CO-OP AMERICA NEWS
Economic action for a just and sustainable planet
Wal-Mart Update
During the holiday season, Co-op America and our allies in labor, religious, environmental, human rights, labor, community, and women's organizations joined together in a call to rethink holiday purchases with Wal-Mart. Our own challenge to shop with green companies and avoid Wal-Mart gained support from student organizers, consumer advocates, local community groups across the US, and family groups such as Mothering.
But is it making a difference? The answer is a resounding YES. Because you speak out against Wal-Mart and their poor treatment of workers, communities, and the environment, the company is finally starting to feel it where it hurts – in its bottom line.
Could it be that Wal-Mart's everyday low prices simply aren't enough to keep consumers and investors happy?
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The New York Times reported that Wal-Mart is on track to report disappointing holiday numbers, despite an early start with in-store discounts and promotions and unprecedented television and print advertising.
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Fortune magazine announced its top 100 companies for 2006 and Wal-Mart, despite its status as one of the largest corporations in the world, failed to make the list.
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Investors are voicing their concerns and demands for change with Wal-Mart in record numbers. (See below for a list of the shareholder resolutions filed against Wal-Mart for 2006.) KLD, a corporate social research fund, has announced that it is dropping Wal-Mart from its Domini 400 Social Index because the company is unable to ensure that vendors adhere to labor and human-rights standards.
- But perhaps Roben Farzad, writer for Business Week, said it best in his recent commentary: "Leave it to Wal-Mart to double its profit to more than $10 billion dollars in five years . . . only to see its share price fall 13% over the same period. . . . Wal-Mart's relentless pursuit of low costs and all the PR baggage that comes with it is the root of that malaise. . . . Worthwhile customers just don't want to feel bad about where they shop. To change that, Wal-Mart needs to quit its low cost race to the bottom. Charging a bit more will make it possible to pay workers a dignified wage and add some spunk, color, and cheer to its moribund stores." (Listen to the whole commentary.)
Thanks to you, concern about Wal-Mart is becoming widespread. Religious, labor, and community groups, as well as citizens from the heartland to Wall Street, now agree with us that Wal-Mart's race for low costs is bad for business, for people, and for the planet.
There is reason to celebrate the awakening of the mainstream to the problem of Wal-Mart. But becoming aware of the problem is only a first step. We must keep the pressure on, and continue to speak out until, together, we can solve the problem of irresponsible corporations like Wal-Mart.
Together, we'll keep up the campaign. In February, we’re publishing a special edition of the Co-op America Quarterly focused on Wal-Mart and actions you can take on your own and with your community to stop Wal-Mart and create a sustainable economy.
If you know someone who would like to receive this special edition of the CAQ, sign that person up for a gift membership in Co-op America today, and he or she will get the Wal-Mart issue, plus a free copy of the National Green Pages™, listing green alternatives to Wal-Mart nationwide.
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Shareholder Filings with Wal-Mart Shareholders are voicing their concerns and demands for change with Wal-Mart in record numbers. The following list, compiled by Corporate Ethics International, notes the eleven resolutions filed by social investors with Wal-Mart for 2006. Establishing a Safer Products Policy – Filed by the Green Century Fund. Shareholders request a board-published report evaluating company policies and practices to minimize consumer exposure to toxic substances in products. Equal Employment Opportunity (EEO) Policy Change – Filed by the As You Sow Foundation. Shareholders request a change to Wal-Mart’s EEO policy to bar intimidation of workers exercising rights to freedom of association. Pay Disparity – Filed by the Benedictine Sisters, Sisters of the Holy Names of Jesus and Mary, Washington Province. Shareholders request that the board publish a report providing a comparison of the salary, health and pension benefits, bonuses and profit sharing, stock options, and all other forms of compensation (including paid vacation, store discounts or other perks, and retirement packages) of top executives and of the company’s lowest-paid workers in the United States in July 1995 and July 2005. Sustainability Report - Contract Supplier – Filed by the Libra Fund, United Methodist Church General Board of Pension & Health Benefits. Shareholders request that the board prepare a report with operating definition of sustainability; review of company policies and practices related to social, environmental, and economic sustainability; and long-term plans to integrate objectives throughout the company. Equity Compensation Glass Ceiling – Filed by NorthStar Asset Management. Shareholders request that the board prepare a report documenting distribution of equity compensation by race and gender of recipient of the stock options and restricted stock awards. Equal Employment Opportunity (EEO) – Filed by the Sisters of Charity of Elizabeth, NJ. Shareholders request that the board publish an EEO report on rate of hiring and promotion of women and minorities and description of affirmative action programs. Political Contributions Disclosure – Filed by the International Brotherhood of Teamsters. Shareholders request a report disclosing company policies and procedures for political contributions (both direct and indirect) made with corporate funds; monetary and non-monetary contributions to political candidates, political parties, political committees. Elect Directors by Majority of Votes Cast Versus Current Plurality Vote – Filed by the United Brotherhood of Carpenters and Joiners. Shareholders request to amend the Company's governance documents (certificate of incorporation or bylaws) to provide that director nominees shall be elected by affirmative vote of majority of votes cast. Adopt "Common Sense" Executive Compensation Framework – Filed by the Sheet Metal Workers' National Pension Fund. Shareholders request to adopt "Commonsense Executive Compensation Framework" limiting CEO salary; annual incentives to senior executives; long-term equity incentives; severance and supplement executive retirement plans. Board Independence – Filed by the Amalgamated Bank. Shareholders request to adopt policy of nominating independent directors who, if elected by the shareholders, would constitute two-thirds of the board. Report On Public Health Impact of Wal-Mart Stores – Filed by the Basilian Fathers of Toronto, Canada. Shareholders request that the Board of Directors report on the public health services used by Wal-Mart in its domestic operations. Source: Corporate Ethics International |