Wal-Mart received widespread praise for its response to Hurricane Katrina when it hit the Louisiana coast in August 2005 and low prices at the world’s largest retailer are estimated to save consumers billions of dollars a year. Nonetheless, it was coming under increasing criticism for corebusiness practices, ranging from detrimental effects on communities when Wal-Mart stores are established, to abusive labour practices, to alleged sourcing from sweatshops. This case looks at the benefits and the potentially harmful consequences of the Wal-Mart (...) business model. The focus is on supply chain issues and, more specifically, a lawsuit brought by the International Labor Rights Fund (ILRF) charging that Wal-Mart failed to meet contractual obligations specified in its Standards for Suppliers Agreement. However, the retailer must respond to a range of criticisms that chief executive Lee Scott recognizes are harming its reputation. Scott asks, in reference to Wal-Mart’s response to Katrina, “what would it take for Wal-Mart to be that company, at our best, all the time?” More fundamentally, the case asks, how sustainable is Wal-Mart’s business model? (shrink)

Wal-Mart received widespread praise for its response to Hurricane Katrina when it hit the Louisiana coast in August 2005 and low prices at the world’s largest retailer are estimated to save consumers billions of dollars a year. Nonetheless, it was coming under increasing criticism for corebusiness practices, ranging from detrimental effects on communities when Wal-Mart stores are established, to abusive labour practices, to alleged sourcing from sweatshops. This case looks at the benefits and the potentially harmful consequences of the Wal-Mart (...) business model. The focus is on supply chain issues and, more specifically, a lawsuit brought by the International Labor Rights Fund (ILRF) charging that Wal-Mart failed to meet contractual obligations specified in its Standards for Suppliers Agreement. However, the retailer must respond to a range of criticisms that chief executive Lee Scott recognizes are harming its reputation. Scott asks, in reference to Wal-Mart’s response to Katrina, “what would it take for Wal-Mart to be that company, at our best, all the time?” More fundamentally, the case asks, how sustainable is Wal-Mart’s business model? (shrink)

In 2003, Unilever and Oxfam embarked on a groundbreaking “learning project” designed to better understand the impacts of business on poverty. Developing countries were seen as an essential component of Unilever’s corporate strategy, with developing and emerging markets forecast to account for 90% of the world’s population by 2010. Unilever had long been present in many of these markets and increasingly had come to see that its future growth would depend upon its contribution to addressing issues of social and economic (...) development in developing countries, including poverty. Oxfam, one of the world’s most prominent nongovernmental organizations (NGOs), was focused in its campaigning and other activities on the alleviation of poverty. Thus, despite the often adversarial relationship between corporations and NGOs, the two organizations shared a common interest and this formed the basis for their collaboration. The goal was to examine the role of business in poverty reduction and study, specifically, Unilever’s operations in Indonesia. The Unilever and Oxfam (A) case describes how this collaboration came about and provides background on Unilever, Unilever Indonesia (UI) and Oxfam, including its recent campaigns against the pharmaceutical and coffee industries. It also examines the role of NGOs and outlines the challenge of poverty in developing countries, the Millennium Development Goals, and the UN Global Compact. The case shows the difficulties inherent in better understanding the role of MNCs in poverty alleviation as well as in formulating an effective collaboration between corporations and NGOs. (shrink)

In 2003, Unilever and Oxfam embarked on a groundbreaking “learning project” designed to better understand the impacts of business on poverty. Developing countries were seen as an essential component of Unilever’s corporate strategy, with developing and emerging markets forecast to account for 90% of the world’s population by 2010. Unilever had long been present in many of these markets and increasingly had come to see that its future growth would depend upon its contribution to addressing issues of social and economic (...) development in developing countries, including poverty. Oxfam, one of the world’s most prominent nongovernmental organizations (NGOs), was focused in its campaigning and other activities on the alleviation of poverty. Thus, despite the often adversarial relationship between corporations and NGOs, the two organizations shared a common interest and this formed the basis for their collaboration. The goal was to examine the role of business in poverty reduction and study, specifically, Unilever’s operations in Indonesia. The Unilever and Oxfam (A) case describes how this collaboration came about and provides background on Unilever, Unilever Indonesia (UI) and Oxfam, including its recent campaigns against the pharmaceutical and coffee industries. It also examines the role of NGOs and outlines the challenge of poverty in developing countries, the Millennium Development Goals, and the UN Global Compact. The case shows the difficulties inherent in better understanding the role of MNCs in poverty alleviation as well as in formulating an effective collaboration between corporations and NGOs. (shrink)