1) The document discusses Walmart's strategies to reform its conduct and become more socially responsible by improving its relationships with stakeholders such as employees, the environment, communities, suppliers, and the government. 2) It outlines some of the unethical practices Walmart previously engaged in that negatively impacted stakeholders, such as low wages, discrimination, urban sprawl, and violating labor laws. 3) The document then describes Walmart's efforts to transform into a more sustainable company by increasing wages and benefits, promoting diversity, minimizing environmental impacts, and ensuring legal compliance.

1. STAKEHOLDERS
RELATIONSHIPS, SOCIAL
RESPONSIBILITY AND CORPORATE
GOVERNENCE
Adhyatmika | Amir Hamzah |
David | Kynan | Tantia

2. CONTENT
Walmart Reforming
Unethical The Practice
Conduct
Becoming a
The Shift
Social
into the
Responsible
Future
Company

3. Stakeholders and Corporate Governance

4. World Largest Retailer
4,219 retailers in
the US 3,171 retailers in
world wide
Employ 1,5 mio people & result into USD 256.3 bio

5. Wall-Mart Strategy
Brand Mantra
Enable everyday low price and above average profitability
Through procuring , distribution and selling products……
……at lower cost than any competitor
Stakeholders and Corporate Governance

6. Wal-Mart is The Retail Phenomena
because ....
Significant share on the total US • Highly efficient supply
Market chain
Wal-Mart
17%
• Low Product Cost with
high variety
Other • High barriers of entry in
Retailers which others can not
83%
outcompete
Stakeholders and Corporate Governance

7. However, Low Cost is at COST of The
Stakeholders
Stakeholders and Corporate Governance

8. The Stakeholders…..
Special Interest Customers The Mass media
Groups
Govern Employe
ment es
Company
Community Shareholders
Trade Competitors
Associations Suppliers Environment
Stakeholders and Corporate Governance

9. The High Cost for the Workers….
• Low Wages and
Custom
ers benefits
Govern Employe • Objecting Unions
ment es
• Discrimination
• Illegal immigrants
Company
Commu Shareho
nity lders
Supplier Environment
s
Stakeholders and Corporate Governance

10. The High Cost for the Environment
• Urban Scrawl, create
Custom
ers congestion with less green
Govern Employe areas
ment es
• Violating storm water
regulation and air quality
Comp restriction
Commu any Shareho
nity lders
Supplier Environment
s
Stakeholders and Corporate Governance

11. The High Cost for the Suppliers
Custom • As Low Price As
ers
Possible
Govern Employe
ment es • Distributor –
.Supplier Power and
Conflicts
Company
Commu Shareho
nity lders
• Unfair Competition
• Predatory Pricing
Suppliers Environment
Competitors
Stakeholders and Corporate Governance

12. The High Cost for the Community
Custom
ers
• Destroy the local
Govern Employe
ment es industry due to the
high distributor
power
Company
Commu Shareho
nity lders
Supplier Environment
s
Stakeholders and Corporate Governance

13. The High Cost Bourne by the Government
• Violating the legal rule on
Custom
ers employing illegal workers
Govern Employe • Bribery for the local
ment es
government to own the
most strategic location and
Comp to employ illegal
Commu any Shareho
immigrants
nity lders
Supplier Environment
s
Stakeholders and Corporate Governance

14. And the Question is…
Is it Ethical?
Low cost doesn’t have to be at cost of the stakeholders
The practice will ruin the company in the long run
……It sacrifice the sustainability
Stakeholders and Corporate Governance

15. Stakeholders and Corporate Governance

16. Transformation to be More Socially Responsible Company
Diversity
Charitable
Sustainability
Giving
Stakeholders and Corporate Governance

17. Wal-Mart’s turning into New Leaf….
Supplier
• Global Responsible Sourcing
Initiative
Customers
• Improve the standard of living for
customer’s worldwide
• Walmart Money Card
Employee
• Raising pay-tied and employee
insurance based
Environment
• Waste improvement & recycling
• Natural Resources
• Energy
• Social/community impact
Stakeholders and Corporate Governance

18. And The Strategy Works!
Enhance the Reputation during Crisis
Walmart take a loop to be recognized for its sustainable market orientation
Through improving the stakeholder’s relationship
Stakeholders and Corporate Governance

19. IS IT ETHICAL AND SUSTAINABLE ENOUGH?
Stakeholders and Corporate Governance

20. Steps of Social Responsibility
Philanthropic Had not yet given back to the society
Had improved the relationship with the
Ethical stakeholders hence only on the surface
Increasing the customer’s living
Economic standards, based on Walmart’s view
Legal Needs to comply all rules
The solutions had not yet solved the
core problems
Stakeholders and Corporate Governance

21. Resolving the Stakeholders Issues: Employees
Problems Solution Indicators
Low Wages and Comparison with the
Increasing wages and
legal minimum total cost
benefits benefits standards of living
Opportunity to run Harmonization between
Objecting Unions the employee and the
unions company
Percentages of
Promoting diversity &
Discrimination equal opportunity
employees from different
genders & races
Compliance with legal All employees as legal
Illegal immigrants workforce rules workers
Stakeholders and Corporate Governance

22. Resolving the Stakeholders Issues: Environment
Problems Solution Indicators
Minimizing emissions
Urban Scrawl, create and waste Energy Usage Rate
congestion with less
green areas Minimizing the use of
energy
Waste product Rate
Conservation of
Violating storm energy
water regulation
and air quality Minimizing adverse Green Area Coverage
restriction environmental effects of
goods and services
Stakeholders and Corporate Governance

23. Resolving the Stakeholders Issues: Community
Problems Solution Indicators
Initiative to develop Development of local
the local industry market and industry
Destroy the local
Availability of
industry due to the Public Health and
emergency response
high distributor safety protection plan
power
Donations to Annual employee
support local time spent in
organization community services
Stakeholders and Corporate Governance

24. Resolving the Stakeholders Issues: Suppliers
Problems Solution Indicators
Encouraging Prices offered to
As Low Price As suppliers in suppliers in developed
countries on comparison
Possible developing to countries’ other
countries suppliers
Distributor –
Encouraging Percentage of
Supplier Power Minority Suppliers Minority Suppliers
and Conflicts
Stakeholders and Corporate Governance

25. Resolving the Stakeholders Issues: Government
Problems Solution Indicators
Violating the legal Abide the Basic
The legal rights for
rule on employing Legal rules for
all employees
illegal workers Employees
Bribery for the local
government to own the Ensure legality on
The legality
most strategic location each company
and to employ illegal basic procedures fulfillment
immigrants
Stakeholders and Corporate Governance

26. Stakeholders and Corporate Governance

27. The Long Term View
Transforming for Long term Sustainability
Secure the Future Through Corporate Governance
 Accountability & Transparency
 Ethical decision embodied in all corporate strategy
 Balance both share holders and stake holders view
Stakeholders and Corporate Governance

28. Grow the Business
along with Growing
the Stakeholders.
Through Which, the
business can sustain
on the long term
Stakeholders and Corporate Governance

29. THANK YOU
Stakeholders and Corporate Governance