The Use of Recycled Materials by Wal-Mart - Research Paper Example

Wal-Mart Corporation is the world largest retailer as well as the top employer with over 2 million associates worldwide (Walmartstores, . The company founded by Sam Walton has grown to become an international phenomenon. Governmental regulations which include environmental regulation affect Wal-Mart’s business practices. When government place additional taxes to commodities such as crude oil or agricultural products it increases the cost of production. This affects Wal-Mart’s procurement and purchasing process by increasing the cost of acquiring inventory.

The customers are affected because the prices of the goods sold at Wal-Mart increases as a consequence. Environmental regulations typically add costs, but they also protect natural resources. The corporate world must emphasize the importance of the long term. Environmental friendly practices are a way to protect the planet to ensure the longevity of mankind. The depletion of natural resources is a problem that affects everyone. Regions such as South Asia are facing shortages of water, pressures on land, and deforestation (Inforesources, 2005).

Wal-Mart has to assess the availability of natural resources in a region to comply with its global expansion plan. For example the fact that the Sub-Saharan African region lacks sufficient water for its residents makes it hard for a corporation to establish a physical infrastructure. Corporations have to intervene in the fight for petroleum. The private industry must help find an economically viable gasoline substitute in stop our crude oil dependence. The burning of fuels and gas are one of the primary causes of global warming.

In Europe passenger cars and light vehicles account for 19% of CO2 emissions (Europarl, 2007). Wal-Mart could implement a proactive strategy to promote recycling by establish recycling center that pick up plastic, aluminum, and crystal. The pickup of these materials can be converted into a cash flow stream by selling the raw materials to companies that processed it and create new items. Another strategy that would help Wal-Mart achieve income streams from sustainable business practices is for Wal-Mart to invest money in research and development to look for solutions that improve its operations.

An alternative solution is for the company to replace all of its transportation fleet for new hybrid vehicles that have higher miles per gallon efficiency. The use of recycled materials decreases cost which helps a company become more profitable. Multinational corporations such as Wal-Mart can minimize its labor cost by choosing international locations have cheaper labor. The firm can offer excellent fringe to its employees to increase their standard of living. A solution that can be used to learn a foreign market fast is to form a strategic alliance or partnership with the local firm.

Prior to the integration of China into the WTO in 2003 the only alternative for companies to penetrate China was joint venture. To become a good corporate citizen companies have to ensure its employees understand what is expected of them. A simple solution to improve the ethical standards and behavior is to create a code of professional conduct. It is essential for companies to comply with the existing labor laws to create a healthy working environment. References Inforesources (2005). Depletion of Natural Resources – Implications for Development.

Retrieved February 3, 2010 from http://www.inforesources.ch/pdf/trends_2005_e.pdf Europarl.eu (2007). MEPs back cuts in cars’ CO2 emissions. Retrieved February 3, 2010 from http://www.europarl.europa.eu/sides/getDoc.do?language=EN&type=IM-PRESS&reference=20071023IPR12110 Waltmartstores.com (2010). About Us. Retrieved February 3, 2010 from http://walmartstores.com/AboutUs/