Corporate Sustainability Assessment

Answer

Walmart’s Sustainability Assessment

]Background

            The primary focus of this paper is to provide an assessment of Walmart’s sustainability management. An assessment of the company’s sustainability reports will be completed through the use of the Sustainability Change Matrix tool. The focus is to provide an overview of Walmart’s sustainability performance. Recommendations for change will be provided after establishing the areas which require further efforts from the sustainability performance. The recommended sustainability projects are focused on benefiting the operations of the firm when it comes to it sustainability efforts.

Walmart’s Company Overview      

            Walmart, Inc. is a company that engages in the wholesale and retail business activities. The Company offers a broad range of products and services at significantly low costs. The firm operates through various business segments such as Walmart Internal, Walmart U.S., and Sam’s club (CNN Business, 2020). The company strives to meet the meet the needs of the consumers in the market as well as show its dedication towards corporate social responsibility efforts.

Sustainability Efforts

Walmart has allocated its efforts towards achieving sustainability in various ways. One of the primary ways that the company focuses on achieving sustainability is through the use of its strengths to assist people in living better as well as preserving the planet. Notably, Walmart has been collaborating with the others with a primary aim of achieving a positive change across the global supply chain (Walmart Inc., 2020). The company’s sustainability efforts provide the planet and the people with a priority by aiming to sell sustainable products, source responsibly, reduce its rates of waste and emissions, and protect and restore the natural resources. The company has showed its commitment towards aiding in making responsible recruitment decision the norm, protecting the forests, waste elimination, and reducing its rates of emissions associated with its work and operations. The primary activities of these efforts are to prevent a rise in the levels of the greenhouse gas emission within the global value chain (Walmart Inc., 2020).

Matrix Map

            A sustainability change matrix establishes a basis for establishing the performance of an infrastructure and the guide to a pathway focused on achieving the overall sustainability. The pathways to change can be defined based on the existing change infrastructures. These can be lateral or diagonal change pathways based on the position in which the company exists depending on its sustainability efforts. The tool is effective in providing an insight in Walmart’s sustainability efforts based on its human and environmental concern. Walmart’s sustainable practices provide an indication of the fact that the company is on the ecologically concerned position (Benn, Edwards and Williams, 2018). Looking at human sustainability it is evident that the firm fall at the efficiency stage. While on ecological sustainability, the firm also falls at the efficiency stage on the Sustainable Change Matrix table listed in Figure 1 below.

Figure 1: Sustainability Change Matrix

Source: (Ashraf, Hossain & Griffiths, 2016).

            The primary theme evident under the compliance stage includes that of risk avoidance. Since Walmart is at this stage, it is evident that the firm focuses on reducing any potential for litigation which can affect the company’s brand through a negative publicity. Walmart focuses on abstaining from the practices which are detrimental to the environment. Moreover, the firm is focused on ensuring that its human practices abide by the set minimal standards. It is a fact that the human and the environmental resources are explored in isolation from the mission of the organisation. Even though Walmart may function as a responsible corporate citizen, it is evident that the firm merely reacts to the societal expectations and legal requirements. Walmart react to the unveiled regulations by the government on corporate sustainability efforts (Walmart, 2020). Additionally, the firm also reacts to the system of voluntary compliance. The primary focus of this strategy is to assist Walmart in complying with the set community expectations group. According to Benn, Edwards and Williams (2018), firms which fall under the compliance stage are considered as reactive minimalists. This is based on the fact that the businesses pursue sustainability only to the required extent. Evidently, sustainability compliance adds value to Walmart by ensuring that the business easily gains an access to finance and enhances its relationship with its stakeholders and the regulators. This is effective in establishing a positive reputation for the firm in the field of business.

            Walmart’s human capability activities matching the requirements of the Compliance phase. Evidently, the firm considers human rights to be its priority. The firm has established an internal Human Rights Steering Committees with members available in different business sectors (Walmart, 2020). The company published a Human Rights Statement in 2018 which provides an insight into the fact that the business is focused on showing respect for the people and their rights. Moreover, Walmart ensures that its respect for the people is articulated within its values and implemented throughout the business’ corporate efforts. The primary focus on the human rights is reflected on the firm’s customers, associates, the supply chain, and in the communities in which Walmart operates (Walmart, 2020).

            On the efficiency phase, it is evident that businesses strive to complete more with fewer resources. Benn, Edwards and Williams (2018) provide an indication that firms at this phase seek to avoid wastage by observing how it utilises its fundamental resources such as heat and energy. Arguably, what other organisations may consider as waste, others view as potential resources which can be used for income generation. Looking at human resources, it is evident that Walmart focuses on maximizing the rate of human potential by preventing instances of employee absenteeism, waning commitment, lack of motivation, and any factor which can result to the loss of skills through a reduced level of employee turnover. Additionally, the firms present at this stage are also effective in avoiding instances of internal conflict, un-integrated work systems, and political processes.

