Responsible Management

CONTENTS
INTRODUCTION......................................................................................................................1
PART – 1 (RESPONSIBLE MANAGEMENT INTERNAL AND EXTERNAL ANALYSIS)
....................................................................................................................................................1
Organizational context............................................................................................................1
Organizational responses........................................................................................................4
PART – 2 (RESPONSIBLE MANAGEMENT PROPOSAL)..................................................6
Responsible management priorities........................................................................................6
Developing a rationale for actions to have a positive impact on the organisation and..........8
stakeholders............................................................................................................................8
Action plan with timeline.....................................................................................................10
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12
 TABLE OF FIGURES

Figure 1: Carroll's CSR pyramid................................................................................................5

Figure 2: Triple Bottom Line.....................................................................................................9
INTRODUCTION
Talking in relation with the principles of responsible management, it is defined as
solving the issues which are encountered in three key facets that is ethics, responsibility and
sustainability. It offers a standpoint which is entirely concerned to practices. Further,
responsible management sounds scientifically and supports the firms effectively. the
principles are the basic text for the traditional community as well as business. the corporate
social responsibility is being managed by this kind of management (Charter, 2017). There are
four important points in the process of responsible management and they are planning,
organizing, leading as well as controlling. It supports in management of responsibility, ethics
along with sustainability.
Based on this, the main aim of the current research report is to critically analyse the
present approach to responsible management and to determine a clear along with detailed
suggestions for further action on the basis of the assessment of the internal as well as external
environment. the business organization chosen for the current purpose is Walmart. It is an
American multinational retail corporation that operates a chain of hypermarkets all across the
world. The report is being segregated into two parts wherein the first part deals with
responsible management analysis and determining the key responsible management issues
being faced by Walmart. The second part will focus on evaluation as well as planning a
responsible management proposal including priorities and actions for having a positive
influence on the organization and stakeholders considering frameworks, theories and
approaches.

PART – 1 (RESPONSIBLE MANAGEMENT INTERNAL AND

EXTERNAL ANALYSIS)
Organizational context
Overview of the company
The company was founded in the year 1962 by Sam Walton and has always been the
firm that supports the notion of corporate social responsibility along with sustainability and
therefore, promoting it not only within the workforce rather also every stakeholder being
involved comprising other firms which are operating in the international market. as per the
organization, corporate social responsibility should not only be executed in the organizational
environment rather it should also be taken to the novel level of international accountability
(Gou and Xie, 2017). The company has most of time had a very sharp emphasis on the
requirements of the clients and years of evolution have not changed the particular strategy

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importantly. If anything, being experienced by the firm than it is the different areas to be
discoursed in their present mission as well as vision.

Opportunities and challenges based on macro and meso analysis of operational environment
of Walmart
For the purpose of determining the responsible management opportunities and
challenges, it is important to critically evaluate the operational environment of the company
and this can be done with the help of Pestle analysis tool.

Macro analysis of Walmart

 Political factor – The company takes into account the political factors in the retail
market, generally pertaining to the policies of the government (Chazireni and Kader,
2019). High stability of the politics along with political support for globalization are
opportunities for the company. On the other hand, political pressure for higher wages
can be a threat to the firm. It is important that they should must discourse the threat of
high wages.
 Economic factor – Further, the company is in the great pressure from the economic
alterations and any kind of such alterations will impact the overall revenue of
Walmart. Continued level of growth in the emerging economies along with stability
of the major economies offers opportunities to the firm. Furthermore, reducing level
of unemployment in the market of US can be a major threat. Thus, it is important that
the company should emphasize more towards on the developing economies of the
world.
 Social factor – The social factor within the business environment impacts the overall
preference and perception of the customers (Greenwood, 2017). There are two recent
trends in the market such as cultural diversity and healthy lifestyle trend and this
offers opportunities to Walmart. Along with this, migration of people towards urban
areas also offers growth prospects to the firm. It is important that the firm should
adjust their strategies for exploiting the rising demand of the customers in the urban
and nearby regions.
 Technological factor – It is important on the part of the firm to address the trends in
the technologies. Technological development highly impacts the competitive
landscape of the retail industry. Augmenting level of business automation, big data
along with increased utilization of mobile devise amid the people offers opportunities.
The company can augment their investment in all these three factors.

