A new mission for Wal-Mart

In recent years social responsibility has become all the rage in the corporate world, with companies in every industry eager to be seen as "green" and "socially responsible". Who would blame them? A 2007 Cone Cause Evolution and Environmental Survey revealed that 92% of Americans have a more positive image of a company that supports a cause they care about. Even better, 87% are likely to switch from one product to another (price and quality being equal) if the other product is associated with a good cause.

So when Wal-Mart announced on January 23rd its ambitious plans to become a greener company and offer cheaper health care to companies, it was easy to be skeptical. Wal-Mart has long been known for its low wages and often devastating impact on small businesses around its stores. But the Bentonville giant can't be discounted that easily. What makes Wal-Mart stand out is its sheer size: over $350 billion in sales annually, and a supply chain second to none.

What does this mean? If Wal-Mart actually follows through on its promises (which include forcing suppliers to meet stricter ethical standards, selling hybrid cars, and helping companies manager health care costs), the impact could be huge. Not only because Wal-Mart is so big, but also because other retailers will want to avoid being left in the dust.

Is Wal-Mart doing all this because it wants to help the environment? Probably not. But in this case, it might not matter.

-"Wal-Mart Chief Offers a Social Manifesto", 01/24/08, New York Times
-"Wal-Mart 2006 Annual Report", Wal-Mart.com