            According to Walmart’s sustainability reports, it is evident that the company is focused towards waste reduction to achieve it “zero waste” strategic goal. Evidently, in 2005, the company established the aspirational goal focused on achieving this functionality in its operations by 2025 (Walmart, 2020). With an aim of achieving this functionality, the company focused on diverting of its operational materials, unsold products and packaging from incineration. Moreover, the firm has also dedicated its efforts towards eliminating the wastes present within its value chain, particularly plastic and food waste (Walmart, 2020). The society has found it difficult to collect and manage plastic at the same rate that it is produced. As a result, most of them end up in landfills, oceans and rivers. As a result, Walmart has undertaken the initiative to aid in the reduction of the plastic waste by using less plastic packaging with a focus on reducing unnecessary plastic. With an aim of reducing the plastic waste in the U.S segment, the Walmart foundation has focused on making investments, which supports the collection, and recycling of material as well as educating the consumers on the importance of recycling. For instance, during the 2020 financial year, the Walmart Foundation offered a grant to the Foundation for Chemistry Research as well as the initiatives focused on supporting the Materials recovery for the Future Program (Walmart, 2020). With a focus on avoiding food waste, the company and Walmart Foundation have made significant contributions over the past years focused on strengthening the charitable meal sector available in North America. Since the onset of the year 2005, the firm has made donations worth more than 4.5 billion pounds in food with approximately $120 million in grants to support different food banks across the globe (Walmart, 2020).

Sustainability Drivers

            There are four primary drivers of sustainability such as the environmental sustainability driver, human sustainability driver, and social and economic sustainability drivers. 

The Planet/ Environmental Sustainability Driver

The planet is considered as a driver of a sustainable development based on the fact that the concept of the sustainable development can only be achieved within a healthy and a sustainable planet. Evidently, a productive land, abundant and clean fresh water, a stable climate, and healthy oceans are considered as the foundation for all the socio-economic goals which should be considered by businesses seeking to achieve a sustainable development (Lambertini, 2018). Social Development Goal (SDG) 15 listed under Life and Land and SDG 14 provides an insight into the need to conserve the marine, sea, and ocean resources with an aim of observing not only diverse but also rich natural systems (Lambertini, 2018). The primary aim of the environmental sustainability is to ensure an improvement of the human welfare by ensuring that the natural capital is protected.

People/ Human Sustainability Driver

            The people are also considered as drivers of sustainability. Human sustainability focuses on the improvement and the maintenance of human capital within the society. Investments available within the education systems, health, knowledge, and access to services fall under the human sustainability drivers. The natural spaces and resources available are limited and there is need for a continued improvement and growth for the wellbeing of every individual. From the business context, an organisation will consider itself as a society member focused on promoting the business and it values with a primary aim of guaranteeing that the human capital is respected. Winston, Antunes and Walter (2018) state that the communities available around the globe can be negatively or positively affected by the activities of the business or impacted by the methods utilise to secure raw materials required by the business. Moreover, the people are also the ones with the human capacity and the skills needed to offer support to the sustainability functions of the organisation seeking to promote the community’s and society’s wellbeing (Winston, Antunes & Walter, 2018).

Social Sustainability Driver

            Social sustainability is focused on preserving the social caput by investing and generating the services which forms the framework of the society. The social sustainability factor includes a larger view off the word in line with the cultures, communities and globalisation. The social sustainability driver strives to protect and preserve the future generation with an aim of ensuring that the members acknowledge that they have significant roles to play as their efforts can influence the world and the other people (Solomon, 2016). The primary focus of social sustainability is to improve and maintain social equality with concepts such as reciprocity, cohesion, importance of positive relationships and honesty. Social sustainability is founded on the notion that sustainable development addresses social and economic improvement which supports equality, ensures environmental protection (Winston, Antunes & Walter, 2018).

Economic Sustainability Driver

            The economic sustainability driver provides an indication that sustainability can only be achieved if the capital intact is maintained. The basic aim of economic sustainability is to improve on the standards of living. With a business context, economic sustainability requires that assets and resources become efficiently utilised so that the firm can maintain a high profitability over the years. Evidently, maintaining stable and high levels of economic growth is considered as one of the primary objectives of sustainable development (Winston, Antunes & Walter, 2018).

