Sunday, January 27, 2008
Editorial: The power and influence of Wal-Mart
Wal-Mart recognizes that low-low prices alone won't keep shoppers loyal. Its new responsible global-citizen image is appealing.
From the RoundTable blog
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The Wal-Marting of the world continues and, for once, this might not be such a bad thing.
Wal-Mart CEO Lee Scott last week pledged to use the retail giant's clout to help solve the world's most pressing environmental problems.
Scott said Wal-Mart would require suppliers to develop products that use less electricity and to manufacture them in cleaner factories. Those who fail to comply risk having access to the retailer's shelf space cut off.
Wal-Mart's plan makes good sense for the environment, promises better lives for those toiling under harsh conditions in dirty, substandard factories, would offer customers better quality and energy-saving goods. And, oh yes, make Wal-Mart money.
Being environmentally and socially responsible is good for business, as Wal-Mart has discovered with its year-old push to convert customers to using compact fluorescent light bulbs.
Now it aims to cut energy use in other common household appliances by demanding that many of the products it sells -- including flat screen TVs and air conditioners -- be retooled to cut energy use by 25 percent.
It's a bold move, especially when Washington took years to impose stricter gas mileage standards on automakers out of fear it would be too costly and harmful for business.
Wal-Mart and manufacturers that respond to its challenge stand to make money and gain valuable public good will. Customers who spend less paying the heating bill will have more to spend in Wal-Mart's store. They aren't likely to forget who's helped them with those low, low prices.
The retailer also may be able to achieve what no amount of U.S. regulations, oversight or pressure could: quick influence in coaxing China and its manufacturers to clean up pollution and human rights abuses.
In laying out Wal-Mart's plan, Scott challenged other major global retailers to join: "Ultimately, we would like to see this effort combined with the industrywide effort ... . But if it is not, Wal-Mart will in fact lead. We will move forward ourselves." He expects significant changes within three to five years.
Still, not all Americans will be enamored with Wal-Mart's new mission. No matter how environmentally or socially conscious the company's leaders profess to be, critics will still have legitimate gripes about the retailer's impact on their communities.
They'll continue to question Wal-Mart's low wage scale and its sluggish response offering affordable health care to workers. They'll decry the pillaging of land for new superstores (such as the one planned for Clearbrook) instead of improving nearby existing stores. And they'll criticize the company for continuing to put up big, traffic-jam-generating stores on acres of concrete (such as the one planned for Blacksburg) instead of creating stores that fit the character of the community.
Some will find it difficult to show Wal-Mart a little love even if it now seeks ways to make money and save the world. Responding as well to local wants (which was the mastery of founder Sam Walton) wouldn't hurt.
