181_Is It Ethical to Shop at Walmart?

Adventures in Sustainable Living Podcast
Episode 181
Is It Ethical to Shop at Walmart?
 
Top of the list for most consumers is price and convenience. However, in our pursuit of such convenience we often sacrifice our money, our physical health, our mental health, the environment as well as the rights of all the workers upstream from where our purchase actually occurs. 
 
One of the challenges is that due to our current market place, there is an over abundance of choices. Consequently, most consumers tend to purchase from a huge conglomerate because we can easily find everything we need all in one place and it saves us time and money.  
 
But when it comes to best practices for sustainability, what about the little guy, the small business that cannot possibly compete with an international company? In our rush for convenience are we really making ethical choices? 
In this episode I am going to focus on one company, and that is Walmart. 
 
Welcome back everyone to the Adventures in Sustainable Living Podcast. This is your host Patrick and this is E181 Is It Ethical to Shop at Walmart.?
 
Sustainability question of the week
 
Is it expensive to live sustainably? 
 
Good news story of the week
 
The US Unveils the First-ever regulations to remove forever chemicals from drinking water
 
Our environment is widely contaminated with what is called forever-chemicals. These are a class of chemicals that will take hundreds to thousands of years to break down. The challenges is that these chemicals are widely used and are found in oils, stains, food packaging, waterproof clothing, adhesives, stain resistant furniture, fire retardants, and even non-stick cooking surfaces. 
 
These chemicals has been connected to a wide range of health problems depending on the class of chemical and the level of exposure. But common disorders are immune disfunction, various types of cancer, endocrine disruption, thyroid disease, developmental disorders, asthma, liver toxicity, and many others. 
 
But the EPA recently unveiled legislation that would remove these chemicals from drinking water. There are 66,000 water utility operators across the country. There is a 5 year plan to test for these chemicals and install the new technology needed for their removal. 
 
Records show that many companies knew about the toxicity of these chemicals but did nothing about it. Finally the Environmental Protection Agency has passed legislation to limit the exposure despite huge opposition. 
 
So, the round of applause this week goes to the EPA for helping to clean up the world. 
 
 
 
 
So, let’s get started with this weeks episode. 
 
First of all I want to make something very clear. The point of this episode is the same for many other things that I do. I want to make you question how you live, what you do, and the choices that you make. Then I want to give you some sustainable alternatives. I will make every attempt to provide you with accurate information. I am not going to say that businesses such as Walmart are part of the evil empire. Although, there are many who would disagree. But I am going to give you some things to think about. 
 
Most of you know by now that I spent years building a self sustaining homestead in the middle of the forest. It was the accomplishment of a life-long dream. 
 
However, I will be the first to admit that initially I was not focused on sustainability. To a great degree by default I was actually being sustainable. I focused on using as few resources as possible. I purposely built the cabins for maximum energy efficiency. I made attempts to provide as much for myself as I could from the land where I lived. But my focus was on self sufficiency. 
 
Over time, I began to focus more and more on sustainability by gardening, producing much of my own meat, and living solely on renewable energy. That said, I still have to take advantage of various businesses to purchase food, products, fuel, etc. But now that the basics are well established, most recently I have begun to think a lot about the ethics of what I do and how I do it. After all, every time each of us spends money on something, we are casting our vote for one thing or another. 
 
 
Now you could argue that ethics is nothing more than a matter of convenience. After all you have certainly heard me say before that it is a privilege to live within your values. But sometimes it is worth standing up and saying enough is enough no matter what the cost. 
 
Many of you know that I have been self employed for over 25 years. I have enjoyed great success in my business and have no regrets. But, it was not always that way. In the beginning, I took anything and everything that came along because I needed the money. It just did not matter because I was struggling financially. 
 
Initially I spent a great deal of time working in clinics and hospitals that were extremely difficult environments. The clients were difficult. The owners were not nice people either. They treated their staff and to some degree their clients very poorly. Time and time again I witnessed unethical practices. But I rationalized that such behavior did not involve me and they treated me well and paid me well. After all I needed the money. 
 