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  Legal factor – The firm is also subject to the needs of the regulations and laws. These
factors generally impose limitations on the retail companies. Food safety along with
the employment regulations offers opportunities to Walmart. However, tax law reform
can be a threat to the business of the firm (Lindgreen, Swaen and Johnston, 2018). If
in case it results into high amount of tax rates than it will a potential threat. Walmart
should take into account food safety regulations along with human resource
management practices for exploiting the opportunities.
 Environmental factor – The environmental factors in the business of the company
relates to the conservation of the environmental concerns. It is now being regarded as
one of the most famous principles. Business sustainability along with environmentally
friendly products trend offers a great opportunity to Walmart. Moreover, for the
purpose of attaining sustainability in the business, the firm should make improvement
in their operational efficiency and this can be done with the help of technological
innovation (Musfialdy, Soim and Edison, 2020).

Meso analysis of Walmart

Speaking in regards with the meso environment, it is related to the factors with which
the business can not respond to the environment directly and indirectly. In addition to this, it
is detailed evaluation of a particular community, firm and studying certain parts of a
community. It is also defined as a network evaluation as this method examines the patterns of
social ties between people in a group and the ways those patterns impact the overall
company. The meso environment of Walmart involves different factors of the market in
which the business is active (Gabbatt, 2018). The market forces of the firm cover the
competitive landscape along with the factors impacting its sector. The meso analysis supports
its present position in the market on the basis of the multiple internal along with the external
factors such as distribution, suppliers, vendors, competitors and strategic alliances. First
talking in relation with the suppliers and distribution, Walmart has full control over their
suppliers and they in rare cases reaches to a position where they can demand favourable
terms from the company. Thus, the power of suppliers is low to moderate. The firm makes
use of supply chain initiative under Walmart Supply chain Initiative called the Vendor
Managed Inventory (VMI). In this method, the vendors are themselves accountable for
management of the inventory (Marilyn, 2019). Furthermore, the firm also considered itself as
a hub for multiple supply chains and thus, makes use of this imitative for accomplishing the
requirements of the clients and vendors.

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 In addition to this, talking in relation with the competition within the market company
operates, the competitiveness is moderate to high within this sector considering the reality
that there are only few giants operating in the market and some small players at the local
level. The company has been in a position to take major share in this sector due to presence in
both online along with offline market. they face too much competition in the market however
as they are leader in the market, they can set their terms as per that well (Hibbert and
Cunliffe, 2015). Thus, the threat from the competitive rivalry is low from the small-scale
local players as Walmart gets a huge advantage from its brand name. The local small players
cannot match the price benefits being offered by Walmart.
Moving further, in regards with the competitors of Walmart, it can be stated that the
company faces intense competitor from some of the major giants operating in the market such
as Costco, Amazon, Target, Rakuten and Sears Holdings Corporation. All these companies
are offering intense competition to the Walmart. In addition to this, the customers of the
company enjoy a low to negligible power as the prices being offered by the company is really
low. Walmart is the market leader and thus, can set the pace of the market as per their own
requirements and this has decreased the overall power of the customers or buyers for
bargaining (Newman and et.al., 2018).

Key responsible management issues

Based on the internal as well as external analysis of the operational environment of
Walmart, different opportunities and challenges have been identified and some of the key
responsible management issues which are being highlighted are as follows:
 Traffic congestion and its impact on the communities and the environment
 Putting local business and merchants out of the business
 Creation of urban sprawl
 Gender discrimination
 Ethical issues

Organizational responses
Responsible management assumes the responsibility of the business for the triple
bottom line that is sustainability, responsibility as well as ethics. Corporate social
responsibility is quite crucial for Walmart considering its large size. The responsible
management strategy of the firm is relied on the three key principles that is creation of
financial prospects for the workers, suppliers along with the people who work in the retail

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supply chains, enhancement of the operations related to sustainability along with the supply
chains of the product for people and the planet and finally, building of strong societies where
the retailers operate (Rothaermel, 2017). For the purpose of evaluating assessment of
organisational actions to date, Carroll’s pyramid framework is being taken into account. As
per Carroll, a business generally has four kinds of responsibilities such as to be financially
profitable, to comply with the laws and regulations, to remain ethically responsible and
finally giving a philanthropic cause.