Prosperity

            For the four drivers above to be considered as effective, prosperity should also be considered. Prosperity is considered as a sustainability driver since it provides a reflection of the wide-ranging and a long-term vision for a community. The community provides a representation of a wider and higher focus towards the adoption of change that targets the rise in the true community wealth (Winston, Antunes & Walter, 2018).

 Drivers with the Most Impact

            In the case of Walmart, it is evident that the environmental sustainability and the human sustainability drivers have the most impact in influencing the company’s sustainability efforts. According to Walmart Inc. (2020), the company’s sustainability efforts provide the planet and the people with a priority by aiming to sell sustainable products, source responsibly, reduce its rates of waste and emissions, and protect and restore the natural resources. Notably, for the past 15 years, Walmart has relied on sustainability as one of the tenets of its business. In the process, the company has focused its efforts on prioritizing the planet and the people to ensure that it sources responsibly, protects natural resources, sells sustainable commodities, and reduces its level of wastes and emissions (Walmart Inc., 2020).

Recommended Sustainable Actions for Walmart

            To ensure that Walmart remains even more sustainable in the retail market, several sustainable actions should be considered by the business.

Enhancing the Human Sustainability Factor

            Walmart should focus on enhancing its human sustainability factor by prioritizing on the social challenges which are most relevant to the suppliers, associates, the staff members and the suppliers available in the supply chain and in the community. The company should focus on the creation of an advanced equity and economic opportunities which focuses on enhancing social cohesion. The firm should focus its efforts towards strengthening the development practices to assist the employees present in the frontline retail job to obtain mobility and stability in the firm as well in the associated sectors. The firm can attain this functionality by increasing the starting wages of the employees and expanding the benefits of the workers who have worked with the company for more than five years.  Pay equity is also a strategy which can be considered to achieve this functionality. The firm should allocate considerable efforts towards a continued review of its focus on the fair-pay practices based on the efforts of the employees and their qualifications.

Promoting Environmental Sustainability Efforts

            Walmart should focus more on promoting its environmental sustainability through an increased focus on waste elimination and the use of eco-friendly packaging. Evidently, the company is focused on achieving a zero waste factor within its operations by the end of 2025. Therefore, the firm should focus more on the use of effective product packaging to eliminate instances of plastic packaging waste which is a challenge being currently experienced. This is a fundamental action which will be effective in reducing instances of waste production with the company’s supply chain hence pushing the firm closer to achieving its zero waste sustainability goal. Walmart can achieve this factor by investing in efforts and foundations which can take part in materials innovation to establish the most effective ones which can be considered for product packaging to prevent wastes.

Change and the Created Value

            Implementing the recommended actions provides an indication that Walmart will be undergoing through a strategic transforming change. According to Eva, Andersson and Kjellstrom (2019), this is a change process whereby the minor modifications are implemented to the existing policies of a firm with a primary aim of influencing it rather than completely redefining the business. Notably, updating the company’s sustainable policies in relation to the proposed actions will ensure primary modifications focused on driving the business towards its sustainability goals but not generally inflicting significant changes on it.

            Implementing the transformational change actions within Walmart’s case will be beneficial for the firm’s sustainability moves. For instance, the value will derive an increased value stemming from a better-motivated workforce. Evidently, valuing the human capital is an important factor towards the creation of value for the business. Through the implementation of the Sustainable Value Analysis Tool (SVAT), it is evident that Walmart can capture the value attached to its human force to achieve its sustainability goals (Yang, Vladimirova, Rana & Evans, 2015). Evidently, motivating the members of the workforce through a more desirable workplace environment, defined by equity and better pay, creates an environment whereby Walmart can rely on a human sustainability strategy to create more desirable and sustainable products. Moreover, implementing the second action on promoting environmental sustainability actions is also desirable in that the use of more sustainable packaging promotes the company’s brand image in relation to its sustainability moves. This creates value for the firm by increasing the number of loyal consumers and reducing instances of potential litigation associated with the neglect of the firm’s social responsibilities. Implementing the proposed actions will benefit Walmart by ensuring a positive shift from the point of being an ecologically concerned player to one that is sustainable.

Conclusion

            In summary, Walmart is one of the largest players in the retails sector. The firm is committed towards achieving desirable sustainable goals in the market. Completing a sustainability change matrix for Walmart provided an indication that the firm is located at the ecologically concerned stage. This is based on the fact that the business focuses on abstaining from the practices which are detrimental to the environment. Moreover, the firm is focused on ensuring that its human practices abide by the set minimal standards of sustainability. However, by tapping on the values derived through the implementation of different actions plans such as encouraging further efforts of waste management, a shift can be ensured from the company’s position to the sustainable corporation quadrant.

.