Business and Global Society: Analysis of Walmart's Shared Value

This report provides an in-depth analysis of Walmart's shared value approach within the context of business and global society. It begins with an overview of Walmart, a multinational retail corporation, and defines shared value as a management strategy that seeks opportunities in social problems. The report then examines Walmart's specific approach, highlighting its focus on creating shared value for stakeholders by addressing issues like sustainability, community development, and economic opportunity. It details Walmart's shared value priorities and aspirations for 2025, including goals related to job creation, sustainability, and community support. The report further explores Walmart's actions, such as integrating environmental and social priorities, and leveraging its strengths through philanthropy. Finally, the report concludes by emphasizing Walmart's commitment to creating value for all stakeholders and its efforts in addressing societal and environmental challenges. The report uses references from the provided documents to support its claims.

Running head: BUSINESS AND GLOBAL SOCIETY
2020
Walmart
2/14/2020
Business and Global Society

BUSINESS AND GLOBAL SOCIETY 1
Table of Contents
Introduction................................................................................................................................2
Overview of Walmart.............................................................................................................2
Shared Value of Walmart.......................................................................................................2
Walmart’s approach to Global Responsibility – Shared Value..........................................3
Shared Value Priorities and Aspirations for 2025..............................................................4
Conclusion..................................................................................................................................7
References..................................................................................................................................8

BUSINESS AND GLOBAL SOCIETY 2
Introduction
This report intends to discuss the concept of shared value which is a rising approach
in the corporate responsibility arena and an increasing number of firms are getting involved
in this to improve their corporate citizenship. This report has taken into consideration the
share value approach adopted by Walmart and its analysis.
Overview of Walmart
Walmart is a well-known multinational retail corporation of America that is involved
in the operation of discount stores, hypermarkets, and grocery stores with headquarter in
Bentonville, Arkansas. 1962 was the year when the company was established by Sam Walton
(Walmart Inc., 2020b). The company is also involved in operating the Club retail warehouses
of Sam. As per the 2019 reports, Walmart holds around 11,438 stores across the world
(Walmart, 2020).
Shared Value of Walmart
Shared value is a part of social responsibility but considered to be a new means of
attaining economic gain in the market by the businesses. It is also called as the management
strategy through which businesses search for opportunities from the social problems (Shared
Value Initiative, 2020). While CSR and philanthropy concentrate on the efforts of “giving
back” or decreasing the business harm on the society, but shared value concentrate on the
leaders of the company on increasing the value of resolving the problems in the society in a
new way such as cost-saving, retention, etc. Many of the businesses are now focusing on
rebuilding their models of the business across social goods, which helps them in attaining
competitive advantage against their competitors (Liel, 2016).
Walmart is aimed towards using its strength and work together with others for the
transformation of the system on which the business can rely upon, including proceeding their
determined commitments and objectives in the precedence areas of opportunity, community,

BUSINESS AND GLOBAL SOCIETY 3
and sustainability. The company believes that its operations in these areas not just benefit the
bottom line, but also contribute to creating shared values for the society and customers
(Shared Value, 2020).
The business of Walmart is existing in the market to serve society. Being the largest
grocer across the world, Walmart is involved in offering suitable access to reasonable food
and many other products to people present all over the world. The business is doing this in
numerous ways which are providing them support in creating economic opportunity, improve
environmental sustainability for a longer duration, and strengthening the local communities
(Walmart Inc., 2020a). This shared approach is accompanied by the philanthropic
investments of Walmart.org, which concentrate on the areas where they make use of their
strengths, expertise and work together with others to bring change in the wide system.
Walmart’s Global Responsibility
Changing of System
Walmart is working with its stakeholders in order to redesign the entire system to
attain the major and long-term development in the economic, social, and environmental
outcomes. For instance, improving the environmental sustainability of the supply chain by
identifying their social as well as economic scopes (3BL Media, 2017).
Creating Shared Value
The company focus on creating value for all the stakeholders and society because
share values improve the viability as well as the quality of the solutions (3BL Media, 2017).
Leading through business
The company is working to integrate its environmental and social priorities in their
day to day business activities like store operations, technology, merchandising, human
resources, logistics, and sourcing by the use of leadership practices, operational tools as well
as procedures.

