Corporate Social Responsibility, Outsourcing and the Repercussions of the Walmart Case

Submitted by Michael Mensik

In 1992, in an apparent response to criticism that Wal-Mart had not done enough to ensure that its domestic and international vendors operated factories meeting basic human rights and labor standards,Wal-Mart introduced its Standards for Suppliers (the “Standards”) to promote what Wal-Mart referred to as its three basic beliefs: (1) respect for the individual; (2) service to its customers; and (3) striving for excellence.

Since their introduction, the Standards have purportedly been incorporated into every contract with foreign suppliers. They require all foreign suppliers to adhere to applicable laws and minimum requirements set out in the Standards regarding basic conditions of
employment, including compensation, hours of labor, forced labor/prison labor, child labor, discrimination/human rights, freedom of association and collective bargaining, and workplace environment. Wal-Mart commits to enforcing the Standards by conducting unannounced inspections of production facilities and performing related monitoring activities.

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