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Corporate Social Responsibility Advancement

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In today's world of advancement, the ability to conduct business at the international level has become an absolute necessity for any business organization to maintain its competitiveness in the global arena. Expansion of the geographic footprint of any business organization has been a very risky as well as an expensive proposition. It is a fact that should always be kept in the consideration by the businessmen that the risks have simply shifted and not completely gone away (Aaltonen, Murtonen & Tukiainen, 2009).

The competitive world of the present day has a short window for implementation of any business just before the business landscape undergoes changes again.  It will not be a mistake to state that globalization has been and will continue to be a stabilizing and developing force. However, the risk of the interdependencies increasing at a high pace may have the probability of tripping against the world with high levels of issues in the form of financial ripples. 

The most dominating caution that businesses must consider the changes in the markets and time are fluid. The short term scopes and opportunities in the global platform are vast; however, the opportunities in the global business arena also come with the high potential for the future risks that are very unpredictable and unforeseen (Baron & Baron, 2003). Moreover, in the present day global platform of business, conducting business is defensive as well as offensive play by character. While analyzing the brighter side of being global, the organizations need to consider the vast size of the domestic market which will very possibly increase the reach to the majority of the potential customers living all around the world (Bonacchi, 2009).

As the customers keep continuing to become highly demanding and the economy of the world continues to stay flat, there will be an expectation that the business organizations be able to serve a number of markets in a strategic fashion.  In today’s world, being a slow paced adapter could ultimately prove to be damaging to your business (Burchel, 2008). It is also a fact that businesses having the strong urge to make gains that are short term by having a blind vision towards business ethics.  In spite of several codes of ethical business practices, the ever increasing pressure and demand of the public and regulatory oversight instigate the business organizations to ignore the ethical considerations.


Most of the businesses even claim that any business requires abiding by the law without giving much priority to the ethical issues.

There are very strong cases of business issues for the existing companies in a socially accountable way and for the business professionals to channel this. An ethical approach regarding the social and environmental aspects and implications on the global businesses needs to be established (Carroll, 2004).  As globalizations has been enveloping the world and has intense impacts on all the facets of all the industries, it is very crucial that the risks regarding different scenarios in the business arena are addressed in an effective way.

Sustainability & Business of Walmart

Walmart has strived through various phases of recession, however, the decisions that are mostly customers alienating and competition from the smaller stores has been troublesome for the company. As per Michelle, the issues regarding Walmart’s business practices have hovered around the sustainability effect on the business and address of the behavior of the consumer (Michelle, 2017). The demand of the consumers is centric around the loyalty to the greener brands which is one of the key reasons of an index of sustainability of Walmart which could happen to revive the company (Curran & Van Acker, 2010).  

Regarding the consumer behavior and the sustainability of the business of Walmart, the more the behavior of the consumer behavior, the more the organizations should be responding. Walmart thrives in the identification of the service areas that value of the customers the most and meeting to that preference. The company has been doing these even at the expense of other areas. In accordance to BBMG, less than 4 percent of the consumers rely on the company’s advertisements for verifying the claims of the products.

Since launching the sustainability program of the company in the year 2005, Walmart has persistently striving to gain its position as a global leader on the grades of environmental responsibility of the corporate.  As per Dicken, Walmart scales it sustainable business activities on renewable energy, waste reduction, product improvement and sustainable agriculture in a number of press announcements and the report of “Global Responsibility” (Dicken, 2007).  While the sustainable campaign has been very effective for the public image of the company, it has not been much effective regarding its approach for the environment. The environmental implications of the Walmart have developed only over the few past years in reality. The business practices have remained very polluting. Moreover, the consolidation of the market and the relentless expansion of the company have also developed at the expense of systems of distribution and production along with the sustainable enterprises.  

The sustainability program of the Walmart does not address the problems of the products that are not long lasting or durable which leads to the mounting of the landfill waste.  The profits made by the most publicized programs for store waste reduction of the company and the company’s initiative for the reduction of the use of energy in the supply chain are minuscule as compared to the amount of trash and pollution resulted due to the expanded consumption pace fostered by Walmart (Fraedrich, 2011). This reduction of waste materials along with increasing the waste landfill is increasing due to the sales of the shoddy products by Walmart. 


