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Walmart's food suppliers at odds with retail giant's code of ethics – report Walmart's food suppliers at odds with store's code of ethics, report claims
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Related: Are Walmart's new pro-denim and anti-Bieber changes enough for its workers?Related: Are Walmart's new pro-denim and anti-Bieber changes enough for its workers?
Walmart’s relationships with its suppliers of poultry, seafood, bread, bananas and other foodstuffs raise serious concerns over environmental and labour practices and how the retail giant enforces its code of ethics, according to a report released on Thursday.Walmart’s relationships with its suppliers of poultry, seafood, bread, bananas and other foodstuffs raise serious concerns over environmental and labour practices and how the retail giant enforces its code of ethics, according to a report released on Thursday.
The Food Chain Workers’ Alliance (FCWA) report, Walmart at the Crossroads, was released on the eve of Walmart’s annual shareholders’ meeting.The Food Chain Workers’ Alliance (FCWA) report, Walmart at the Crossroads, was released on the eve of Walmart’s annual shareholders’ meeting.
FCWA co-director José Oliva told the Guardian his organisation researched how Walmart enforces its code of ethics when dealing with its suppliers.FCWA co-director José Oliva told the Guardian his organisation researched how Walmart enforces its code of ethics when dealing with its suppliers.
“We wanted to investigate whether Walmart’s claims, both on sustainability in terms of the environment and in terms of fairness, hold any water,” he said.“We wanted to investigate whether Walmart’s claims, both on sustainability in terms of the environment and in terms of fairness, hold any water,” he said.
Walmart, which sells a quarter of groceries purchased in the US, recently prompted a largely positive reaction when it announced wage increases for half a million employees. But the FCWA report will not make comfortable reading at company headquarters in Bentonville, Arkansas.Walmart, which sells a quarter of groceries purchased in the US, recently prompted a largely positive reaction when it announced wage increases for half a million employees. But the FCWA report will not make comfortable reading at company headquarters in Bentonville, Arkansas.
The seafood section of the report, for example, pointed to the Guardian’s recent investigation into the shrimp industry in Thailand, which revealed the use of slave labor. The chapter on poultry highlighted a $3.95m fine that the Environmental Protection Agency ordered Tyson, a processor which supplies Walmart, to pay in 2013 “to address threats of accidental chemical releases after anhydrous ammonia was released”.The seafood section of the report, for example, pointed to the Guardian’s recent investigation into the shrimp industry in Thailand, which revealed the use of slave labor. The chapter on poultry highlighted a $3.95m fine that the Environmental Protection Agency ordered Tyson, a processor which supplies Walmart, to pay in 2013 “to address threats of accidental chemical releases after anhydrous ammonia was released”.
Concerns about Walmart’s standards relate to its powerful position within a rapidly consolidating US food system. The company rose to prominence by demanding suppliers cut prices so it could offer bargain-basement rates to consumers.Concerns about Walmart’s standards relate to its powerful position within a rapidly consolidating US food system. The company rose to prominence by demanding suppliers cut prices so it could offer bargain-basement rates to consumers.
Craig Chase, who studies food system issues at the Leopold Center for Sustainable Agriculture at Iowa State University, said the domination of large companies such as Walmart leads to distortions in production.Craig Chase, who studies food system issues at the Leopold Center for Sustainable Agriculture at Iowa State University, said the domination of large companies such as Walmart leads to distortions in production.
“If you have a business arrangement with a buyer like Walmart and their demands keep getting larger,” Chase said, “you put out a bid on that business, and what you’re going to try and do is to get your production to match their buying patterns.”“If you have a business arrangement with a buyer like Walmart and their demands keep getting larger,” Chase said, “you put out a bid on that business, and what you’re going to try and do is to get your production to match their buying patterns.”
Oliva said this pushed suppliers “to cut corners”.Oliva said this pushed suppliers “to cut corners”.
One recommendation in the FCWA report is that Walmart should adopt a third-party monitoring system, in order to ensure that suppliers comply with the company’s regulations. Another says the company should offer farmers, ranchers and fishermen long-term contracts that reflect the costs of production.One recommendation in the FCWA report is that Walmart should adopt a third-party monitoring system, in order to ensure that suppliers comply with the company’s regulations. Another says the company should offer farmers, ranchers and fishermen long-term contracts that reflect the costs of production.
Asked about the report, a Walmart spokesperson said the company was “committed to the welfare of the people who work to produce products throughout our supply chain” and pursued “a robust responsible sourcing program”.Asked about the report, a Walmart spokesperson said the company was “committed to the welfare of the people who work to produce products throughout our supply chain” and pursued “a robust responsible sourcing program”.
“Our expectations are to treat workers with respect and dignity, and we do not want to work with suppliers unless they share this commitment,” the spokesperson said.“Our expectations are to treat workers with respect and dignity, and we do not want to work with suppliers unless they share this commitment,” the spokesperson said.
Oliva acknowledged that Walmart was positioning itself for change.Oliva acknowledged that Walmart was positioning itself for change.
“This feels like it’s a real opportunity for Walmart to do the right thing,” he said. “There’s a drumbeat of different announcements about what they want to do and how they want to be perceived.“This feels like it’s a real opportunity for Walmart to do the right thing,” he said. “There’s a drumbeat of different announcements about what they want to do and how they want to be perceived.
“The question is, is it going to just be a PR stunt, or are they going to actually do something substantive to change the working conditions for millions of people and actually improve the environment?”“The question is, is it going to just be a PR stunt, or are they going to actually do something substantive to change the working conditions for millions of people and actually improve the environment?”