GLOBAL MARKETING 1 GLOBAL MARKETING Name Institute GLOBAL MARKETING GLOBAL MARKETING Everyone knows that all organizations around the world have the goal of making large profits. Companies generally have the responsibility to maintain their profits, make sure that nothing disrupts the normal progress of their 2 their business, it should also be clear that in the course of directing efforts and executing strategies towards delivering the best products and services to customers and shareholders, companies also have the duty to act in an ethical manner, manifest socially responsible behavior by deliberately carrying out good actions as a corporate citizen, and use business practices which particularly keep natural resources from being damaged and destroyed, keep the interests of future generations in a safe and sound state, and keep the well-being and good condition of the planet. These duties and responsibilities of a company which business, and attain growth go beyond the common objective of obtaining large profits and development for the very well explain the concept of sustainability and ethical company. However, it is marketing, and it is the aforementioned duties with which this important to note that the paper plans to measure the sustainability and ethical duties and responsibilities marketing approaches of an organizations named Wal-Mart. of a company do not only To sum up what has been said so far, sustainability marketing revolve around these is plainly about establishing and keeping sustainable things. Just as clearly as relationships with customers, the social environment, and the they need to make profits natural environment over a long period of time and assure the growth of (Schlegelmilch, 2007). 3 GLOBAL MARKETING Brief History of Wal- through the volume of Mart" for newly launched Mart sales. Banking on his ideal, store chain. By the year Sam Walton decided to 1967, it expanded to achieve increase of sales twenty four stores all over volume by keeping the Arkansas, and achieved prices cheaper in sales worth of $12.6 comparison with the million. About a year later, competitors through the company launched reduction of his marginal stores in different states; profit. He was intrigued by Sikeston, Claremore, the success of the discount Oklahoma, Missouri, and shopping store chains and Sikeston. Throughout the soon, he would open his years of 1970s and 1980s, follow up store in the company continuously Harrison, of Arkansas. Bob expanded across America Bogle who was the as Walmart grew bigger assistant of Walton and when the 1990s came contributed an integral part around, Wal-Mart already to Walton’s business as he runs different stores in 50 was the one who states, for a total of 1,995 eventually proposed the stores, 276 international company name "Wal- stores, 239 Supercenters, Wal-Mart is a corporation that employs millions of people. The company has thousands of stores around the world. A sizable number of customers shop at their stores every week but less than 50 years ago the company’s humble beginning started as a fiveand-dime store and founder Sam Walton was an entrepreneur who couldn't find investors for his store. Walton believed that selling for a price, meant that more people will avail of the products thus, and making more 4 GLOBAL MARKETING and 433 Sam's Clubs in sales of $93.6 billion. up stores internationally as reaching an all-time high Later on, they would open well (Goldman, 2011). as an influential factor in the decision making processes of consumers. Sustainable Marketing Walmart have compelling takes on Sustainable marketing; they issues reports The typical retailer who manages to get a bargain from a wholesaler would retain the suggested retail price so that extra income may be incurred. In contrast, Walmart found huge success through the unlikely concept of Walton where he valued sales volume over the suggested retail price. This ideology formed the essence of Walton’s marketing strategy when he first opened Walmart in 1962 and the concept paid of very well as Walmart would eventually become a well-known store for every consumer around the world. Up to this day, the corporation is still considered as the triumphant leader in the industry of retailing and they have found success for their stores since the founder supported the idea of saving money annually on its relationships with suppliers since 2007. It publishes specific reports on environmental concerns, which are seen to be as more thoroughly discussed than those of most computer technology companies. GLOBAL MARKETING The reports cover efficiency of, resources effect on 5 including modification of climate change, recycling, and avoidance of using restricted products and how they are harmful substances while Walmart supply their stores and processed, ecologically production processes with renewable energy in order for them sustainable packaging, and to create minimal waste and sell products that aids the changes in advertising. Yet sustainability of natural resources and the environment as a clarifying this concept of whole (CLIMATE CHANGE AND MANAGEMENT). marketing is not as simple The following graph is a proof how the Walmart has grown over the years through their sustainable marketing approach: as it seems since several market factors that are affected contradict and intersect with each other as for instance, the existence of different environmental, social and ideologies that