Walmart Outlines Whole Systems Approach for Global Responsibility

Posted April 21, 2016 by Sheila Shayon

Walmart’s ninth annual Global Responsibility Report outlines the company’s “whole systems” approach to advancing responsibility in key areas of opportunity, sustainability and local communities.

Aptly titled, “Using Our Strengths to Help Others,” the report highlights the company’s progress and milestones in those areas over the past fiscal year.

“When Walmart set out on our sustainability journey 10 years ago, it was in an effort to improve our own operations, but we’ve learned that we can positively impact systems beyond our company” said Kathleen McLaughlin, Walmart chief sustainability officer and president of the Walmart Foundation, in a press release. “We’ve celebrated many milestones tracking toward the ambitious goals we laid out in 2005, and most importantly, we have learned that achieving lasting change requires collaboration and collective action among stakeholders and our peers in the business community.”

Examples of the company’s approach to delivering on that promise include:

Aspiring to strengthen whole systems, enhancing environmental sustainability in retail supply chains means addressing their social and economic dimensions, empowering women and supporting worker safety and dignity.

Creating business and societal benefits as the greatest impact on social and environmental issues important to the company comes from shared initiatives and social values with stakeholders.

Leading through the business Walmart focuses on integrating its social and environmental priorities into routine business activities, including leadership practices, organizational roles and operational structures.

Using philanthropy to complement business initiatives, the company through the Walmart Foundation gives over $1 billion annually to projects that create opportunity, enhance sustainability and strengthen community.

Prioritizing actions that draw on key capabilities which include its 2.3 million associates globally, supplier relationships, buying power in categories like food and apparel, physical assets and capabilities in logistics, marketing, operations and merchandising.

Collaborating with others such as the Environmental Defense Fund, to meet and surpass its goal of eliminating 20 million metric tons (MMT) of GHG emissions from its supply chain by eliminating a reported 35.6 MMT since the goal was set forth.

“Our customers want to buy products that are good for the environment, for their families, and for the people who made them, and we’re pleased to show continued progress through our efforts over the past year,” notes McLaughlin. “We strongly believe in using our strengths to do good and that serving our customers and society is one in the same, and we look forward to continuing our journey ahead as we unlock the full potential of our business.”

That potential encompasses close to 260 million customers and members who visit Walmart’s 11,530 stores under 72 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482 billion, Walmart’s more than 2.3 million associates worldwide represent that whole systems approach.

This week Walmart also announced it will shrink its board by three members to 12, closer to US corporate norms, to enable a more nimble response to rapidly changing markets and consumer demand.

The changes include the retirement of Jim Walton, youngest son of late Walmart founder Sam Walton after 11 years on the board, with son Steuart, nominated for a board seat.