...led to the transform of the CSR concept. As a result, CSR is no longer a national duty to firm, but encompasses the entire supply chain. In other words, multinational companies are expected to behave responsible for environmental and labor practices of their global trading partners such as suppliers, third party logistics providers, and intermediaries over which they have no ownership (Jenkins, 2001; Maloni and Brown, 2006; Business for Social Responsibility, 2001; Jorgensen and Nielsen, 2001; Oxford Research, 2003;). A more serious challenge is...
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...sustainability and social responsibilities. All of the factors above, made merely financial oriented approach are not sufficient anymore, the companies who have the ambition to compete globally have to have a forward point of view and establish the sustainable marketing approach. Definition and Debate of CSR The concept of CSR has appeared into public view over last several decades, but a clearer definition has not been reached yet. In principle, CSR refers to a collection of value sheared with business stakeholders, namely, the business approach should meets or exceeds the ethical, legal, commercial and public expectations that holds by society, in order to achieve the sustainable development of the planet. Generally speaking, the concept of CSR widely ranged from ethical standard to accomplish the welfare of society. One famous definition done by Norwegian Prime Minister Gro Harlem Brundtland(1980) “Meeting the needs of the present without compromising the ability of future generations to meet their own needs”. CSR concept requires the companies to behave responsibly and contribute the development of social welfare as a citizen and a cooperator. The debate around CSR has never ceased since the beginning of the...
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...The Grassroots Battle: Wal-Mart Supercenter Rosemead Stephen J.J. McGuire, Christine Chueh, Tia Mao & Isela Mercado California State University, Los Angeles September 11, 2008 Wal-Mart, founded in 1962 in Rogers, Arkansas, was the largest retail chain in the world. Its growth was derived from a wide range of competitive advantages, such as Wal-Mart’s sophisticated use of information technology to keep track of and reorder items, the use of “Just-in-Time” shipments of merchandise from distribution centers that eliminated the need for costly in-store inventory storage2, and the sheer economies of scale it achieved compared to its rivals. Wal-Mart also exploited “economies of density” to make the most of its centralized distribution hubs.3 These advantages, combined with its “Every Day Low Price” strategy, enabled Wal-Mart to serve its target market, of which the residents of Rosemead, California were typical. In 2003, Wal-Mart’s attempt to establish a Supercenter 12 miles from downtown Los Angeles in the city of Inglewood, California was stopped by a community grassroots effort to keep the retailer out. Wal-Mart then diverted its expansion plan to the nearby city of Rosemead, where a new Supercenter would benefit from two Wal-Mart distribution centers within a cluster of ten neighboring Wal-Mart stores. In September 2004, the Rosemead City Council voted in favor of Wal-Mart’s plans to open its first Supercenter in Los Angeles country, alienating many residents who felt their...
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...WAL-MART’S CURRENT STRATEGY INTRODUCTION Wal-Mart operates more than 11,000 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries. (Wal-Mart.com) They employ 2.2 million associates around the world; 1.3 million in the U.S. alone. Wal-Mart provides general merchandise: family apparel, health & beauty aids, household needs, electronics, toys, fabrics, crafts, lawn & garden, jewelry and shoes. Also, the company runs a pharmacy department, Tire & Lube Express, and Photo processing center as well (www.Wal-Mart.com). When Sam Walton created Wal-Mart in 1962, he declared that three policy goals would define his business: respect for the individual, service to customers, and striving for excellence (www.Wal-Mart.com). Wal-Mart's corporate management strategy involves selling high quality and brand name products at the lowest price. In order to keep low prices, the company reduces costs by the use of advanced electronic technology and warehousing. It also negotiates deals for merchandise directly from manufacturers, eliminating the middleman. This paper will analyze Wal-Mart's current strategy and challenges. In addition, I will discuss the threats and challenges facing Wal-Mart currently, priorities set by Wal-Mart CEO Lee Scott. I will also discuss the proposals outlined in the “Supplemental Benefits Documentation: Board of Directors Retreat FY06,”the result of the Board Benefits Strategy document leak, Wal-Mart initiatives from...
