Yes, we’re talking about Walmart. And considering its size, Walmart is probably the last company you’d think of for being highlighted in a section describing sustainability. However, Walmart has committed to improving its sustainability efforts. Walmart’s corporate actions affirm that sustainability has definitely become a mainstream issue for managers.

We introduced you to sustainability in Chapter 1 as we discussed factors reshaping management in today’s organizations. Just a refresher: We defined sustainability as a company’s ability to achieve its business goals and increase long-term shareholder value by integrating economic, environmental, and social opportunities into its business strategies.23 Organizations are widening their responsibility not just to managing in an efficient and effective way, but also to responding strategically to a wide range of environmental and societal challenges.24 Like the managers at Walmart (and others committed to being sustainable) are discovering, running an organization in a more sustainable way means making informed business decisions based on thorough and ongoing communication with various stakeholders, understanding their requirements, and factoring economic, environmental, and social aspects into how they pursue their business goals.

The idea of practicing sustainability affects many aspects of business, from the creation of products and services to their use and subsequent disposal by consumers. (Check out Case Application #2 on Keurig Green Mountain Inc. and the Experiential Exercise at the end of the chapter.) Following sustainability practices is one way in which organizations can show their commitment to being responsible. In today’s world, where many individuals have diminishing respect for businesses, few organizations can afford the bad press or potential economic ramifications of being seen as socially irresponsible. Managers also want to be seen as ethical, which is the topic we’re going to look at next.