But after a time I started questioning whether or not I was compromising my own ethics. I witnessed unethical practices and made no attempt to do anything. So, was I supporting what was going on simply by being complacent?  The end result is that  I started speaking up and asking questions and voicing my opinion. I spoke out when I saw things that I did not think were the right thing to do, things that were unfair to staff, clients and our patients. There were times when I even got into screaming matches with the owners and I walked out. But it felt good. It was sort of like back in the day when you could slam the phone down on someone. It just made you feel good. 
 
Needless to say, I lost some work at a time when I really needed the money. But that was the sacrifice I paid for no longer compromising my ethics. Was it inconvenient? Absolutely it was. Did it hurt a little? Yes it did. And I didn’t really care. Fast forward to present day, I now work with a number of businesses that appreciate the fact that I will not allow something to go unaddressed. That is one of the reasons they call me back. 
 
Now, some would say that ethics is a convenience of modern society. But is it? Certainly history is full of examples of hundreds and thousands of people loosing their lives fighting a war over oppression and tyranny. My point being, there comes a time when you have to say enough is enough and I am not going to play anymore. We have to do something different. 
 
So what does all of this have to do with the evil empire? 
 
Walmart was founded by a man named Sam Walton. He used a $20K loan from his father-in-law and $5,000 of his own money to purchase a Ben Franklin variety store in Newport, Arkansas in 1945. Inspired by his early success, and a desire to bring even more value to his customers, Sam opened the first Walmart in 1962 in Rogers, AK. 
 
Walmart now has over 11,500 stores, operates in 29 different countries, and has 260 million weekly shoppers. And it all started from a $25K investment. Sam had a simple goal up front which was to provide people with low prices and good service.  Statements in their employee handbook were things such as
 
Stock it. They will come!
Price it right. They will buy it!
Show the value. They will buy more!
Teach them. They will use it!
 
Walmart has adhered closely to their core values and this has resulted in tremendous success. 
 
Now, that being said, Walmart has taken a considerable amount of criticism for a number of different things. 
 
Basic Standard of Living
 
Average pay in Walmart varies considerably depending on your responsibilities. But average wage across the US is $31,600 annually. That is an average of $658/week. 
 
In some cases it is seen that Walmart drives down the local standard of living, it pulls down wages and benefits and even forces the closure of other local businesses.
 
According to a recent survey, in order to live comfortably in 99 of the largest metro areas in the US, a single person would need a salary of $99,900 USD per year. So, does Walmart actually support even a basic standard of living? 
 
And just for your information, as of 2024, the Federal Poverty Level for a family of two was $20,440 USD. 
 
It is alleged that Walmart’s personnel policies are aimed at keeping wages low. Accusations have been made that WM lays off older employees in favor of younger and cheaper labor. WM has also been accused of widespread sex discrimination in order to keep women at lower wages. 
 
Supports Unethical Decisions
 
But Walmart also supports managers that make unethical decisions. One manager wrote a report that employee wages could be reduced by eliminating unhealthy employees, hiring more part-time employees, and reducing the financial build-up  for the retirement of employees.  
 
Violations of the American Disabilities Act
 
In 2017 the US Equal Employment Opportunity Commission filed a disabilities discrimination suit against Walmart for terminating employees with disabilities for failing to pass their so called “Pathways Graduation Assessment” even though test performance had no relation to performance of their job duties. Such conduct violates the American with Disabilities Act. 
 
 
Health Care and Benefits
 
Nearly 70% of Walmart employees cannot afford to participate in the company health insurance plan. It cost 20% of their paycheck. Since 1993, Walmart has increased the cost of this plan by 200%, which is well above the rise in cost of health insurance. 
 
Groups of employees have also complained that Walmart refuses to grant medical leave and refuses to comply with the family medical leave act. 
 
Inequality
 
Last year, that being 2023, Walmart made $514 billion dollars, which is 2.4% of the US GDP. Obviously it is a major part of the US economy. However, it still traps people in low pay, no benefit, dead-end service jobs. 
 
Lack of technological innovation
 
Walmart does not produce any new technological innovation. It just takes business from existing firms by selling things at a lower price. 
 