are concerned with sustainable marketing. Sustainable marketing is the inculcating of sustainable practices in the operations of business that open up the opportunities for better businesses, relationships and global responsibility. It pertains to the marketing of goods that are presumptively preferable to others as they seem more environmental friendly. Moreover, sustainable marketing incorporates a wide range of strategic business activities, Over the past few years, development of sustainability has become one of the primary issues that all global organizations must cater to. GLOBAL MARKETING However, it was 6 corporations as regards to Moloney (n.d.) promoted that the sustainable marketing, the emphasized that with all importance of sustainable three concepts are very the innovations of marketing deals with the much relevant to one Walmart. through the widely accepted idea that another. Through years, the company could the global environmental sustainability marketing, be considered as a issues place a growing and corporations and “natural candidate for important constraint on the organizations proved their environmental services and goods of commitment to opening up leadership”. This is organizations in the opportunities for because of the fact that market. Whereas sustainable development Walmart has been trying to organizations agree that through the idea that the direct their efforts in sustainability is important needs of the present must addressing extremely to every stakeholder, issues not compromise the harmful materials and remain about marketing abilities and potential of poisonous substances with sustainable the future. (Petra, 2010) found in their products and development. In the last few years, the corporate sustainability along with the corporate social responsibility became Evidences on sustainability and ethical marketing approaches and performance of WalMart operating their facilities and establishments with 100% renewable energy. Aside from this, Phillips (2015) stated Walmart Inc. some of the major is planning to take developments for global introductory steps together 7 GLOBAL MARKETING with the World Wildlife naturally renewable position as CEO, believed Fund “to help align this resources and ensure that that workers have the right forest-driven segment of its we protect — and create — to working conditions global supply chain with as much sustainable which are safe, good, and its aspirations to be a working forest as needed fair. Hence, with this leader in sustainability and to produce the virgin paper belief, Tim Cook renewable energy in our product packaging.” “instituted wide-ranging production” Moloney Moloney (n.d.). checks by the Fair Labour (n.d.). Walmart Inc.’s goal is to make no implications on the planet’s supply of virgin fiber. Thus, what Walmart Inc. basically plans to accomplish is to get all of its operations done using renewable sources. Additionally, Phillips (2015) mentioned that Walmart’s Vice President of Environmental Initiatives believes that the company could successfully “run on Aside from the reports regarding environmental sustainability, there have also been reports regarding the ethical standards of the company. Year 2012, when the CEO of Walmart Inc. died, it has been reported that Walmart has become more ethical as its employees are being treated more fairly now. Tim Cook, the one who took over Steve Jobs’ Organisation, after a growing chorus of criticism over worker suicides and reports of exploitation” as mentioned by Worstall (2012). It is also worthy to note that Walmart Inc. has opened a restaurant which served only its employees. Walmart Inc.’s management team has planned on this since they would like their staff to be provided with a level of 8 GLOBAL MARKETING security, comfort, and Report (2014), Wal-Mart’s enjoyment (BBC NEWS, team has a strong Wal-Mart is employing to 2012). However, there commitment in being the market its products clearly were also unethical things responsible and sustainable lay out how dedicated the that seemingly happened in company that they ought to company is to lead the Walmart Inc. Enderle be. Wal-Mart will organization in attaining (2010) reported that one of consistently strive to corporate social Walmart’s suppliers pursue corporate social responsibility with respect poisoned 49 workers. responsibility by to natural well-being and Furthermore, it was employing ethical environmental reported that there have strategies in operating the sustainability. In the been issues that Walmart business and by being a company’s website suppliers use child labour model of an organization (Walmart, n.d.), three to make products. that truly understands the particular goals have been essence of having socially set in order to successfully responsible business carry out sustainability. behaviour. In this way, These three aspirational Wal-Mart may strengthen goals are to operate with the relationships with their 100% renewable energy, to customers and provide create zero waste, and to them a better quality of sell products which can life. definitely support people At this point, let us now look into Wal-Mart. Wal-Mart has done significant efforts in order to drive positive and sustainable changes in their company. As what is stated in Wal-Mart’s Global Responsibility The strategies that and guard the planet Earth 9 GLOBAL MARKETING against its ultimate however, have had a lot of while their