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...PERSPECTIVE ON STRATEGIC CSR AS A TOOL FOR MARKETING AND BRAND DIFFERENTIATION | | | Mattias Norén, Niklas Nygård | 2014-01-16 | | “What are the underlying reasons for abusive Strategic CSR in marketing and brand differentiation, what are the consequences and are there any solutions?” Introduction to CSR For Corporate social responsibility(CSR) a lot of different definitions exists but the one we chose to use in this report was defined by (McWilliams, Siegel och Wright)) as “actions that appear to further some social good, beyond the interests of the firm and that which is required by law”. This definition defines a wide concept that contains everything from corporate environmental strategies, employee empowerment, health and benefit plans for employees and corporate philanthropy. The linking factor between these different implementations is that corporations and businesses should expand their responsibility beyond absolute necessity and their core stakeholders group. While CSR is very modern as a defined concept it is still based on a lot of old ideas. For example many companies in the late 1800s based its business on scientific betterment which often meant that employee benefits was taken a lot further than the requirements of the law (Barley och Kunda). Today CSR has evolved to something more than the initial idea of expanded responsibility and it’s used as a tool for companies to reach goals outside of areas normally connected to CSR, for example financial...
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...Summary of Case Table of Contents Summary of Case History Overview: * Vision, Mission, and Goals Major Issues Swot Analysis CSR Analysis - “Buy American” program and “Environmental Awareness” program Sam Walton: A motivational Genius? Walmart’s responsibility to it employees Stakeholder analysis Competitors Ethical Practice towards Walmart Walmart’s and the international arena Critique Recommendations References History Overview Walmart’s mission statement is “We save people money so they can live better.” Walmart's vision statement is to 'promote ownership of Walmart's ethical culture to all stakeholders globally.’ Walmart Corporation has guidelines to help associates to uphold this vision. Some of these guidelines are following all laws, being fair, having integrity, respecting others and embracing diversity. They also believe in the idea of “working together, we’ll lower the cost of living for everyone, and give an opportunity to see what it’s like to save and have a better life.” One of their many goals is to become an international brand. Walmart was founded and opened by Sam and Helen Walton in Rogers, Ark. in 1962 while using their family home as collateral. The store was just 18,000 square feet of selling space, and had clothing racks made of plumbing pipes. Store 1 was modest, but customers loved the great prices and the wide assortment. Starting off with Sam Walton’s idea of low prices in the 1940s, Wal-Mart has since then become the world’s...
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...387 From supply chains to value chains: A spotlight on CSR Malika Bhandarkar and Tarcisio Alvarez-Rivero* 1. Introduction Corporate social responsibility (CSR)1 has become a hot topic in boardrooms across the world. Changes in corporate value systems are being driven by pressures from different actors, including governments, consumers, non-governmental organizations (NGOs) and institutional investors (diagram 1). Multinational corporations (MNCs) have operations spread across the globe, relying on both foreign affiliates and arm’s-length suppliers arrayed along global supply chains, many of which encompass developing countries. What then does the growing CSR movement mean for developing country producers? The chapter addresses this question. Diagram 1 Institutional Investor Tier I Tier II Tie r III NonGovernmental Organization Multinational Corporation Supply Chain, consisting of: Consumer Government CSR has relevance to many facets of a corporation’s operations. Strong CSR policies can help to recruit the right people for the job, keep attrition rates low by promoting a “feel good” quotient, improve corporate image, prepare for future regulation, empower “soft” laws (Vogel, 2005, p.162), appease green customers, and convince institutional investors that the corporation is following sustainable practices that positively impact the bottom line. * Policy Integration and Analysis Branch, Division for Sustainable Development, UNDESA...
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...Social Responsibility has become the main initiative for companies looking to capitalize on sustainability and humanitarian efforts. CSR has evolved from companies donating corporate dollars to global non-profits, to sending employees into emerging geographical places to work directly with its initiatives partnering organizations. Wal-mart stores Inc., operates retail stores in various formats under various banners. It’s operations comprise of three reportable business segments, Wal-Mart U.S., Wal-Mart International and Sam’s Club in three categories; retail, wholesale, and e-commerce. Wal-Mart first opened in 1962 in Rogers, AK. The business is the result of its founder Sam Walton. His visionary leadership focused on helping customers and communities save money and live better. They feature a great selection of high quality merchandise, friendly service, and everyday low prices. Wal-Mart goal is to bring the best shopping experience to consumers. Wal-Mart business philosophy is based on the simple idea of making the customer No. 1. Wal-Mart as a corporation believe that by serving the customer’s need first the business would also serve its associates, shareholders, communities, and other stakeholders. Wal-Mart has one of the largest distribution operations in the world. In this essay one will look at the current status of Wal-mart corporate social responsibilities, stakeholders attitudes, and things they within the company to engage customers. With respect to their...