Radiating Death
 
In 2006, a few months before a Walmart store was opened in the Austin neighborhood of Chicago's West side, researchers found that there were 306 businesses in the surrounding area. Two years after that Walmart store opened, 82 of those businesses had closed.
Now when a large retailer moves into an area, it is expected that some small businesses are going too close. But what researchers found was that the closer those business were to Walmart the more likely it was that they would close. 
Walmart uses foreign labor and child labor
Approximately 50% of Walmart’s goods come from overseas. This is course takes away from jobs within the country. This also creates difficult labor conditions for foreign workers. For example, in Bangladesh a labor organization told the New York Times that Walmart’s suppliers in the country did not pay workers a living wage and that their management coached workers to lie to auditors about factory conditions. 
Walmart is against employees forming a union 
Employees are threatened with losing their jobs if they vote for a union. There have been numerous cases where employees voted to form a union and Walmart chose to close a store or a division of that store operations instead of allowing a union. 
Predatory pricing
There have been numerous complaints about Walmart’s predatory pricing. Complaints from the Department of Agriculture, trade organization and consumer protection agencies have centered around  antitrust laws and Walmart selling various items at extremely low prices in order to monopolize a market. 
 
The Good Side
Now so far you are likely thinking that I am building a case against the evil empire. But despite all the bad things you can say about Walmart, there is a good side. 
Norway Pension Fund
Norway has a government pension fund worth over $1 trillion dollars. It is the largest sovereign wealth fund in the world and it focuses on social responsibility. Thirteen years ago the government excluded Walmart from its investment portfolio for ethical reasons. The ethics board cited reports of employee abuse, safety violations, worker intimidation, unpaid overtime and numerous other issues related to the retailer’s suppliers. Just recently Norway decided to reverse that decision. 
Perhaps this decision is more symbolic than material. It could be interpreted as a testament to positive changes in Walmart’s practices or at a minimal it is at least the removal of the badge of shame. 
 
