This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Walmart Announces Plan To Raise Inspection Standards And Provide Full Transparency On Safety Conditions At All Factories In Its Bangladesh Supply Chain





BENTONVILLE, Ark., May 14, 2013 /PRNewswire/ -- Walmart announced that it will conduct in-depth safety inspections at 100 percent of the factories in Bangladesh that produce goods for the retailer. The company will complete all reviews within six months and will publicly release the names and inspection information on all 279 factories.  As a result, workers in these facilities can be assured of safer working conditions, and the entire market will be lifted to a new standard.

Walmart began more rigorous inspections under the enhanced safety program earlier this year, and will begin posting results of these inspections on June 1.  Adding to this new level of supply chain transparency, starting today, the company posted on its website the list of failed factories in Bangladesh that are no longer allowed to produce for Walmart:  http://corporate.walmart.com/bangladesh  A list of all failed factories will follow in the coming weeks.   The company is also increasing the pace and frequency of follow up inspections in all Bangladesh factories, with visits taking place every two months to ensure both compliance and progress.

"Transparency is vital to make progress in improving factory conditions, and by disclosing this information, government, workers, non-governmental agencies, and companies can benefit from this work," said Rajan Kamalanathan, vice president of Ethical Sourcing for Walmart. 

The safety inspections are designed to provide detailed reports that allow the company to continue to make responsible sourcing decisions, and include:

  • Thermal circuit imaging to determine the temperature profile of the factory electrical system and analysis for possible faults and fire risks.
  • A review of system compliance with both local legislation and global standards (NFPA 70).
  • Measurement of circuit parameters including voltage, current, insulation, and leakage to identify system performance and existing or upcoming risks, as well as a review of circuit load in relation to system protections to identify the degree of protection against overload and hotspots/sparks.
  • Confirmation of approved building design and verification of civil design compared to major dimensions of existing building construction; a review of building utilization per permits and as utilized; reviews of compliance with local legislation; review of routes of egress, fire detection systems and response elements, including sprinkler systems and fire mains.
  • Visual inspection of building for indications of structural distress.
  • Review of building use as compared to conditions established in fire certificate for the building.

Walmart retained engineers and other trained professionals to perform these inspections at its own cost.  The company will immediately order its production stopped at facilities where urgent safety issues are identified, notify the factory owner and government authorities of the need to take action, and require remediation.  Walmart expects that the costs of appropriate remediation and ongoing safety investments to be appropriately reflected in its costs of goods purchased.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs