More on Wal-Mart
In late January, Lee Scott, CEO and president of Wal-Mart, delivered an address at Wal-Mart’s Year Beginning Meeting that primarily covered sustainability. The speech can be downloaded below.
Scott’s remarks are visionary and echo a number of points made by socially concerned investors for many years. He also states, “Now it is one thing to say you want to do this. It is a whole different ballgame to actually do it, especially for a retailer of our size. But your Wal-Mart will do this.” This acknowledgment is helpful, as shareholder advocates have had concerns for the last few years as Wal-Mart’s sustainability rhetoric has increased but its practices lag behind.
Of greatest significance to me is Scott’s pledge to prefer and - possibly pay more for - suppliers that meet or exceed Wal-Mart’s social and environmental criteria. If Wal-Mart is truly committed to this, it constitutes a fundamental change of business plan. The relentless drive toward low $ costs (at all other costs) is the root cause of Wal-Mart’s current unsustainable business approach. If that approach changes to value long term ecological and social soundness, it is positive news.
