“Wal-Mart put the public and the environment at risk and gained an unfair economic advantage over other companies.”
— Ignacia Moreno, assistant U.S. attorney general
In May, 2013, the world’s largest Supermarket system, Walmart, was accused for its hazardous waste practices, which then resulted in an $81 million dollars compensation to the Environmental Protection Agency, and $110 million in total when combined with the previous actions. Other than environmental problems, It further calculated that for an employee working 34 hours per week, the average salary is still 20% below the average poverty line.
Other than that, there are also critics of on Walmart’s gender and racial discrimination among its workers, the product suppliers, as well as the sourcing of its product.
The question is, how can a giant supermarket system like Walmart keep neglecting all the environmental and social impact it has generated through years?
The success of business is not only judged by the total economic value it has generated, but also its social responsibility of dealing with unemployment and environment and many other factors. Clearly, Walmart has made the wrong judgment on its social effect. Profit may be the most important factor of a business, especially during the start up. However, a business cannot neglect its social value, the benefit it would bring to the society because other than maximization its economic value, a business would care more about its social responsibility, which is the key factor of its reputation. In other words, to find a way that would benefit both the business itself and the society it grows in.
References:
USAtoday, “Wal-Mart pleads guilty to dumping hazardous waste”
http://www.usatoday.com/story/money/business/2013/05/28/wal-mart-waste/2366999/
