1 - Introduction

Summary

On January 23, 2008, following years of challenges from activist groups, H. Lee Scott, Jr., the chief executive officer of Wal-Mart, delivered the following remarks at the company's 2008 year beginning meeting:

We live in a time when people are losing confidence in the ability of government to solve problems. But at Wal-Mart, we don't see the sidelines that politicians see. And we do not wait for someone else to solve problems that might hurt our business or affect our customers in a negative way. We have a culture of teamwork, a culture of innovation, and above all, a culture of action.

In the years ahead, we might not be able do everything that everyone wants us to do. But we will do things that need to be done and that you and your company can do. Wal-Mart can take a leadership role, get out in front of the future, and make a difference that is good for our business and the world.

Although the economic climate worsened notably in the years following Scott's speech, Wal-Mart, along with many of its competitors and suppliers, stayed the course and continued to see beyond “the sidelines” between business and society demarcated by the state. For example, Wal-Mart has engaged in a delicate strategic dance with protesters regarding its store-siting policies. During the period from 1998 to 2007, when faced with significant protest activity over a proposed store, in 65 percent of cases Wal-Mart retreated and either did not open the store or located it elsewhere (Ingram, Yue, and Rao 2010).