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Reporte2009•ResponsabilidadSocialySostenibilidadSocialResponsibilityandSustainabilityReport2009
Report 2009
Social Responsibility
and Sustainability
In Honduras, Regional Volunteer Day 2009, supporting the Cerebral Palsy Home Rehabilitation Program. In the photo (left to right): Espectacion
Banegas of the Choluteca Despensa Familiar, Gabriel Chiriboga of Hortifruti, Kevin Martinez (son) -child attended at the Institution-, Gerin
Martinez of Hiper Paiz Boulevard (father) and Norma Membreño of Human Resources.
2
SocialResponsibilityandSustainabilityReport2009
Wesaveyoumoneysothatyoucanlivebetter
Whoweare
Whoweare 3
Contents
Discount Stores
Supermarkets
Hypermarkets
Warehouses
WholesaleMembership
DiscountClubs
Gas Stations
113
28
7
14
2
4
168
50
25
2
77
39
7
1
6
53
48
7
55
127
25
6
12
170
377
98
16
32
2
4
523
Trademarks and Formats
Walmart Central America
Walmart reaches 51% and
takes over administration
CSU associates itself with La Fragua and
Royal Ahold
Walmart buys 33% of Royal Ahold shares
First store converted to
Walmart systems
Alliance that converts Walmart Mexico
into the 100% stakeholder of
Walmart Central America
Enrique Uribe founds Mas x Menos
(later Corporación de Supermercados
Unidos - CSU) in Costa Rica
La Fragua allies itself with Royal Ahold
Carlos Paiz founds Tiendas Paiz
(later La Fragua) in Guatemala
Sam Walton founds Walmart
Stores in the US
2006
2001
2005
2008
2009
1960
1999
1928
1962
Our History
Agro-Industrial Development is the specialized division created
to guarantee the supply of quality products to our stores and
customers. The companies that make it up are:
Alin
Processes and commercializes cereals and other natural
products: oats, granola, honey, peanut butter, powdered drink
mixes, gelatins and syrups.
Decoinsa
Develops private brand mass-consumption products with an
excellent quality-to-price ratio
Granja Avícola Ricura
Processing and marketing of poultry products, turkey,
commercial eggs and egg-based products.
Hortifruti
Devoted to agricultural development and marketing of fruits,
vegetables and grains.
Industrias Cárnicas Integradas
A company for processing beef and pork meat as well as fresh
and cooked sausages.
Panificadora de Guatemala y El Hornito
Developing and marketing bakery products, deserts and cake
creams.
Pescarnes
This company processes and develops fish and fresh seafood
products.
Guatemala
El Salvador
Honduras
Nicaragua
Costa Rica
C
entral America
Warehouses
Format with a wide
offering of food
products, general
merchandise and
textiles, all at low
prices.
Discount Stores
Stores specializing
in the sale of staple
goods at the lowest
prices on the market.
Supermarkets
Stores with a wide
array of products (with
an emphasis on fresh
goods), competitive
prices and excellent
service.
Hypermarkets
Stores that allow
customers to do all
their shopping in
one place at very
convenient prices.
Wholesale
Membership Discount
Clubs
Members-based stores
aimed at wholesalers and
consumers that buy in bulk.
Executive Committee
Internal Audit VP
Purchases and Marketing VP
Human Development VP
Real Estate VP
Logistics VP
Agro-Industrial Development VP
Integration and Systems VP
Finance VP
Legal Affairs VP
Operations VP
President and CEO Marcos Samaha
Vice-presidents
Laura Babarskas
Gustavo Camacho
Linda Díaz-Cuadra
Gabriela Gutiérrez
Julio Quevedo
José Manuel Rodríguez
Tizoc Suárez
Roberto Sucre
José David Zúñiga
Manuel Zúñiga
Letter from the President
4
Customers
5
Associates
7
Community
11
Suppliers
17
Development of SMBs (Pymes)
19
Sustainability
24
Awards and Acknowledgements
28
5
SocialResponsibilityandSustainabilityReport2009
Leahorramosdineroparaquevivamejor
In a challenging year such as 2009, Walmart
Central America tightened its efforts in
confronting the crisis and put its weight
behind having its customers save money. We
opened 23 new stores in the region, generated
more than 1,500 direct or indirect jobs in the
communities, and continued supporting the
growth of small-and medium-sized businesses
(Pymes). Also, honoring our commitment
to the environment, we implemented
“Sustainability for a Better World”, a program
stretching across many disciplines that
promotes sustainability through the
participation of the company, its associates,
suppliers, clients and communities. This is our
way of doing business, every day, in the good
years and the challenging years.
2009 was a year of great learning experiences
and quick reactions to adapt ourselves to the
needs of our clients who honor us with their
preference. It was a year in which we have
amplified our low-price strategy, which we
will continue to use as leverage to reduce
costs, expanding efforts to offer the best
stores, the best assortment of products and
the best services.
Being conscious of the new reality and of
our role as a socially responsible company,
we have donated more than $2,5 million in
the region. We support diverse projects with
high added value, such as:“Eating Healthy is
Cheaper”in Costa Rica and“A Healthy Diet for
Boys and Girls”in Nicaragua; programs that
combine nutritional education and assistance
with required nutrition for children who are
socially at risk.
In Honduras, through the“Socially Responsible
Value Chain”we have trained small farmers
and business owners to become micro-
entrepreneurs. In El Salvador, in response to
the serious consequences of Hurricane Ida,
we have donated a large number of nurseries
to the victims. Also, due to the provisions
and nutritional crisis declared in Guatemala,
Walmart Central America’s associates, in
demostration of solidarity with those affected,
have made a valuable donation, which was
matched by the company.
Due to our commitment to Social
Responsibility and to the region, we have
received significant recognitions. The
operation in Honduras was awarded the
“Socially Responsible Company”Seal for
the second year in a row. In June of 2009,
the annual poll conducted by the Summa
Magazine y HayGroup, conducted among
more than 1,000 top executives of 250 leading
companies in the region, named Walmart
Central America as the Best Multinational
Company in Central America and Dominican
Republic.
In conclusion, I would like to enthusiastically
point out that starting in 2010, our company
will form a strategic partnership with
Walmart of Mexico, one of the most efficient
and competitive retail operations in Latin
America. This integration will allow us to take
advantage of the synergy and speed up the
processes of lowering costs, offering even
better services, and benefiting our clients by
lowering prices even more so they may live a
better life.
Sincerely,
Marcos Samaha
President and CEO
Walmart Centroamérica
AYear of Challenges and Accomplishments
4
LetterfromthePresident
89%
General Level of Satisfaction
with Stores
81%
of our clients are women
74%
of our clients are families with
children (under 15 years old)
1,6%
increase in the number of
transactions vs. 2008
Customers
For several generations, Walmart Central America stores have been at the side of the
clients who honor us with their choice throughout the whole region. The mission has
always been the same: save money for families so they can live better.
In challenging times, this mission leads us to tightening our efforts to help our clients
save more quetzals, dollars, lempiras, cordobas or colones of their family budget.
Furthermore, during 2009, Walmart Central America invested around 30 million dollars
to strengthen its strategy of low prices, and thus offer better prices to the clients,
through constant monitoring and analysis in every market. This investment not only
allowed us to lower the prices of the most essential products, but also to launch
various regional initiatives aimed at saving the clients money in their purchases:
Always
thinking
about the
client!
Our Operations in Numbers
233,500 clients consulted in the region (Dec. 08 – Nov. 09)
6
Wesaveyoumoneysothatyoucanlivebetter 7
SocialResponsibilityandSustainabilityReport2009Associates
Our store openings continually generate new formal employment opportunities
in the region, which consist of support positions at production plants, distribution
centers and offices. For example, on average and according to store format, each
opening creates the following numbers of jobs: Discount Stores, 18.5; Warehouses, 48;
Supermarkets, 81; and each new Hypermarket provides 260 people with jobs. In 2009,
Walmart Central America opened 23 stores: 1 HiperPaiz in Guatemala, 1 MaxiBodega in
Costa Rica and 21 Discount Stores (4 in Guatemala, 5 in El Salvador, 3 in Honduras, 4 in
Nicaragua and 5 in Costa Rica).
Work Environment
A new Commitment Survey was conducted in 2009 to find out the levels of
involvement of the associates with the Company. This study measures the satisfaction
levels for the primary categories that determine associate commitment: work
environment, respect, teamwork, career opportunities, compensation, training,
company practices, quality of life, and others. This process is then finalized through the
communication of the results, their analysis and the implementation of improvement
plans proposed for each area and/or department.
Our people make
the difference
Critical
Zone
0%
25%
40% 60%
100%
Transition
Zone
Average
Zone
Comparative
evaluation
averages
Best employer’s
Zone
Source: Hewitt Associates
70,5%
Customers
Redistribution of spaces and
selections in stores
With the goal of improving the clients’
shopping experience, a process of store
space optimization was started in 2009. This
initiative allowed us to offer customers greater
convenience, providing them with wider aisles
and optimizing the number and size of shelves
per aisle.
Additionally, categories of products have
been grouped according to their intended
use, presentation has been enhanced, and a
program of adjusting the selection of products
according to turnaround and demand at
each location has been initiated. Aimed at
the satisfaction of customers’and associates’
needs, this activity has resulted in a continuing
improvement for the stores.
Adapting to the Clients’needs is
respecting them and helping them
live better lives.
In every single market where Walmart
Central America opens its stores, establishing
relationships of trust with each community,
listening to clients’concerns and satisfying
their requirements is of utmost importance to
generating superior shopping experiences.
In Guatemala, where the indigenous
population makes up almost 40% of the total,
we have been able to adapt ourselves to the
local needs and promote the development
of a better quality of life for our clients and
associates. For example, in order to better serve
our clients from predominantly indigenous
communities, labels and banners are printed
in their language. Local music with messages
in the local language is played and many of
the associates who work in these stores are
members of the same community and even
wear their traditional clothing to work.
“Chiquitititos”
This program, developed in Pali and
Despensa Familiar, offers small-size
products at the lowest prices.The
initiative, designed to benefit our low-
income clients, includes a goods basket of
100 basic products per country, with the
introduction of an additional 100 products
in the region, in smaller than usual
packaging or on a per-unit basis.
“Chiquitititos”is a commercial dynamic
aimed at savings, as it keeps the per-unit
product prices stable, and the client only
pays for the quantity purchased.
“Los 3 bajitos”
This pricing program, launched in the
MaxiBodega stores of the region, offers
sets of basic products at three different
low price levels: 1, 2 and 3 quetzals in
Guatemala; 5, 10 and 15 lempiras in
Honduras; and 300, 400 and 500 colones
in Costa Rica.
This is another initiative that also saves
clients’money, as it offers purchase
options in accordance with needs, with
a base discount of 20% relative to the
normal market prices.
“Miércoles Frescos”*
“Miercoles Frescos”is a successful practice
that originated in 1999 in Nicaragua, and
whichWalmart Central America decided
to regionalize at to all the supermarkets
operating in the region.
This program is characterized by offering,
in the middle of the week, excellent prices
for meats, fruits, vegetables, poultry,
seafood and sausages. It is an original
alternative with the clients’exclusive
benefit in mind, whereby the stores offer
a great variety of fresh perishable goods
at the best prices.
*“Martes Frescos”in El Salvador
“Hiper Sábado Regalado”
In December,Walmart Central America
hypermarkets introduced this commercial
offer in the region, with big discounts on
the regular selection of products, mainly
in electronics and general merchandise,
while stocks last.This was the“official
launch”of the Christmas season for this
kind of stores, and called for rigorous
organization, and it attracted the interest
of more than 160,000 clients, who visited
one of the 16Walmart Central America
supermarkets that day.
Associate Opinion Survey, 2009
8
Wesaveyoumoneysothatyoucanlivebetter
A survey was undertaken in April by electronic
means (Intranet), and through anonymous,
voluntarily participation of 83%, which
revealed that the satisfaction level among
employees is 70.50%. This has once again
placed Walmart Central America among the
region’s best employers.
Aiming at being“one of the best places to
work”, Walmart Central America promotes a
work environment that is conducive to open
communication, in which the associates, in
addition to being a part the information of
the business, have different means of freely
transmitting their concerns and comments,
such as: the Open Door Policy, interviews,
location visits, suggestion modules, etc.
