Sustainable Practices and Operations in Walmart: How to be Sustainable in the Retail Sector

SUSTAINABLE PRACTICES AND OPERATIONS IN WALMART: HOW TO BE SUSTAINABLE IN THE RETAIL SECTOR
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The Date Table of Contents Sustainable Practices and Operations in Walmart: How to Be Sustainable in The Retail Sector 3 Introduction. 3 Local and Global Sustainability Concerns in Walmart 4 Sustainable Supply Chain Model in Walmart 5 Stakeholder Engagement, CSR, and Business Ethics in Walmart 7 Importance of Green Marketing in Walmart 9 Changing Patterns in Consumption Behavior and Sustainable Innovation in Walmart 10 Critical Challenges in Pursuing Sustainable Development in the Retail Industry. 12 Conclusion. 14 Reference list 16
Sustainable Practices and Operations in Walmart: How to Be Sustainable in The Retail Sector Introduction Walmart, an established retailer worldwide, has over ten thousand stores in over 20 nations. As a significant retail industry player, Walmart's activities impact the environment and society. The company's operations utilize massive resources, including energy, water, raw materials, and packaging, that significantly impact the environment. Recognizing its environmental impact, Walmart has initiated programs to make its operations sustainable. Notably, sustainability in the retail sector is crucial because of environmental pollution, ecological degradation, and climate change. Retailers like Walmart significantly contribute to greenhouse gas emissions, waste, and resource depletion. Therefore, companies like Walmart propose adopting sustainable practices and operations to reduce environmental impact and promote social responsibility.   Figure 1: Walmart Logo From The Guardian, Mandel, 2021 This report will explore the issue of sustainable practices and operations at Walmart. The paper focuses specifically on how Walmart can be sustainable. In this regard, it examines the current sustainability practices, evaluating their effectiveness in addressing sustainability concerns. Further, the essay aims to evaluate the importance of adopting a sustainable supply chain model, particularly regarding the design and production of products. It will consider the effects of raw materials sourcing on the surroundings, which includes people and society. Another aspect that will be addressed in the essay is assessing the value of engaging stakeholders and the effects of social responsibility, ethics, and environmental concern by Walmart. It is also crucial to understand the value of green marketing. Green marketing is a business strategy intended to promote eco-friendly products and highlight opportunities for the company to utilize green marketing in present and future business decisions. Local and Global Sustainability Concerns in Walmart Walmart has been facing sustainability concerns locally and globally. As Walmart expands its operations, there is enhanced pressure to demonstrate its commitment to sustainability (Carpio-Aguilar, Rincón-Moreno and Franco-García, 2019). Walmart faces numerous major sustainability concerns, and the company has strategies to address them. As a large retailer, Walmart's operations produce massive greenhouse gas emissions, increasing its carbon footprint. The company aims to reduce its carbon footprint, with a commitment to be powered by 50% renewable energy by 2025 (Carpio-Aguilar, Rincón-Moreno and Franco-García, 2019). Walmart is also convincing suppliers to reduce emissions and embrace sustainable practices.   Figure 2: Sustainable Grocery Growth and Sourcing by Walmart, 2023 Another primary sustainability concern is waste and resource depletion. Walmart generates significant waste from its operations and products. As a result, the company is criticized for depleting resources through its production practices. Walmart responded to the concerns by implementing several waste reduction and resource conservation initiatives. These initiatives include reducing packaging, recycling, and utilizing sustainable product materials (Köksal et al., 2017). Another issue the retailer faces is water scarcity, a significant sustainability concern in areas with limited water supply. The company has several initiatives to reduce water consumption, such as using efficient drainage systems and reducing water usage in its stores. In addition to these local sustainability concerns, Walmart faces global matters related to labor practices and supply chain management (Li et al., 2021). Walmart is criticized for treating workers poorly, particularly in overseas factories. The issues include low wages, poor working conditions, and limited access to collective bargaining rights. The company aims to improve working conditions and ensure workers are treated fairly across all levels (Neebe, 2020). Therefore, Walmart is taking significant steps to address sustainability concerns in its operations. The aim is to reduce carbon footprint, conserve resources, and improve working conditions (Vadakkepatt et al., 2021). Walmart's commitment to sustainability demonstrates a willingness to address these issues and have a positive impact. Sustainable Supply Chain Model in Walmart The supply chain is a crucial business area where unsustainable activities are sustained. In order to reduce carbon emissions, address climate change, and demonstrate environmental sustainability, a business should adopt a sustainable supply chain management approach. As a retailer, Walmart is mandated to ensure that all aspects of its supply chain system contribute minimal environmental impact. There is a need to create incentives that produce minimal environmental impact and guarantees long-term sustainability. In this regard, Walmart has undertaken active actions to ensure that its