Group 2:Clara NadyaDavid ChristianGhifari Fadiama ntoNadia FebianitaPeter RonaldReonard Chandra

Introduction

Wal-Mart’s History1945

• Sam Walton started business by franchising a convenience store

1946

• Sam Walton’s brother followed Sam Walton’s Path

1962

• Wal-Mart Discount City was first established

1984

• 3 Sam’s Clubs was opened in this year for the first time

1988

• Wal-Mart supercenter built for the first time

1992

• Wal-Mart started to expand internationally

1999

• Wal-Mart opened the first Neighbourhood Market

2006

• Wal-Mart had $90 billion in this year

Wal-Mart’s Business Model Wal-Mart has 2 main segments

Wal-Mart Stores and Sam’s Clubs Wal-Mart stores has 3 product line

Discount Stores Supercenters Neighbourhood’s Markets

Sam’s Clubs Memberships warehouse clubs Aimed at small business, large family and non-

profit organizations

Implementing a Stakeholder Perspective

Step 1: Assessing the Corporate Culture

Mission

Corporate Culture

Value

Norms Social

Responsibility Program

Corporate Culture Three basic beliefs : respect for the individual,

service to their customers, and striving for excellence.

Market orientation : focusing on customers, defeating competitors, and increasing shareholder value.

 Committed to “improving the standard of living for their customers throughout the world.”

Key strategy “broad assortment of quality merchandise and services at everyday low prices (EDLP) while fostering a culture that claims to reward and embrace mutual respect, integrity, and diversity.

Costs Low for EDLP

Step 2: Identifying Stakeholder Groups

Step 2: Identifying Stakeholder Groups

Step 3: Identifying Stakeholder IssuesSuppliers

Wal-Mart is well known for its operational excellence Expect suppliers to continually improve their

system (turun 5% per tahun) Jika tidak, akan mencari supplier lain (Pressure)

Technology RFID Increase supplier cost to install RFID

technology

Suppliers

Product Quality Wal-Mart wants low cost version

Move Production From United States from cheaper

locations, such as China

Employee

Female Employee Promotions, Pay, Training, and Job

Assignments Disabled Employees

Deaf applicants Rejecting a pregnant applicant Disabled

Sweatshop Workers Paid below minimum wage in their country

Employee

Illegal Imigrants 250 illegal imigrants at 61 stores in 21

states Make “Shells” Companies

Low benefits Work Hours High Tax Health Insurance Breaks Time

Competitors Decrease in Wages (3.5%) Local Residents Lose Their Jobs

Environment Tidak memenuhi Environment

Requirement Stormwater Regulation

Step 4: Assesing Organizational Commitment to Social Responsibilty

Matching social responsibility and corporate culture

Satisfying all stakeholders with the risk of: Increased cost Reduced profit margin

Step 5: Stakeholders Issues

Primary Stakeholder: Supplier Employee Government

Secondary Stakeholder: Environmental Groups Media

Step 5 : Possible Solutions

Primary Stakeholder: Supplier -> Decrease price cutbacks (< 5%) Employee -> Increase Welfare (wages, insurance,

benefits, working conditions) and Improve HR Government Regulatory Agencies* -> Comply

with Regulations

Secondary Stakeholder: Environmental Groups (EPA) -> Comply buildings

with Environmental Requirements Media -> Clarify facts and CSR

Step 5 : Determining Urgency

Stakeholder IssuesResources (Financial &

Organizational )

Pressure from

StakeholderUrgency

Supplier PrimaryPressure on cutting price High

Least Expected 5

Employee Primary Welfare MediumHighly Expected 1

Government PrimaryEconomy and Environment Medium Expected 2

EPA Secondary Environment Medium Expected 4

Media Secondary Company Image MediumHighly Expected 3

Step 6 : Gaining Stakeholder Feedback 1. Stakeholders general assessment through

satisfaction or reputation surveys

2. Gauge stakeholders’ perceptions stakeholder generated media such as blogs, websites, podcasts, and newsletters can be assessed.

3. More formal research may be conducted using focus groups, observation and surveys

Alfamart Case (South Sulawesi, 2013)

Perjanjian kerja sama antara peritel dengan pekerjanya di luar UU Ketenagakerjaan.

Perjanjian HANYA menguntungkan pihak peritel dan disimpan sendiri

Pihak peritel menahan ijazah asli, membebankan penggantian barang hilang dan kadaluarsa, mewajibkan karyawan laki-laki menginap di toko sebagai ganti security

Mengakibatkan utang karyawan bervariasi dari Rp4 juta hingga Rp15 juta.

Summary Wal-Mart sparks ethical issues (mainly)concerning

the following stakeholders: Supplier Employee Government Environmental Groups Media

Wal-Mart must resolve it’s ethical issues, even if it results in an increase of cost

The Alfamart Case(2013) is another case where the company is punished when an ethical issue is left unresolved