In May, the National Governors Association (NGA), announced that Wal-Mart would run energy audits of the capitol buildings of 20 U.S. states with a view to identifying opportunities to reduce energy consumption. Why would Wal-Mart do this?
Because in this way Wal-Mart can build good will with legislators and the public, honourably, and at a low cost. Just a couple of years ago, Wal-Mart faced public dislike – expressed in multiple anti-Wal-Mart sites and an anti-Wal-Mart film “The high cost of low prices”. Furthermore, hundreds of citizens groups had protested store openings, and dozens had succeeded in stopping developments. This had negative financial consequences, terrible public relations consequences, and low morale among employees.
Wal-Mart changed strategy, and have modified their business practices – particularly with respect to the environment. They have undertaken substantial work in-house. And now they are leveraging two key aspects to support the governors: 1) the learnings they gained in developing their own environmental programme and 2) their procurement expertise and purchasing clout to ensure the lowest prices. So they build goodwill at little or no additional cost to themselves. And in doing so, serve a public good.
Clever.
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