Walmart Sustainability

If we can relieve the auditing burden our hope is

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Unformatted text preview: the potential for corruption is still there.” The audit process also required excessive time and effort from suppliers that worked with multiple retailers. “Some factories may go through 50 audits in a year,” said Kamalanathan, “which really doesn’t make sense.” The ethical standards group was seeking to collaborate with other retailers and brands in the auditing process to reduce the burden on suppliers while maintaining a high standard of conduct. “If we can relieve the auditing burden, our hope is that companies will spend more time working with different stakeholders to actually fix the problems that are identified,” said Kamalanathan. Walmart’s compliance audits had primarily focused on health and safety issues. However, the compliance team intended to start measuring suppliers against four Walmart-defined environmental metrics (water treatment, waste management, banned chemicals, and air emissions) in 2007. OPERATIONAL CHANGES A closer examination of three of Walmart’s sustainable value networksseafood, electronics, and textilesdemonstrates how the sustainability strategy was being operationalized. Seafood According to an international study released in 2006, all species of wild seafood were greatly depleted and predicted to collapse within 50 years.24 Furthermore, fishing was an inefficient industry in terms of its fuel use and, as many scientists argued, was only getting more inefficient as boats were forced to venture further out in search of declining wild fish stocks. In 2000, fisheries around the world burned roughly 13 billion gallons of fuel to catch 80 million tons of fish, accounting for approximately 1.2 percent of global oil consumption.25 Walmart’s Sustainability Strategy (A) OIT-71A p. 9 As wild fish stocks declined, an increasing percentage of the seafood supply was farm-raised.26 Yet some studies had shown that farm-raised fish provided lesser health benefits in terms of nutrients, as well as increased health risks in the form of harmful chemicals and antibiotics used to fight disease in fish farming...
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This note was uploaded on 01/14/2014 for the course LGST 210 taught by Professor Sep during the Winter '10 term at UPenn.

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