Sustainability Report
2005 – Wal-Mart
Stores, Inc.
Whereas, It is
encouraging that Wal-Mart has recently met with investors in
constructive conversations and reported the company is seeking to implement an
integrated approach to corporate responsibility. However, there has been no stated commitment for the company to
develop a public sustainability report on its efforts to protect human rights,
worker rights, land and the environment.
According to Dow Jones Sustainability Indexes, "Sustainability
leaders encourage long lasting social well being in communities where they
operate, engage in an active dialog with different stakeholders and respond to
their specific and evolving needs thereby securing a long term 'license to
operate,' as well as superior customer and employee loyalty."
(http://www.sustainabilityindex.com/djsi_pdf/DJSI_brochure.pdf, December 2004)
Recent articles in the press reflect negative public perceptions about
Wal-Mart’s corporate responsibility policies and practices: New
York Times articles, April 5, 2004 “Stymied by Politicians, Wal-Mart
Turns to Voters”; April 8, 2004 “Voters in Los Angeles Suburb Say No to a Big
Wal-Mart”; June 30, 2004 “Social Issues Tug Wal-Mart in Differing Directions”;
September 28, 2004 “No, the Conquistadors Are Not Back. It’s Just Wal-Mart”. Wharton strategic management report states,
“Wal-Mart’s Mega-Growth Continues, But is Its Image Getting a Bit Tarnished?” (http://knowledge.wharton.upenn.edu)
As the largest Fortune
500 company, we believe Wal-Mart has significant influence on its workforce,
suppliers and the communities in which it does business, and should address
corporate responsibility at the highest decision making levels of the company
with appropriate resources and systems to manage these issues. In the absence
of open transparent public reporting, it is reasonable to conclude that the
company has not addressed these issues adequately.
The October 6, 2004 statement published by social research analysts
reported that they value public reporting because “we find compelling the large
and growing body of evidence linking companies’ strong performance addressing
social and environmental issues to strong performance in creating long-term
shareholder value…We believe that companies can more effectively communicate
their perspectives and report performance on complex social and environmental
issues through a comprehensive report than through press releases and other ad
hoc communications.” (www.socialinvest.org)
We believe that Wal-Mart’s business success is dependent on its domestic
and global workers receiving a sustainable living wage to meet their basic
needs, and the environmental viability of the communities in which the company
operates.
Resolved: Shareholders request the Board of
Directors to prepare a sustainability report, at reasonable expense and
omitting proprietary information, by December 2005.
Supporting Statement
We believe the report
should include:
1. The company's operating definition of sustainability.
2. A review of current company policies
and practices related to social, environmental and economic sustainability.
3. A summary of long-term plans to
integrate sustainability objectives throughout company operations.
Sponsors:
Leads: United Methodist Church -General Board of
Pension & Health Benefits, Ms. Vidette Bullock Mixon Director, Corp. Relations;
The Libra
Fund; As You Sow Foundation; Benedictine Sisters; Benedictine Sisters
of Mount St. Scholastica; Benedictine Sisters of Mt. Angel; Catholic Equity
Fund; Christus Health; Congregation Sisters of St. Agnes; Congregation of
the Holy Cross, Southern Province; Congregation of the Passion-East; Congregation
of the Passion-West; Dominican Sisters of Columbus, OH; Dominican Sisters
of Great Bend, KS; Dominican Sisters of Springfield Illinois; Ethical Funds
Company; Libra Fund; MMA (Mennonite Mutual Aid); Presbyterian Church (USA);
Rochester Minnesota Franciscans; School Sisters of Notre Dame Cooperative
Investment Fund; School Sisters of Notre Dame of St. Louis; Sisters of Charity
of Cincinnati; Sisters of Charity of St. Vincent de Paul-NY; Sisters of Charity
of the Blessed Virgin Mary; Sisters of Mercy of St. Louis Region; Sisters
of St. Joseph of Springfield; Sisters of the Holy Cross of Notre Dame, Indiana;
State of Connecticut Treasurer's Office; Unitarian Universalist Service Committee;