Diversity
Walmart Central America promotes equal
opportunity in employment in a work
environment where people are respected
and valued regardless of gender, sexual
orientation, race, faith, nationality or special
abilities. In terms of gender, 42% of our
associates are women, who also occupy 40%
of the leadership positions and make up 30%
of the Executive Committee. Furthermore, the
company provides direct employment to 322
associates with alternative abilities, who also
add value to the company.
In 2009, Walmart Central America created the
Female Leaders Council, a global innovation
of the Company that is a part of the initiatives
dealing with the issues of inclusion, gender
and diversity. The primary objective of this
forum is the creation of proposals and ideas
that promote professional development
among women. Furthermore, the President
and CEO has established a hiring practice
whereby an equal number of male and female
candidates are considered for every job
opening.
Training and Professional
Development
There is ample variety of educational courses
available to associates to advance in their
professional development. For example, store
employee training may include workshops
and practical exposure to the handling of
processed products, perishable products and
dried products, food safety, inventory, textile
products handling, customer service, cash
register operation, etc.
The Middle Management and Store
Management Development Programs have
concentrated on leadership, planning,
supervision, communication, store operation
and product management. On the other hand,
the Program of Updating for Improvement
designed at MIT (Massachusetts Institute
of Technology) has been launched. This
program, designed for executives, aims at
the development of systematic thinking and
focuses on simulations in order to improve
supply chains. Also, the Walton Institute has
offered its first course in the region, providing
management training to associates.
The President’s Advisory Council, launched
in September of 2008, has grown into an
annual program that allows the participants to
develop their leadership aptitudes, strengthen
teamwork, improve communication, broaden
interpersonal relationships, and introduce the
participants to the Executive Committee of the
company. 95% of the 20 projects developed
were implemented.
Corporate Ethics
Respect for the Individual, Customer Service
and Pursuing Excellence are the fundamental
values forming the relationship that Walmart
Central America has with its associates and
the world: clients, suppliers, competitors and
the community; within a culture that stresses
integrity and ethical behavior.
Throughout 2009, an intense internal training
campaign was performed on the various
themes of the Statement of Ethics, which
establishes the principles and behaviors
accepted by the organization, such as:
anticorruption, gifts and entertainment,
harassment, inappropriate conduct and
workplace issues. In all, more than 2,500
associates received this training, and 500 took
specific additional courses to become trainers
themselves and thereby help broaden the
influence of the company’s ethics policy.
On the other hand, during the months of July
and August of 2009, a Global Ethics Survey was
conducted, with the participation of around
6,000 Walmart Central America associates. In
this study, 98% of those surveyed confirmed
that they were familiar with the Statement of
Ethics and 96% expressed their preparedness
to report on any kind of situation that is in
opposition to the Ethics Code. It is important
to note that 86% of those surveyed are familiar
with the policy forbidding retaliations, which
guarantees that every associate may voice
their ethical concerns without becoming
the subject of disciplinary actions that may
threaten their employment. Furthermore, 91%
of those surveyed expressed the opinion that
Walmart Central America has an ethical culture.
For more information
about the Ethics Code, visit:
www.walmart-centroamerica.com/codigo.htm
RSocialResponsibilityandSustainabilityReport2009
9
Associates
Helping his neighbor is a part of life for
Domingo Cardona, a part-time cashier at
Despensa Familiar Chiantla in Guatemala,
located in the Huehuetenengo district (on
the border with Mexico). His co-workers at the
store describe him as “a very good worker, an
enthusiastic man willing to serve his neighbors”.
“God has blessed me with what I have, such
as my pick-up truck, so I use it to serve the
community”, says Domingo. The vehicle has
been used as an ambulance to help to ill
neighbors or women from the area about to
give birth.
Furthermore, thanks to Domingo’s efforts
in organizing a lamp donation campaign,
over 500 children and young people from
the community can now study in well-lit
classrooms. He also bought two streetlamps
himself, and these have been installed on a
particularly dark street.
What is his motivation for serving the
community in such an unselfish way? “What
greater satisfaction is there than to help one’s
neighbor when we can?”, he asks.
Ana María Recinos started in 1983 at
Despensa de Don Juan San Benito in El
Salvador as a Meats Assistant.
Later on, due to her dedication, she was
promoted to cashier and after only three
months rose to become Head Casher. Anita,
as her friends call her, is currently the Cash
Register Coordinator at Despensa de Don
Juan Escalon Norte.
This mother of three is a true activist for
causes of solidarity, having found out about
some of them, such as the March Against
Breast Cancer, from the newspaper.
A year ago she joined the Fundación Pan y
Chocolate as a volunteer, and on Tuesdays
and Wednesdays, goes out to distribute
dinners to people in need sleeping in Parque
San Martín and in front of the gates to Parque
Daniel Hernández in Santa Tecla.
“He who is not born to give, is no good to live”,
is one of Ana Maria’s guiding principles in life.
 
Life Stories
Ethics Hotlines
Guatemala: 1-801-81-38422
El Salvador: 800-2963-8422
Honduras: 800-22-38422
Nicaragua: 1-800-963-8422
Costa Rica: 800-936-8422
etica@latam.wal-mart.com
Associates
Human Resources
Associates Training Diversity
Total Promotions %
No. of
Hours
Investment Participants Women Men
Associates with special
abilities
29.224 3.080 11% 575.396 $517.000 41.679 42% 58% 322
Accident rate *
Indicator 2008 2009
Lost Days per Location 22.8 23.9
Accidents per Location 2.4 2.6
* Central America is a Walmart operation with one of the lowest
accident rates among its associates.
Leadership positions
60%40%
Total employees
42% 58%
4%
Over 50 years old
By age
59%
Under 30
years old
37%
Between
30 and 50
years old
11
SocialResponsibilityandSustainabilityReport2009Communities
From the time it opened its first store, Walmart has not changed its commitment
to cooperation with the communities where it operates. It is a philosophy that not
only reinforces its low price strategy, but also endeavors to promote the social and
economic development of every community by generating new jobs, better growth
opportunities for local companies, and the donation of 2.5 million dollars at the local
level in order to support causes and organizations that are important to the clients,
the community and the associates throughout Central America. Furthermore, in 2009,
Walmart Central America allocated more than 300 million dollars to social security,
taxes, and to contributions to national and local governments.
Long Live I Care, Long Live I Can!
In November of 2009, Walmart Central America staged its First Regional Volunteer Day.
In one day, this initiative brought together more than 1,000 associates who support
diverse local organizations that make a positive difference in the most marginalized
sectors. This event allowed for direct interaction between the associates of Walmart
Central America and the beneficiaries of the actions promoted by the company.
Caring is
Enabling
“Each Walmart store should
reflect the values of its clients and
support the vision they have for
the community”
Sam Walton
10
WesaveyoumoneysothatyoucanlivebetterAssociates
In our operations in Honduras, Maria
Celorrio’s name is synonymous with
perseverance, dedication and admiration.
Her career path with the company began
29 years ago, when she started as a
Shop Assistant at Supermercado Todo in
downtown Tegucigalpa.
Today, she works as the Category Manager in
the Bakery and Coffee sector.
During her frequent visits to the stores, she
supervises every Bakery task, and makes sure
that the product is fresh and ready for the
client.
“I have experienced a lot at Walmart, and for
me, it is like family. We have been through
everything, but the most important thing is to
get up and keep going, with the brightest smile,
keep offering the best service to our clients,
keep achieving things within the company and
keep pursuing excellence. Every day, this is what
motivates me to do my best”, says Maria, who
every weekend shares her life with the kids at
La Casa de los Angeles, a non-governmental
organization that helps abandoned children,
from newborns to two year olds.
Karla Mendieta started at the company
in 1999, in Nicaragua, as the Employee
Association Administrator of La Union and Pali.
This role put her in constant contact with the
stores, and awakened inside her a desire to
become a part of the Operations team.
In 2005, she was the first woman in the
country to become a District Manager. “She
considered this as a personal challenge and
was successful in growing and achieving
results. Karla distinguishes herself through her
leadership, commitment to learning, and her
desire to do things right”, says Vernon Narvaez,
Country Manager of Nicaragua.
In 2008, Karla was selected to participate
in the International Operations Training in
Mexico. When she returned in 2009, she was
promoted to District I Manager. Also as a
result of her dedication and the career path
she had chosen, she was selected to become
a member of the Female Leaders Council.
“Walmart Central America has allowed me
to grow not only professionally, but also
personally. What has influenced me most are
the principles of our culture”, said Karla, who
was promoted to Operations Manager for Pali
in early 2010.
Kattia Solano Gonzalez is the youngest of a
family of ten siblings and has been working
for the company for 14 years. She started
on December 28, 1995 at the Mercadeo
Mas x Menos in Costa Rica. Later, she
worked in Event Planning and in Corporate
Communications Management.
Currently, she is an Administrative Assistant
for regional Financial Services and Treasury.
In the coming year she is hoping to finish her
degree in Sales and Marketing, a challenge
that she will overcome “thanks to the help of
the company and her boss”, as she points out.
Recognized for her cheerfulness and her spirit
of collaboration, for six years now, together
with the Fundación Vida, she is embarking
on a task that serves as an example for the
company. Each October, Kattia sends out
letters searching for godparents who would
support children with HIV/AIDS in Costa
Rica by sending them clothing and toys for
Christmas. “Already in September, lots of my
workmates ask me when I am going to start
collecting presents, and help me with up to
250 gifts. Good-hearted people work in this
company, which is very motivating”, says Kattia,
who always works with children from families
with extremely limited resources.
Life Stories
12
Wesaveyoumoneysothatyoucanlivebetter 13
SocialResponsibilityandSustainabilityReport2009Communities
Communities
Community Stories
“Healthy Food for
Boys and Girls”
En 2009, Walmart in Nicaragua
joined forces with Visión Mundial
Internacional to carry out this
project, whose goal is improving
the nutritional conditions of
30 families from La Concha to
promote good dietary practices
through educational activities.
The program was designed
especially for children younger
than 6 and women who are
pregnant or nursing.
At the start of the project, 55
boys and girls were medically
evaluated, and thanks to
adequate treatments, are now
gaining weight.
Furthermore, workshops on the
preparation of nutritional food
took place, and mothers attended
talks about Breast Feeding and
Appropriate Diet.
Also, we contributed to an
increase in the availability of food
for families through the support of
farming (beans, corn, vegetables)
and livestock (hens and goats)
activities in their gardens.
Also, technical assistance and
materials were provided for the
construction of metallic silos for
the storage of the harvested grain.
Socially Responsible
Value Chains
This project, started in August of
2008, was aimed at promoting
good practices in the area of
Social Responsibility among
the suppliers of the value chain
at Walmart Central America
in Honduras. Throughout the
program, groups of farmers
in Intibuca received technical
training, defined their Corporate
Social Responsibility guidelines
and created plans of action.
In November of 2009, Walmart
Central America, the Honduran
Foundation for Corporate Social
Responsibility, and the PROMYPE
Program of German Technical
Cooperation (GTZ), recognized
the achievement of the 7 Grupos
Asociativos de La Esperanza,
Intibucá, for successfully
completing this project.
“We are satisfied to have made
this alliance with Walmart, which
has shown that it is possible to
develop the value chain through
the implementation of CSR
measures by suppliers, which is,
without doubt, a pioneering action
in the development of CSR at the
local level”, said Juergen Popp,
PROMYPE/GTZ coordinator.
Reforestation Program
in El Playón
As a company committed to the
environment, Walmart Central
America in El Salvador has
implemented a support project
in the protected natural area of
Chanmico of the Complejo El
Playón, in the Libertad district.
Chanmico covers 1,592 hectares,
of which 60% is made up of
volcanic lava, and is considered
to be the zone that retains the
most water in the whole nation,
for which it was declared a water
conservation zone for the San
Salvador metropolitan area.
The program started in June of
2009 with the planting of more
than 1,000 trees over three
hectares of the area. In November,
a second stage was carried out,
which saw the creation of a tree
nursery for 900 more trees on
another three hectares of the
zone. The project aims to reforest
15 hectares with more than
14,000 fruit trees, such as: cashew,
nance, carao, arrayan and guava.
This reforestation will make it
easier for the rain water to filter
through to the subsoil, improve
environmental conditions, provide
fruit to the visitors and enrich the
quality of the landscape.