Walmart has driven down the durability and quality of the consumer's goods by demanding lower prices from its suppliers. A numerous number of products of appliances, clothing, electronic, etc. are subjected to wear and tear at a faster rate than before. This has increased the flow of products and goods from the manufacturing factories to the landfill areas, increasingly expanding the amount of the busy and discards of the products.  According to Ferrell & Fraedrich, on an average, an individual American bought around 28 products of clothing every year in the mid years of 1990 (Ferrell & Fraedrich, 2015). At present, it has increased to 59.cutsomers also happen to discard 83 pounds of clothing every year on an average which are mostly discarded clothing every year.

The emission of greenhouse gases by Walmart also has been increasing due to the increasing of the wastages.  According to Gereffi, the company was reported to have increased emission by around 14 percent between 2005 and 2010. Walmart reports of generating around 22 million metric tons of the greenhouse gases through its operations which are expected to continue in its expansion (Gereffi, 1994). Walmart committed to have improvisation in its energy efficiency in particular and reduce the emissions of greenhouse gas at its stores’ bases and distribution centers of 2005 by 20 percent by the end of the year 2012.

However, it has been successful in reducing its emissions by around 13 percent. On the other hand, the energy used by Walmarts’ new stores which were built after 2005 has been contributing twice as much carbon dioxide to the environment every year as the improvement of the stores of Walmart have saved.  It was also found the Walmart has reported that like every business organization, it has a responsibility for reducing the greenhouse gases as fast as possible (Kakabadse & Morsing, 2006). However, Walmart has itself refused for making the investment and initiate the steps that are required for cutting down the emission that is created by it. 

In spite of the embrace of public of the Walmart’s sustainability minuscule approaches, the company continues to magnify the consumption of land by building expanded low rise super centers.  Walmart has added around 1,100 supercenters in the United States since 2005, leading to its expansions of the footprint of its stores by 25 percent. Some of these stores were constructed on land which had not been structured before, which also included the critical habitat for endangered and threatened species.  

It has also been observed through the survey that Walmart has opted to structure on virgin land instead of restructuring the vacant retail properties. It has also been seen that Walmart has itself abandons its super stores itself (Lovins et al., 2000). The development practices of Walmart have a huge impact on the environment leading to the issues like water pollution from the runoff from the parking lot, habitat loss, increased driving, air pollution, and sprawl. 

According to the research, Walmart grew to form a domestic chain to a national brand along with stretching a number of miles on an average for shopping increased by around 1,000 miles.  For the United States of America as a whole, that is an extra of 149 billion miles on roadway every year and approximately 50 metric million tons of additional emissions of carbon dioxide (Lechner & Boli, 2014).

Corporate Social Responsibility & Globalization issues of Walmart

Walmart has been a case study regarding how the free market can lead to distorting the value of the basic needs of the human.  It is a fact that every tag of price in the food inventory of Walmart accounts for 25 percent of the grocery bills a nation and is the product of an exchange of financial commodities, agricultural subsidies and hyper inflated marketing (Michelle, 2017). Thus, to reveal the true cost of the cheaper groceries,  Food Chain Workers Alliance’s advocacy group followed the chain of supply and revealed the violations at all links in the “ethical sourcing” system of the retailer. Due to the environmental and sustainable issues regarding wastages and environmental pollution, Walmart had faced public pressure. 

The company has devised the guidelines for sustainable and ethical sourcing, committing that all the suppliers and outlets must completely comply with all the applicable local or national regulations and laws associated with immigration, labor, environment, health, and safety.  Walmart mandates that its suppliers abide by and follow the legal protections regarding the safety and health of the workers and implement the measures to reduce the water and air pollutants, water and energy wastages, and usages (Moharana, 2013).  The launch of the sustainability product expo and the guidelines of the welfare of animals for livestock have been assisting the company regarding its corporate social responsibility.