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Actions Taken by Walmart
Walmart is successfully making a difference in the business environment as well as
society by using their strengths. The strength of the company is comprised of its 2.3 million
global associates, acquiring of apparel and food, marketing, merchandising, capabilities in
logistics, supplier relationship, marketing, etc. (3BL Media, 2017)
Use of Philanthropy
The company is extending the influence of the environmental and social initiative by
the philanthropic efforts. By the use of cash girls and in-kind, company and Walmart
Foundation give around $1 billion on yearly basis for the projects that general opportunity,
improve sustainability, and reinforce the community (3BL Media, 2017).
Shared Value Priorities and Aspirations for 2025
Since last ten years, Walmart is focusing on its three aspirational goals set by it
related to sustainability: selling products that sustain their environment and resources,
running the business with 100% renewable energy, and creating zero waste (Informes, 2018).
Opportunity
Offering training and job opportunity that can become careers for their associates
 Working on the investment of $2.7 billion that has been made by the company in
training, wages, and education for their millions of contacts in the United States and
focusing on achieving:
1. Become the priority for the job seekers
2. Offering a successful path for the development of career
 Quickening the frontline retail worker's mobility beyond Walmart
 Endorsing the inclusion, variety, and culture at Walmart
 Providing support to the economic enclosure in the societies and supply chains
Supporting the small, diverse, and local business development

BUSINESS AND GLOBAL SOCIETY 5
 Sourcing of additional products in the local area as well as across the world,
comprising their goal to source the products of around $250 billion (Walmart, 2017).
 Supporting in offering more job opportunities to the Americans by the year 2023
 Providing support to small and local farmers
 Increasing the growth of diverse suppliers and women-owned suppliers
 Supporting the growth of small businesses
Sustainability
Decreasing the use of energy and emission in the environment
 To operate the 50% of the business with the renewable energy by the year 2025
 Decreasing the carbon emission from their business operations by 18%
Eliminating waste from the operations
 Avoiding through waste to the landfill by attaining zero waste in their processes in
Canada, Japan, the United Kingdom, and the United States by the year 2025. This
commitment has been developed within the business to meet the code of conduct.
introduced by the International Zero Waste Alliance
Enhancing the sustainability in Walmart’s Value Chain
 Encouraging transparent in their value chain
 Decreasing the negative environmental impact of the business
1. Working together with the suppliers for decreasing 1 Gigaton of the emissions from
2015 and 2030.
2. Increasing the commodity sourcing that is manufactured by the zero-net deforestation
by 2020.
3. Increasing and improving the sustainable sourcing

BUSINESS AND GLOBAL SOCIETY 6
4. Making use of 100% biodegradable packaging of its private products (Walmart,
2017).
5. Working with the suppliers for decreasing packaging and production waste and
supporting in the preservation of natural resources.
Making affordable and healthier products
1. Increasing the sales of the products manufactured in the U.S.
2. Decreasing saturated fat, sugar, and sodium from the products
3. Working together with the suppliers of their private products in the market to
eliminate the artificial flavors that are added in the products.
Respecting the worker’s dignity
 In order to contribute in the Responsible Recruitment, Walmart is becoming the part
of the Leadership Group, which is a collaboration of business and NGO partners
working for legal recruitment and respectful treatment of the workforces at the global
level.
Community
Supporting in relieving hunger
 Meeting the commitment of the business of donating 4 billion meals to fight from
hunger in 2020 and reinforce the system of charitable meal.
Improving the resilience in the face of disasters
 The contribution of around $25 million by Walmart and its foundation for disaster
reprieve and resiliency across the world from the year 2016 and 2021 (Walmart,
2017).
Developing the local communities

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 Providing support to the community engagement
 Involving customers and associates for supporting others (Walmart, 2017)
Conclusion
From the above analysis, it can be said that the initiative of Walmart by creating a
shared value approach seems to be focusing on the development of community and
environment. The company is involved in offering job opportunities to Americans, reducing
its carbon emission from the environment, and providing training to the workers for their
career development. In all, this initiative is providing benefits to all its stakeholders.

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References
3BL Media. (2017). Shared Value is the Walmart Approach to Global Responsibility.
Retrieved from https://www.3blmedia.com/News/Shared-Value-Walmart-Approach-
Global-Responsibility
Informes. (2018). Shared Value creation model. Retrieved from
https://informes.walmex.mx/2018/en/shared-value-creation-model/
Liel, B.V. (2016). Creating Shared Value as Future Factor of Competition: Analysis and
Empirical Evidence 1st ed. Germany: Springer.
Shared Value Initiative. (2020). Business At Its Best. Retrieved from
https://www.sharedvalue.org/about-shared-value
Shared Value. (2020). Walmart. Retrieved from
https://www.sharedvalue.org/partners/funding-partners/walmart
Walmart. (2017). Global Responsibility Report. Retrieved from
https://cdn.corporate.walmart.com/95/08/2d1f094c430186c299788ac1935b/wmt-
2017-grr-report-final.pdf
Walmart Inc. (2020a). What we do? Retrieved from https://walmart.org/what-we-do
Walmart Inc. (2020b). Our History. Retrieved from https://corporate.walmart.com/our-
story/our-history
Walmart. (2020). About Us. Retrieved from https://corporate.walmart.com/our-story