Question: create car frame workThe 2 0 0 6 fiscal year was off to a great start, but that was more than Peter Redmond could say

create car frame workThe 2006 fiscal year was off to a great start, but
that was more than Peter Redmond could say for
his efforts to develop a seafood business plan to
support Walmarts new sustainability mission,
which had been dubbed: Embrace the Earth. It had
been three months since Walmart CEO Lee Scott
had announced that Walmart was going green and
Peter was still trying to figure out exactly what that
meant for Walmarts seafood business.
Indeed, Peter, Divisional Merchandize Manager for
seafood at Walmart, sat perplexed as another
sustainability meeting ended. Without doubt, some
of his colleagues had not just caught the vision but
were also starting to reel in real results. Although
Peter did not begrudge his colleagues success, he
realized that their progress was creating
expectations he would have to live up to. Yet,
when it came to seafood sustainability, Peter saw
no saving technology or packaging ploy that would
resolve his dilemma. Every day he asked himself
and his team of buyers, How can we best make a
viable and valid contribution to Walmarts highly
publicized pledge to go green?
Walmarts Leap into Sustainability
On October 24,2005, Lee Scott, Walmart's
president and CEO, made an epic announcement
that caught the world by surpriseWalmart would
lead the effort to create a truly green global supply
chain. Remarkable not just for its message but also
for who was invited to listen, Scotts speech,
Twenty-First Century Leadership, was broadcast
to associates in all 6,000+ Walmart stores and
shared with Walmarts 60,000+ suppliers around
the world. Walmart was inviting its entire global
supply team to make sustainability a priority.
Why Sustainability?
In the years immediately preceding Lee Scotts
sustainability pledge, Walmart, the one-time retail
darling of Wall Street, had run into a storm of
criticism. Too often, it seemed, leaders at Walmart
had picked up a Wall Street Journal, Business
Week, or Time magazine only to see Walmarts
name emblazoned across a lead story that was
anything but flattering.
Initially, leaders like David Glass (former CEO) and
Lee Scott were confident that the storm would blow
over. After all, Walmart had always been the
champion of everyday consumersthe ones
overlooked and under-served by the competition.
Walmarts EDLP (everyday low price) business
model had lowered the cost of living for countless
people around the world. Managers thus struggled
with Walmarts increasingly tarnished image. Were
all of Walmarts previous good deeds to be
overlooked because of a few mistakes?
Nonetheless, the clouds of controversy grew
darker as critics and competitors attacked
Walmarts enormous size, excessive buying
power, and labor practices. It seemed impossible
to garner some good public relations among
accusations of discrimination against female
employees, forcing employees to work off the
clock, and strong-arming suppliers to drive prices
down. Instead of being the hero of the everyday
consumer and one of the 100 best companies to
work for in America, Walmart was often portrayed
as the foe of small business and an oppressive
employer.
The persistent drizzle of bad publicity had
negatively impacted not just Walmarts image but
also its stock price. For the first time in Walmarts
history as a public company, its stock had traded
flat for over five years (see Figure 1). This reality
was particularly frustrating given Walmart had
achieved double-digit sales growth since the turn
of the century (see Figure 2). Lee Scott and the
Walmart leadership team realized that because of
Walmarts size, its every move would be
scrutinized. Walmart had a bullseye pasted
squarely on its back.
Figure 1
Walmart Stock Price US$ (1/1/2000-1/12006)
T he Worlds Shrinking Fish Supply:
What Is Walmarts Responsibility?
2
Figure 2
Walmart Sales Growth US$M (1990-2005)
The break in the storm appeared with Hurricane
Katrina. As Katrina devastated New Orleans,
creating great human suffering and misery,
Walmart employees worked to help the people in
their communities. Over the following weeks and
months, Walmart responded to requests from local

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