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...1) The report provides a good picture about the symbolic meaning of Wal-Mart to the consumer and serves as a good measuring stick to certify that the Company’s core brand associations (low prices, rural America, patriotism, etc.) are still in place. Additionally, it does a good job in understanding the relationship between Wal-Mart and the three customer segments: from depicting the psychological profile of the customers (dreams, aspirations, concerns, shopping patterns, etc.) to explaining what role Wal-Mart plays in their lives. Despite providing a thorough analysis on the consumer segments and their interaction with Wal-Mart, it fails to provide a solid case on how should Wal-Mart address the challenges it faces in trying to address new customers and new categories in a congruent manner. In terms of methodology, the research is not exhaustive enough. 24 In-home Friends and Family Groups, 80 Workbooks and 20 In-home 1:1 Interviews and Store visits are not conclusive enough for a Company that has 138 million weekly customers. Having to resort to the same quote from a Price Sensitive Affluent for different purposes on pages 17 and 26 – “We all went to college and struggled […]” is very poor. Furthermore, the markets in which the research was conducted are not representative enough of the rural America that Wal-Mart serves. The absence of quantitative analysis (or even quotes) in the research to backup conclusions undermines the credibility of some statements, such as...
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...Analyse The Wal Marts Case Study Management Essay ukessays.com /essays/management/analyse-the-wal-marts-case-study-management-essay.php Wal-Mart Stores, Inc. opened in 1962 by Sam Walton and his brother. Nowadays, it is ranks as the largest corporation in the World. In early 1990s, the company announced that it would initiate the international operations, which commenced in 1991 in some countries like Canada, Puerto Rico, Argentina, China, etc. (Reference for Business, 2012). PEST Analysis In order to analyse the Wal-Mart's case study we are going to apply the PEST analysis which is 'A type of situation analysis in which political-legal, economic, socio-cultural and technological factors are examined to chart an organization's long-term plans' (Business Dictionary, 2012). II.1. Political Factors When a firm desires to undertake businesses in a foreign country there are some factors to investigate before taking a final decision, for example, the system of the government, law and local trade unions, language, religious and ethical values. Wal-Mart faced numerous complications on the legal and political front in many countries. For example, in Mexico the company participated in an aggressive lobbying campaign to amend the long-standing U.S. anti-bribery law that the company might have violated. The 1977 law, well-known as the Foreign Corrupt Practices Act, prohibits U.S. firms from offering fees or gifts to foreign officials to advance corporate interests (Hamburger, Dennis & Yang...
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...Guidelines for Analyzing Cases Problem and Issue Identification 1. What are the central facts of the case? What assumptions are you making about these facts? 2. What is the major overriding issue in the case? What major question or issues does this case address that merits study at this point in the course? According to this case, the major issue is the conflicts between Walmart and local manufacturers. Because of the low price in Walmart, local manufacturing business cannot survive in the market. Also, production process in Walmart creates many environment problems. Meanwhile, importAlso, to produce low cost merchandise, Walmart provides extremely low wages and benefits to labors, which put workers in a hard condition. taking advantage of illegal immigrants. •Gender discrimination against women. • Most sued company in America in respect of lawsuits. 3. What sub-issues or related issues are present in the case that merit consideration now? Analysis and Evaluation 1. Who are the stakeholders in the case and what are their stakes? What challenges, threats or opportunities are posed by these stakeholders? From government perspective, US government gain good reputation. Walmart, as a US company, brings many good reputations. For Chinese government, it is a good supplier to Walmart. Walmart creates many job opportunities in China. However, Walmart harms nature environment in China. From owners perspective, The Walton Family earns a lot of money...
