Corporate Social Responsibility: Walmart's Engagement and Framework

This report analyses Walmart's engagement with CSR activities, identification of stakeholders and engagement channels for communication. A framework for CSR model has been explained for better understanding. Recommendations are provided that can be used by Walmart to improve further.

Running head: CORPORATE SOCIAL RESPONSIBILITY
Business ethics and sustainability
Name of Student:
Name of College:
Authors Note:
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Contents
Introduction.................................................................................................................................................3
Discussion....................................................................................................................................................3
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
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Introduction
In this report external approach of Walmart’s engagement with CSR activities have been
analysed with identification of stakeholders and engagement channels for communication. Also
the ways that are adopted by Walmart to resolve CSR concerns have been presented and a
framework for CSR model has been explained for better understanding. Lastly recommendations
are provided that can be used by Walmart to improve further.
Discussion
According to European Commission CSR is defined as amalgamation of social and
environmental issues with business functions and interacting with stakeholders about such issues
and responsibilities in an autonomous manner (Moczadlo 2015). Further CSR illustrates a firm’s
liability to increase its positive effects and decrease negative ones by being citizen of community
and expressing consideration for social needs and wants in long term.
Framework of CSR practise model
Carrol’s CSR Pyramid
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Fig: Carrol’s Pyramid of CSR
Source: Springer Open (2016)
According to Duarte, Gomes & Gonçalves (2014) Carrol’s CSR framework describes CSR as
activities that are carried out by firms to become economically profitable, abide with legislation
and to support ethical and social concern. In order to become socially responsive corporate needs
to abide with laws at priority so as to remain productive and ethical in approach that would help
to assist society with augmentation of money, time and talent.
The four obligations that community expects from corporate: (Ojasoo 2016)
Economic: obligations of corporate to produce goods those are beneficial for society and selling
them to be profitable. Hence to survive and leverage community needs for long time corporate
need to operate adequately their economic units to stay in business.
Legal: corporate should withstand with laws and other rules as because if they opt to be
negligible it can be serious for business. Example, corporate should abide with employment,
consumer protection and health & safety regulations.
Ethical: corporate should be ethically and morally responsive in their actions which are expected
by community above economic and legal obligations. Example, moral obligation for suppliers
and employees.
Philanthropic: corporate should be responsible to contribute to society through improvement of
lives of employees, public and local communities. Example, charity funding, staff engagement
in CSR initiatives
As an elementary condition of survival, Walmart has economic liability towards the society that
allowed them to produce and survive. As such economic expectation as part of social liability is
desirable as society expects and wants that Walmart as a corporate business be capable to
sustain. This is possible only when Walmart operates in profitability and is capable to offer good
returns to their shareholders so that they invest further in more resources to continue the business
operations. Thus basically society observes Walmart as corporate that can produce and sell good
that are needed and desired, so as an encouragement the society permits Walmart to take profits.
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Hence Walmart generates profits when they add value to their offerings to society and in doing
this they leverage stakeholders as well. Profits are essential to incentivise investors and for
business development as these profits are re-invested back to business for growth. Hence critical
significance is related to profitability and performance generation in context to add better
benefits to Walmart’s associate, society and suppliers. With better profitability of Walmart the
associates get benefitted in form of better bonus, job advancement schemes and more promotion,
society gets scope for more new jobs that are created and suppliers also get benefitted in form of
better collaboration, support and encouragement for business from Walmart. Moreover with
better performance supplier also get inclusive training that makes them prosper further in
business adaptability to meet desired standards of production and quality levels. So performance
effectiveness and management is related and vital for society which is leveraged through
business profits and focus to revenue, cost effectiveness, investments, better marketing and
operations approaches and decisions that augment long term financial performances for Walmart.
Additionally strong inclination towards CSR has strengthened the sustainability needs in the
social concerns dialogues of Walmart by offering momentum for CSR’s strong position as
centrepiece of their business for confronting and attaining competitiveness. These approaches
include Walmart’s focus towards globalisation of CSR initiatives, harmonisation of CSR across
different markets and business segments, strategic settlement with financial objectives and
intellectual reproduction in form of various measures that can endeavour future development
towards sustainable environment and business with good practices. Walmart effectively
maintains balance and accord between different stakeholder’s expectations which sometimes are
competing and pressurising enough between home and host nations of business operations.
Moreover harmonisation of CSR practices of Walmart reflects more formalised and in-depth
integration with corporate structure, policies and practices and from strategic viewpoint CSR is
widely accepted as mainstream approach at Walmart that has changed the purpose and direction
of their business to attain better sustainability needs.
Stakeholder engagement at Walamart
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According to Mazutis & Slawinski (2015) Walmart’s different stakeholders includes
shareholders, customers, associates, front runners of community and people and the firm engages
with them either directly or indirectly for involvement towards ESG (Environmental, Social and
Governance) concerns. Walmart gets engaged with their stakeholders periodically through
review meets.
Fig: Walmart’s Stakeholders and ESG priorities
Source: Global Sustainability Report, Walmart (2018)
Analysis of CSR framework of Walmart:
In order to support CSR or Sustainability framework aspects in context to economic, legal,
ethical and philanthropic aspects, Walmart practices the following responsibilities for different
stakeholders:
Shareholders: according to Gauthier (2017) Walmart interacts with shareholders about CSR or
Sustainability during frequent calls with partners of investment network, periodic earning
materials, SEC filing, investor’s congress, investment community meets, annual reports and
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through website publications. During each of these communication channels Walmart offers their
shareholders with updated and potent data on financial performance and other prime affairs.
Walmart also carries out shareholder outreach initiatives to communicate corporate governance
elements. During each of these engagement ways Walmart carries out open conversation with
shareholders to give updated information on corporate approaches and responsibility actions.
