Walmart CEO Lee Scott’s “going green” campaign launched in 2005 has kept its dedication to sustainability. The retail store has come closer to its goals to use renewable energy, create zero waste, and sell sustainable products.
Walmart’s environmental awareness is changing China. The “Walmart effect” has motivated its supply chains and competitors to strive to match its green standards. For example, one of Walmart’s bath towel suppliers, Loftex, is dedicated to achieving a 20% savings in energy use by 2012.
However despite being praised as “one of the most environmentally active and vocal companies,” Walmart continues to suffer criticism for its low hourly wages, touchy relationship with labor unions, and gender discrimination in hiring and promotions. Ethan Yau’s blog “Chinese City Shuts Down 13 Walmarts” provides one of many examples where Walmart’s profit driven actions have harmed consumers and affected revenues.
Contrary to my previous blog on Ryanair‘s profits despite its controversial measures, Walmart’s gains are feeling the pinch from its lack of concern for employee and consumer rights. Being an environmental leader and having a cost advantage can boost reputation, however it can only do so much when Walmart fails to protect its employees.