business endangerment. As Fishman workplace issues. operations are ongoing, the (2007) explained how According to the website environment is not being “green” Wal-Mart is in his workplacefairness.org harmed. The socio- article, he mentions that (n.d.), in Wal-Mart, ecological perspective is “Wal-Mart opened two “stories persist about seen to work behind the energy-saving stores in wage law violations, business operations of both 2005... the company is inadequate health care, companies because they installing motion-activated exploitation of workers... use eco-efficient designs in LED lighting in some 5000 lawsuits are producing their products. refrigerated cases in new filed against Wal-Mart Moreover, it is clearly seen stores and retrofitting 500 each year”. that their intentions is not stores with LED lighting, 350 with energy-saving Socio-ecological and consumer context HVAC systems, and 400 with more-efficient refrigeration systems.” Aside from these energysaving stores, Wal-Mart also plans to reduce their packaging. Despite their efforts in attaining sustainability, Wal-Mart, only meant to meet the needs of the customers, but also to significantly Insofar as it seems, Wal-mart is taking specific measures to address the socio-ecological perspective behind their products. As previously mentioned, both organizations are doing its best to actually ensure that improve the environment during the course of their operations. Most importantly, the features and benefits of their products are seen to extend for a long time. It is not known whether both 10 GLOBAL MARKETING companies actually use approach. In other words, increasingly becoming environmental labeling in they way Wal-Mart packs stimulated, highly their products, however, its products gives its responsive, and susceptible both companies use customers the opportunity to how businesses are energy-efficient processes to actually re-use or being operated; they are by utilizing renewable recycle the package. receptive to sense energy. This fact alone Overall, Wal-Mart truly impressions when they are reflects the “in-use” socio- seems to consider the made aware of social and ecological perspective social, environmental, and environmental duties of a wherein companies lay ethical impact of their business. In other words, stress on attaining business as they make their consumers are readily sustainable performance by strategies for their long- affected if they know that using various efficiency term growth. Now, to business operations are methods which are related discuss the consumer creating damaging effects to environmental context, it is important to to people, things, and the sustainability. note that every strategy environment. This being Additionally, Wal-Mart implemented by said, Wal-Mart’s success specifically reflects the organizations are actually could be associated to the post-use socio-ecological aligned and connected to fact that they are perspective as well, since it the consumers. This is employing strategies which is a company that has because of the fact that consider social and planned to have a consumers, especially in environment aspects. sustainable packing the present times, are Apparently, consumers of 11 GLOBAL MARKETING Walmart is influenced to could naturally come to the with the effects that could buy their products because conclusion that Wal-Mart be brought about by their the said organizations is truly undertaking company to the engage in practices which initiatives which is environment and natural protect the interests of the directed at improving their resources. Since Walmart people and preserve the performance economically is a big corporations, it is natural resources. Walmart with respect to just right for them to success as firms could humanitarian responsibility oversee the direct indeed, very well be and environmental implications that could be influenced by the fact that sustainability (Driscoll, C., caused by their operations consumers have been Starik, 2004). Walmart to the environment since drawn to buy their plans for their business they are the biggest users products and services since operations embrace of finite natural resources. it positive consumer corporate social buying behavior has responsibility and to a resulted from their noticeable extent, both portrayal of high social and companies are seemingly environmental standards in centered into the principle their business. of “the greater good”. Both Application of theories and models to evidence organizations obviously place a lot of importance on sustainability. In other With all the evidences presented, one words, they are concerned With regards to sustainability, Walmart plans to save costs and improve profitability. Their environmental initiatives will certainly drive energy usage to result in energy consumption savings. Products which can also be 12 GLOBAL MARKETING maintained for a long time experienced issues which products to customers, it is would result from earth- do not seemingly very likely that they have friendly systems and encapsulate rules and not treated their employees ecologically friendly principles which are well. Now, this could alternatives. Additionally, ethical or morally right. already be connected to the sustainability plans of Some employees of both corporate social Walmart will surely have organizations, as what has responsibility (Downs, an implication on been mentioned, have 1972). If