Sustainability Approach of Wal-Mart

Questions: 1) Impact of sustainability approach by Wal-Mart.2) Reason behind improving performance when retail outlets have been suffering financially.3) Identification of Wal-Marts key stakeholders and recent approaches to improve social responsibility.4) The social responsibility of business is to increase its profits for the statement.5) Explanation of two other companies that have reputation of socially responsible to their stakeholders and being profitable. Answers: 1) Impact of sustainability approach by Wal-Mart Wal-Mart has made considerable approaches towards making it a greener company and to improve its image by making a sustainable approach towards the society. Some of the sustainable approaches made by the company include attempt to make sustainability 360 by reducing the use of greenhouse gases. Designing of new prototypes for developing and implementing innovative energy-efficient technology in the existing stores of Wal-Mart was an approach made towards sustainability (Berman Evans, 2013). In 2005, the company was opened to violation of safe environmental practices by the US Attorneys office in California due to the concerns related to recycling of their product. Approach made by the company to recycle the products and create sustainability has created positive impact in the society. Selling of products at a much lower rate leading to annual savings of at least $950 per person had increased the sale of the products of the company (Ferrell, Fraedrich Ferrell, 2013). Although the co mpany faced a number of ethical issues regarding the misconduct of the illegal immigration and exploiting the labor force, the sustainability approach has helped to improve the image of the company. 2) Reason behind improving performance when retail outlets have been suffering financially It has been recognized that Wal-Mart was a growing company and remained the largest and the most dominating retail organization. The company was the largest nongovernment employer in the United States, Canada and Mexico. The company has been rewarded as the most admired company by Fortune. The company has been utilizing the labor force unethically. Wal-Mart had appointed 250 illegal immigrants as cleaning crews in 61 stores in 21 states (Ferrell, Fraedrich Ferrell, 2013). These employees were employed at a much lower wage and work as seven days a week. These approaches have reduced the logistic and supply chain management costs. This has helped the company to offer products at a lower rate to the customers that was not possible for other local retail shops. It was due to the low price of the product that attracted more customers and helped them to improve their performance (Ferrell Fraedrich, 2015). The pricing policy was the major factor that was responsible for the mixed success of the company. There has been low-cost production that reduced the packaging cost by at least 5% that has also reduced the manufacturing cost for the retail company and therefore, they could supply the products at a lower cost (Ferrell, Fraedrich Ferrell, 2013). These were the basic reasons behind the continuous success of the retail company in spite being at a financial stake. 3) Identification of Wal-Marts key stakeholders and recent approaches to improve social responsibility Wal-Mart has majority of its business in China. It is the largest employer in USA. The major stakeholders of the company that are depended on Wal-Mart for their business are Clorox (23%), Revlon (22%) and Kelloggs (12%) (Ferrell, Fraedrich Ferrell, 2013). Certain approaches made by the company to improve their relationship with the stakeholders include encouraging of part-time jobs that have benefitted the company in a way that encouraged the performance of the employees. With this approach, Susan Chamber, the vice-president of the company has been able to encourage the employees of the company. Sam Walton supported the open-door policy that encouraged the employees to come up with their problems without resorting to any third party. In order to improve the condition of the employees regarding meal breaks the managers of the retail company altered the time card to prevent any kind of overtime. In fact, Wal-Mart agreed to pay $640 million to settle the lawsuits regarding the employee disputes. These approaches helped the retail company to create a positive image among the employees as well as the other stakeholders of the company. 4) The social responsibility of business is to increase its profits for the statement Social responsibility helps to create a positive image of the company among the society. Social responsibility creates a respect among the people for the company. It enhances employee loyalty and that in turn improves the efficiency of business operation. Social responsibilities create a positive image among the stakeholders that in turn makes them happier and helps to enhance companys stock price. In the view point of Ferrell, Fraedrich and Ferrell, (2013), producing high quality products or treating the employees correctly and not focusing primarily into profit will avoid any kind of law suits or employee turnover that will ultimately results in profitability of the business. Employee satisfaction is one of the key components for the sustainability of a business. Therefore, by involving certain approaches to measure the satisfactory level of the employees, balancing the profitability of the business can be done easily. 5) Explanation of two other companies that have reputation of socially responsible to their stakeholders and being profitable McDonald, the fast food giant and Volkswagen, the car manufacturer are the two companies that have showed their implication towards a social responsibility. Major approaches made by McDonald are using of eco friendly packaging with 100% fiber packaging. The company has joined hands with White House of USA to maintain the global climatic condition. In terms of beef burger, the company has ensured that beef sustainability shall be the priority for the company (Oates, Alevizou McDonald, 2016). These approaches have created positive implication among the customers as well as in the society. Following a common set of guidelines has helped to develop best practices for the sustainability approach. In case of Volkswagen, the car manufacturer focuses greatly on environmental impact of the burning of fuels. The car manufacturer has proposed to equip their cars with sustainable engines that emit less carbon particles (Ihlen Roper, 2014). Although several questions have been raised regarding the sustainable approach made by the company, it has been a profitable business for the company for a time being (Whiteman Hoster, 2015). It can be said that sustainability approaches shall be undertaken by the companies to improve their business image in the society. References: Berman, B. R., Evans, J. R. (2013).Retail management: a strategic approach. Pearson Higher Ed. Ferrell, O. C., Fraedrich, J. (2015).Business ethics: Ethical decision making cases. Nelson Education. Ferrell, O., Fraedrich, J., Ferrell, L. (2013).Business ethics: Ethical decision making and cases(9th ed.). 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