The human welfare and corporate social responsibility department appear to be lagging behind.  The controversies over the corporate social responsibilities of Walmart have been dominating its position in the global sphere. As per O'Brien & Leichenko, the corporate social responsibilities of Walmart are questionable their goodness, greenery or documenting a dubious record.  It was observed that the public of the countries in which Walmart is operational cannot provide concrete evidence regarding the corporate social responsibilities of the company (O'Brien & Leichenko, 2000).  However, the public and the research review Walmart as the least environmentally and socially responsible company. In spite of having considerable efforts regarding the renewable energy initiatives, the sustainability index of the company has been fluctuating. 

The implementation and growth of the corporate social responsibilities of Walmart have its unique sets of issues. Devising and channeling of the initiatives regarding corporate social responsibility had been not implemented in an effective way. The disposing of the wastages of the stores, in particular, has not been addressed by the company. The company has not taken any initiative regarding controlling the disposal or adding up of the wastage of the apparels that are frequently altered in fashion.

According to Prahalad & Porter, the company has not put forward any strong and concrete initiatives regarding the eradication of the landfills and the occupying of the vast areas of land which is adding up to the damage to the environment on a global scale. It was also during the growth period of the company when it has struggled to match its messages with the initiatives and actions (Prahalad & Porter, 2003). Almost 1 out of every 4 customers which are approximately 23 percent state that there is no way to know whether the products sold by Walmart are green. 

There has been a disconnection between the desire for sustainable, green and the socially responsible products regarding the authenticity and validity of such claims.  The company has been finding it very difficult to hate the company along with recognizing its bold initiative has and its unsavory practices.

However, the part of the motives of Walmart behind its efforts regarding corporate social responsibility is implemented for building a better image of the company is not getting reflected s through its initiatives which seem to be null. Unifying actions and image-construction regarding the corporate social responsibility has to be integrated which would prove to be a force multiplier? 


Low-cost manufacturing and services of Walmart

The long existing issue for Walmart has been regarding providing products and services at low cost at the cost of layoffs and low pay for its employees and workers.  An unprecedented and unpredictable convergence of the owners of small business, labor, activists, environmentalists, and communities regarding having faith on the company had led to a wide scale movement for changing the image of the company. There have been ethical issues which resulted due to the low costs scenarios of the company and for the company at large (Raman & Lipschutz, 2010).

According to the statement of other of Walmart, Sam Walton, the company has intent of raising the standard of living of its customers, especially the poor people by bringing and encouraging affordable goods. However, the essence of the intention of Walmart has been in reflected as a direct contradiction with its objectives and mission for raising the standard of living.  So as to completely analyze this contradiction, it is imperative to understand the ways by which the company extracts profits for itself. 

Aggressive expansion in the market share and relentlessly cutting costs so as to maintain Walmart’s rate of profit to make up the core notion of the religion of Walmart. Abiding by this notion, the team of Walmart has been engaged in the practices which seem to not be associated with anything other than raising the living standard of its people and workers in the larger community. The internalization of the outcomes of these practices has been impacting the people working for the company directly. 

The various implications of the company’s internal dynamics are integrated into affecting the physical of the workers who are actually engaged at the base of the human resource of the company. Right through the experiences of the former managers, workers in the overseas factory, employees, and owners of small businesses, the reflection of the surreal upbeat of the statements of the company regarding the provision of the better standard of living is clearly reflected (Lechner & Boli, 2014). 

With the intention of providing a better living condition to the people, Walmart is increasing its contribution regarding wastage of food and clothing which could be used by the poor people in the different countries and lowering the pay scales of its own employees and workers leading to layoffs. FCWA, the organization which promotes the organization of labor across all the sectors of foods, firmly believes in providing systematic solutions to the company's grassroots. 

Walmart should not necessarily integrate the comprehension regarding enhancing the organic production at the cost of the wages of the workers of the Mexican strawberry farm which has been an instance. The fact also extends regarding the company ensuring the availability of cheap groceries for the poor people and families in Bakersfield with no hazardous wastes in Los Angeles which are an additional instance to the scenario.  The company has been suggested by the FCWA for redistribution of its resources up the supply chain of the company by increasing the hourly basic wage for the workforce of Walmart to $15.