Support for
Comprehensive Education
In 2002, the“Escuela Integrada”
was founded in Antigua
Guatemala (Sacatepéquez).
Its goal was to help families in
rural areas who did not have
the possibility of sending
their children to school. The
project, which started with 120
students, currently receives
over 350 children and young
people from villages near La
Antigua Guatemala and Patzun
(Chimaltenango). The students
commit to maintaining an average
of 75 points or above and to
exhibit exemplary behavior, which
allows them to take advantage
of scholarships for studying and
a comprehensive education that
includes health, nutrition and
recreation programs.
This institution operates with the
support of local organizations,
international entities and private
individuals. Walmart Central
America, fully identifying with
the problems of children in need,
supports the activities carried
out by the Escuela Integrada in
providing education, daily meals,
and free medical and psychological
attention to its students so they are
able to finish their studies and strive
for a brighter future for them and
their families.
“Eating Healthier is
Cheaper”
This program, launched in 2009 by
Walmart Central America in Costa
Rica, promotes healthy diets for its
clients, associates and their families
through information about nutrition
and food safety. Its primary goal is
to improve health and wellbeing by
means of a higher consumption of
fruits, vegetables, proteins and fibers.
The campaign consists of four axes:
information through instructive
materials, training to improve
awareness among associates and
clients, help with groceries to combat
malnutrition in at-risk groups, and
evaluation to measure the scope of
the project.
The program provides healthy recipes
as well as chats about nutrition in
the aisles of the supermarkets. It also
aids 10 children’s nutritional centers
located in high social risk zones with
groceries, which in practice benefits
more than 1,000 minors.
The program was formed as a public-
private alliance with the participation
of the Health Department and the
Business Association for Development.
Guatemala
We visited the Fundación Escuela Hogar“Nuestros
Pequeños Hermanos”in Chimaltenango, which is the
permanent ho me of 348 children who are orphaned,
abandoned and/or referred by Family Courts.The
associates painted the balconies, classrooms and lounges;
remodeled offices and bathrooms; outlined the sports
fields and worked on the preparation of grounds where a
pig corral will be built.
El Salvador
WehelpedtheCentroEscolarLasVictorias,whichserves
211childrenfromtheCalucomunicipality,whichisone
ofthepoorestofthecountry.Roofsandbalconieswere
repaired,educationalmuralswerepainted,theclassrooms
gotanewpaintjob,andastudentvegetablegardenwas
prepared.Someworkwasalsodoneonthegrounds.
Honduras
We aided the Hogar Prepace (Cerebral Palsy
Rehabilitation Program) inTegucigalpa, a rehabilitation
center that offers help to 120 handicapped children and/
or children with special educational needs.The volunteers
painted the outside wall of the Hogar and gave talks on
healthy diets and personal and oral hygiene.We also
provided entertainment activities for the children.
Nicaragua
We worked with the Hogar Nuestros Pequeños Hermanos
of Jinotepe.Walmart Central America associates planted
trees and painted the facilities of the Hogar, which is
home to 40 orphaned and/or abandoned children.
Costa Rica
We helped the HogarVista de Mar de Goicoechea, which
houses 76 orphaned children.There, the volunteers
undertook multiple tasks: painting the exteriors of the
ten existing houses, the administrative offices, the dining
room and the school; tidying up the grounds; cleaning;
and entertaining all the children; and the company
donated the necessary materials for a hydroponic
vegetable garden.
Focus onVolunteering
This activity included the donation of materials,
transportation, snacks and over 1,000 days of
volunteer work by associates from all levels of
the organization: offices, stores, production
plants and distribution centers from the five
countries.
As part of the 2010 Annual Social Investment
Program, Walmart Central America will sponsor
Volunteer Days for each new Office, Store,
Production Plant and/or Distribution Center.
This will be a first approach that will encourage
relationships between our associates and the
communities that receive us.
Adapting to the needs of every community,
region and country is the commitment that
Walmart Central America makes every day
to become a good neighbor and to be able
to give back to our clients a small amount of
everything they give us.
14
Wesaveyoumoneysothatyoucanlivebetter 15
SocialResponsibilityandSustainabilityReport2009Communities
Communities
In contact with the communities
Walmart Central America is constantly working
towards being a good neighbor and benefiting
the communities where it operates its stores,
production plants, distribution centers and
offices. This cornerstone of the culture of
the company encourages that most of the
donations be made at the local level, benefiting
causes that are important to the clients, the
community and the associates.
In 2009, Walmart Central America donated
$2,529,000 dollars, in cash and products,
intended to help a range of causes related
to: Nutrition/Poverty, Education/Childhood,
Disasters, the Environment, Pymes (small-
and medium-sized businesses), Community
Works, Health, Consumers and Donations/
Sponsorships. This social investment benefited
more than 385,000 people in the region.
Furthermore, strengthening its commitment
to the development of projects with high
added value that allow for the optimization of
resources and results, Walmart Central America
allocates a part of its social investment budget
to the implementation of programs in five
specific areas: Nutrition, Pymes, Consumers,
Workplace Equality and Sustainability. The
scope of this program includes initiatives such
as“Eating Healthy is Cheaper”in Costa Rica,
“Healthy Diets for Boys and Girls”in Nicaragua.
These two programs combine a nutritional
education component with the provision of
groceries to children at social risk.
For Pymes there are regional programs such as
“A Hand to Grow”,“Fertile Ground”and“Caluco”
in El Salvador. Also, campaigns are carried out for
communication and education about Consumer
Rights and Environmental Protection.
Helping Hands
On September 8, 2009, Alvaro Colom, the
President of Guatemala, declared a state of
emergency due to severe food shortages that
more than 54,000 families living in the“Dry
Belt”(an area made up of the districts of El
Progreso, Zacapa, Chiquimula, Jalapa, Jutiapa,
Santa Rosa and Baja Verapaz) were enduring,
and for the increasing cases of malnutrition
that had led to the deaths of 25 children. This
was due to a severe drought that had led to
extensive losses in the harvests and worsened
the already precarious food situation of the
Guatemalan peasants in the region.
In this setting, Walmart Central America and
the Walmart Foundation responded with the
implementation of several specific actions
designed to help the affected communities:
The Friendly Hands program, which
invited customers and associates to
donate food items requested to create
family rations, was launched in Guatemala
in coordination with CONRED (National
Coordination Center for Disaster
Reduction). 74 tons of products were
gathered.
Walmart Central America associates were
invited to make a cash donation. The
amount was matched by the company and
delivered to the communities in need in the
“Dry Belt”. The associates donated $40,273.
In total, $80,546 were donated, which
allowed the creation and delivery of
more than 3,500 family rations.
The Walmart Foundation (USA) donated
$100,000 to the UN World Food Program
to be used in Guatemala. This donation
allowed the purchase of 90 tons of
Vitacereal®, a food product fortified to
meet the nutritional requirements of
around 100,000 children and 50,000
pregnant women or nursing mothers.
Socially Responsible Company
For the second consecutive year, Walmart
Central America in Honduras was certified
as a socially responsible company for it s
far-reaching efforts in the development of
projects and programs aimed at improving
the lives of Hondurans.
This distinction is bestowed by the Honduran
Foundation for Corporate Social Responsibility
on the company that puts forward a business
vision that harmoniously combines respect for
ethical values, the people, the community and
the environment.
Campaigns carried out in collaboration with customers*, 2009
Campaign Country Beneficiary Entity/Cause Results
Manos Amigas Guatemala
National Coordination Center for Disaster Reduction.
Helps communities affected by the severe drought and malnutrition.
S74,000 kg of products
were collected.
Walmart Central America
and its associates donated
$80,456.
TheWalmart Foundation
donated $100,000.
Mano a Mano
El Salvador
Department of Social Inclusion / Fusal1
Communities affected by Hurricane Ida.
1,074 kg of products
collected.
Walmart Central America
donated $26,332.
Costa Rica
The Embassy of El Salvador in Costa Rica
Communities affected by Hurricane Ida.
4,000 kg of food items were
collected.
Dulce Ayuda
Guatemala
Funsepa2
. Program“Technology for Education”
Computerequipmentforpublicschoolswithextremelylimitedresources.
$142,000 delivered.
El Salvador
Fusal. Pounds of Love nutrition program
The fight against child malnutrition.
$31,986 delivered.
Honduras
The Honduran Foundation for Children with Cancer
Assistance provided to children being treated and their families.
34,228 delivered.
Nicaragua
The Dr. Oscar Rosales Hospital of the City of Leon
Neonatal medical equipment donation.
$49,000 delivered.
Costa Rica
Omar Dengo Foundation
Educational opportunities for at-risk children.
$140,000 delivered.
Verde Ayuda,
Pégate a la Isla
Costa Rica
Friends of the Island of Coco Foundation
Biodiversity preservation on the Island of Coco,
NaturalWorld Heritage Site.
$40,000 collected.
Walmart Central America
donated $60,000.
* For every campaign,Walmart Central America assumes the costs associated with advertising, training, distribution and auditing of all processes involved.
1 Fusal: Fundación Salvadoreña para la Salud y Desarrollo Humana (Salvadorian Foundation for Health and Human Development)
2 Funsepa: Fundación Sergio Paiz
A LA ISLA
16
Wesaveyoumoneysothatyoucanlivebetter 17
SocialResponsibilityandSustainabilityReport2009Suppliers
In its never-ending pursuit of new ways of doing business that are conducive to and
stimulate mutual growth, Walmart Central America present its suppliers with“Joint
Business Plans”. This is a mutual development initiative designed for strategic suppliers,
which aims at identifying and making use of the existent synergies in the commercial,
logistics and social responsibility areas, to enable not just mutual growth, but also
reinforcing the social function of the company in its relationships with the community.