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...Wal-Mart Stores Inc INTBUS202 Assignment- Group 11 2nd February 2012 Prepared By: Kanji, Kalavati (4299847,kkan040) Lai, Xin (1273844, xlai007) Lawrence, Lily Veronica (1655682, llaw039) Lovell, Eryn Isabel (1502870, elov008) McClain, Todd Micheal (1025058, tmcf011) Table of Contents Introduction………………………………………………………………3 Stakeholder Analysis…………………………………………………4 External Analysis………………………………………………………7 Opportunities/ Threats……………………………………………9 Industry Analysis…………………………………………………….10 Value Chain Analysis……………………………………………….13 Core Competencies…………………………………………………16 Recommendations………………………………………………….18 Conclusion……………………………………………………………….21 References………………………………………………………………22 Introduction Wal-Mart Stores, Inc. (Wal-Mart) is currently ranked as, not only America’s largest, but the world’s largest company (DuBois, 2011). Wal-Mart’s three business segments, Wal-Mart Stores, Sam’s Club and Wal-Mart International, all operate in the discount variety retail industry. Currently, Wal-Mart’s strategic leaders face challenging issues including declining same-store sales, an invariable customer base, and a crumbling reputation. In analysing the company’s stakeholders, external and internal environments, its opportunities and threats, and its core competencies and competitive advantage we recommend that Wal-Mart: • Place a greater emphasis on the local communities in which it operates in order to stimulate same-store sales; • Improve their supply chain efficiency...
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...Abstract Wal-Mart (WM) has evolved as one of the most successful corporations, providing low prices to its consumers. Loyal consumers flock to WM each week all over the world. This success has created millions of jobs and unique incentives for its employees. The cost of this success is most evident to local businesses in communities where WM opens its doors. Wal-Mart Case Study Wal-Mart and Corporate Social Responsibility The WM case study describes several major issues. The biggest concern is the affect that WM has on local businesses and if they have any responsibility to them. The case study further describes WM’s ability to focus its muscle on social concerns, such as the “buy America” or “environmental campaigns” that were popular during the 1990s. The third major issue was WM’s focus on the global community and the impact that it can have on other countries. Carrol & Buchholtz (2006) best describes four specific categories for corporate social responsibility (CSR): economic, legal, ethical, and philanthropic responsibilities. Economic responsibility is another term that a corporation describes its CSR. The root of CSR is to manufacture a good or service for consumers and sell these products legally, ethically and at a fair price. These products will generate profits to stockholders and lead to growth of the corporation. Legal responsibility is a way in which the corporation fulfills a social contract. This means by following the laws and ethical practices...
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...Identification – This case study looks at the tension firms experience between adequate research in the safety of a product and pressure to minimize development costs and bring the product to market as soon as possible. Description – The case study “Primark Versus Marks & Spencer” compares these two different corporations and how each of them are reacting to the increased demands that arise from operating in a global, constantly wired and increasingly complex business environment. Primark produces low cost clothes to compete with firms such as Wal-Mart. On the other hand, Marks & Spencer seeks to differentiate its products based on quality and charges a corresponding price premium to reflect the different market segment it targets. Reaction – This case study argues that “corporations exist because their products are in demand and that; in general, it is in society’s best interests to encourage healthy and wealthy corporations because they bring many benefits.” After researching all the websites presented in this case study I agree that corporations are in the best interest to society. This case study took two companies, Primark and Marks & Spencer and compared how these companies reacted to the “increased demands that arise from operating in a global, constantly wired, and increasingly complex business environment.” Primark is a low cost retailer, similar to Wal-Mart, while Marks & Spencer is a brand loyal company who base their products on quality. ...
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...JDT Task 2 Carol Gore 4-10-14 A1. Decision Alternative The whistles that were scheduled to be shipped to schools in South America at the end of the week contained a higher amount of lead than the U.S legally acceptable limit will allow for children ages 7 and younger. The cost that will be extensive to reproduce the product and repackage the whistles in order to reduce the traces of lead. The decision must be made as to what the next course of action will be to meet quality requirements as well as the ethical concern that would be present if we shipped the whistles with the problem that has been identified. I believe there are a few options to consider. 1) The first action would be to immediately re-test the product to ensure the quality assurance test was accurate. This might involve additional dollars spent, but would be worth the risk if the quality controls were calibrated incorrectly, or performed inadequately. If the re-evaluation reveals similar results then we will proceed with additional alternatives. 2) If the retesting reveals similar results, we can sell the current shipment to an older age population. The lead testing, and acceptable levels are very specific to a certain age population. The lead level was too high for the children 7 and under but might be acceptable for children over the age of 7. If this alternative is not an option then we will be forced to reproduce additional products to meet the demand for this toy. 3) Reproduction of the...
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