The Wal-Mart Conundrum
Today's post will be devoted exclusively to that behemoth of modern capitalism: Wal-Mart. Is it good or evil? Both or neither? And what can we do to steer it right?
In his aptly-named book, The Wal-Mart Effect, author Charles Fishman writes:
"Wal-Mart isn't just a store, or a huge company, or a phenomenon anymore. Wal-Mart shapes where we shop, the products we by, and the prices we pay -- even for people who never shop there.... Wal-Mart reaches around the globe, shaping the work and the lives of people who make toys in China, or raise salmon in Chile, or sew shirts in Bangladesh, even though they may never visit a Wal-Mart store in their lives."
He's right -- Wal-Mart is more than just a store now. It's a force of capitalism. And that inevitably leads people to ask whether its influence is good or bad.
Recently, a colleague at 1bloc wrote an article entitled "A Reason To Like Wal-Mart?" in which she described the company's recent efforts to open low-fee banking institutions both in the U.S. and worldwide, arguing that such operations would provide many of the benefits of microfinance to communities who often lack access to formal banking. But what struck me was the title -- "A Reason...." I think there are many reasons to like Wal-Mart. There are also many reasons to despise Wal-Mart. Here's a quick overview of the company's recent pro's and con's:
Pro's:
Con's:
When I first started hearing about Wal-Mart (it's been a very slow infiltration here in New England), I decided to boycott it - a major step for me because it was the only store I was boycotting. Then again, it wasn't as if I had a Wal-Mart anywhere nearby anyway... so this was more personally symbolic than anything else. But I told myself if I was ever in a Wal-Mart, I wouldn't buy anything. A year later, visiting Texas, I finally had the opportunity to not buy some very tempting 16-cent avocados.
In 2005, I noticed that Wal-Mart was finally paying attention to the negative attention it was receiving, and seemed to be trying to change. CEO Lee Scott was making speeches about going green. I'm sure this was financially-motivated, but that's alright by me. Most of business is financially-motivated, and I just want to do my part to align the financial and social motivations. Based on the company's changed behavior, I decided to end my mainly-hypothetical boycott, and eventually bought a set of cheap luggage from a Wal-Mart in New Hampshire.
Now, as we enter 2007, I am again re-thinking my Wal-Mart policy. The company seems to be doing a number of good things, but that will never change the fact that its purpose in life is to be a competitive big-box retailer. And I don't happen to like big-box retailers. They depress me, and their low prices don't seem to make up for their low wages. No matter how many efficient light bulbs they sell, I don't really want to live in a world of big-box retailers.
So what do I do? Buy at Wal-Mart to signal that I support the changes they're implementing? After all, if they have to exist, I'd rather they try to be socially and environmentally conscious. Or do I boycott once more, in the hopes that they will just go away and leave the planet alone?
Decisions about where to buy a few avocados and $35 worth of luggage are not enough to make a big impact - but I like to know where I stand.
In his aptly-named book, The Wal-Mart Effect, author Charles Fishman writes:
"Wal-Mart isn't just a store, or a huge company, or a phenomenon anymore. Wal-Mart shapes where we shop, the products we by, and the prices we pay -- even for people who never shop there.... Wal-Mart reaches around the globe, shaping the work and the lives of people who make toys in China, or raise salmon in Chile, or sew shirts in Bangladesh, even though they may never visit a Wal-Mart store in their lives."
He's right -- Wal-Mart is more than just a store now. It's a force of capitalism. And that inevitably leads people to ask whether its influence is good or bad.
Recently, a colleague at 1bloc wrote an article entitled "A Reason To Like Wal-Mart?" in which she described the company's recent efforts to open low-fee banking institutions both in the U.S. and worldwide, arguing that such operations would provide many of the benefits of microfinance to communities who often lack access to formal banking. But what struck me was the title -- "A Reason...." I think there are many reasons to like Wal-Mart. There are also many reasons to despise Wal-Mart. Here's a quick overview of the company's recent pro's and con's:
Pro's:
- recently introduced sustainable fishing practices
- introducing more organic foods and making them affordable
- developing hybrid trucks for its fleet
- convincing consumers to buy energy-efficient bulbs
- providing many commonly-prescribed drugs for only $4
- ongoing pressure on suppliers to reduce packaging
- low prices can help poor consumers buy things they need
Con's:
- infamously low wages and benefits
- union-busting (except in China, where the union doesn't represent workers much anyway)
- using its heft to re-zone property that disallows big-box stores
- creating cultural homogenization but putting mom & pop stores out of business
- encouraging needless consumerism (link is a parody... or is it?)
- recent fake-blogging (i.e., "flogging") debacle
- generally replacing aspects of American life that we've sort of grown to like
When I first started hearing about Wal-Mart (it's been a very slow infiltration here in New England), I decided to boycott it - a major step for me because it was the only store I was boycotting. Then again, it wasn't as if I had a Wal-Mart anywhere nearby anyway... so this was more personally symbolic than anything else. But I told myself if I was ever in a Wal-Mart, I wouldn't buy anything. A year later, visiting Texas, I finally had the opportunity to not buy some very tempting 16-cent avocados.
In 2005, I noticed that Wal-Mart was finally paying attention to the negative attention it was receiving, and seemed to be trying to change. CEO Lee Scott was making speeches about going green. I'm sure this was financially-motivated, but that's alright by me. Most of business is financially-motivated, and I just want to do my part to align the financial and social motivations. Based on the company's changed behavior, I decided to end my mainly-hypothetical boycott, and eventually bought a set of cheap luggage from a Wal-Mart in New Hampshire.
Now, as we enter 2007, I am again re-thinking my Wal-Mart policy. The company seems to be doing a number of good things, but that will never change the fact that its purpose in life is to be a competitive big-box retailer. And I don't happen to like big-box retailers. They depress me, and their low prices don't seem to make up for their low wages. No matter how many efficient light bulbs they sell, I don't really want to live in a world of big-box retailers.
So what do I do? Buy at Wal-Mart to signal that I support the changes they're implementing? After all, if they have to exist, I'd rather they try to be socially and environmentally conscious. Or do I boycott once more, in the hopes that they will just go away and leave the planet alone?
Decisions about where to buy a few avocados and $35 worth of luggage are not enough to make a big impact - but I like to know where I stand.
2 Comments:
This comment has been removed by the author.
Thanks for finding "The Wal-Mart Effect," Melissa Tritter, and thanks for a thoughtful post.
Your readers can drill into some of these issues with excerpts from three chapters, free online, at the website of the book — one on Wal-Mart's impact on other companies, one on buying salmon at Wal-Mart, one on a company that pulled its products from Wal-Mart rather than reduce price & quality.
http://www.walmarteffectbook.com
Thanks again.
Charles Fishman
Senior writer, Fast Company magazine
Author, "The Wal-Mart Effect"
cnfish@mindspring.com
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