The Monroe Street Journal

Issue date: 1/22/08 Section: Inside Ross

Media Credit: Liz Abbet [Click to enlarge]

Did you notice the last ten-cent increase in the price of bread? Unless reading about food prices in The Economist counts, the answer for most business school students, however cash strapped we may currently be, is probably 'no.' The answer, though, to a great majority of Wal-Mart's customers is a resounding 'yes.' Just ask Janelle Kearsley, Ross alumni and Director of Sustainability Strategy for Wal-Mart. As a part of Wal-Mart's MBA leadership rotation program, Kearsley spent a month working in a Wal-Mart store and witnessed first-hand how their customer-base lives. On the subject of food prices, she explained, "Our customers live paycheck to paycheck, just to put food on the table. It is our job to keep prices as low as possible so that they can provide for their families."

Janelle's view is common to most Wal-Mart employees. Ask anyone that works there what the bottom line of their business is, and they will chime back "Every Day Low Prices." But over the past few years this mantra has gained a new partner, and it is "sustainability." Upon hearing this, one might wonder why a company that squeezes out miniscule margins and thrives on being lean, to the point that associates pay for their own coffee, would take on the environment? The simple answer is that it is saving their company millions, if not billions, of dollars. Just last year revenues from recycled plastic that used to be thrown away topped ten million dollars, a small drop in the bucket for a company that hopes to gross 100 billion in sales in one quarter next year, but a savings nonetheless. And these savings are adding up.

Critics are quick to say that this new focus is nothing more than "green-washing," an attempt by Wal-Mart to change its public image and attract higher income customers. However, dig a little deeper, and it is easy to see that this campaign involves much more than recycling and asking employees to reuse water bottles and coffee mugs. With lofty goals, including consuming 100% renewable energy, creating zero waste, and selling more sustainable products, Wal-Mart is getting innovative in every aspect of its business. The opportunity to impact such a huge corporation has drawn non-profits like Environmental Defense to set up shop in Bentonville. They are not there to picket the retail giant but rather to work with them on creative solutions to reduce emissions and waste. Environmentalists hope that Wal-Mart's efforts on sustainability just might change the way that the company and the rest of the world does business.

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