Wal-Mart's Sustainability Initiatives

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The Bentonville Giant Goes Green Contd...

It planned to use the successful technologies at its other stores as well. The company also engaged two government-sponsored laboratories to study and monitor the working of these experimental stores. However, some critics saw Wal-Mart's newfound concern for the environment more as an investment in its reputation rather than sustainability. They felt that by initiating the sustainability measures, the company was trying to divert market attention from the criticisms it was facing on issues such as violation of environmental laws, predatory business strategies, negligence of employee welfare, harsh working hours, low pay and health benefits to employees, sex discrimination at the work place, etc.

Critics opined that in the past, Wal-Mart had paid little attention to these charges as its business was doing well.

It had to stick to the sustainability cause in the long run and show results on the ground in order to prove its commitment. The company also needed to address the concerns of its employees and communities close to its stores in addition to continuing with its sustainability initiatives if it wanted to improve its image.

Wal-Mart was founded by Samuel Moore Walton (Sam Walton), who had the experience of operating retail stores even before he set up his own discount stores. In 1945, he purchased a Ben Franklin⁸ variety store in Newport, Arkansas. He named it 'Walton's 5-10'and operated it as a Ben Franklin franchise.⁹ Sam Walton continuously assessed competitor stores to learn about their strategies so that he could maintain his store's competitive advantage. He also started negotiating directly with suppliers instead of following the existing price structures of Ben Franklin. By 1962, he became the largest Ben Franklin franchise owner in the US.¹⁰..

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8] Ben Franklin Stores are a chain of discount stores found in small towns throughout the US. They are organized using a franchise system, with individual stores owned by independent proprietors. They were named after Benjamin Franklin, by the owners, Butler Brothers.

9] “The Rise of Wal-Mart,” www.pbs.org.

10] www.walmartstores.com