Wal-Mart is a big target. It gets bashed and ridiculed a lot, often by people who have never frequented a Wal-Mart store or been thankful that it was there to make a lot of things affordable. And Wal-Mart doesn’t always get it right and deserves some of the criticisms. Things go wrong in such a big organization (a pre-Christmas store stampede), but an organization that employs 1.8 million people, the size of many countries, must accept the fact that problems will occur. Some will be of their own making and some will just happen. But whatever criticisms we may level against Wal-Mart, we also need to be fair in acknowledging what it does do well.
And so Dr. Mark J. Perry, professor of economics and finance in the School of Management at the Flint campus of the University of Michigan, raises the question whether Wal-Mart should receive the Nobel Peace Prize for its contributions to people. See his post here. And he is joined by Fazil Mihlar of The Vancouver Sun in building the case for the prize. A Nobel Peace Prize is over the top exuberance, but it’s still worth examining some facts.
Wal-Mart in its Operation Main Street Initiative delivered shoppers $400 million in savings beyond its every day low prices. Just in time for Christmas. Just in time considering the economic crisis we are in.
In addition, according to Forbes, Wal-Mart was the most generous company in America, giving away $301 million in cash gifts. This was twice as generous as Exxon, the most profitable company in the world.
As Dr. Perry says,
Wal-Mart has done more to benefit local communities and consumers around the country with $400 million of savings just during this holiday season (over and above Wal-Mart’s already every day low prices) than through its generous charitable giving during the entire last year of “only” $300 million.
By itself, Wal-Mart’s $400 million “holiday gift” to American consumers around the country from extra-low prices will probably make it the most generous, charitable corporation in the U.S. this year, and that’s not even counting the estimated $300 million it will give away to charities in 2008 (assuming it matches last year’s gifts).
Fazil Mihlar points out that Wal-Mart:
- Provides employment to 1.9 million people; the best defence against poverty is a job.
- Creates thousands of job opportunities for people in developing countries like China and India; this keeps hunger at bay in many households.
- Doles out hundreds of millions of dollars each year in dividends that help fund the retirement of millions of people; the company had sales in excess of $348 billion and a net profit of $11.3 billion in 2007.
- Sells food, clothing and other necessities to Canadians, Americans and others at prices that are 15 to 25 per cent below what other supermarkets charge; this helps millions of low-income families stretch their dollars.
- Pushes the inflation rate down and helps keep interest rates low; this comes in handy for millions of families when borrowing to buy a house or household appliances.
- Disburses $415 million in cash and in-kind merchandise annually to 100,000 charitable organizations around the world.
- Pursues environmental sustainability; sells more organic produce than most retailers; works with the Clinton Foundation to lower prices on sustainable technologies such as energy-efficient lighting and building materials; has opened the first in a series of high-efficiency stores that will use 20 per cent less energy than a typical Wal-Mart. And its proposed Vancouver store is more environmentally friendly than any building in the Lower Mainland.
All of this was made possible by Wal-Mart’s innovations.
Mihlar in advocating a Peace Prize points out that Muhammad Yunus and the Grameen Bank received the 2006 Nobel Peace Prize for their efforts to create economic development. Jimmy Carter received the prize for his human rights efforts which included economic and social development. Mihlar asks if their accomplishments have done more than Wal-Mart to reduce poverty and to raise the standard of living of people.
Mihlar doesn’t hold up Wal-Mart as a spotless saint, but he does take apart many accusations commonly hurled at Wal-Mart, issues such as the accusation that they don’t pay a living wage or provide health care or that they destroy mom and pop businesses and communities.
Wal-Mart is a nice big target for criticism. To it’s credit, it has tried to respond to critiques, for example, on its health care and its environmental impact. I appreciate the fact that despite it’s size (it could be the fifth largest city in the U.S. behind New York, Los Angeles, Chicago, and Houston- and think about how our cities are led) it has worked to constantly improve, stay true to its purpose to deliver value for customers, been generous to many, and employed many.
Maybe Wal-Mart doesn’t deserve a Nobel Peace Prize. But maybe they should at least receive a nod of respect.