These comprehensive plans involve every sector of the Company, require the
commitment of Upper Management on both sides, and promote joint efforts that
focus on achieving client satisfaction. Using this methodology, the original work plans,
with monthly reviews, quarterly meetings and Top to Top meetings with the executive
presidents of each participating company, were decided upon. The progress of these
business plans is measured against three principal variables:
Sales (jointly planned growth during an entire year)
Profitability (jointly planned total profit target for the year)
Fill Rate
Joint
Business
Plan
Communities
Guatemala
Aldeas Infantiles SOS • Asociación Camino Seguro • Asociación Cultural de las
Hermanas Clarisas • Asociación Cultural Los Niños de Colores • Asociación de
Apoyo a la Secretaría de Asuntos Sociales de la Municipalidad de Guatemala •
Asociación de Damas Franciscanas • Asociación de Hermanas Misioneras de La
Eucaristía • Asociación Estudiantes Universitarios • Asociación Luz de la Virgen
de Fátima • Asociación Misioneros del Sagrado Corazón • Asociación Módulos
de Esperanza • Asociación para la Investigación de Comercio Exterior • Banco de
Alimentos • Cámara de Industria de Guatemala • Cámara Empresarial de Comercio
y Servicio • Casa Jackson • CentraRSE • Centro Misionero Santa María del Camino
y Francisco Javier • Ciudad de la Felicidad Hogar Marta y María • Confraternidad
Evangelística Pentecostés • Coordinadora Nacional para la Reducción de Desastres
• Dirección de Atención y Asistencia al Consumidor • Embajada de Costa Rica
• Esclavas del Santísimo y de La Inmaculada • Escuela de Educación Integral
• Escuela Frida Kahlo • Escuela Oficial Rural Mixta San Jorge • Escuela Oficial
Urbana Mixta “Mateo Flores” • Federación de la Pequeña y Mediana Empresa •
Fundación “Defensores de la Naturaleza” • Fundación Escuela Hogar “Nuestros
Pequeños Hermanos” • Fundación Hogar de Niños • Fundación Kinal • Fundación
Paiz • Fundación Remar • Fundación Sergio Paiz Andrade • Fundación Teoxché •
FundaNiños • Fundación Museo de los Niños • Fundación para el Desarrollo de
Guatemala • Funsilec • Hogar Campestre Los Pinos • Hogar del Niño Minusválido
“Hermano Pedro” • Hogar Bethania para la Tercera Edad • Hospital de Zacapa
• Instituto de Gobernanza • Instituto para la Promoción de la Responsabilidad
Social, Universidad del Istmo • Ministerio Semillas de Esperanza • Misión Cristiana
Torre Fuerte • Municipalidad de San Martín Jilotepeque • Municipalidad San Juan
Comalapa • Parroquia San Marcos Evangelista • Parroquia San Martín de Porres,
Cobán, Alta Verapaz • Patronato de Asistencia Social del Hospital Roosevelt •
Programa Capacitación e Información a Consumidores • Seminario Mayor de
la Asunción • Siervas del Sagrado Corazón de Jesús • SIFE • Unidad Nacional de
Atención al Enfermo Renal • Universidad Rafael Landivar •
El Salvador
Fundación de Asistencia Técnica para el Desarrollo Comunal Salvadoreño •
Administración Nacional de Acueductos y Alcantarillados • Alcaldía Municipal de
Soyapango • Asociación. Salvadoreña de Ingenieros y Arquitectos • Asociación
Ágape • Asociación de Hijas de la Caridad de San Vicente de Paul • Asociación Pro
Hogar Permanente de Parálisis Cerebral • Cámara de Comercio e Industria • Centro
Escolar Caserio Barracón, Cantón Sunapa • Centro Escolar El Tránsito • Centro
Escolar Juana López • Club Rotario San Salvador Cuscatlán • Comité de Festejos
de la Ciudad de San Salvador • Cruz Roja Salvadoreña • Embajada Americana •
Fundación Empresarial para el Desarrollo Educativo • Fundación Empresarial para
la Acción Social • Fundación Éxodo • Fundación Hogares Providencia • Fundación
Internacional Crisálida • Fundación Judá • Fundación Reciplast • Fundación
Salvador del Mundo • Fundación Salvadoreña para el Desarrollo Económico y
Social • Fundación Salvadoreña para la Salud y Desarrollo Humano • Fundación
Salvadoreña para la Tercera Edad • Secretaría De Inclusión Social •
Honduras
AldeasInfantilesSOS•AsociaciónColaboraciónyEsfuerzo•AsociaciónNacional
deIndustriales•AsociaciónRehabilitacióndeMarginados•CámaradeComercioe
IndustriadeTegucigalpa•FundacióndeCentrosdeRecursosyTecnología•Fundación
Abrigo•FundaciónAtenciónparaelNinoQuemado•FundaciónBenéficaporlosniños
deHondurasSolidaridad•FundacióndeBecariosTutoresdelConsejoHondureños
delaEmpresaPrivada•FundaciónElAzúcar•FundaciónGuarderíasInfantiles•
FundaciónHondureñadeResponsabilidadSocialEmpresarial•FundaciónHondureña
paraelNiñoconCáncer•HogardeAncianosDivinaProvidencia•HogardeNiños
NazaretdeComayagua•OlimpiadasEspeciales•ParroquiaMedallaMilagrosa•
ProgramaMundialdeAlimentos•ProgramaRehabilitaciónParálisisCerebral•
Nicaragua
Alcaldía de Managua • Asociación Pan y Amor • Casa Alianza • Cámara de
Comercio Americana de Nicaragua • Cámara de Comercio de Nicaragua • Centro
de Asistencia a la Mujer • Centro de Desarrollo Infantil Samuel Calero • Colegio
San Agustín • Comedor San Luis Gonzaga • Consejo Superior de la Empresa
Privada • Fundación Nueva Vida • Fundación Teletón • Hogar Nuestros Pequeños
Hermanos • Hogar San Antonio • Hogar San Francisco de Asís • Hogar San
Pedro Claver • Hospital Doctor Oscar Danilo Rosales • INCAE • Instituto Pajarito
Azul • Los Pipitos • Misión Adventista del Séptimo Día • Pasos Producciones
• Santuario Mariano Arquidiocesano “Nuestra Señora de Lourdes” • Visión
Mundial Internacional •
Costa Rica
Asociación de Desarrollo Específico Pro Pabellón Enfermo Alcohólico • Asociación
Empresarial para el Desarrollo • Asociación Movimiento Solidarista • Asociación de
Jóvenes Escuadrón S.C. • Asociación Consumidores de Costa Rica • Asociación de
Fibrosis Quística • Asociación Lucha contra Cáncer Infantil • Asociación Vida Nueva
• Cámara de Comercio • Centros de Educación y Nutrición & Centros Infantiles de
Atención Integral • Club Leones de San Sebastián • Club Rotario Escazú • Comisión
Nacional de Emergencia • Consultores en Desarrollo • Cruz Roja Costarricense •
Escuela Arturo Morales • Escuela Aruba • Escuela Carmen Lyra • Escuela Colonia
Isidreña • Escuela El Cañal de Nicoya • Escuela El Carmen de Tilarán • Escuela
Ezequiel González • Escuela Fray Casiano de Puntarenas • Escuela Los Ángeles de
Nicoya • Escuela Los Geranios • Escuela República de Corea • Escuela San Francisco
La Unión • Escuela San José de Heredia • Escuela Santa Cecilia • Escuela Santa
Cruz de San Isidro • Escuela Tuetal Sur • Escuela Unidad Pedagógica Sotero •
Federación Costarricense de Natación y Afines • Fundación Amigos de la Isla del
Coco • Fundación Ayúdenos para Ayudar • Fundación Dare • Fundación Gema •
Fundación Omar Dengo • Fundación Parque Nacionales • Fundación Pro-Unidad de
Cuidados Paliativos • Fundación Terra Nostra • Fundación Un techo para Mi País •
Fundación Voz Propia • Fundación para el Desarrollo Cultural y Social de la Etnias
indígenas Costarricense • Hogar Crea • Hogar de Ancianos Alfredo y Delia González
• Hogar Niños Baik • Hospicio de Huérfanos de San José • Huellitas del Corazón
Desamparados • Junta de Educación Escuela San José de San Rafael de Heredia •
Municipalidad de Escazú • Municipalidad de Grecia • Parroquia Corpus Cristi Aurora
Heredia • Parroquia Santa Lucía de Paraíso de Cartago • Parroquia Sagrado Corazón
de Jesús • Teatro Popular Melico Salazar • Temporalidades de la Arquidiócesis de
Guadalupe • Universidad Estatal a Distancia •
Agro-industrial Development
Asociación Albergue de Rehabilitación al Alcohólico Adulto Mayor • Asociación
Casa Provincial del Buen Pastor • Asociación Centro Diurno de la Tercera Edad
• Asociación Centro Materno Infantil Mi Tía • Asociación Ciudad Refugio Vida
Abundante • Asociación Costarricense de Fibrosis Quística • Asociación de
Beneficencia Rostro de María • Asociación de Movimiento de Vida Cristiana •
Asociación de Rehabilitación y Restauración Teen Challenge • Asociación Ejército
de Salvación • Asociación Hogar Crea Internacional Incorporado Capitulo de Costa
Rica • Asociación Hogares Crea de Alajuela • Asociación Hogares Sagrada Familia
• Asociación Interdenominacional Nueva Vida en Cristo • Asociación Misión
Consuelo • Asociación para el Desarrollo Interior del Individuo • Asociación Pro
Ayuda a Niños en Riesgo • Asociación Servicio Solidario y Misionero Unidos en la
Esperanza • Escuela La Trinidad de los Chile • Escuela María Vargas Rodríguez •
Escuela para Niños Sordos de Cartago • Escuela Quince de Agosto • Escuela San
Vicente • Fundación Hogar Manos Abiertas • Fundación Jesús Vive en el Necesitado
• Fundación Pura Vida Coffee • Hogar de Ancianos Hortensia Rodríguez de Atenas
• Junta de Educación Escuela de Santa Marta de Montes de Oca • Universidad de
Costa Rica - Escuela de Educación Física y Deportes •
Beneficiary Organizations, 2009
18
Wesaveyoumoneysothatyoucanlivebetter 19
SocialResponsibilityandSustainabilityReport2009
Suppliers
In the area of Social Responsibility, the
participants have committed to supporting,
with their experience and technical
skills, different region-wide programs for
Nutrition, the Environment, Sustainability
and Consumers’Rights. Among them are:“A
Helping Hand for Growth”,“Eating Healthy is
Cheaper”,“Knowing Your Rights”(consumers),
“Hand in Hand with the Client”,“Energy in
Moderation”,“The Trees of Tomorrow”and
“Recycling is Life”, among others.
Even though in 2009 Joint Business Plans were
created with 29 suppliers, the project provides
for incorporating new companies into this work
strategy. The first companies that took part in
this initiative were: 3M, Applica, BDF, Bimbo,
Cargill, Clorox, Coca-Cola, Colgate, Dos Pinos,
Frito Lay, Fruit of the Loom, Guateplast, Hanes,
Heinz, Henkel, Kellogg’s, Kimberly Clark, Kraft,
Nestlé, Pepsi, Procter & Gamble, Quaker, Reckitt
Benckiser, Roma Prince, Samsung, SC Johnson,
SCA, Sigma Alimentos and Unilever.
Awards for Excellence
Walmart Central America annually recognizes
the best practices achieved by suppliers. The
following were the companies distinguished by
category, according to activity, in 2009:
Distinguished Suppliers
Category 2009Winner
Supplier in support of Sustainability Henkel
VPI Henkel
Best Service Colgate
Perishables Division Productos Alimenticios Sellos de Oro, S.A. (Aves)
General Merchandise Division Electrónica Dayton
Textiles Division Undesa, S.A. de C.V.
Groceries Division Frito Lay
Consumer Goods Division Nestle Purina
Best Supplier of Regional Private Brand Alimentos, S.A.
Best PYME Supplier, Costa Rica Nueces Industriales
Best PYME Supplier, Guatemala Escocesa
PymesDevelopment
Walmart Central America seeks to support, in a consistent and collaborative manner,
the development of small- and medium-sized suppliers, endeavoring to bring its
clients the best selection in price and quality. This is a strategy which, from the start,
allows us to promote the development and well-being of the communities where
we operate by creating new job opportunities, and increase profits for the small- and
medium-sized businesses that supply it.
In this manner, diverse projects stimulating local production have been encouraged, in
the agricultural as well as the business field, to achieve constant growth of the small-
and medium-sized businesses that supply Walmart Centroamérica stores.
The Fertile Ground Program
The Fertile Ground Program was created in 1973 as a result of the need for a secure
supply of fresh, high-quality agricultural products. The strategy of working directly
with small- and medium-sized farmers in the region has proven to be a successful
practice, both economically as well as socially, as it raises the income levels and
competitiveness of the producers and the quality/quantity of products offered.
We Drive
Growth
Walmart Central
America stimulates
local production and
the development of
communities.
20
Wesaveyoumoneysothatyoucanlivebetter 21
SocialResponsibilityandSustainabilityReport2009
PymesDevelopment
Thanks to this program, the participating
farmers have access to: permanent technical
assistance (provided by agro-engineers),
information concerning prices and the
variation in demand, a guaranteed market,
fair prices, timely payments, higher incomes,
special training in Good Agricultural Practices,
Good Manufacturing Practices, and subjects
related to administration and finances.
Fertile Ground and Hydroponics
Hydroponics is a method whereby plants
are grown without using soil. Cultivation is
undertaken in a substrate with the addition
of water with nutrients that contain all the
essential elements for the plant to complete
the normal development cycle.
In 2003, the company initiated a research-and-
development pilot program for the commercial
production of lettuce in protected environments.
Today, Walmart Central America promotes this
type of sustainable production, which was
adapted by several farmers taking part in the
Fertile Soil program.
Among its advantages are: reductions of
problems caused by blights and diseases
associated with the soil, reduction of the use
of agro-chemicals to almost zero, reduction in
cultivation time and fertilizer costs; furthermore,
the system is environmentally friendly and
uniform, high-quality products are obtained.
Integrated Producers
In an environment that fosters continuous
improvement through diagnostics and
oversight, Walmart Central America is carrying
out programs that support small poultry and
livestock producers.
Chicken and Eggs: Two work programs
related to controlled chicken growth and
commercial egg production have been
developed. These activities involve 41 small
producers in Costa Rica, who supply 100% of the
chickens and 58% of the eggs commercialized in
theWalmart Central America stores of the country.
Bovine Livestock: A similar work plan aimed
at fattening up the livestock is being carried
out. This program is developed in Costa Rica
and Nicaragua and covers seven small livestock
farmers who provide 5% of the company’s
needs.
