The Perspective of a Shareholder for Investing in Walmart Inc.

The Perspective of a Shareholder
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The Perspective of a Shareholder
Making investment decisions for a potential shareholder requires an insightful understanding of the targeted organization. Prospects such as the image of the organization, its management, and performance in the stock market can be vital in making investment decisions. A failure to explore some of the above prospects could lead to bad investment decisions and loss of capital in the end. The challenge for target assessment is bigger for an organization that operates at the international level. That is because it is imperative to assess how the entity performs and is perceived in all its operational settings. This paper takes a potential shareholder perspective to assess the suitability of investing in Wal-Mart Stores Inc. (WMT). Investing in WMT presently is a good decision considering the organization’s multifaceted success with its business ethics and CSR practices, competition, and stock prices both presently and in the future.
Business Ethics and CSR Practices
WMT is one of the most socially responsible organizations in its industry. The organization outlines in its CSR strategy that it intends to align and cooperate with other players to transform its operational environment. Some of the moves that WMT has put towards such a declaration is embedding its operations on renewable energy, creating zero wastes, and selling products that sustain both the environment and the people (Wal-Mart, n.d). The specific prospects in which WMT has indulged as part of its CSR strategy include supporting local communities through ASDA donations in the UK to promote businesses and Wal-Mart Foundation donations in the US. WMT also empowers and educates workers through initiatives such as the $1 billion investment in 2015 to provide higher wages in the US (Yan & Yao, 2021). Ultimately, WMT is committed to a tolerable society considering its support towards gender equality and minorities. 22% of WMT corporate officers are people of color, while 32% are women (Yan & Yao, 2021). The above CSR initiatives have elevated WMT as a leading organization globally.
It is noteworthy that the success that WMT has seen in conducting various CSR initiatives has also steered it to global criticism. WMT’s CSR activities have been criticized as disingenuous and not worth loyalty. In 2005, labor unions created websites and new organizations to criticize WMT’s labor activities (Yan & Yao, 2021). The criticism that WMT faces is wide and accommodates prospects that include its policies, business practices, and impacts. Some of the specific areas of concern in WMT’s operations include allegations of employee surveillance, use of public subsidies for profitability purposes, poor environmental practices, and poor treatment of product suppliers. The other allegations include foreign product sourcing, racial and gender discrimination, and participation in anti-competitive practices. Bearing its size, WMT has the resources to fight the allegations both legally and through public relations initiatives. However, the legal and ethical challenges that WMT faces in its operations keep casting doubts on the nature of its ...