Walmart do not consumer behavior. This is violated the ethics of rights really treat their employees because consumers might and justice (Newholma, in the best ways that they just be convinced that and Newholmb, Shawc, 2014). could, it only means that appealed by the fact that both organizations are operating their businesses while considering Mother Earth. This will definitely appeal to their unique perceptions and reinforce the urge for consumers to buy their products and services. In line with ethical standards, both organizations have Employment injustice and discrimination have been experienced by employees. From this, it could be concluded that Walmart has not entirely done their role in instilling values, mission, and vision to their employees. Moreover, although they have done well in delivering their both companies have not fully demonstrated corporate social responsibility, for this concept involves actions which are supposed to earn the trust and respect of all stakeholders, meaning, even the employees because they are the internal stakeholders of both organizations. 13 GLOBAL MARKETING Corporate social have much to work on. The key, and that is, without a responsibility teaches sustainability initiatives doubt, the way for companies to operate in that Walmart has Walmart to improve their honorable and ethical undertaken have ethical standards and manners and to respond to demonstrated how assure the progressive the needs of the employees dedicated the organization development of their (Gamble, et.al, 2015). In a is in using business sustainability as a general manner, Walmart practices which balance company. Walmart should is somehow not fulfilling the interests of be able to integrate their full obligations in stakeholders, employees, Corporate Social ensuring the well-being of customers, communities, Responsibility fully. By their employees. and the society at large doing this, all their (Hunt, Derozier, 2004). business practices must be Nevertheless, one thing socially responsible that these companies (Santos, 2002). Recommendations Although Walmart, to a very noticeable degree, has proven their intentions of deliberately operating their businesses in a manner that protects and improves the value and quality of natural resources and ecological systems, both organizations still should never forget is to be a committed corporation which will never stop pursuing economically, socially, and environmentally sustainable business practices. Commitment is There will always be plenty of room for both companies to craft corporate social responsibility and sustainability strategies. Walmart, aside from their plans on working their 14 GLOBAL MARKETING operations using renewable the implementation of of the company to develop energy, could launch a sustainability initiatives. strategies which support variety of programs to Furthermore, both social and environmental enhance the performance organizations support more issues. Walmart will of their suppliers environmental actions and certainly be able to please environmentally. An worthy causes and projects consumers by meeting example of these programs that benefit the society. their needs and by taking is switching to more Walmart in constructing into account what is energy-conserving systems plans and strategies for beneficial to the society as (The Hague Centre for Sustainable Marketing a whole (Crane, Matten, Strategic Studies & TNO). Development, must always 2010). Overall, their Walmart could also consider social and marketing decisions should reengineer many internal ecological issues (Crane, constantly be incorporated processes to improve the 2000). This will not only with processes that reduce overall performance of the address the problems of the the environmental burden sustainability measures people and the (Smith, Palazzo, applied by the company. environment, but it will Bhattacharya, 2010). For example, the also help the organizations However, Walmart must companies’ factories or themselves to attain ensure that their plans do working areas could success since consumers not merely stay as plans of reduce energy or water are drawn to negotiate with action, but should be usage and also businesses if they implemented. It is also manufacture waste through particularly see the efforts important to note that both 15 GLOBAL MARKETING companies should increase conflicts would be be provided. To attain the awareness of their avoided. The management sustainability and ethical employees regarding the teams of Walmart should standards, Walmart should behaviors that they should definitely ensure that all always remember to stay be manifesting at work. their employees are being committed and actively Training and development treated fairly because that work to contribute to the programs could help their is their right as workers. betterment of the society employees so that Workforce diversity should (Belz, Peattie, 2012). employee relations would be encouraged and good not be divided and so that working conditions should 16 GLOBAL MARKETING References Belz, F..-M., Peattie, K. (2012): Sustainability Marketing: A Global Perspective, 2. ed., Chichester: Wiley, p. 117-136. CLIMATE CHANGE AND MANAGEMENT. (2014). Academy of Management Journal. Vol. 57, No. 3, 615–623. Available at: http://dx.doi.org/10.5465/amj.2014.4003 [Accessed on 8 July 2015]. CLUTE Institute [online]. 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