Wal-Mart China - Recommendations for Sustainability Plan

Wal-Mart China Case

Recommendations for Sustainability Plan

On October 2008 Wal-Mart Stores, Inc. will take the next step in its sustainability journey by hosting an unprecedented gathering of more than 1,000 leading suppliers, Chinese officials and NGOs in Beijing, China. This opportunity should be ceased to outline a series of aggressive goals and expectations to build a more environmentally and socially responsible global supply chain. These efforts and others will help Wal-Mart follow through on commitments the company made about China and their mission of saving people money so they can live better.

Building a More Environmentally and Socially Responsible Supply Chain

Wal-Mart China environmental and social responsibility vision should be articulated on the belief that bringing sustainability in its operations and its supply chain - selling and making products in an efficient, ethical and environmentally responsible way - will be essential to meeting and exceeding the expectations of customers in the future.

Wal-Mart should work with its suppliers to become a more environmentally and socially responsible retailer in China and to set new standards for responsible sourcing throughout the global supply chain.

The following actions should be part of their sustainability action plan:

Required Demonstration of Compliance with Environmental Laws and Regulations

China's desire for a cleaner environment is clear, and the laws on the books reflect that. Wal-Mart should further strengthen and enforce supplier compliance with environmental and social standards. They may include the creation of a new supplier agreement that will require factories to certify compliance with laws and regulations where they operate as well as rigorous social and environmental standards.

Suppliers will need to take ownership of compliance in their factories and they will need to demonstrate that they are regularly and rigorously auditing their own factories. Wal-Mart...