- Published: November 14, 2021
- Updated: November 14, 2021
- University / College: University of California, Irvine
- Language: English
- Downloads: 19
Wal-Mart’s third party suppliers in China are in competition with each other and suppliers in other countries for the Wal-Mart account. Some customers who buy from Wal-Mart have read the news about Wal-Mart’s pollution challenges. While third party suppliers in China are not allowed to comply with requests for carbon emission reports it is important to note that third party suppliers in China report to many different agencies on this issue. Third Party Suppliers in China are responsible for reporting to China’s national and regional environmental governance agencies. In China there is a “ Five Year Plan” established by the National Climate Change Program. This policy setting and regulatory body cooperates on an international level about energy efficiency and carbon emission-reduction concerns (Yui Ku 2010).
There have been demands for a certifiable and truthful publically accessible disclosure system from Wal-Mart so that consumers can track issues such as carbon emissions. Unfortunately, these are subject to Wal-Mart’s control and description and third party suppliers do not have access to this information (Torres, C., et al., n. d.). Wal-Mart’s biggest demand is price point and consumer satisfaction. However, Wal-Mart’s CEO has stated that Wal-Mart’s goal about their third party suppliers (such as those in China) is that they must meet or exceed all social and environmental laws and regulations.
Multinational companies such as Wal-Mart admit to challenging issues regarding third party suppliers and carbon emissions. Wal-Mart suppliers in China technically are not governed by any of the international treaties for climate change. This is the reason suppliers in China are accountable to the National Climate Change Program.
References
Cedillo Torres, Cristina A., Garcia-French, Mercedes, Hordijk, Rosemarie, Nguyen, Kim, & Olup, Lana. (n. d.). Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy?. (Igitur.) Igitur.
Yui Ku. (October 2010). Executive Summary: Engaging China Based Suppliers with Carbon Management Initiatives. The Challenges of Measuring Product Carbon Footprinting and Improving Energy Efficiency Management. Center for Environmental Policy, Imperial College London.
