Write a paper that analyzes Walmart from the perspective of a potential shareholder interested in investing:
Running head: CORPORATE SOCIAL RESPONSIBILITY 1
CORPORATE SOCIAL RESPONSIBILITY 2
Organizational, Economic, and Societal Influences in CSR
Organizational, Economic, and Societal Influences in CSR
Walmart is the biggest and most profitable retailer in the world. Over the past few decades, the business organization has been able to continually change its business model by adopting new technologies and services to enhance the provision of services to its clients. While appreciating the significant growth that the company has experienced in recent decades, it is also important to note that the company has faced a wide range of challenges, including condemnation over its business practices. The company has been sued for unethical business practices, including bribery and employment discrimination, among others. In the face of these challenges and accusations, the company has always made efforts to change its practices to align with the highest standards of ethical practices besides involvement in corporate social responsibility. There is evidence that Walmart not only seeks to attain the highest levels of profitability but also seeks to influence a positive change in society. The conscious decision of Walmart to get involved in corporate social responsibility has played an important role in enabling the company to enhance satisfaction with its services.
Walmart’s stock performance and financial history over the past five
Walmart is racing very fast towards the $ 2 trillion valuations. A by Nasqad suggests the stock of Amazon is increasing in value each day. The says that the company’s share value has been on exponential growth for some time, and it is highly likely that the value of the stock will continue rising. Today, Walmart’s stock costs slightly over $ 3,155, and it is predicted that over the next 12 months, this value will increase to over $ 4,000 per share (Duprey, 2020). One of the reasons for the growth of this company is its innovative tendencies. Walmart is always coming up with new ways to enhance the quality of its services. The company appreciates the importance of technology in its operations, and as a result, it increasingly deploys new technologies in its operations.
Data from Yahoo Finance suggests that in the period of the last five years, Walmart’s price per share was slightly above $ 1,300 (Yahoo Finance, 2020). Five years later, the share prices of the company have risen beyond $ 3,100. At this growth rate, there is no doubt that Walmart’s shares are among the fastest-growing in the world. Currently, the world is facing economic turmoil that has been occasioned by the coronavirus pandemic that has affected economic activities across the world. While many firms have faced challenges that have pushed to near-collapse, it is notable that Walmart has remained very resilient. In fact, it is within this period of the pandemic that Walmart has managed to make one of the most significant growth rates in its history. That is a demonstration that Walmart is a firm that is flexible enough to withstand very hard economic times. From the company’s performance in this period, there is no doubt that Walmart is still capable of posting very impressive performance going into the future.
Walmart’s commitment to accomplishing its CSR
As indicated in the introduction of this paper, Walmart has developed a wide range of policies that regulate its involvement in Corporate Social Responsibility across the world. Right from its purpose statement, one may see that Walmart is committed to Corporate Social Responsibility. In its purpose statement, the company says that “our purpose is to save people money so that they can live better” (Walmart, 2020). From this purpose, it is notable that Amazon exists not only to earn profits but also to help the community by enhancing the standards of living of the community members.
In an article, Walmart’s improved social responsibility efforts begin with supply chain, Patrick (2018) says that Walmart has made significant efforts in enhancing its involvement in corporate social responsibility in recent years to address some of the challenges facing the environment in which it operates. Concerning Walmart’s corporate social responsibility, the author says that “And that’s Walmart’s approach — the company has invested $100 million in programs to help workers advance their careers in retail, and is funding the training for one million farmers at the supplier level. The company also is holding its seafood suppliers to a set of sustainability standards and is working to eliminate unethical labor practices at the supplier level” (Patrick, 2020). In this statement, there is evidence that Walmart is interested in improving the welfare of its employees. While it is notable that Walmart earns a lot of money in profits and $ 100 million may seem like a drop in the ocean, one ought to recognize that this is an allocation in just one aspect of the company’s corporate social responsibility.
Another area in which the company has played a role in its corporate social responsibility is in the supply chain. For a long time, Walmart has engaged a lot of researchers, industry players, and non-governmental organizations in addressing challenges facing the global supply chain systems. The company realizes that weak supply chain systems have had adverse effects on global business practices. To address this challenge, the company is partnering with other entities to find ways to address the challenge.
Possibility of investing in Walmart Stores
Yes, I would not hesitate to invest in Walmart Stores. One of the reasons for investing in the company is based on its strong market performance in recent years. From the analysis of the performance of the company over the past five years, it emerged that the company has been experiencing a steady rise in the value of the stocks of the company. There is no doubt that an investment in the company is highly likely to yield decent returns in the future. (Hills, 2017) Another reason for deciding to invest in the company is its position on ethical practice and involvement in corporate social responsibility. I would want to associate with a company that cares for not only its profits but also the welfare of society.
One of the greatest strengths of Walmart relative to its sustainability practices is that it operates in a wide range of cultures, and it is capable of aligning is sustainability practices to the most immediate needs of society. For example, the needs of American society may vary greatly from the needs in Asia or the Middle East. In the face of these circumstances and the position of Walmart, it is possible that Walmart can come up with initiatives that address the unique needs of the communities (Greissing, 2012). On the other side, the main weakness that the company faces is the huge demand for its involvement, yet it cannot allocate all its resources in global sustainability practices. Many communities have huge expectations on Walmart, yet it has limited resources to put in such initiatives.
Greissing, A. (2012). The Jari Project Managed By The Orsa Group: Corporate Social Responsibility Applied To The Amazon Context. Sustainability in Debate/Sustentabilidade em Debate, 3(1).
Hills, G. (2017). Five Lessons from Walmart’s CSR Strategy Efforts. Retrieved from https://www.fsg.org/blog/five-lessons-walmart%E2%80%99s-csr-strategy-efforts
Patrick, K. (2018). Walmart’s improved social responsibility efforts begin with the supply chain. SupplyChainDive. Retrieved from https://www.supplychaindive.com/news/walmart-corporate-social-responsibility-efforts/521961/
Walmart. (2020). Our Business. Retrieved from https://corporate.walmart.com/esg/about-this-#our-business
Yahoo Finance. (2020). Amazon.com, Inc. (AMZN). Retrieved from https://finance.yahoo.com/quote/AMZN/