We Will Make A Difference - Cdn.corporate.walmart

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Wal-Mart Canada Corporate Social Responsibility Report – Published August 2008Wal-Mart Canada Corp.Head Office1940 Argentia RoadMississauga, OntarioCanada L5N 1P9Telephone 905-821-2111Retail Internet Siteswww.walmart.cawww.samsclubcanada.caWal-Mart Canada Corporate Social Responsibility ReportThe use of eco-friendly recycled paper helps the environment in a number of ways. By choosing Rolland Enviro100print paper over virgin paper for the printing of this document we have achieved the following:Number oftrees saved:63Emissionsreduced by:8,666 lbsWater saved:37,246gallonsSolid wastereduced by:3,946 lbsSustainability in ActionAll paper in Wal-Mart’s Corporate Social Responsibility Report came from well-managed forests or other controlled sourcescertified in accordance with the international standards of the Forest Stewardship Council (FSC). It contains 100% post-consumerpaper (100% recycled), is EcoLogoM certified and PCF (processed chlorine free) certified, and was manufactured using biogas energy.To minimize our impact on the environment, we have printed a limited number of copies of this report. Please visitwww.walmart.ca to view, print or share this report in PDF.This publication is available in English and French. Printed and produced in Canada.Cert no. SW-COC-001383We willmake a difference

Wal-Mart Canada is a member of Canadian Business for Social Responsibility (CBSR). Established in 1995, CBSR is anational non-profit CSR consultancy and peer-to-peer learning organization working with member companies fromacross Canada to improve their social, environmental and economic performance. To learn more about CBSR, visittheir website at www.cbsr.ca.Tell us what you thinkWe welcome any questions or suggestions for this and future editions of our CSR Report.If you would like to comment on this report or have questions about Wal-Mart Canada,please email us at CACSR@wal-mart.com.This report was printed in limited quantities. You can access the report online at www.walmart.ca.

We will help Canadians live betterby lowering the cost of living forfamilies, reducing our impact on theenvironment, providing rewardingwork opportunities, supportingCanadian businesses and givingback to the communities we serve.1 Introduction8 Environment22 People34 Global Sourcing44 Community

2WAL-MART CANADA CSR INTRODUCTIONMaking a positive differenceBeing one of Canada’s largest companies, retailers and employers is anawesome responsibility. Our daily choices have an impact on our customers,our communities, our environment and each other.Our Corporate Social Responsibility Report provides an insight into how Wal-Mart Canada positivelyaffects the lives of Canadians today. It also addresses areas in which we can improve for tomorrow.We intend to be a retail leader. Above all, this means offering low prices so Canadians can save moneyand enjoy a higher standard of living. But, we also know it means leading in employment opportunity,diversity, global sourcing, community involvement and environmental sustainability.Perhaps the best illustration of what Wal-Mart Canada can achieve is our commitment to theenvironment. With 14 networks dedicated to environmental sustainability, we are working on multiplefronts to find efficiencies that save our business money and reduce our impact on the environment.In 2007 we wasted less and recycled more. We powered down stores while increasing our purchaseof green power, becoming Canada’s biggest commercial buyer of alternative energy. We reducedproduct packaging and increased the assortment of environmentally preferable products on ourshelves. This is corporate social responsibility in action.With this report we are putting actions into words. We know that to be a socially responsible companywe must show integrity, accountability and transparency. We know we must be judged not just by what wesay but also by what we do.This requires the kind of metrics you’ll find in our report – the key performance indicators we will useto measure and show our CSR commitments and improvements. And, though they may be refined orexpanded over time, we offer these metrics as the benchmark by which we can be judged.We know well that companies like Wal-Mart are bearing greater social expectations – expectations thatgo beyond our ability to provide Canadians with products at great prices. We are responding to theseexpectations, including proactively engaging our stakeholders on our corporate reporting performance.We are proud of the progress we have been able to demonstrate to those stakeholders and illustratein the pages ahead. We are similarly proud of the ambitious goals, expectations and hard work thatsurely lie ahead. We know we will make a difference.David CheesewrightPresident and CEOWal-Mart Canada

