Wal Mart Case Study

Management and Strategy

WAL-MART CASE STUDY

“CORPORATE SOCIAL RESPONSIBILITY” Implications & Strategic Issues

INTRODUCTION

In late 2005, Wal-Mart announced a series of sweeping new strategic initiatives in response to increasing criticisms involving corporate social responsibility. The Wal-Mart website articulates that: they “recognize the enormous responsibility of being the world’s largest retailer, employing over 2 million associates in many countries and operating within unique political, cultural, and social environments…and are aware of the obstacles that need to be overcome whether operational, technical, reputational or philosophical” (WALMART 2012). In the past several years Wal-Mart has experienced major transformation and has committed itself to progressive policies along the realm of Corporate Social Responsibility (CSR).

In effect, “corporate success and social welfare are interdependent…a business needs a healthy, educated workforce, sustainable resources and adept government to compete effectively…and for society to thrive, profitable and competitive businesses must be developed and supported to create income, wealth, tax revenues, and opportunities for philanthropy” (WIKIPEDIA, Corporate Social Responsibility). There is an inherent value then for business and society to thrive upon one another, as opposed to competing over power, resources, and wealth.

While “trade-offs exist between short-term profitability and social/environmental goals, the opportunities for competitive advantage from building social value into corporate strategy” are readily evident and ultimately, “corporations make more long-term profits by operating with a CSR perspective” (WIKIPEDIA). This paper will explore the transformation of Wal-Mart’s strategy through the discussion of the following factors: 1) threats/challenges faced by the corporation; 2) priorities set forth by the CEO to combat external environmental factors; 3) Board recommendations in...