Associates: according to Baddache & Nicolai (2013) Walmart engages with their associates in
different ways such as face-to-face personal communication, team meets and cascade leadership
interactions, through intranet, Facebook Workplace and social media as well as through email.
Also random Associate engagement surveys are conducted annually to collect feedback on
various issues including governance, CSR or sustainability. Moreover Open door approach of
Walmart is another way that permits associates irrespective of the level to share opinions or raise
concerns anytime without hesitation. Translucence and interaction are vital ways to push
Walmart’s corporate governance and sustainable culture that is driven to continued
improvement. Feedback from associates are utilised to interpret concerns that are prime and to
respond as efficaciously as possible. For instance, as initiative to improve governance inside
Walmart, they have revised starting payments, introduced scheduling systems change and have
bettered training and development contributions to fulfil needs of associates.
Customers: Walmart engages with their customers through feedback mechanism such as surveys,
individual discussion, social media communication managed through Facebook, Twitter,
inperson interaction at stores, through emails and calls as well as through customer call centres.
Walmart acknowledges customer concerns on different aspects like nutrition quotient of food,
ingredient and responsible sourcing and responds them timely (Afreen & Kumar 2016). Example
for various private labels of Walmart, they have created with supplier’s food products that
support improving nutrition quotient through removal or reduction of sodium, sugar and transfat.
Suppliers: Walmart engages with suppliers to gather feedback and share company expectations
through various channels like online suppliers portal that encloses information on standards for
worker safety in factories of suppliers, code of conduct for emissions, product wastage and
sustainability concerns. These also include codes for issues that impact products being sold and
the procedure in which they are produced. In addition Walmart offers outreach and assistance
for different women owned suppliers assisting them to interpret procedures to be followed by
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Walmart’s suppliers (Gauthier 2017). Moreover various live and online events are hosted for
interaction like trade events to give updated information which assist suppliers and strengthen;
improves the systems. For instance to deeply understand lives of people connected in roots of
supply network like farmers, fishermen, factory workers who produce products being sold,
Walmart and their leadership teams carry out a program “eat what you cook” during onsite visits
which essentially brings forward the opinions of people who are at far end of supply chain.
These engagement ways helps to improvise merchandising through responsive sourcing
activities; human rights approaches like Responsible recruitment.
Communities: according to Kim, Ha & Fong (2014) Walmart engages with community through
channels to create responsiveness for CSR where their store associates visit local organisations
and engage by written or online interactions. Also Walmart Foundation works with different
community bodies worldwide engaging them by proposal, meets and discussions.
NGO: according to Baddache & Nicolai (2013) Walmart engages with NGO’s and advisory
bodies through Walmart Foundation to support issues of deforestation, human trafficking so as to
address them with wide implication and system wide change through collaborative actions to
resolve complex concerns. Also periodic meets and online updates on progress for goals are
made for engagement. These facilitate actions on ecosystems and networks to amplify the
implication of learning from and assisting each other.
Approach of Walmart Stakeholders engagement framework
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Fig: Summary of Stakeholder approaches of Walmart
Source: Global Sustainability Report, Walmart (2018)
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Recommendation for improvement
 Value chains are normally effective to regulations and supervisions but some can result to
prospective damage to worker dignity so Walmart needs to set more clear objectives for
their suppliers and other units to support Responsive sourcing in context to generating
awareness on operational sustainability and responsive ways to practices that can
safeguard worker dignity.
 Walmart depends largely on social compliance audits, code of conducts that are set
between them, third parties like auditing firms and suppliers. Though Walmart has
appropriate practices in place but to ensure more trust they can enhance standard for
auditors further in context to social adherence. Like conduct certifications and
proficiency archetype for professional practices can be developed to enforce
professionalism.
Conclusion
Hence it can be inferred that combining sustainability within the approaches and practices of
Walmart is an integral culture which helps them extend support for various CSR and
sustainability programs and further enact improvement in collaboration with stakeholders. To
maintain effectiveness Walmart engages with stakeholders through various channels to
communicate awareness and expectations on CSR and sustainability so as to form an effective
and robust system to maintain responsibility for CSR implications in both positive and negative
manner by maximising positive encounters and lowering negative encounters.
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References
Afreen, S., & Kumar, S. (2016). Between a rock and a hard place. Sustainability Accounting,
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2018]
Baddache, F., & Nicolai, I. (2013). Follow the leader: How corporate social responsibility
influences strategy and practice in the business community. The Journal of Business
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2013-0002 [Accessed 30 Sep. 2018]
Duarte, A. P., Gomes, D. R., & Gonçalves, d. N. (2014). Finding the jigsaw piece for our jigsaw
puzzle with corporate social responsibility. Management Research, [Online] 12(3), 240-
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Gauthier, J. (2017). Sustainable business strategies: Typologies and future directions. Society
and Business Review, [Online] 12(1), 77-93. Retrieved from
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https://search.proquest.com/docview/1864035472?accountid=30552 [Accessed 30 Sep.
2018]
Kim, J., Ha, S., & Fong, C. (2014). Retailers' CSR: The effects of legitimacy and social capital.
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[Accessed 30 Sep. 2018]
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authenticity in corporate social responsibility. Journal of Business Ethics, [Online]
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[Accessed 30 Sep. 2018]
Moczadlo, R. (2015). CREATING COMPETITIVE ADVANTAGES - THE EUROPEAN CSR-
STRATEGY COMPARED WITH PORTER'S AND KRAMER'S SHARED VALUE
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Ojasoo, M. (2016). CSR reporting, stakeholder engagement and preventing hypocrisy through
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