Walmart at the Crossroads

This report constitutes a detailed performance analysis of some of Walmart’s key suppliers, visà-vis its responsible sourcing code of ethics.

The data that informs this report was collected during the summer of 2014 through the spring of 2015 by the Food Chain Workers Alliance.

The Food Chain Workers Alliance analyzed products sold in a total of 17 Walmart stores throughout the United States, as well as products listed for sale on the company website.

Research was also studied on the food distribution and warehouse industry and Walmart’s impact on local farmers.

Research conducted for this report found numerous cases in which suppliers are failing to uphold Walmart’s compliance standards and in which Walmart is neglecting to enforce its own standards and goals.

The myriad violations that Walmart’s suppliers have committed include illegal dumping of hazardous waste, improper protection of workers from occupational health and safety dangers, violations of workers’ freedom of association, and, in some cases, slave and forced labor, both in the United States and abroad.

Walmart has slowly been moving in the right direction to improve its practices on these issues, as evident by the company’s recent decision to raise the minimum wage of 500,000 of its direct U.S. store employees to $9 per hour, to start the minimum wage for over 100,000 department managers at $13 per hour, and to sign on to the Coalition of Immokalee Workers’ Fair Food Program.

Walmart, nevertheless, has a long way to go before becoming a leader in upholding ethical corporate practices.

Recommendations are given in Chapter VII for how Walmart can improve the safety, fairness, and sustainability of its supply chain.