| www.walmartstores.com |
|
| Share Price (3/15/07): | $46.00 |
| OVERVIEW: | |
| Market Value (3/15/07): | $191.7 BIL |
| Revenue (2006): | $348.7 BIL |
| Employees: | 1,800,000 |
| Return on Equity 2006: | 21.9% |
| HIP PRACTICES: | |
| Vision: | Aspires to "100% renewable-energy, green products and zero waste" but timelines vary and goals are only improvements over today's baseline. By January 2008 (fiscal year-end), expect sales of 100 million compact fluorescent light-bulbs (CFLs). |
| Metrics: | Evolving metrics in dozens of categories, but loosely managed to stimulate maximum innovation and testing Three categories of aggressive goals for Sustainability Efforts:
|
| Financials: | Realizing cost-savings from energy decisions for stores, fleet and travel. Some uptake on revenue and margin from organic food, green products (cotton clothing) and lighting (compact fluorescents). Aggressively investing approximately $500 million annually in sustainable technologies. |
| Accountability: | Diffuse accountability encourages multiple sources of innovation, but dispersed efforts not yet consolidated into company-wide view and tracking. CEO attention, and founder's son majority share ownership, keep attention focused strategically. Total revenues of all of Wal-Mart's supplier base said to account for one-third of global GDP. |
| Decision-Making: | Actively integrating non-profits' feedback -- e.g. folic acid in tortilla flour to reduce Hispanic birth defects. Some bonuses tied to HIP measures such as supplier diversity. |
| HIP OUTCOMES: | |
| Health: |
Access to affordable health care greatly expanded through $4 generic pharmaceutical program now nation-wide. Company says about half of associates are insured; that includes more than 950,000, employees but leaves another 850,000 staff on their own -- though opportunities to secure catastrophic coverage becoming available. |
| Wealth: |
Each customer household shopping at Wal-Mart saves on average $2300 annually versus alternative venues. Average employee wage is $9.68 per hour -- at the poverty line for a family of four. At least half-time staff (1000 work-hours or more) eligible for profit-sharing and 401(k) plans. Contributions by company possible regardless of employee saving. |
| Earth: |
Wal-Mart is now the largest purchaser of organic cotton in the world; Sam's Club organic-cotton yoga outfit sold 190,000 units at 290 clubs in 10 weeks. In November 2006, replaced select produce packaging with corn-based (PLA) packaging on just four items -- cut fruit, herbs, strawberries and Brussels sprouts, saving the equivalent of 800,000 gallons of gasoline and preventing over 11 million pounds of greenhouse gas emissions from polluting the environment. Testing PLA on everything from cake and donut boxes to bread bags; from strawberry clam shells to deli trays and salad bowls. Installing energy-saving compact fluorescent light bulbs at in-store product displays of ceiling-fan "clouds," saves $7 million per year in energy costs. Recycled plastic bags -- "sandwich bale" innovation -- enables diversion of 1,100 tons of plastic from landfills so far. System-wide implementation estimated to save $28 million annually. But majority of products and fleet still operating in traditional energy -- and carbon-intensive ways; limited products have beneficial culmination of lifecycle and disposal. |
| Equality: |
Claims hundreds of minority- and women-owned businesses totaling $4+ billion in revenues. Gender balance: 60.5% women total, 38.8% officials/managers. Ethnic balance: 31.8% minority total, 21.3% officials/managers. Balanced Board but senior management lacking women and minorities. Executive pay relative to average employee, and productivity, on high end of scale. |
| WHAT'S NEXT: | |
| Practices: | Up-stream manufacturing, including China, continues to be transformed by the procurement policies of Wal-Mart and its large suppliers becoming more HIP -- in equality/diversity, earth/eco-issues and health conditions. |
| Outcomes: | How many years (or decades) until Wal-Mart reaches its Big Three goals: Zero waste? 100% renewable energy? Only sustainable products? |
| OTHER RATINGS: | |
| KLD: Companies are rated from negative (0) to positive (6) in seven areas. | Community: 1.6 Governance: 0.2 Diversity: 4.2 Employees: 0.7 Environment: 3.6 Human Rights: 0.0 Product: 0.8 Included in KLD Indices for: Domini 400, Broad Market Social Index |
| Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior). | Environment: 1 Workplace: 1 Business Practices: 2 Human Rights: 1 Community Relations: 1 Included in Calvert funds: No |
| RESOURCES: | |
| Sustainability or CSR Report: | Wal-Mart Facts |
| Annual Report: | Wal-Mart Stores Shareholder Information |
--Ruthie Ackerman and R. Paul Herman