This can expand the ethics of the company through similar minimum wages of the employees along with providing low-cost services and products to its customers. Walmart needs to support the rights of all its workers and seek for collective bargaining while providing low-cost services.   The central contradiction regarding the corporate social responsibility of the company which denotes to the concept of the voluntarism of the private market presents the subordination of the countries’ governments to the brands which place the profit way above the law and order (Ferrell & Fraedrich, 2015). Walmart, being global retailers needs to devise ways for maintaining fair standards of workers along with retaining low prices of products and services. This can be achieved by expanding around the sourced profits of the company which is unethically earned.

Regarding the ethical, corporate social responsibility and sustainability implications regarding the content of wastage of the products increased environmental pollutions and low manufacturing services and products by lowering the wages of the workers have direct implications on the retailer brand. Walmart will be facing serious depreciation in its value and   financial performance in the long run. The operating costs are going to be affected due to large scales layoffs and cutting down of the wages of the general workers of the company.

The reputation and image of the brand will be affected to a large extent due to the damage it is posing to the environment.  The sales and loyalty of the customers will be decreasing at a global and wide scaled level (Fraedrich, 2011). The quality and productivity of the company will definitely get affected to a negative extent.  The current ability of the company for attracting and retaining employees will also decrease. Walmart will lose the regulatory oversight that it used to have. The favorable access to capital will fall down rapidly due to losses caused due to improper sales and negative reputation of the brand.  The customers will definitely apprehend the safety of the product and the liabilities will increase.  



The business leads will also fall out due to the negligence of the retailer company regarding its social responsibilities.  Due to the cutting down of the wages and layoffs at a wide scale, the moral and the development of the skills of the employees will witness downfall on a large scale. Walmart will cease to have the scope for innovation regarding its products, services, and processes due to minimization of the association due to its profit-centric approach to business.  

Walmart will gain a negative image regarding less corporate involvement in the corporate social responsibilities as the company itself is not taking any active and effective initiatives regarding the improvement of the environmental damage that it had already caused. The business of Walmart will face wide scaled negative consequences if the company does not take effective measures at once.



Aaltonen, K., Murtonen, M., & Tukiainen, S. (2009). Three perspectives to global projects. Managing risks in multicultural project networks. VTT.

Baron, D. P., & Baron, D. P. (2003). Business and its environment (p. 2). Upper Saddle River, NJ: Prentice Hall.

Bonacchi, M. (2009). Corporate Social Responsibility: Readings and Cases in a Global Context.

Burchel, J. (2008). The corporate social responsibility reader: Context & perspectives. Routledge

Carroll, A. B. (2004). Managing ethically with global stakeholders: A present and future challenge. The Academy of Management Executive, 18(2), 114-120.

Curran, G., & Van Acker, E. (2010). Business and the politics of globalisation: after the global financial crisis. Pearson Australia.

Dicken, P. (2007). Global shift: Mapping the changing contours of the world economy. SAGE Publications Ltd.

Fraedrich, J. (2011). Business & Society: Ethics, Sustainability, and Stakeholder Management. Journal of Business Ethics Education, 8(1), 403-405.

Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson Education.

Gereffi, G. (1994). The Organization of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks. Commodity chains and global capitalism.

Kakabadse, A., & Morsing, M. (Eds.). (2006). Corporate Social Responsibility: reconciling aspiration with application. Springer.

Lovins, A., Lovins, L. H., Hawken, P., Reinhardt, F., Shapiro, R., & Magretta, J. (2000). Harvard business review on business and the environment. Harvard Business School Press.

Lechner, F. J., & Boli, J. (Eds.). (2014). The globalization reader. John Wiley & Sons.

Michelle. (2017). The Nation. ChenHere Are All the Reasons Walmart’s Business Is Not Sustainable Retrieved 8 August 2017, from

Moharana, S. (2013). Corporate social responsibility: A study of selected public sector banks in India. IOSR Journal of Business and Management, 15(4), 1-9.

O'Brien, K. L., & Leichenko, R. M. (2000). Double exposure: assessing the impacts of climate change within the context of economic globalization. Global environmental change, 10(3), 221-232.

Prahalad, C. K., & Porter, M. E. (2003). Harvard business review on corporate responsibility. Harvard Business Press.

Raman, R., & Lipschutz, R. D. (2010). Corporate social responsibility: Comparative critiques. Palgrave Macmillan.

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