suppliers adhere to sustainability standards across all sectors. Sustainable supply chain management (SCM) entails designing, producing, and distributing goods with conscious regard for the environment and society (Nakamba, Chan, and Sharmina, 2017). This concept includes reducing waste, minimizing emissions, and adhering to ethical practices toward suppliers and workers. Sourcing goods and materials is one area that produces massive negative impacts on the environment and society. The extraction of resources like oil, metals, minerals, and agricultural products contributes to environmental damage (Schirnhofer, 2022). Sourcing these materials affect the environment in several ways. Environmental unsustainability includes deforestation, soil degradation, water pollution, and climate change. Exploiting workers and communities lead to human rights violations and social unrest.   Figure 3: Sustainability Goals of Walmart Inc. in 2023 Walmart addresses these issues through its sustainable SCM practices. For example, the company aims to reduce emissions and increase renewable energy use (Shewmake, Siegel and Hiatt, 2020). Moreover, it has established supplier sustainability standards and encourages them to adopt sustainable practices. Additionally, the company launched programs to support smallholder farmers and reduce waste. However, Walmart's sustainable SCM practices are criticized by stakeholders. There are concerns that the company's labor practices, especially in the global supply chain, are wanting. Additionally, there have been questions about the effectiveness of Walmart's sustainability programs and whether they need to go far further in addressing the company's environmental and social impacts (Kannabiran, 2009). While Walmart has made progress in adopting sustainable SCM practices, there is still room for improvement. The company must continue to work towards greater transparency and accountability in its supply chain and more ambitious goals to reduce its environmental and social impacts (Schirnhofer, 2022). By doing so, Walmart can demonstrate its commitment to sustainability and contribute to a more sustainable retail sector. Stakeholder Engagement, CSR, and Business Ethics in Walmart Stakeholder engagement involves individuals or groups affected by a company's actions in decision-making and operations. Corporate social responsibility (CSR) is the concept of businesses taking responsibility for their impact on society and the environment. Business ethics refers to the moral principles and values that guide business decision-making and behavior (Ramanathan, Bentley and Pang, 2014). Effective stakeholder engagement, CSR, and business ethics can significantly impact society and the environment. By involving stakeholders in decision-making, companies can ensure that their actions align with the needs and values of their communities(Schirnhofer, 2022; Puntillo, 2023). CSR and business ethics can also help companies reduce their negative impact on the environment and society while enhancing their reputation and employee morale.   Figure 4: Walmart Global Sustainability Milestones Illustration, Bailey, 2020 Walmart has made efforts to engage with stakeholders, including customers, employees, and communities. The company has established a global ethics program, which includes a code of conduct for employees and suppliers and an ethics hotline for reporting violations (Vergura et al., 2023). Walmart has also launched several CSR initiatives, including a commitment to source 20 essential commodities more sustainably and the Walmart Foundation, which supports programs in education, disaster relief, and economic opportunity. Despite these efforts, stakeholders have criticized Walmart regarding its labor practices, environmental impact, and community engagement (Liu et al., 2017). In particular, the company has been criticized for its low wages, poor working conditions, and impact on small businesses and local economies. To improve its stakeholder engagement, CSR, and business ethics, Walmart must continue to listen to and address stakeholder concerns. This business strategy could include increasing transparency in its operations and supply chain, setting more ambitious sustainability goals, and investing in local communities (Nakamba, Chan and Sharmina, 2017). By doing so, Walmart can demonstrate its commitment to responsible business practices and build stronger relationships with its stakeholders. Importance of Green Marketing in Walmart Green marketing refers to promoting and marketing products or services based on their environmental attributes or benefits. This form of marketing can include using sustainable materials, reducing carbon emissions, or energy efficiency (Thorisdottir and Johannsdottir, 2020). For Walmart, green marketing is essential for promoting its sustainability efforts and sustainable products. By highlighting the environmental benefits of its products, Walmart can differentiate itself from competitors and attract environmentally-conscious consumers (Schirnhofer, 2022). Green marketing can also help Walmart build its brand reputation and increase customer loyalty.   Figure 5: Walmart Sustainability Measure Illustrated, Schouten, 2020 Walmart has several opportunities to use green marketing in its current and future practices. For example, the company could increase its promotion of sustainable products, such as organic food and eco-friendly cleaning products, through in-store signage and advertising campaigns. Walmart could also use its extensive social media presence to showcase its sustainability efforts and communicate its commitment to environmental responsibility (Carpio-Aguilar, Rincón-Moreno and Franco-García, 2019). In addition, Walmart could leverage its size and influence...