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Wal-Mart is the world's largest retail operation, with over $400 billion in annual sales, 4,100 stores in the United States, and 3,500 stores overseas. In 2009, Wal-Mart was the highest-volume grocer in the United States, with approximately $100 billion in sales and a 21 percent share of the grocery market. When H. Lee Scott was named president and chief executive officer in 2000, the company suffered from a maligned public image, defending itself against allegations of underpaid and underinsured workers, Clean Water Act violations, and a reputation for destroying the viability of local businesses in many localities. Over the past eight years, the company has pledged a commitment to sustainable principles, adopted new food safety standards, and entered the organic marketplace. Although detractors dismiss Wal-Mart's efforts to clean up its practices, an argument can be made for the positive effects of shifting such a large-scale supply chain to environmentally conscious principles.

Wal-Mart first introduced grocery products into its Supercenters in 1988, using its powerful supply management tactics to compete at the lowest price point. Such tactics forced other supermarket chains including Grand Union, Bruno's, and Homeland Stores into bankruptcy. Workers at competitors like Kroger, Safeway, and Albertsons worried that their wages would be reduced as a result of the lower wages paid to Wal-Mart employees. Critics questioned the safety of food sold by a company that imports massive amounts of goods from China and used pressure tactics to gain cooperation from suppliers.

In October 2004, the United States sued Wal-Mart for violating the Clean Water Act in nine states, calling for changes in store building codes. The U.S. Environmental Protection Agency fined Wal-Mart $1 million to settle charges of violations incurred while building stores in Massachusetts, New Mexico, Oklahoma, and Texas. The company's carbon footprint is still questionable because of its vast trucking network and the number of car trips to its stores daily. Various localities also complain about the tax breaks and government assistance that Wal-Mart negotiates for new building sites.

Wal-Mart Goes Green

Wal-Mart began implementing its green initiatives in 2005 and promised to have over 400 organic items in stores by the summer of 2006. The demand for organic food has grown 15 percent annually over the past several years. Retailers frequently charge a 30 percent to 40 percent premium for organic food over conventional items. Organic standards have typically been associated with food that is locally produced, using sustainable methods sans pesticides and fertilizers. Free-range chickens, grass-fed beef, and labor-intensive techniques of harvesting produce are among the offerings recognized by educated consumers. The giant retailer's sheer size allows it to negotiate with suppliers about how goods are produced, which could allow Wal-Mart to push manufacturers and competitors to adopt more sustainable practices and organic food. A company-wide goal is to increase the energy efficiency of producing its most energy intensive products, including those products manufactured overseas. Wal-Mart has received praise for their green initiatives, which include building environmentally friendly stores and reducing packaging on merchandise. Entering the organic food market is an approach that both counters criticism from the press and labor unions and caters to a more upscale customer who demands organic products and favors socially responsible businesses. Wal-Mart chairman S. Robson Walton serves on the board of Conservation International, and Sam Walton's grandson, Sam R. Walton, joined the board of Environmental Defense.

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