Rice and Beans: Financing is provided to
farmers for the development of these crops. In
2009, 60 producers were financed with loans
totaling 4 million dollars.
The Inclusive Market Alliance for
Rural Entrepreneurs
This initiative, lasting three years, financed by
Mercy Corps, USAID, Walmart and the AGIL
Foundation (Support for the Generation of
Local Incomes), was launched in Guatemala in
March 2008, and was implemented with the
goal of allowing small farmers to reach the
market and receive better incomes.
During the program’s second year, producers
were consolidated into groups. Good
Agriculture Practices, Good Manufacturing
Practices and Good Business Practices were
implemented, the amount of cultivated land
was increased significantly, and a step-by-
step planning for subsituting for Walmart
Centroamérica was initiated.
During this stage, the increase in agricultural
output led to increased sales. Total sales
reached $1,207,661, of which 55% was
commercialized through Walmart Central
America and the remaining 45% through the
informal sector. Furthermore, through Walmart,
these small producers exported a total of
$73,318 to the Central American region.
In 2009, the program, which includes 25
groups of beneficiaries and brings together
461 producers, created more than 900 jobs
in Guatemala. Based on the results obtained,
the proposed objectives have been surpassed,
as small producers have widely accepted this
program. Furthermore, requests have been
received from other interested groups, from
districts outside the project’s area of influence,
to become part of the program and receive the
associated benefits and support.
Fertile Soil – Socioeconomic impact – 2009 (Grains, vegetables, fruit)
Variables Costa Rica Nicaragua Honduras El Salvador Guatemala Total
Agricultural Suppliers 480 382 716 352 160 2.090
Families benefited* 4.049 3.970 3.040 380 1.894 13.333
Districts/Municipalities 91 32 7 31 110 271
Alliances with Agricultural
Organizations
18 2 15 9 4 48
Agricultural Projects 7 37 150 81 51 326
Jobs created 520 830 2.130 786 518 4.784
*Many producers are grouped into cooperatives, associations, etc.
*67.54% of private-brand suppliers are small- and medium-sized businesses.
PymesDevelopment
Turning the
Supply Chain Green
In January 2009, in a demonstration of
commitment to its suppliers to build a
sustainable supply chain, Walmart Central
America, in cooperation with the World
Environmental Center (WEC) presented
“Turning the Supplier Chain Green”,
an initiative that promotes practices and
technologies for cleaner production (PML)
and energy efficiency (EE) among small- and
medium-sized producers and manufacturers in
Guatemala and El Salvador.
The programs consists of providing 24 months
of free technical support to the selected
businesses, with the aim of improving
competitiveness by taking better care of the
environment in the areas of energy and water
savings; reductions in waste, raw material
use and emissions; implementation of
environmental systems, administration, and
access to financial resources.
The project includes three stages: evaluation
and diagnosis, required technical support,
and follow-up.
This initiative is one of the benefits of the
“A Hand for Growth“, which opens doors to
Pymes, enabling them to become Walmart
Central America suppliers by providing
access to the tools that help them become
competitive, minimize environmental impact,
and at the same time improve productivity.
In Guatemala, 11 companies are actively
participating in the project. It is estimated
that together, they may achieve a projected
$194,900 in savings annually. As of December
2009, $15,750 in savings were attained by
implementing the recommendations. In El
Salvador, eight companies are participating.
Together, they are estimated to reach an
annual projected savings of $336,790. The
renovations undertaken to this point will
generate $173,480 in annual savings (52% of
what was projected), while the verified savings
have reached $49, 290 as of December 2009.
Private Brand Development
In addition to local, regional and imported
brands, Walmart Central America adds an
extensive line of private brand merchandise to
the selection, offering our clients a significant
price difference while maintaining a level of
quality similar or superior to that of other
brands. During 2009, Private Brand products
were produced by 151 companies in the
region, of which 102 (67.54 %) are small- and
medium-sized businesses. The program
is a significant source of income for all of
the participating suppliers, while both the
products and the manufacturing plants are
regularly inspected and subject to numerous
tests and quality controls to assure the highest
levels of customer satisfaction. Private Walmart
Central America brands in the region are:
Sabemas, Supermax, Suli, Equate and Great
Value. In pet food, Ol’Roy, Special Kitty and
Miocane are also offered.
Furthermore, this offer is complemented with a
broad selection of private brand fresh products
(meat, vegetables, grains, cereals and breads)
produced to exacting control standards by
Agricultural Development production plants.
Private-brand Suppliers * – Cases of improvement
Supplier Initial Grade Nov-2009 Observations
Brinsa S.A. (Coopeprosa) 5.39 8.18
Improvement in facilities, implementation of pre-requisite
programs and documentation systems.
Mazu S.A. 5.83 8.98
Implementation of the HACCP food inspection system and
improvements in documentation systems.
H5 Industrial 6.48 8.71
Establishment of a documentation system within the quality
system.
22
Wesaveyoumoneysothatyoucanlivebetter 23
SocialResponsibilityandSustainabilityReport2009
A Hand to Growth
“A Hand to Growth”is Walmart Central
America’s social responsibility program, which
supports the development of small- and
medium-sized local suppliers that operate
within established norms and can supply at
least one of the stores in the chain.
Through this program, with the participation of
the commercial team, which interviews potential
new suppliers, periodic Business Rounds are
conducted. If the product adds value to the
business, purchase terms are negotiated.
“A Hand to Growth”directly benefits the Pymes
for a period of three years, offering: preferential
rates in anticipation of the payment of invoices,
discounts on commercial activities, company
training and monitoring of the performance
of the included products through semi-annual
meetings with the commercial team.
From the beginning of the program in
June 2007, 18 business rounds have been
conducted, and 102 new suppliers added.
During 2009, 162 manufacturers demonstrated
their products during the five business rounds
conducted, and 34 of them became the
chain’s newest suppliers. As of December
of the same year, 564 small- and medium-
sized companies in the region are actively
participating in the program.
“A Hand to Growth”also organizes
management training aimed at supporting
the managers and/or owners of Pymes,
strengthening their business skills and
knowledge. In 2009, 276 hours of training
were given to 205 executives of the Pymes
supplying Walmart Central America.
If your company wishes to participate in this
program, please visit: walmart-centroamerica.
com,“Una Mano para Crecer”Apoyo a Pymes
section, where you will find more information
and toll-free contact numbers for every country.
Success Stories
Guatemala
Pyme: Restaurantes y Alimentos de
Centroamérica S.A.
Product: chimichurri sauce
Alma Ruiz bought“La Chicharronera”, a
restaurant offering traditional Guatemalan
food in May 1983. That is where this
chimichurri sauce was born, and with
time it gained a reputation and became
very popular. In 1988, Alma decided to
package the sauce for use at homes and
started selling it through Supertienda
Paiz Américas. In 1999, with her son and
daughter, she started a company named
Restorantes y Alimentos Centroamérica,
which administers the restaurant and the
production plant.
The growth was surprising. In 2007 the
company joined A Hand to Growth, which
allowed it to start exporting its product to El
Salvador. Currently, this Pyme supplies more
than 40 retail locations, its production plant
is working at 100% capacity, its profits have
grown, and general business skills have
been sharpened through participation in
seminars organized by the program.
Furthermore, as a participant in the“Turning
the Supplier Chain Green”program, the
company receives support of the World
Environment Center and the Cleaner
Production Center, which have helped it put
to use processes that are more efficient and
environmentally friendly.
El Salvador
Pyme: Encurtidos Lupita
Product: Foods, sauces and pickled
products
Encurtidos Lupita is a Pyme that came about
out of necessity, since Guadalupe’s second
son, Rios, was diagnosed with cerebral palsy.
This news changed the lives of the whole
family, and also meant that Guadalupe had
to leave her job, with the resulting reduction
in income for the family.
However, in 1993, the popularity of a snack
that she had prepared for a party convinced
her to start her own business.The first product
that she offered was papaya preserve, which
was already a hit among her acquaintances.
Then, her husband quit his sales job and
joined the family business to manage the
commercialization of the products.
In 2000, Hiper Paiz opened its doors for them
and approved four products that were quickly
accepted, which allowed them to also enter
the Dispensa de Don Juan.Today, Encurtidos
Lupita has a product line consisting of 33
items and employs 65 people.
“Walmart has truly been a guide for us, since
fulfilling its quality standards and its cultural
values has led us to apply them within
our company and our personnel”, stated
Guadalupe Rival, the General Manager of
the company.
Honduras
Pyme: Agrocomercial Iorana
Product: Nacatamales, Snail Soup,
Seafood Soup, Doughnuts, Torrejas
The idea to bring a wide variety of typical,
genuinely Honduran dishes to the table
came from the mind of Jose Francisco
Mejia, a resourceful Honduran.That is how
Agrocomercial Iorana, which commercializes its
products under the label“De mi Pais”, was born  
Through its“A Hand to Growth”program,
Walmart Central America is a part of the
history of this company, which since 2008
has distributed its products through Paiz,
Hiper Paiz, Maxi Bodega, and most recently,
Despensa Familiar stores.
“I never imagined that such a big company
would provide me with the means to have my
product in their aisles. Entering the “A Hand to
Growth” program has meant receiving a lot of
support. Today, thanks to Walmart, the product
is known and consumed by the Honduran
people. Our dream is to export to other
countries, and we know that with the help of
Walmart we will achieve it”, said Jose Francisco
Mejia, the owner of Argocomercial Iorana.
This company, which is growing every day
with the help ofWalmart, today is a Pyme that
has expanded its product line, improved its
packaging, positioned its brand name, and above
all, provided employment to single mothers.
Nicaragua  
Pyme: Industrias Fatima
Producto: Favorita Candles, Grupo Llanes
Candles, Mystic Candles
In 1990, Jaime Llanes founded a small family
business dedicated to the production of
candles, which is now managed by her
four children. Through constant innovation
they were able to expand the product line,
from conventional candles to aromatic and
decorative candles.
Today, their products are offered to our clients
at 48 Pali stores and seven Supermercados La
Union. “Walmart Central America is helping us
grow and develop to become more competitive
in other markets”, says Mrs. Ligia Llanes,
Marketing Manager.
For Industrias Fátima the opportunity to
participate in training and conferences for
free was also very important. “Compared to last
year, our sales at Walmart Central America stores
in Nicaragua have increased by 27%. We have
really felt the support that the company provides
to small- and medium-sized businesses. Our goal
is to keep growing”, stated Llanes.
Currently, their products have been accepted to
be one of the regional suppliers of the company.
Costa Rica
Pyme: Cosmeticos Laita
Hair care products
Cosmeticos Laita began in the year 2004, after
Laura Arce won first place in the Innovations
Category at the V National Entrepreneurial
Contest organized by the Costa Rica Institute
of Technology and sponsored by Walmart
Central America. As a part of the prize, Laura
submitted two of her products to be sold at
12 of the company’s stores. Today, Cosmeticos
Laita sells at over 500 retail locations with 15
products throughout the nation’s territory,
employs 11 people, and their sales through
Walmart Central America account for 25% of
its total revenue.
“Walmart Central America and its A Hand to
Growth program allowed us to make the big
step and become a company ready for any kind
of challenge, a better organized company that
develops products which are better presented
and more attractive to the customer”, Laura
stated. In the process, they came across the
need to make changes to its image with the
aim of preparing the company for a new
challenge: exportation.
PymesDevelopment
PymesDevelopment
24
Wesaveyoumoneysothatyoucanlivebetter 25
SocialResponsibilityandSustainabilityReport2009
Sustainability
“Sustainability is a part of our business and is completely in line with our business model,
our mission and our culture. Sustainability helps us offer low prices every day, because the
savings gained from sustainability initiatives that we develop are transformed into lower
operation costs and constant savings for the consumers. Furthermore, we endeavor to
make the environmentally friendly products more accessible to our clients”. These words
from Mike Duke, President and CEO of Walmart Stores, reveal the strategic importance
that becoming a more sustainable company has for Walmart.
Within this framework, and seeking to more effectively integrate sustainability
in its operations, Walmart Central America launched its“Sustainability for a
Better World”program in 2009. This proposal promotes the performance of
actions in line with the Company’s sustainability objectives and is centered on
efforts that generate the greatest impact for the benefit of the environment and
the community.
