Wal-Mart going “Green”
Walmart is requiring manufacturers in China to adhere to stricter ethical and environmental standards and will impose audits on its suppliers.
By next year, Wal-Mart will start keeping close track of the factories from which its products originate, even if they pass through many hands and by 2012, Wal-Mart suppliers will need to to source 95 percent of their production from factories that receive the highest ratings in audits of environmental and social practices.
The agreement includes a ban on child and forced labor and pay below the local minimum wage.
Wal-Mart’s chief executive, Lee Scott said “Meeting social and environmental standards is not optional”.
To ensure suppliers are making changes, Wal-Mart said it would require three levels of audits: from the vendors themselves, from an outside party and from Wal-Mart, which will initiate more of its own random, unannounced audits.
Wal-Mart said the audits would assess factory working conditions as well as compliance by manufacturers with standards regarding air pollution, wastewater discharge, management of toxic substances and disposal of hazardous waste.
Environmental and labor groups that follow Wal-Mart said the retailer had a mixed history when it came to the environment and labor practices — and that sometimes the company’s goals were lofty, while the measurable outcomes were less so. Through the years, Wal-Mart has been accused of various abuses.