Third Party Audits
Walmart has also started using third-party auditors to monitor working conditions at it’s supplies. Walmart generated 14,700 supplier audit reports in 2019 and launched 500 investigations into the issues that were reported. 
Responsible Sourcing Unit
Walmart has also established a responsible sourcing unit which has 150 employees. It focuses its efforts on countries that are most at risk for abuses. Walmart has ceased to do business with at least 30 of it’s suppliers due to violations. Now that is a good start but the company literally has tens of thousands of suppliers. The company also has a global hotline where employees can report abuses. They are also working more closely with governments to improve working conditions overall. 
Fortune Magazine and Philanthropy
Walmart is consistently voted by Fortune magazine as one of the best companies in the US. Walmart also has a history of donating hundreds of millions of dollars to philanthropic ventures. 
Is It Ethical to Shop at Walmart? 
Now that you have seen both sides, the question becomes whether or not it is ethical to shop at Walmart? Well, I would say it depends on your values. But take a look at this issue in a different way.
There are two really big discount stores that are well known around the world. One is evil the other is good. 
The evil one is criticized for a number of big issues. For example; promoting inequity, sexual discrimination, paying substandard wages, utilizing child labor, gender discrimination, ignoring disability protections, ignoring human rights violations, crushing the competition and driving small businesses to close, eliminating people in the work force that protest. In other words, a tyrant
The other discount store is very different. It was founded by a good hearted entrepreneur that focused on thrift, developing a brilliant distribution system and passing those savings onto the consumer. This business cares about the community and fosters philanthropy by donating hundreds of millions of dollars. Several years running this company was voted as being the first to support local causes and issues. It is consistently voted one of the best companies in the country. In other words, the kind of company you may want to work for.
But you want to know the weirdest thing.The huge dichotomy here is that both of these companies are named Walmart. So, is it ethical to shop at Walmart? Well, it depends on your values. 
If you choose to purchase a particular product from a company because it is the only thing you can afford based on your economic class, then that is a choice you make based on your values. 
If you choose to purchase from a company simply because of ease and convenience and it does not bother you about their ethics, then that is a choice you make based on your values. 
If you choose to purchase clothing made in a third world country where the majority of the workers are between 16 and 23 years and are paid less than $3 USD a day, and this is of no consequence to you then it is perfectly fine to buy the product in question.  
If you chose to purchase from a company and it makes no difference to you that there are little if any progressive polices on health benefits and medical leave for their employees, then your choice is perfectly fine. 
Now, some of you may be question whether or not I shop at Walmart. The answer is yes. But allow me to clarify. Researching material and producing episodes for this podcast over the last several years has changed a lot of things for me. As I become better informed about various issues I change my behavior. 
For example, for the longest time I questioned whether or not it was valid to pay the extra money for all organic produce. But then after I produced the episode 14 things you never knew about grocery store produce, I changed my mind. I learned about the long list of pesticides that are in our produce. I now purchase only organic and don’t hesitate to pay the extra price. 
Now that I have produced this episode I have learned a lot about the background of Walmart. Despite the many good things this companies does, it also has a clear and distinct dark side. Therefore, I question whether or not it is ethical to shop there. After all I purchase as few things as possible so why not pay the extra price and shop with a company with a better tract record. 
Most surveys show that 85% of people are willing to pay more money for a product that produces less of an environmental impact. Not only that, people in general these days are learning there is an environmental and social impact to putting a product on the shelf and perhaps we need to look beyond price and convenience.
Truly our success in building a sustainable future is focusing on the pillars of sustainability, that being people, planet, and profits. But in order for us to be successful we must not exclude even the most marginalized people in our global community. And if there is a company that has a history of ignoring that part of our population then why should we support that company? 
Does this mean you are unethical for shopping at Walmart? No it does not. As I said, it depends on your values. Will I continue to patronize Walmart? Yes I will but only under certain situations where I really need something and have no other choice. IN which case I have to look past their ethical issues, at least for the moment. The most I can do is minimize my contact and make a different choice. 
This is somewhat similar to how to deal with paying my taxes. I absolutely do not agree with all that our government does. They spend our tax dollars like an irresponsible teenager with a credit card. They do unethical things and give enormous tax breaks to businesses that are responsible for widespread environmental destruction. But I still pay taxes which says to a certain degree I support what they do. 
I choose to deal with this in two ways. First of all I reap the many benefits of living in a country where we have a tremendous amount of personal freedom. I can within reason do whatever I want. That would not be possible without our government and the personal sacrifice of our military personnel. This is because freedom is not really free. 
The second thing I do is stay in business for myself. I have numerous legal and legitimate ways to reduce my tax burden. I had a fantastic long-term relationship with the same accountant. He makes certain that I color between the lines because he will come to my defense if needed. By doing so, I keep honest records, I reduce my tax burden. By doing so, I reduce my financial support for a government that does a lot of things I truly disagree with. I can’t refuse to pay taxes. But I can say no to Walmart. 
You can choose to look at Walmart as an evil empire. You can also choose to look at our government as an evil empire. But the bottom line is that our choices do make changes. While Walmart does a lot of good things it also has a lot of questionable practices as well. 
 If Walmart was simply a single small business in a small community instead of an international corporation? And what if the company’s list of violations were well known in that community? And what if there were plenty of other options in that community for goods and services? Do you think they would stay in business? I think not. 
So the next time you need to purchase something consider supporting a local business. The next time you travel, considering arranging a home stay instead of staying with a hotel chain. The next time you need organic produce, support a local farmer. The next time you need organic meat, support a local rancher. After all, it is all of these individuals that build the communities that we live in. And supporting these individuals will help us to build a sustainable future instead of supporting what some view as the evil empire. 
 
Sustainability question of the week 
 
Is it expensive to live sustainably? 
 
Often times businesses that sell sustainable products get premium prices. Good examples would be clothes, organic foods, skin care products, and even recycled and repurposed goods. This leaves most people with the impression that being sustainable is expensive.  
However, a lot of sustainable practices originated from the desire to save money. There are numerous ways to live sustainably without spending money. For example, using renewable energy actually costs less than grid power. Conserving energy saves you money. Buying only what you need and wasting nothing saves you even more money. Eliminating your food waste will save you approximately $2,500 a year. Bottom line, a sustainable lifestyle does not have to be expensive. 
In closing folks, I want to remind you that I have completely redesigned the homepage for the podcast. So be sure to visit me at adventuresinsustainableliving.com where you can download a free resource called 200 Sustainability Questions and Answers. It really is a valuable resource so please take advantage of that. 
I want to close today with a quote from Oscar Wild. He once said, “Experience is the name we give our mistakes.” But, will we learn from that. I sure hope so. 
Until next week, this is your host Patrick signing off. Always remember to live sustainably because this is how we build a better future.