Figure 1: Carroll's CSR pyramid

(Carroll’s CSR pyramid, n.d).

Speaking in relation with the actions being done by Walmart till date in regards with
the responsible management, it can be stated that the company is continuously committed
towards the business for behaving as well as contributing towards economic development and
at the same time enhancing the quality of life of the workforce and their families along with
the local community and society at larger level.
 Economic responsibilities – The company has accomplished all its economic
responsibilities fruitfully. It is a profitable business with the overall sales around $345
billion. Since, the company has been earning profits from last so many years, it has
also given a foundation of success to all the others facets of corporate social
responsibility. Other than this, the company has also contributed financially towards
the society through supporting hospitals of children, educational programs along with
charities (Shen and Benson, 2016).

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  Legal responsibilities – The company is nor legally responsible firm and this is due to
the fact it offers its workers very lower amount of salaries. This is reason Walmart is
the most sued firm in America. On the other hand, the company has dependably
functioned within the boundaries of the law considering the rules and regulations of
the government of a particular nation.
 Ethical responsibilities – As far as the ethics is concerned, the firm is ethically
responsible. This can be evident from the campaigns being run by Walmart such as
Buy American and Environmental Awareness plan. However, there are some ethical
issues in this tool. The company is not able to accomplish and meet the
responsibilities in regards with the small merchants. The firm has caused the closure
of many businesses. Even though Walmart has caused different issues for the local
businesses, they are not answerable for the disappointment and let-down of those
businesses.
 Philanthropic responsibilities – This is the field which is uttered to be quite strong as
the firm has performed a lot of corporate citizen initiative along with effective
management (Bombiak and Marciniuk-Kluska, 2019). Other than this, the company
has also established Walton Family Charitable Support Foundation for the
philanthropical purpose.

PART – 2 (RESPONSIBLE MANAGEMENT PROPOSAL)

Responsible management priorities
Talking in relation with the Walmart, it is a $462 billion giant of a corporation whose
name along with the logo are promptly identifiable by the average shoppers of America. The
company is also being popular for their lower prices along with carrying just about the entire
daily household requirements. With the company being a fiscal force in the United States and
across the globe, it opens itself up to examination on all the levels of people, planet as well as
profits arguments. Whereas, the inspection is most of the time prejudiced on the basis of the
sources, but there are some facts which the company cannot repudiate. From the analysis
being done, it can be stated that the firm has not always been on the correct and accurate side
of the arguments of either the people or the planet argument (Boström and et.al., 2015).
Nevertheless, no one has the power to disprove the company’s capability to pull a profit. As
discussed in the above section, there were different responsible management issues being
determined and all these issues are required to be resolved by the firm efficiently in order to

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become more responsible and ethically business. some of the most important responsible
management priorities for the Walmart includes the following:

Reducing the impact of sprawl and traffic congestion on communities and the environment
Articulating in relation with the traffic congestion and impact related to sprawl,
Walmart has seriously become a threat to the environment landscape. In addition to this, it is
also a threat to the communities. The main reason behind it is nothing but the expansion of
the stores and building of stores on the massive areas. Other than this, by carrying out all
these developmental activities, the company is depressing the financial health of the
communities and also the other city centre stores (Fernie, Fernie and Moore, 2015). From the
analysis it has been evaluated that Walmart are augmenting at a very frightening pace which
is resulting in the sprawl within the societies. Furthermore, the augmenting rate of growth and
expansion is also leading to destruction of wetlands, flooding potential along with the
amplified traffic issues. This majorly influences the local owned stores as well. Overall, the
landscape has also been impacted due to the fact that the firm has too many stores which are
not used with vast parking lots too. Additionally, such kind of megastores are built in those
areas of towns which are not accessible without driving and therefore, leads to upsurge in the
traffic problems. Furthermore, this will also result in air pollution, contamination of the water
and also at some point of time it might call out for more road infrastructure. Based on this, it
can be said that this is the first responsible management priority for the Walmart.