Sustainability
for a Better
World
Suppliers
Sustainable Supply Chain
Responsible Supplying
Sustainable Products and Packaging
Operations and
Associates
Sustainable Constructions
Sustainable Store Operations
Sustainable Plant Operations
Conscious Associatess
Sustainable Offices
Community
Conscious Clients
Volunteering and Social Investment
Sustainability Platforms
“The Walmart family understands
that we have a responsibility and an
opportunity to make a difference
with sustainability.”
Mike Duke
Sustainability
“Sustainability for a Better World”is a
multidisciplinary initiative including ten
specific work platforms that evaluate
and develop sustainable activities to be
implemented with a view of the suppliers,
communities and clients.
Each platform, headed by a vice-president,
has the objective of reaching sustainability
goals and spreading sustainability objectives.
The platforms, although comprised of
associates of the company, may also
receive support from non-governmental
organizations, academic institutions,
government agencies and supplier companies.
This approach provides for the acquisition of
knowledge in each area and for generating
innovative and practical solutions.
Environmental Objectives
In October 2005, Walmart established
three basic objectives to become a more
sustainable company: using 100% renewable
energy, generating zero waste and selling
products that save resources and preserve
the environment. In the last few years, these
commitments have extended to social issues,
such as respect for diversity, responsible
supplying, and compliance with local laws and
social and environmental regulations in the
production of goods, among others.
Energy
All of the energy-saving initiatives put forth
by Walmart Central America in the region
have allowed the operation to save a total
of $2,697,428 during 2009. This translates
to electrical power savings equivalent to
the annual consumption of 5,178 Central
American families, or 15,534,508 kW/hrs.
Also, the Agro-industrial Development plants
have implemented various environmental
programs related to informing the associates
of the need to turn off lights, improvements
in electrical installations, changing of light
bulbs, reduction in the consumption of water
and fuels, and the installation of tanks for the
recuperation of rain water, among others.
Energy – Projects carried out in new and existing shops
Initiative Description Stores (2009) Total Stores
Efficient Lighting Installation or conversion to high-efficiency fluorescent lighting (T5/T8). 91 360
Natural Lighting Installation of skylights making up from 12% to 15% of total roof area. 43 142
Refrigeration
Using floating suction systems and electronic valves to make the maximum use of
refrigerating equipment temperature.
143 179
Cold Rooms Installation of alarms and sensors to control the times that doors remain open. 65 144
Speed Controllers Their installation controls the speed of motors within the equipment. 28 46
Night Curtains Their use in refrigeration equipment allows for energy savings and improves efficiency. 80 80
Dehumidifiers
Allows to control the humidity in the sales sector, making the use of refrigeration and air
conditioning equipment more efficient.
14 52
Energy Administration (EMS Systems)
Use of intelligent controls that administer the energy used for lighting, air conditioning and
refrigeration.
50 181
LED lighting within refrigeration chambers LEDs are much more efficient in electric energy use.
75 stores
(762 doors)
187 stores
(2,307 doors)
Power Factor Improvement Installation of capacitor banks to improve the use of the electric power system. 15 15
Night-use curtains on refrigeration equipment, allowing for energy savings and maintaining temperature.
26
Wesaveyoumoneysothatyoucanlivebetter 27
SocialResponsibilityandSustainabilityReport2009
Sustainability
Waste
Recycling Program
Walmart Central America has been one of the
pioneer companies in establishing a regional
recycling program, collecting cardboard and
plastics generated by its Stores, Distribution
Centers, and Agro-industrial Production
Plants. Said materials are compacted at the
Distribution Centers for transportation to
recycling centers, where they are converted to
new products.
In 2009, these recycling actions prevented
the felling of 248,753 trees and saved us
from buying 19,300 barrels of oil.
Furthermore, the Agro-industrial Development
Plants and the offices participate in various
recycling programs, such as of organic waste,
aluminum, glass, PET bottles, wood, electronic
equipment, etc. In 2009, for example, 2,458
tons of organic waste and 220 tons of other
materials were recycled.
The practice of recycling, apart form reducing
the use of natural resources, generates myriad
benefits for the environment in terms of
water and energy savings, as well as the
reduction in landfill use and the emission of
greenhouse gases.
Reduction in Emissions
Walmart believes that every company has the
responsibility of reducing the emissions of
greenhouse gases. To that end, it is working
in several directions to reduce the Company’s
carbon footprint, working together with
suppliers and clients to help them to do the
same. Currently, the company is also investing
in renewable energies, and in increasing the
energy efficiency of its stores, buildings and
trucks. This way it takes advantage of its wide
network of suppliers, stock holders, associates
and clients to effect a sustainable change in the
retail industry and beyond.
During 2009, Walmart Central America’s
operations emitted 118,825 tons of CO2
resulting from electrical energy use,
refrigerants, and the use of fuels such as
diesel, gasoline and liquefied petroleum
gas. The emissions generated by 523 service
stores, 16 agro-industrial production plants,
11 distribution centers and six administrative
offices are included in this calculation.
Reduction in the Consumption of Plastics
The introduction and promotion of the use
of reusable fabric bags, together with the
standardization of the size and weight of
plastic bags, has allowed Walmart Central
America’s regional operations to save a total of
327,242 kg of plastic resin during 2009.
For each ton of recycled cardboard, 17 trees are not cut, 26,500 liters of water, 4,102 kWh of electricity and 2.3 m3
of landfill volume are saved.
Ecological Impact – Cardboard Recycling Program
Year Tons Trees Saved Water Saved Energy Saved Unusedvolumeoflandfill
2007 10,457 177,772 277,115,535 lt 42,895,393 kWh 24,051.54 m3
2008 13,272 225,624 351,708,000 lt 54,441,744 kWh 30,525.60 m3
2009 14,633 248,753 387,761,250 lt 60,022,515 kWh 33,654.75 m3
For each ton of recycled plastic, 11 barrels of oil are not purchased, 3.5 tons of CO2
emissions are avoided and 2.3 m3
of landfill volume is saved.*23 New Stores vs. 2008.
Ecological Impact – Plastics Recycling Program
Year Tons Barrels of Oil saved CO2
Emissions avoided Unused volume of landfill
2007 1,004 11,043 3,514 tons 2,308.95 m3
2008 1,455 16,007 5,093 tons 3,347.01 m3
2009 1,755 19,300 6,141 tons 4,035.49 m3
2009*2008
0
20.000
40.000
60.000
80.000
100.000
120.000
Total tons of CO2
2008-2009
102,654tons
118,825tons
Sustainability
Products
Year after year, Walmart Central America stores
add new products that save resources and the
environment. Articles using less packaging
and/or using recycle materials are promoted
as well. Also, all of the general consumption
products participating in Earth Month 2009
had to present evidence demonstrating their
environmentally-friendly nature.
In perishables, Walmart Central America
offers organic vegetables and promotes the
development of hydroponic agriculture,
which drastically reduces the use of fertilizers,
agro-chemicals and water. Lettuces and other
hydroponic produce is regularly sold at its stores
In seafood, 60% of the production comes from
fish farms. Endangered species are not sold and
seasonal restrictions are respected.
Sustainable sustainability
With the aim of reinforcing its path towards
sustainability, Walmart took on new
commitments during 2009:
Started selling only concentrated
detergent in its US stores;
Committed to a 70% reduction in
phosphates used in laundry and
dishwashing detergents in the Americas
region in 2011;
Announced a 5% reduction in packaging
in Latin America by the end of 2013, with
the aim of offering more sustainable
packaging;
Will develop an Sustainable Products
Index on a global level. This index will
allow us to know which products are the
most efficient, most effective, and the
best for the people and the planet. This
initiative consists of three stages. The first
stage is in development, and consists of
a 15 question survey of the over 100,000
Walmart suppliers around the world. These
questions focus on four important areas:
Energy and Climate: Reduction in the
use/cost of energy and in greenhouse
gas emissions.
Efficiency of Materials:
Reduction in waste and an improvement
in quality.
Natural Resources: Responsible use
of high-quality raw materials.
People and Community: Production
of goods in an ethical and responsible
manner.
As the second step, the company took part in
the creation of the Sustainability Consortium,
a group of experts from important universities
that will develop a worldwide database
containing information related to product
life-cycles – from raw material to becoming
waste. Walmart has provided initial funds for
the formation of the Consortium, managed
jointly by University of Arkansas and Arizona
State University, and invited all of the retailers
and suppliers in the world to participate. The
company will also join forces with one or more
leading technology companies to create an
open platform to host this index.
The last step in the development of the index
will be the conversion of product information
into a simple product description which
informs consumers of product sustainability,
offering more transparency as to the quality
and history of the products evaluated.
Withtheslogan“YouractionstransformthePlanet”,EarthMonthtookplacethroughoutWalmartCentralAmericastoresinthefive
countriesoftheregionfromApril15toMay17,2009.Thisprogramwasdesignedtoincreasetheeducationandawarenessofour
associatesandclientseducationandawarenessofhowtocarefortheplanetandthecontributionthateverypersoncanmake.
DuringEarthMonth,educationaltalks,usefuladviceonenergysavings,wastereduction,recyclingandtheadvantagesofusing
reusablebags,wereoffered;treesweredonatedtoclientsandassociates;volunteeractivitiesfocusedonreforestationandbeach
cleanupwereconductedintheregion;and40newproductswereaddedtothestockthataremoresustainableintermsofsavings
intheuseofnaturalresources,incorporatingorganicand/orrenewablerawmaterials,moreefficientpackaging,useofrecycled
materials,etc.
WiththegoalofhonoringthecommitmentthatWalmartCentralAmericamakestoitsclients,alloftheproductsparticipatingin
EarthMonthunderwentarigorousselectionprocess.
Earth Month
For more information
About the Sustainability Consortium, visit:
sustainabilityconsortium.org
About the Sustainable Product Index, the
supplier survey, and statement from the leaders
ofWalmart, visit:
walmartstores.com/factsnews/newsroom/9277.aspx
If you would like to evaluate the beta version of
the index, please visit:
goodguide.com
walmart-centroamerica.com
Awards and Recognitions 2009
InitsEdition181fromJune2009,theSummaJournal
publisheditsannualsurveyaboutLeadingCompaniesinCentral
AmericaandDominicanRepublic,whereWalmartCentral
Americawasonthehonorroll,andwasdistinguishedas
“TheBestMultinationalCompany”intheregion.
Costa Rica
The Costa Rican-North American Chamber of Commerce distinguished the“Eating Healthy is Cheaper”educational and nutritional program with an Honorable Mention.1
Nicaragua
The Department of Labor, through the National Hygiene andWork Safety Council, certified Hortifruti as a model company, and awarded it the “Award of Excellence”.
The National Hygiene andWork Safety Council awarded Industrias Carnicas Integradas the “Excellence in Hygiene and Safety”Prize.
The Cleaner Production Center awarded Industrias Carnicas Integradas the “Prize of Excellence”. 2
FundaciónTeletón recognizedWalmart Central America in Nicaragua “foritsparticipationintheRaceforLove,withourboys,girlsandyoungpeoplewithspecialabilities,andforhaving
helpedusreachandsurpassourgoals.”
The Nicaraguan Corporate Social Responsibility Union recognizedWalmart Central America for its participation in the first application of CSR
indicators in Nicaragua.
Honduras
The Honduran Foundation for Corporate Responsibility awardedWalmart Central America its “Socially Responsible Company Seal”for the second year in a row for its good social
responsibility practices. 3
The Honduran Private Company Council and CHF International have awardedWalmart Central America the “Building a BetterWorld” Prize for its support of policies, initiatives and
informational campaigns aimed at HIV/AIDS prevention. 4
The Cathedral ofTegucigalpa presentedWalmart Central America the Plaque of Recognition for its support of the restoration of the Cathedral of Archangel Saint Michael.
Aldeas Infantiles SOS Honduras recognizedWalmart Central America for its continued support of the institution’s activities.
Guatemala
TheVice-president of the Republic, Dr. Rafael Espada, presentedWalmart Central America with the “Recognition ofTransparency”for its excellence in attainingTransparency in all
of its processes. 5
The Center for Corporate Social Responsibility awardedWalmart Central America an Honorable Mention for its“The Inclusive Market Alliance for Rural Entrepreneurs”program.
