How Sincere is Wal-Mart’s Demand that Chinese Suppliers Meet Labor and Environmental Standards?

[Joanne98]

I imagine that many readers will react as I did to the Washington Post story, “In China, Wal-Mart presses suppliers on labor, environmental standards” (hat tip reader Paul S): that this story, yet another tidbit supporting the Bentonville giant’s supposed conversion to the true green camp, has to make sense on a cold-blooded P&L basis, even if it isn’t obvious how.

Given Wal-Mart’s history in the US, it is just about impossible to imagine that the company has concern about the impact of its policies on the greater community. Wal-Mart’s low prices depend on super-low wages effectively subsidized by the public (for instance, it pays workers so poorly that they cannnot afford health insurance, so that it is a given that some will wind up getting their health care via their local emergency room, which then winds up recovering those costs from paying customers). And the company is the antithesis of a good citizen. Over 40 states filed lawsuits against Wal-Mart for failing to pay overtime when mandated by law; the Bentonville giant settled a Federal lawsuit over similar issues in 2007 and agreed to pay as much as $640 million to settle 63 wage and hours class action suits. Wal-Mart also has the largest sex discrimination lawsuit in US history pending, and has settled other suits charging discrimination.

Wal-Mart is also famous for squeezing suppliers. One attorney I worked with who had a lot of early stage companies would recommend strongly against them taking orders from Wal-Mart, for the simple reason that the retailer (if satisfied with quality) would quickly become their dominant customer, know it controlled their business, and would start pushing for lower prices and improvements on other terms.

That’s a long winded way of saying that Wal-Mart is the antithesis of an altruistic organization. In particular, Wal-Mart has a history of funding anti-environmental candidates. So why should we trust that its seemingly civic-minded action is all that it appears to be?

Continued>>>
http://www.nakedcapitalism.com/2010/02/how-sincere-is-wal-marts-demand-that-chinese-suppliers-meet-labor-and-environmental-standards.html

[xchrom]

1. Walmart is practising window dressing for the masses. Nt

[Po_d Mainiac]

4. I'm amazed they even bother.......n/t

[glowing]

2. I was at the Walmart the other day... The check out lady kept apologizing

about the bags.. they kept ripping.. She said Walmart wanted to get rid of them completely (do what they do at Sam's Club).. so, the quality of the bags keep getting worse and worse.. the bags rip and are hard for the worker to utilize.. And I smiled and said, "its Walmart, cheap and crappy is the norm, why shouldn't the bags also apply." She laughed and said, "ain't that the truth".

[OHdem10]

5. This is Wal-Mart strategy. Each year their buyers go the mfgers

I will pay this amt for this many 'widgets". The offer is the
same or less than previous year. As a result, the mfgers find
either cheaper materials from which to make the items.

The bags are perfect example. Once decent bags have morphed
downwand to an almost unusable material.

This why they have had trouble in clothing. Once upon a time
they carried Russ Sports--you know T Shirts, shorts etc.
You can only squeeze quality so low. It has been a while
since I saw this Brand in a Walmart. Out of curiosity I watched
once the more recognized brands were gone. The T Shirts
for a while at least, year by year almost reached see through
stage. New Mfgers being squeezed.

[glowing]

7. They are also trying to push towards the "green"... making plastic bags crappy

and unusable so your eggs fall out ... and pushing the buy our canvas tote for a $1.00. Most people in Walmart aren't there because they can afford an extra $10.00 in tote bags or forget the totes at home or in another car or forgot to carry them onto the bus across town... so now, you know, buy more.

I like the little baggies to use as small garbage bags. Saves money on garbage bags (which are ridiculously expensive) and re-uses the item.. oh I'll also use them as lunch carriers.

[notadmblnd]

3. it's just lip service

[madrchsod]

6. i needed a good laugh today....

they`ll look the other way as long as the price is right....by the way

it`s amazing how much money they make by using gauze in the t-shirts they sell.

[Skittles]

8. about as sincere as me saying I love Walmart