Creating economic opportunity for the suppliers and local business and people who work in
retail and retail supply chains beyond Walmart
The company has the responsibility in regards with the merchants along with the
communities where it steps in. It is expected to make use of the energy in clean as well as
efficient manner (Klettner, Clarke and Boersma, 2019). In addition to this, the key
responsibilities comprise giving locals with the resources, relief hunger, creating prospects
for makes along with the females there and finally, producing more with smaller amount of
resources and avoiding wasting of the resources. Furthermore, the company is a strong
influence on the community and the society. The major influence of it is on the economy as a
large discount retailer in a local market. due to this, there is a crowding out of the small
retailers through providing lower prices. This majorly impacts the local retailers and thus, the
firm has a negative affect on them. therefore, it can be stated that the success of the Walmart
has resulted in the closing of different small stores. It has also altered the buying strategies of

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the clients. based on this evaluation, it can be stated that it should be the second priority of
the responsible management for Walmart.

Working on gender inequality, employee relation and empowerment

The strategies being utilized by the company in regards with its staff members looks
quite reasonable from its core. Walmart realizes and understands the requirements of the
workers and also agrees to fulfil them. they also pay attention in regards with the issues of
diversity in the workplace (Moon, 2019). These particular measures being mentioned above
seems reasonable enough in creating an environment wherein optimistic employee relation
can takes place. nevertheless, according to the current research, it has been depicted that the
real association amid the managers of the firm and the employees are far away from being
stellar. Other than this, an assortment of workers has also mentioned that their rights are
unswervingly being overstepped by the firm. The quantified phenomenon can be elucidated
by the fact that the focus of the firm on the satisfaction level of the customers gears the
corporate policy in regards with meeting the requirements of the customers for the sake of the
requirements of the workers.
Instead of building a business that would support all stakeholders and advocate for
sustainability on all levels that is economic, social, and environmental, suggesting that all
stakeholders' needs would be met, the organisation has established a culture where employees
literally give their all to improve the production process without receiving any significant
rewards (Wilson, 2018). Prominently, several corporate employees claim that Wal-Mart
sometimes violates the rights of certain of its employees. Clearly, the organization's stated
features should raise serious concerns. The company is also under gender discrimination
lawsuit where it has been claimed that Walmart does take lot of time in giving women a
management position. Based on this evaluation, it can be concluded that the third important
responsible management priority for the megastore should be “Working on gender inequality,
employee relation and empowerment”.

Developing a rationale for actions to have a positive impact on the organisation and
stakeholders
As determined above there are different responsible management issues which are
being faced by the Walmart and based on that evaluation, the three responsible management
priorities are also be identified and established that is reducing the impact of sprawl and
traffic congestion on communities and the environment, creating economic opportunity for
the suppliers and local business and people who work in retail and retail supply chains

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beyond Walmart and finally, working on gender inequality, employee relation and
empowerment (Žukauskas, Vveinhardt and Andriukaitien, 2018). For the accomplishment of
these priorities there is a requirement of some sustainable development goals. Sustainable
development goals are being referred as the blueprint for the purpose of attaining better along
with the more sustainable future for the all. Thus, based on the priories being defined some of
the SDGs are as follows:
 Fostering of gender equality and prohibiting discrimination
 Having decent work and economic growth
 Addressing the climate change and working on sustainability
 Enhancing and improving life on land

For the purpose of fulfillment of the above sustainable development gaols and the
issues of responsible management being identified in the above section, some actions are
required to be taken by the Walmart based on the Triple Bottom Line approach (Yates, 2019).
The main idea behind this approach is underlying the social role of the corporate organization
and the way it can do better through emphasizing on its clients however also through serving
the broader society as well as stakeholders. Considering this, if Walmart has to thrive in the
21st century then it has to take into account not only profitability rather also the financial
property of the society being served by them along with the environmental issues influencing
the ecosystem, social justice diversity and equality movements of the stakeholders.

