Wal-Mart wants to lead an effort over the next three years with other major global retailers to create common social and environmental standards for suppliers, CEO Lee Scott told employees.
"We believe that there should be one framework of social and environmental standards for all major global retailers. And there should be one third-party auditing system for everyone," he told 7,000 Wal-Mart managers at an internal leadership meeting.
Scott said Wal-Mart is working on such a system with global retail and CIES, a consumer goods network, starting with social standards then planning to expand to environmental stipulations.
Scott also said Wal-Mart would build specific environmental, social and quality standards into its own supplier contracts. He said these standards would apply to all suppliers who work with Wal-Mart through global procurement, who are domestic importers, or who are manufacturers of Sam’s Club or Wal-Mart private brands.
"We have already started doing this, and we hope to extend the requirement to all the suppliers I mentioned within the next three to five years," he said in prepared remarks. He said the company believes suppliers can reduce the amount of energy they use to make Wal-Mart products by 20 percent.
Wal-Mart will only work with suppliers who maintain these standards, will make certification and compliance part of supplier agreements and will ask suppliers to report to them regularly.
To underscore the seriousness of Wal-Mart’s commitment, Scott said, "We will favor — and in some cases even pay more for suppliers that meet our standards and share our commitment to quality and sustainability."
Source:
Janie Gabbett for MeatingPlace.com, January 25, 2008