1.0 Introduction
Companies around the world are focussing on incorporating sustainability policy and
practices in their supply chain (Ageron et al, 2011). The topic of sustainability has been of
great interest for the last decade
and businesses have adopted a certain level of commitment towards sustainability practices
(Hassini et al, 2012), yet some business tycoons suffer in developing an effective supply
chain model.
This report primarily discusses the issues that Wal-Mart is facing in establishing and
maintaining a sustainable supply chain. The report outlines the company’s origin and its
progress in the years, followed by describing the issue it is faces. The issue described is
related to Wal-Mart’s failure to develop a Green sustainable process and the effects it has
on the environment.
2.0 Company Background – Wal-Mart
The idea of retail business grew very popular in the United States in the early 1950’s, and
Sam Walton, founder of Wal-Mart was convinced that people wanted more than just retail
showrooms. Hence he opened his own retail store providing large discounts (Reuters,
2013). Over the years he spread his business across the United States and set up his first
Wal-Mart store in 1962. In the next five years he opened 24 more stores and in 1969
Wal-Mart established itself as an incorporated company under the official name, Wal-Mart
Stores Inc. (Wal-Mart Corporate, 2013).
Phenomenal transformation of national retail business into global retail chains were
witnessed in the two decades of 1980’s and 1990’s. In 1983 Sam’s Club was established
and was ranked in the top ret ail chains by the Forbes, a magazine. In 1989, the first Super
centre of Wal-Mart was inaugurated. Later it became a conventional shop in several
countries all over the world. In the early 1900’s Wal -Mart operated over 1400 stores and
123 Sam’s Clubs which earned revenue of over $26 billion (Wal-Mart Corporate, 2013).
Wal-Mart today consists of a wide range of products such as grocery, dairy products, baby
foods, variety electronic products, health and wellness products including pharmacy,
stationary, jewel lery, automotive accessories, apparel, house wares and several own
private labelled store brands. Wal-Mart as of now employs over 2.2 million people all over
the world (Wal-Mart Corporate, 2013).
2.1 Wal-Mart Issue with Green Sustainability.
In the United States, Wal-Mart received a positive feedback and press review for
promising to go green, as such the company issued a Global Responsibility Report in 2005
and announced to reduce emissions in its supply chain as well as expand the usage of
