for our customers and for our communities.
CSR Framework

Wal-Mart's CSR activities stretch across its people, the community and the environment. The
company recognizes its responsibility to help sustain the communities in which it operates. Wal-
Mart focuses on environmental sustainability as it is a key to improve the quality of life for
people around the world; other areas include its employees as well as community projects.

1. Environment
As a large international company Wal-Mart is aware of its impact on the environment and the
ongoing changes and challenges with which
businesses are faced in a fast changing world. Wal-Mart has launched a company-wide, long-
term initiative to adapt its business practices in relation to environmental restoration and
sustainability. Some of the company's goals include: relying 100% on renewable energy, creating
zero waste and selling products that sustain resources and the environment.

Recent activities include an initiative to reduce packaging from 2008 onwards. Wal-Mart is
looking for suppliers who are able to develop new packaging and conserve natural resources at
the same time. Through this initiative the company aims at reducing packaging by 5%. In
addition to reducing millions of pounds of trash the initiative also decreases carbon dioxide
emissions.

2. Community
In addition to its commitment to the Children's Miracle Network and job creation initiatives the
company engages in activities covering topics such as education, children or volunteering.
Through its community giving scheme the company supports literacy programs and community
scholarships and makes contributions to many national and international organisations and
networks such as the American Cancer Society, the American Red Cross, the National Fish and
Wildlife Foundation or the United Way and Special Olympics.

In times of disasters Wal-Mart provides resources to help affected communities by making cash
donations to local charitable organisations such as the American Red Cross or providing victims
with necessary supplies.

Military Families Outreach Project

On August 1st 2006 Walt-Mart started its Military Family project with Sesame Workshop, a not-
for-profit organization focusing on educational projects for children around the world. Wal-Mart
and Sesame Workshop distribute bilingual, multi-media outreach kits entitled Talk, Listen, and
Connect: Helping Families During Military Deployment.

Due to an overwhelming response to the project and feedback from Talk, Listen, Connect's
advisory board, Wal-Mart has donated an additional $575,000, for a total of nearly $1.5 million
in funding.

3. People
Wal-Mart's commitment to diversity enables the company to better serve its customers and to
establish a positive work environment for its employees. The company has established a set of
diversity goals and supports its employees and associates through diversity and inclusion
trainings, scholarship programs and other events and programs.

Scholarship Programs
Wal-Mart offers several scholarship programmes to increase diversity in specific areas of work.
Through the UNITY Scholarships Programme the company offers scholarships to minority
college journalism students to increase diversity in the newsrooms around the country. The Wal-
Mart Foundation, in cooperation with the SAM'S CLUB Foundation, will run this three year
programme with a financial commitment of $500,000. Through this initiative ten universities
will receive financial support for their journalism programs.

Goals

Women-Owned Businesses
In the U.S., we will source $20 billion from women-owned businesses. Globally, we will double
our sourcing from women-owned businesses in every market.

Farms and Factories

New programs will empower women on farms and in factories through training, market access
and career opportunities. We will help 60,000 women working in factories develop the skills
they need to become more active decision-makers in their jobs and for their families.

Job Training and Education

Already successful retail training programs will be scaled to help 200,000 women
internationally. In the U.S., we'll help 200,000 women from low-income households gain the
skills they need for employment and a career.

Gender Diversity
In markets around the world, we will work with major professional service firms and
merchandise suppliers with over $1 billion in sales to increase women and minority
representation on Wal-Mart accounts.
Benefits to Society

Corporate social responsibility (CSR) isn't just about doing the right thing. It means behaving
responsibly, and also dealing with suppliers who do the same. It also offers direct business
benefits. See the page in this guide on how to benefit from corporate social responsibility.
Building a reputation as a responsible business sets you apart. Companies often favor suppliers
who demonstrate responsible policies, as this can have a positive impact on how they are
perceived by customers.
Some customers don't just prefer to deal with responsible companies, but insist on it. The Co-
operative Group, for instance, place a strong emphasis on its corporate social responsibility and
publishes detailed 'warts and all' reports on its performance on a wide range of criteria - from
animal welfare to salt levels in its pizzas. Find out about The Co-operative Group's approach to
CSR on the Co-operative Group website- Opens in a new window.
Reducing resource use, waste and emissions doesn't just help the environment - it saves you
money too. It's not difficult to cut utility bills and waste disposal costs and you can bring
immediate cash benefits. For more information read our guide on how to save money by
reducing waste.
There are other benefits too:

 A good reputation makes it easier to recruit employees.

 Employees may stay longer, reducing the costs and disruption of recruitment and
retraining.
 Employees are better motivated and more productive.
 CSR helps ensure you comply with regulatory requirements.
 Activities such as involvement with the local community are ideal opportunities to
generate positive press coverage.
 Good relationships with local authorities make doing business easier. See the page in this
guide on how to work with the local community.
 Understanding the wider impact of your business can help you develop new products and
services.
 CSR can make you more competitive and reduces the risk of sudden damage to your
reputation (and sales). Investors recognize this and are more willing to finance you.

Conclusion

Global companies face a new reality that has changed the nature of risk and risk management
networked operations and global value chains, empowered stakeholder, and the dynamic tension
among sectors. The emergency of the new forms of social risk cannot be mitigated through
traditional means. The new environment required innovation by companies in both sensing and
understanding these risk, include new tools and network base models of information sharing.
CSR provides the frame work and principles for stakeholder engagement, supplier wealth of
intelligence on emerging and current social issues/groups to support the corporate risk agenda
and ultimately serves as a countermeasure for social risk.
Companies with global operation can only address social risks by balancing those risks against
business decision and determining the quality of engagement with stakeholders and their
associated issues. Company should begin the process by (1) identifying the empowered
stakeholder and their key issues & (2) determine the highest level of engagement and
information sharing necessary to address their concern and reap the mutual benefit from
improved accountability and better relationship with stakeholders
But understanding a stakeholder issue isn’t the solution to anything in and of itself it is a
competitive necessity also to utilize the knowledge embedded in global networks. The linkage of
CSR to core business processes can improve a company’s overall approach by improving
strategic intelligence and knowledge of social issues. This allows a company to not only design
better for current issue but also help anticipate those coming down the pike.