In an opinion poll of the most admired companies and
businesspeopleofCentralAmerica,carriedoutamongthetop
executivesoftheregionandpublishedbythejournal Estrategia&
Negocios(Edition111,March2009),WalmartCentralAmerica
waschosenasthe“MostAdmiredMultinationalCompany”.
Regional
1 2 3 4 5

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Walmart CAM Report 3

  • 1. 1 Reporte2009•ResponsabilidadSocialySostenibilidadSocialResponsibilityandSustainabilityReport2009 Report 2009 Social Responsibility and Sustainability In Honduras, Regional Volunteer Day 2009, supporting the Cerebral Palsy Home Rehabilitation Program. In the photo (left to right): Espectacion Banegas of the Choluteca Despensa Familiar, Gabriel Chiriboga of Hortifruti, Kevin Martinez (son) -child attended at the Institution-, Gerin Martinez of Hiper Paiz Boulevard (father) and Norma Membreño of Human Resources.
  • 2. 2 SocialResponsibilityandSustainabilityReport2009 Wesaveyoumoneysothatyoucanlivebetter Whoweare Whoweare 3 Contents Discount Stores Supermarkets Hypermarkets Warehouses WholesaleMembership DiscountClubs Gas Stations 113 28 7 14 2 4 168 50 25 2 77 39 7 1 6 53 48 7 55 127 25 6 12 170 377 98 16 32 2 4 523 Trademarks and Formats Walmart Central America Walmart reaches 51% and takes over administration CSU associates itself with La Fragua and Royal Ahold Walmart buys 33% of Royal Ahold shares First store converted to Walmart systems Alliance that converts Walmart Mexico into the 100% stakeholder of Walmart Central America Enrique Uribe founds Mas x Menos (later Corporación de Supermercados Unidos - CSU) in Costa Rica La Fragua allies itself with Royal Ahold Carlos Paiz founds Tiendas Paiz (later La Fragua) in Guatemala Sam Walton founds Walmart Stores in the US 2006 2001 2005 2008 2009 1960 1999 1928 1962 Our History Agro-Industrial Development is the specialized division created to guarantee the supply of quality products to our stores and customers. The companies that make it up are: Alin Processes and commercializes cereals and other natural products: oats, granola, honey, peanut butter, powdered drink mixes, gelatins and syrups. Decoinsa Develops private brand mass-consumption products with an excellent quality-to-price ratio Granja Avícola Ricura Processing and marketing of poultry products, turkey, commercial eggs and egg-based products. Hortifruti Devoted to agricultural development and marketing of fruits, vegetables and grains. Industrias Cárnicas Integradas A company for processing beef and pork meat as well as fresh and cooked sausages. Panificadora de Guatemala y El Hornito Developing and marketing bakery products, deserts and cake creams. Pescarnes This company processes and develops fish and fresh seafood products. Guatemala El Salvador Honduras Nicaragua Costa Rica C entral America Warehouses Format with a wide offering of food products, general merchandise and textiles, all at low prices. Discount Stores Stores specializing in the sale of staple goods at the lowest prices on the market. Supermarkets Stores with a wide array of products (with an emphasis on fresh goods), competitive prices and excellent service. Hypermarkets Stores that allow customers to do all their shopping in one place at very convenient prices. Wholesale Membership Discount Clubs Members-based stores aimed at wholesalers and consumers that buy in bulk. Executive Committee Internal Audit VP Purchases and Marketing VP Human Development VP Real Estate VP Logistics VP Agro-Industrial Development VP Integration and Systems VP Finance VP Legal Affairs VP Operations VP President and CEO Marcos Samaha Vice-presidents Laura Babarskas Gustavo Camacho Linda Díaz-Cuadra Gabriela Gutiérrez Julio Quevedo José Manuel Rodríguez Tizoc Suárez Roberto Sucre José David Zúñiga Manuel Zúñiga Letter from the President 4 Customers 5 Associates 7 Community 11 Suppliers 17 Development of SMBs (Pymes) 19 Sustainability 24 Awards and Acknowledgements 28
  • 3. 5 SocialResponsibilityandSustainabilityReport2009 Leahorramosdineroparaquevivamejor In a challenging year such as 2009, Walmart Central America tightened its efforts in confronting the crisis and put its weight behind having its customers save money. We opened 23 new stores in the region, generated more than 1,500 direct or indirect jobs in the communities, and continued supporting the growth of small-and medium-sized businesses (Pymes). Also, honoring our commitment to the environment, we implemented “Sustainability for a Better World”, a program stretching across many disciplines that promotes sustainability through the participation of the company, its associates, suppliers, clients and communities. This is our way of doing business, every day, in the good years and the challenging years. 2009 was a year of great learning experiences and quick reactions to adapt ourselves to the needs of our clients who honor us with their preference. It was a year in which we have amplified our low-price strategy, which we will continue to use as leverage to reduce costs, expanding efforts to offer the best stores, the best assortment of products and the best services. Being conscious of the new reality and of our role as a socially responsible company, we have donated more than $2,5 million in the region. We support diverse projects with high added value, such as:“Eating Healthy is Cheaper”in Costa Rica and“A Healthy Diet for Boys and Girls”in Nicaragua; programs that combine nutritional education and assistance with required nutrition for children who are socially at risk. In Honduras, through the“Socially Responsible Value Chain”we have trained small farmers and business owners to become micro- entrepreneurs. In El Salvador, in response to the serious consequences of Hurricane Ida, we have donated a large number of nurseries to the victims. Also, due to the provisions and nutritional crisis declared in Guatemala, Walmart Central America’s associates, in demostration of solidarity with those affected, have made a valuable donation, which was matched by the company. Due to our commitment to Social Responsibility and to the region, we have received significant recognitions. The operation in Honduras was awarded the “Socially Responsible Company”Seal for the second year in a row. In June of 2009, the annual poll conducted by the Summa Magazine y HayGroup, conducted among more than 1,000 top executives of 250 leading companies in the region, named Walmart Central America as the Best Multinational Company in Central America and Dominican Republic. In conclusion, I would like to enthusiastically point out that starting in 2010, our company will form a strategic partnership with Walmart of Mexico, one of the most efficient and competitive retail operations in Latin America. This integration will allow us to take advantage of the synergy and speed up the processes of lowering costs, offering even better services, and benefiting our clients by lowering prices even more so they may live a better life. Sincerely, Marcos Samaha President and CEO Walmart Centroamérica AYear of Challenges and Accomplishments 4 LetterfromthePresident 89% General Level of Satisfaction with Stores 81% of our clients are women 74% of our clients are families with children (under 15 years old) 1,6% increase in the number of transactions vs. 2008 Customers For several generations, Walmart Central America stores have been at the side of the clients who honor us with their choice throughout the whole region. The mission has always been the same: save money for families so they can live better. In challenging times, this mission leads us to tightening our efforts to help our clients save more quetzals, dollars, lempiras, cordobas or colones of their family budget. Furthermore, during 2009, Walmart Central America invested around 30 million dollars to strengthen its strategy of low prices, and thus offer better prices to the clients, through constant monitoring and analysis in every market. This investment not only allowed us to lower the prices of the most essential products, but also to launch various regional initiatives aimed at saving the clients money in their purchases: Always thinking about the client! Our Operations in Numbers 233,500 clients consulted in the region (Dec. 08 – Nov. 09)
  • 4. 6 Wesaveyoumoneysothatyoucanlivebetter 7 SocialResponsibilityandSustainabilityReport2009Associates Our store openings continually generate new formal employment opportunities in the region, which consist of support positions at production plants, distribution centers and offices. For example, on average and according to store format, each opening creates the following numbers of jobs: Discount Stores, 18.5; Warehouses, 48; Supermarkets, 81; and each new Hypermarket provides 260 people with jobs. In 2009, Walmart Central America opened 23 stores: 1 HiperPaiz in Guatemala, 1 MaxiBodega in Costa Rica and 21 Discount Stores (4 in Guatemala, 5 in El Salvador, 3 in Honduras, 4 in Nicaragua and 5 in Costa Rica). Work Environment A new Commitment Survey was conducted in 2009 to find out the levels of involvement of the associates with the Company. This study measures the satisfaction levels for the primary categories that determine associate commitment: work environment, respect, teamwork, career opportunities, compensation, training, company practices, quality of life, and others. This process is then finalized through the communication of the results, their analysis and the implementation of improvement plans proposed for each area and/or department. Our people make the difference Critical Zone 0% 25% 40% 60% 100% Transition Zone Average Zone Comparative evaluation averages Best employer’s Zone Source: Hewitt Associates 70,5% Customers Redistribution of spaces and selections in stores With the goal of improving the clients’ shopping experience, a process of store space optimization was started in 2009. This initiative allowed us to offer customers greater convenience, providing them with wider aisles and optimizing the number and size of shelves per aisle. Additionally, categories of products have been grouped according to their intended use, presentation has been enhanced, and a program of adjusting the selection of products according to turnaround and demand at each location has been initiated. Aimed at the satisfaction of customers’and associates’ needs, this activity has resulted in a continuing improvement for the stores. Adapting to the Clients’needs is respecting them and helping them live better lives. In every single market where Walmart Central America opens its stores, establishing relationships of trust with each community, listening to clients’concerns and satisfying their requirements is of utmost importance to generating superior shopping experiences. In Guatemala, where the indigenous population makes up almost 40% of the total, we have been able to adapt ourselves to the local needs and promote the development of a better quality of life for our clients and associates. For example, in order to better serve our clients from predominantly indigenous communities, labels and banners are printed in their language. Local music with messages in the local language is played and many of the associates who work in these stores are members of the same community and even wear their traditional clothing to work. “Chiquitititos” This program, developed in Pali and Despensa Familiar, offers small-size products at the lowest prices.The initiative, designed to benefit our low- income clients, includes a goods basket of 100 basic products per country, with the introduction of an additional 100 products in the region, in smaller than usual packaging or on a per-unit basis. “Chiquitititos”is a commercial dynamic aimed at savings, as it keeps the per-unit product prices stable, and the client only pays for the quantity purchased. “Los 3 bajitos” This pricing program, launched in the MaxiBodega stores of the region, offers sets of basic products at three different low price levels: 1, 2 and 3 quetzals in Guatemala; 5, 10 and 15 lempiras in Honduras; and 300, 400 and 500 colones in Costa Rica. This is another initiative that also saves clients’money, as it offers purchase options in accordance with needs, with a base discount of 20% relative to the normal market prices. “Miércoles Frescos”* “Miercoles Frescos”is a successful practice that originated in 1999 in Nicaragua, and whichWalmart Central America decided to regionalize at to all the supermarkets operating in the region. This program is characterized by offering, in the middle of the week, excellent prices for meats, fruits, vegetables, poultry, seafood and sausages. It is an original alternative with the clients’exclusive benefit in mind, whereby the stores offer a great variety of fresh perishable goods at the best prices. *“Martes Frescos”in El Salvador “Hiper Sábado Regalado” In December,Walmart Central America hypermarkets introduced this commercial offer in the region, with big discounts on the regular selection of products, mainly in electronics and general merchandise, while stocks last.This was the“official launch”of the Christmas season for this kind of stores, and called for rigorous organization, and it attracted the interest of more than 160,000 clients, who visited one of the 16Walmart Central America supermarkets that day. Associate Opinion Survey, 2009