INTRODUCTION WAL-MART CANADA CSRWal-Mart Canada Corp.Headquartered in Mississauga, Ontario, Wal-MartCanada was established in 1994 by acquiring122 Woolco stores. Today, the company operatesmore than 300 locations, including traditionaldiscount stores, Wal-Mart Supercentres andSam’s Club membership operations. With morethan 77,000 associates, the company has grownto become Canada’s fourth largest employer.Each Wal-Mart store across Canada offers everyday low prices on more than 80,000 qualityproducts including apparel, home fashions, toys,hardware, electronics, sporting goods and more.Wal-Mart Supercentres, a new retail formatintroduced in Canada in late 2006, combineWal-Mart’s traditionally strong assortment ofmerchandise with a full selection of groceries,creating a one-stop shop with the largest productselection available to Canadian consumers.Approximately one in 30 Canadians – morethan one million individuals – walks through thedoors of a Wal-Mart store each day.At a glance (August 2008)In Canada sinceWal-Mart Discount Storesin Canada1994267Wal-Mart Supercentres36Sam’s Clubs in Canada6Associates77,000 Our Mission:Save Canadians money so they canlive better.Our Three Basic Beliefs:Respect for the IndividualService to CustomersStriving for ExcellenceBoundaries of ReportPublished in August of 2008, this Corporate Social Responsibility Report discusses the environmental,social and economic impact of Wal-Mart Canada Corp. and the actions taken to meet our corporatesocial responsibility (CSR) commitments during the company’s fiscal year 2008, February 1, 2007 –January 31, 2008.This report establishes performance metrics that will enable us to assess our CSR progress goingforward. Our intent is to share information on issues that are most relevant to our stakeholders: ourcustomers, associates, suppliers and the communities where we do business.For additional information on sustainability at Wal-Mart Stores, Inc.: Sustainability Progressto Date 2007 – 2008 – y/environmentFootprint.htmlReporting StandardIn an effort to create a relevant and useful document, Wal-Mart Canada reviewed various externalresources in the creation of this report, including Global Reporting Initiative (GRI) standards, the mostwidely accepted in sustainability reporting. GRI standards have been used as a benchmarking toolonly. As we develop appropriate tracking processes, we anticipate that future editions of this report willinclude more robust metrics.3

4WAL-MART CANADA CSR INTRODUCTIONDefining Corporate Social ResponsibilityAt Wal-Mart Canada, social responsibility is acommitment to operate in a way that promotespositive outcomes for our environment, ourassociates, those who manufacture the merchandise on our shelves and the communitiesin which we operate.Our mission from the beginning has been tolower prices to save Canadians money so theycan live better. Today we have a greater appreciation of how the many choices we make as acompany can enable others, both in Canada andthe broader world, to live better.Wal-Mart Canada has a director of corporatesocial responsibility who oversees a diverse taskforce of executives, directors and managers whoshare insights and provide leadership on the keyareas of our CSR initiative. We track and reporton our social responsibility performance in fourkey areas (see diagram at right):EnvironmentPeopleCSR atWal-MartCanadaGlobalSourcingCommunityCSR Task ForceFRONT ROW – LEFT TO RIGHT:CENTRE ROW – LEFT TO RIGHT:BACK ROW – LEFT TO RIGHT:NOT SHOWN:Erin MackeyChristine BoméJim ThompsonYanik Deschênes,Manager,Community InvolvementManager, Government AffairsTan GillSenior Vice President,OperationsDirector, Corporate Affairs,QuébecMariette SequeiraCountry Manager, Ethical StandardsViolet KonkleToni FansonDirector, People DevelopmentArlene MinottChief Customer OfficerDirector, AdvertisingKen FarrellManager, People DiversityKevin GrohRoland DreyerVice President,Store DevelopmentAndrew PelletierDirector, Corporate AffairsControllerVice President, Corporate AffairsSylvain PrudhommeSusan MuigaiRonald StrathdeeSenior Vice President,MerchandisingDirector, Risk ManagementMike DombrowVice President,General Counsel and SecretaryDirector, MarketingJohn LawrenceDirector,Corporate Social Responsibility

