Does The CSR Practice Help the Wall Mart Organisation to Achieve Its Goals and Objective - Case Study Example

? This is the Corporate Social Responsibility (CSR) Using Wall Mart organisation to evaluate the strategic CSR policies implemented, assessing their effectiveness. Does this CSR practice help the organization to achieve its goals and objective? Contents Part 1: 3 Part 2: 4 Part 6: 5 References 7 Part 1: Wal-Mart is one of the well-known retail shopping stores introduced in the year 1950. It was established by Sam Walton in the region of Bentonville of Arkansas. The first store with the name of Wal-Mart was established in the year 1962 in the region of Rogers of Arkansas. The vision of the organization is to offer best and trendy looking clothes to its customers at an affordable price. This is done so as to present best quality of products that can meet the demands and requirements of the customers. Other than this, this strategy is used to increase the reputation and brand image of the organization among others in the market. This also helped in enhancing the profit margin and revenue of the organization to a considerable extent among other contenders (Chan & Siu, 2009). Other than the vision, the mission of the organization of Wal-Mart is to save the revenue of the customers so as to present a better life. By doing so, they try to satisfy their needs and demands of the apparels in lowest possible prices as compared to others. This created a significant position of Wal-Mart in the market among other rivals. And this also attracted large array of customers to return back to their stores to purchase grocery as well products for daily needs. As a result, the sustainability and ROI of the organization attained a significant height in the market among others. It also improved the reputation and brand equity of the Wal-Mart in the segment of garments in the entire market (Chan & Siu, 2009). Although, Wal-Mart is a reputed store, still the employees and workers are not at all happy with its policies and rules. Due to which large amount of workers decided to leave the organization of Wal-Mart and migrated to various other regions of the world. As a result, it gave rise to the problem of labour shortage mainly in the region of China. Such type of corporate miss-behaviour gave rise to a new problem known as Wal-Martization within the organization (Chan & Siu, 2009). There are varied issues entirely related to the labour or wage violation: Minimum amount of wage is offered to the workers that’s almost impossible for the workers to live their life in an effective way (International Labour Rights Forum, 2012). The workers are forced to work for longer hours with very less amount of wages. The workers are forced to work for more hours but their overtime wages are violated by the organizational hierarchy (Singh, 2012). The materiality leaves of the female workers are also violated by the management of Wal-Mart (Globescanfocus, 2013). Due to which, Wal-Mart was named as Sweat-Shop by its workers and its reputation was hindered. Therefore, in order to remove such a worse reputation and image, the management decided to implement certain Corporate Social Responsibilities (CSR) for the benefit of the workers (Sum, 2009). It decided to present desired wages for the workers so as to gift a better living condition to them. Along with this, it also tried to implement better machineries so as to enhance the working conditions (Kaye, 2012). Other than this, the management also decided to present overtime wages for the workers along with piece rates as well. Moreover, they also committed to present the similar wage rates to the workers in case of lower orders of the garments or toys. This acted as a boon for the organization to regain its reputation and image in the market along with dominance power as well (Globescanfocus, 2013). Part 2: Being the world’s number one legendary brand in the segment of apparels, Wal-Mart had to suffer a serious set-back in the year 2004. It was due to its internal strategies and policies. The management of the organization always tried to offer minimum shortest possible wage to its employees in comparison to longer hours of work. Due to which, the workers cannot even fulfil their basic needs and demands. As a result, the workers presented resignations to the organization of Wal-Mart and decided to migrate to certain other regions with better wage systems. This created shortage of labours in the region of China (Sifton, 2012). The prime reason for such discrepancy is due to lower rate of wages along with violation of overtime work. Moreover, violation of the basic needs and working conditions of the workers in Wal-Mart is also another imperative problem. Along with this, the management also confiscated the health cards, ID cards, and passports of the workers, so as to with-hold them. This created a reputation of Sweatshop against the brand name of Wal-Mart and also huge campaigns took place for human trafficking within the organization (Chan & Siu, 2009). Due to which, huge strikes took place resulting in hindrance of reputation and dominance in the market among others. Along with this, the total sales margin also lowered leading to lowest revenues and profits. Not only this, its position also lowered which hampered the ROI of the organization and level of loyal within the minds of the customers. So, ILRF decided to undergo huge investigation and campaigns against the organizational policies and rules in order to present fairer rate of wages to its workers to retain its image (Chan & Siu, 2009). This helped the workers to attain a desired wage system that might prove effective for them to live wisely. Part 6: In order to retain the brand image and reputation of Wal-Mart in the market among other rivals, varied types of Corporate Social Responsibilities (CSR) were implemented. Due to which, the system of desired wages were introduced within the factories of Wal-Mart all-round the world. Along with this, it also helped in implementation of over-time wages for the workers according to hours. It proved extremely helpful both for the workers and the management. Other than this, the implementation of proper working conditions and basic needs (sanitation facilities) also enhanced the inner beliefs of the workers (Kaye, 2012). The presentation of maternity leave facility for the female workers is also another basic need that improved the image of the organization in the market. Not only this, the implementation of bonus and compensation benefits also enhanced the level of devotion and dedication power of the workers towards the work. Thus, it might be depicted that implementation of such policies enhanced the total sale and devotion of the workers towards work. As a result, the profit margin and revenue also enhanced and retained its position as a leader in the segment of apparel (Paymar Communications Group, 2010). References Chan, A. & Siu, K., 2009. Wal-Mart’s CSR and Labor Standards in China. The International Research Network on Business, Development and Society (BDS). [Online] Available at: http://bdsnetwork.cbs.dk/publications/Working%20Papers/bsd_working_paper_(paper4).pdf [Accessed July 30, 2013]. Globescanfocus, 2013.Featured Findings. Labour issues at heart of Walmart’s reputational problems. [Online] Available at: http://www.globescan.com/commentary-and-analysis/featured-findings/tags/tag/labour-issues.html [Accessed July 30, 2013]. International Labor Rights Forum, 2012. Wal-Mart Campaign. Labor Violations. [Online] Available at: http://www.laborrights.org/creating-a-sweatfree-world/wal-mart-campaign [Accessed July 30, 2013]. Kaye, L., 2012. Walmart 2012 CSR Report: Focus on Waste, Renewables, Local Food. News. [Online] Available at: http://www.triplepundit.com/2012/04/walmart-2012-csr-report-focus-waste-renewables-local-food/ [Accessed July 30, 2013]. Paymar Communications Group, 2010. Paymar Communications. The United States Of Wal-Mart And Corporate Responsibility. [Online] Available at: http://paymarcommunications.com/the-united-states-of-wal-mart-and-corporate-social-responsibility/ [Accessed July 30, 2013]. Sum, N., 2009. Articulation of ‘New Constitutionalism’ with ‘New Ethicalism’: Wal-Martization and CSR-ization in Developing Countries. Corporate Social Responsibility and Regulatory Governance: Towards Inclusive Development? [Online] Available at: http://www.lancs.ac.uk/fass/events/changingcultures/docs/sem3/UNRISD-WalMartization-CSRization-chapter3-clean.pdf [Accessed July 30, 2013]. Sifton, John., 2012. Walmart's Human Trafficking Problem. Market store in Bentonville. [Online] Available at: http://www.hrw.org/news/2012/09/17/walmarts-human-trafficking-problem [Accessed July 30, 2013]. Singh, Tarnijit., 2012. Corporate Social Responsibility Report Published July 2012. Supplier Development Program. [Online] Available at: http://www.walmartcsr.ca/index.php/en/ethical-sourcing/supplier-development-program [Accessed July 30, 2013]. Read More