Figure 2: Triple Bottom Line

(Vaidya, 2021).

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  People – People here being defined as the workforce being involved in the operations
of Walmart. They are the community in which the firm implemented its business. for
the purpose of following the principles of responsible management, it is crucial that
fair wages should be given to the workers and better working environment must be
developed so that they remain satisfied. Equal opportunities irrespective of the
gender, educational background and culture should be given to the employees. further,
the company should also source their raw-materials from the women owned business
and must think about giving back to the society by considering the TBL approach.
Furthermore, due to closure of their stores, employees have lost their job and now it is
the accountability of the firm to have those workers with new jobs (Singh and Misra,
2021).
 Planet – Considering the triple bottom line approach, Walmart should make efforts to
reduce the influence of their ecological footprints. The firm should make efforts in
relation with the sustainable practices through determination of the fact that adoption
of green practices might make them more profitable in longer period of time. Due to
the expansion of Walmart, there has been sprawl and traffic congestion. Thus, for the
purpose of pacifying this issue the company should pay for the traffic studies and mist
have new traffic lights being installed. Further, based on the condition, should also
make some contribution towards the improvements of the roads. Other than this, it is
also important that the company should also reach out the certified organic local
farmers for producing organic items (Zissis and et.al., 2018). They have their
responsibility towards their local suppliers, merchants as well as communities. They
have the accountability of giving locals with the resources, opportunities to the local
business and suppliers, males and females and producing more with fewer resources
and must avoid wasting of the resources.
 Profit – Walmart is required to take into account the triple bottom line approach and
thus, should perceive profitability as a sub-section of their entrepreneurial plan. The
company needs to take into account that profit is not contrasting to people along with
the planet. It is important on the part of Walmart to contemplate that profitability shall
withstand as well as authorize the entire community comprising the workers which
are also called as their important partners. The problems in regards with the closure of
their stores along with the dismissal of the workers can only be solved when the
supply chain along with the local business of the firm will thrive (Responsible

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 Sourcing, 2022). Furthermore, the organization should also completely control its
markets and own its position between its target audience. Other than this, it is also
important that the Walmart should also stop emphasizing on the expansion plans and
must pay their attention on fixation of the stores which are already open.

Action plan with timeline

Sustainable development Activities Timeframe
goals
Fostering of gender Sourcing raw-materials from the women 4 months
equality and prohibiting owned business, prohibition of
discrimination discrimination by recruiting females,
handicapped and sexual orientation
Supporting the workers dignity and 4 months
Having decent work and safety, promotion of collaboration,
economic growth empowering worker through training,
reducing forced labour and making
investment in innovative technology
(Agudelo, Jóhannsdóttir and
Davídsdóttir, 2019)
Addressing the climate Sustainability efforts in the supply 8 months
change and working on chain, environmental public policy,
sustainability reducing greenhouse gas emission
Reduction in the level of deforestation 6 months
Improving life on land and working with the suppliers to join
them with innovative strategies and
utilization of technology, sustainable
fisheries and reduction of waste

CONCLUSION
Based on the above analysis, it can be stated that in the present time, principles in
regards with the responsible management plays a very crucial role for attaining a competitive
edge and success in the market. The report has clearly identified the opportunities along with
the challenges and issues being faced by Walmart based on the internal as well as external
analysis of the operational environment of the company. Further, it has been originated from

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the study that it is important for the company to resolve these issues by undertaking a
responsible management proposal which includes different responsible management priorities
along with the rationale for actions for the development of responsible management and
having a positive influence on the stakeholders and the organization. The evaluation within
the report is being based on different frameworks, theories along with the approaches being
learned within the module.

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REFERENCES
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Musfialdy, M., Soim, M. and Edison, E. (2020), Relationship Corporate Social
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