INTRODUCTION WAL-MART CANADA CSRStakeholder EngagementIn 2007, with the help of consultants at CanadianBusiness for Social Responsibility (CBSR), a nonprofit CSR consultancy and learning organization,Wal-Mart Canada initiated a formal stakeholderengagement process.Through an externally facilitated processdesigned by CBSR, individual stakeholderswere identified and invited to participate inpanel discussions in Ontario and Québec. Weasked community leaders, non-governmentalorganizations and others to review and guidecontent for Wal-Mart Canada’s CSR reporting.Through these discussions and subsequentopportunities to review a draft version of thisCorporate Social Responsibility Report, stakeholders were given the opportunity to shapethe information provided in this document.The process helped ensure that stakeholderexpectations – particularly related to transparency and relevance – have been addressed asbest as possible.Our Relationship to Wal-Mart Stores, Inc.People are often surprised to learn that Wal-Mart Canada operates largely as an independentcompany within the global Wal-Mart organization. While ideas like the Wal-Mart operatingphilosophy and values come to us from our parent, most decisions that impact our businessand our customers on a daily basis are made in Canada. Our company is Canadian in termsof our day-to-day operations.Wal-Mart CanadaAll decisions regarding what merchandise we stock, where we source it and how we price itare made in Canada.Our associate policies, wages, benefits plan and bonus plans are unique to Wal-Mart Canada.We also have an independent diversity strategy.Wal-Mart Canada has its own community involvement program. Our national programs supportCanadian charities that we feel best represent the interests of our customers.Newer Canadian Wal-Mart stores incorporate design features that complement the localcommunity landscape. When building new stores, we tender the contract for constructionto Canadian contractors.The Wal-Mart private-label products we stock are unique to Canada. For example, our newline of environmentally preferable cleaning products, The Greenline, isn’t available anywhereelse in the world.Wal-Mart Stores, Inc. (global)Wal-Mart’s defining principles such as Everyday Low Prices, our Three Basic Beliefs, ServantLeadership and our Open Door Policy are common to all Wal-Mart operations.Global sourcing is managed centrally by Wal-Mart’s Global Procurement Division, located inBentonville, Arkansas, which audits factories producing merchandise on behalf of Wal-Mart Canada.Wal-Mart Stores may launch major global initiatives aligning all worldwide operations such as ourglobal commitment to operate more sustainably. However, the specific initiatives we undertaketo meet our sustainability goals in Canada are largely “made-in-Canada” solutions.5

6WAL-MART CANADA CSR INTRODUCTIONHow are we doing?Reporting AreaGoalsEnvironmentPages 8-21We will reduce the overallenvironmental impact of ouroperations and productsPeople Be 100 per cent supplied byrenewable energy Produce zero waste Provide more environmentallyfriendly productsPages 22-33We will become Canada’sfavourite place to workGlobal SourcingPages 34-43We will support our suppliers,both domestic and international,in acting responsiblyCommunity Provide associates with a workexperience in which they feelvalued, rewarded and empoweredto grow Include social and environmentalcriteria in purchasing decisions Factory improvement Contribute to the communitiesin which we sourcePages 44-56Investment in Canada’s CommunitiesWe will have a positiveeconomic impact on Canadaand its communities Nurture long-term, mutuallyrewarding partnerships withlocal communitiesCommunity InvolvementWe will make a meaningful differencein the quality of life of Canadians Give back to local communitiesin ways that matter most toour customers and associates* No Canada-specific data is available for this statistic, as many of the factories producing merchandise for Wal-Mart Canada also produce merchandise for Wal-Mart Stores Inc.** Products sourced through Canadian suppliers. Our suppliers may source their merchandise or merchandise components overseas.† Source: ReportAction survey results

INTRODUCTION WAL-MART CANADA CSR2007 Results Against Key Performance Indicators (KPIs)Greenhouse gas produced in Canada:Direct – Metric Tonnes CO2 EquivalentIndirect – Metric Tonnes CO2 Equivalent72,302203,817Total electricity intensity per sq. ft.Total waste diversion18.72 kWh101,720,924 kgsNumber of environmentally friendly products introduced300 Number of associates77,000Percentage of associates who participated in 2007 Associate Opinion Survey81%Number of associates promoted in 20079,400Number of associates who received training in 20071,408Percentage of managers/senior managers who are women (26.1% Senior Management) 45.9%Number of fa

At Wal-Mart Canada, social responsibility is a commitment to operate in a way that promotes positive outcomes for our environment, our associates, those who manufacture the mer- chandise on our shelves and the communities in which we operate. Ourmissionfromthebeginninghasbeen to lower prices to save Canadians money so they can live better.