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Wal-Mart
Location: Bentonville, Ark.
Industry: Retailing
Annual Sales: $379 billion
With its unparalleled buying power and reach, Wal-Mart (WMT) has revolutionized retailing and business practices worldwide. Name practically any product category, from groceries to photo processing, and there’s a good chance Wal-Mart is the No. 1 player in that space. It became the world’s largest retailer by cutting costs to deliver rock-bottom prices. And it made thousands of suppliers do the same. With about 100 million Americans shopping at its stores every week, vendors have no choice. A deal with Wal-Mart can make or break a business.
Wal-Mart has been criticized for allegedly applying its low-cost ethic to people. Critics cite low wages for its 2 million workers, as well as goods sourced from countries where factory conditions are a concern.
Green Machine
But Wal-Mart is determined now to use its sway for good, especially to better the environment. It’s pushing to create “zero waste” stores and sell more green products, with its sales of 145 million energy-saving light bulbs already dampening U.S. electricity consumption.
More significant, perhaps, it’s forcing Chinese manufacturers to clean up their ways. In November, Wal-Mart told big mainland suppliers that they must become 20% more energy-efficient within three years to stay on contract, and they must disclose more. As incoming CEO Mike Duke told suppliers, “If you sell us tennis shoes, we expect you to know—we expect you to tell us—not just where the tennis shoes were assembled, but which subcontractors played a role in making them.”
With Wal-Mart’s pressure on the world’s fastest-growing polluter, the impact could be profound. As sustainability consultant Andrew Winston argues: “Only Wal-Mart is big enough to daunt China’s worst practices.” Even those who like to blame it for other practices recognize Wal-Mart’s power in going green.