  • 5. 8 Wesaveyoumoneysothatyoucanlivebetter A survey was undertaken in April by electronic means (Intranet), and through anonymous, voluntarily participation of 83%, which revealed that the satisfaction level among employees is 70.50%. This has once again placed Walmart Central America among the region’s best employers. Aiming at being“one of the best places to work”, Walmart Central America promotes a work environment that is conducive to open communication, in which the associates, in addition to being a part the information of the business, have different means of freely transmitting their concerns and comments, such as: the Open Door Policy, interviews, location visits, suggestion modules, etc. Diversity Walmart Central America promotes equal opportunity in employment in a work environment where people are respected and valued regardless of gender, sexual orientation, race, faith, nationality or special abilities. In terms of gender, 42% of our associates are women, who also occupy 40% of the leadership positions and make up 30% of the Executive Committee. Furthermore, the company provides direct employment to 322 associates with alternative abilities, who also add value to the company. In 2009, Walmart Central America created the Female Leaders Council, a global innovation of the Company that is a part of the initiatives dealing with the issues of inclusion, gender and diversity. The primary objective of this forum is the creation of proposals and ideas that promote professional development among women. Furthermore, the President and CEO has established a hiring practice whereby an equal number of male and female candidates are considered for every job opening. Training and Professional Development There is ample variety of educational courses available to associates to advance in their professional development. For example, store employee training may include workshops and practical exposure to the handling of processed products, perishable products and dried products, food safety, inventory, textile products handling, customer service, cash register operation, etc. The Middle Management and Store Management Development Programs have concentrated on leadership, planning, supervision, communication, store operation and product management. On the other hand, the Program of Updating for Improvement designed at MIT (Massachusetts Institute of Technology) has been launched. This program, designed for executives, aims at the development of systematic thinking and focuses on simulations in order to improve supply chains. Also, the Walton Institute has offered its first course in the region, providing management training to associates. The President’s Advisory Council, launched in September of 2008, has grown into an annual program that allows the participants to develop their leadership aptitudes, strengthen teamwork, improve communication, broaden interpersonal relationships, and introduce the participants to the Executive Committee of the company. 95% of the 20 projects developed were implemented. Corporate Ethics Respect for the Individual, Customer Service and Pursuing Excellence are the fundamental values forming the relationship that Walmart Central America has with its associates and the world: clients, suppliers, competitors and the community; within a culture that stresses integrity and ethical behavior. Throughout 2009, an intense internal training campaign was performed on the various themes of the Statement of Ethics, which establishes the principles and behaviors accepted by the organization, such as: anticorruption, gifts and entertainment, harassment, inappropriate conduct and workplace issues. In all, more than 2,500 associates received this training, and 500 took specific additional courses to become trainers themselves and thereby help broaden the influence of the company’s ethics policy. On the other hand, during the months of July and August of 2009, a Global Ethics Survey was conducted, with the participation of around 6,000 Walmart Central America associates. In this study, 98% of those surveyed confirmed that they were familiar with the Statement of Ethics and 96% expressed their preparedness to report on any kind of situation that is in opposition to the Ethics Code. It is important to note that 86% of those surveyed are familiar with the policy forbidding retaliations, which guarantees that every associate may voice their ethical concerns without becoming the subject of disciplinary actions that may threaten their employment. Furthermore, 91% of those surveyed expressed the opinion that Walmart Central America has an ethical culture. For more information about the Ethics Code, visit: www.walmart-centroamerica.com/codigo.htm RSocialResponsibilityandSustainabilityReport2009 9 Associates Helping his neighbor is a part of life for Domingo Cardona, a part-time cashier at Despensa Familiar Chiantla in Guatemala, located in the Huehuetenengo district (on the border with Mexico). His co-workers at the store describe him as “a very good worker, an enthusiastic man willing to serve his neighbors”. “God has blessed me with what I have, such as my pick-up truck, so I use it to serve the community”, says Domingo. The vehicle has been used as an ambulance to help to ill neighbors or women from the area about to give birth. Furthermore, thanks to Domingo’s efforts in organizing a lamp donation campaign, over 500 children and young people from the community can now study in well-lit classrooms. He also bought two streetlamps himself, and these have been installed on a particularly dark street. What is his motivation for serving the community in such an unselfish way? “What greater satisfaction is there than to help one’s neighbor when we can?”, he asks. Ana María Recinos started in 1983 at Despensa de Don Juan San Benito in El Salvador as a Meats Assistant. Later on, due to her dedication, she was promoted to cashier and after only three months rose to become Head Casher. Anita, as her friends call her, is currently the Cash Register Coordinator at Despensa de Don Juan Escalon Norte. This mother of three is a true activist for causes of solidarity, having found out about some of them, such as the March Against Breast Cancer, from the newspaper. A year ago she joined the Fundación Pan y Chocolate as a volunteer, and on Tuesdays and Wednesdays, goes out to distribute dinners to people in need sleeping in Parque San Martín and in front of the gates to Parque Daniel Hernández in Santa Tecla. “He who is not born to give, is no good to live”, is one of Ana Maria’s guiding principles in life.   Life Stories Ethics Hotlines Guatemala: 1-801-81-38422 El Salvador: 800-2963-8422 Honduras: 800-22-38422 Nicaragua: 1-800-963-8422 Costa Rica: 800-936-8422 etica@latam.wal-mart.com Associates Human Resources Associates Training Diversity Total Promotions % No. of Hours Investment Participants Women Men Associates with special abilities 29.224 3.080 11% 575.396 $517.000 41.679 42% 58% 322 Accident rate * Indicator 2008 2009 Lost Days per Location 22.8 23.9 Accidents per Location 2.4 2.6 * Central America is a Walmart operation with one of the lowest accident rates among its associates. Leadership positions 60%40% Total employees 42% 58% 4% Over 50 years old By age 59% Under 30 years old 37% Between 30 and 50 years old
  • 6. 11 SocialResponsibilityandSustainabilityReport2009Communities From the time it opened its first store, Walmart has not changed its commitment to cooperation with the communities where it operates. It is a philosophy that not only reinforces its low price strategy, but also endeavors to promote the social and economic development of every community by generating new jobs, better growth opportunities for local companies, and the donation of 2.5 million dollars at the local level in order to support causes and organizations that are important to the clients, the community and the associates throughout Central America. Furthermore, in 2009, Walmart Central America allocated more than 300 million dollars to social security, taxes, and to contributions to national and local governments. Long Live I Care, Long Live I Can! In November of 2009, Walmart Central America staged its First Regional Volunteer Day. In one day, this initiative brought together more than 1,000 associates who support diverse local organizations that make a positive difference in the most marginalized sectors. This event allowed for direct interaction between the associates of Walmart Central America and the beneficiaries of the actions promoted by the company. Caring is Enabling “Each Walmart store should reflect the values of its clients and support the vision they have for the community” Sam Walton 10 WesaveyoumoneysothatyoucanlivebetterAssociates In our operations in Honduras, Maria Celorrio’s name is synonymous with perseverance, dedication and admiration. Her career path with the company began 29 years ago, when she started as a Shop Assistant at Supermercado Todo in downtown Tegucigalpa. Today, she works as the Category Manager in the Bakery and Coffee sector. During her frequent visits to the stores, she supervises every Bakery task, and makes sure that the product is fresh and ready for the client. “I have experienced a lot at Walmart, and for me, it is like family. We have been through everything, but the most important thing is to get up and keep going, with the brightest smile, keep offering the best service to our clients, keep achieving things within the company and keep pursuing excellence. Every day, this is what motivates me to do my best”, says Maria, who every weekend shares her life with the kids at La Casa de los Angeles, a non-governmental organization that helps abandoned children, from newborns to two year olds. Karla Mendieta started at the company in 1999, in Nicaragua, as the Employee Association Administrator of La Union and Pali. This role put her in constant contact with the stores, and awakened inside her a desire to become a part of the Operations team. In 2005, she was the first woman in the country to become a District Manager. “She considered this as a personal challenge and was successful in growing and achieving results. Karla distinguishes herself through her leadership, commitment to learning, and her desire to do things right”, says Vernon Narvaez, Country Manager of Nicaragua. In 2008, Karla was selected to participate in the International Operations Training in Mexico. When she returned in 2009, she was promoted to District I Manager. Also as a result of her dedication and the career path she had chosen, she was selected to become a member of the Female Leaders Council. “Walmart Central America has allowed me to grow not only professionally, but also personally. What has influenced me most are the principles of our culture”, said Karla, who was promoted to Operations Manager for Pali in early 2010. Kattia Solano Gonzalez is the youngest of a family of ten siblings and has been working for the company for 14 years. She started on December 28, 1995 at the Mercadeo Mas x Menos in Costa Rica. Later, she worked in Event Planning and in Corporate Communications Management. Currently, she is an Administrative Assistant for regional Financial Services and Treasury. In the coming year she is hoping to finish her degree in Sales and Marketing, a challenge that she will overcome “thanks to the help of the company and her boss”, as she points out. Recognized for her cheerfulness and her spirit of collaboration, for six years now, together with the Fundación Vida, she is embarking on a task that serves as an example for the company. Each October, Kattia sends out letters searching for godparents who would support children with HIV/AIDS in Costa Rica by sending them clothing and toys for Christmas. “Already in September, lots of my workmates ask me when I am going to start collecting presents, and help me with up to 250 gifts. Good-hearted people work in this company, which is very motivating”, says Kattia, who always works with children from families with extremely limited resources. Life Stories
  • 7. 12 Wesaveyoumoneysothatyoucanlivebetter 13 SocialResponsibilityandSustainabilityReport2009Communities Communities Community Stories “Healthy Food for Boys and Girls” En 2009, Walmart in Nicaragua joined forces with Visión Mundial Internacional to carry out this project, whose goal is improving the nutritional conditions of 30 families from La Concha to promote good dietary practices through educational activities. The program was designed especially for children younger than 6 and women who are pregnant or nursing. At the start of the project, 55 boys and girls were medically evaluated, and thanks to adequate treatments, are now gaining weight. Furthermore, workshops on the preparation of nutritional food took place, and mothers attended talks about Breast Feeding and Appropriate Diet. Also, we contributed to an increase in the availability of food for families through the support of farming (beans, corn, vegetables) and livestock (hens and goats) activities in their gardens. Also, technical assistance and materials were provided for the construction of metallic silos for the storage of the harvested grain. Socially Responsible Value Chains This project, started in August of 2008, was aimed at promoting good practices in the area of Social Responsibility among the suppliers of the value chain at Walmart Central America in Honduras. Throughout the program, groups of farmers in Intibuca received technical training, defined their Corporate Social Responsibility guidelines and created plans of action. In November of 2009, Walmart Central America, the Honduran Foundation for Corporate Social Responsibility, and the PROMYPE Program of German Technical Cooperation (GTZ), recognized the achievement of the 7 Grupos Asociativos de La Esperanza, Intibucá, for successfully completing this project. “We are satisfied to have made this alliance with Walmart, which has shown that it is possible to develop the value chain through the implementation of CSR measures by suppliers, which is, without doubt, a pioneering action in the development of CSR at the local level”, said Juergen Popp, PROMYPE/GTZ coordinator. Reforestation Program in El Playón As a company committed to the environment, Walmart Central America in El Salvador has implemented a support project in the protected natural area of Chanmico of the Complejo El Playón, in the Libertad district. Chanmico covers 1,592 hectares, of which 60% is made up of volcanic lava, and is considered to be the zone that retains the most water in the whole nation, for which it was declared a water conservation zone for the San Salvador metropolitan area. The program started in June of 2009 with the planting of more than 1,000 trees over three hectares of the area. In November, a second stage was carried out, which saw the creation of a tree nursery for 900 more trees on another three hectares of the zone. The project aims to reforest 15 hectares with more than 14,000 fruit trees, such as: cashew, nance, carao, arrayan and guava. This reforestation will make it easier for the rain water to filter through to the subsoil, improve environmental conditions, provide fruit to the visitors and enrich the quality of the landscape. Support for Comprehensive Education In 2002, the“Escuela Integrada” was founded in Antigua Guatemala (Sacatepéquez). Its goal was to help families in rural areas who did not have the possibility of sending their children to school. The project, which started with 120 students, currently receives over 350 children and young people from villages near La Antigua Guatemala and Patzun (Chimaltenango). The students commit to maintaining an average of 75 points or above and to exhibit exemplary behavior, which allows them to take advantage of scholarships for studying and a comprehensive education that includes health, nutrition and recreation programs. This institution operates with the support of local organizations, international entities and private individuals. Walmart Central America, fully identifying with the problems of children in need, supports the activities carried out by the Escuela Integrada in providing education, daily meals, and free medical and psychological attention to its students so they are able to finish their studies and strive for a brighter future for them and their families. “Eating Healthier is Cheaper” This program, launched in 2009 by Walmart Central America in Costa Rica, promotes healthy diets for its clients, associates and their families through information about nutrition and food safety. Its primary goal is to improve health and wellbeing by means of a higher consumption of fruits, vegetables, proteins and fibers. The campaign consists of four axes: information through instructive materials, training to improve awareness among associates and clients, help with groceries to combat malnutrition in at-risk groups, and evaluation to measure the scope of the project. The program provides healthy recipes as well as chats about nutrition in the aisles of the supermarkets. It also aids 10 children’s nutritional centers located in high social risk zones with groceries, which in practice benefits more than 1,000 minors. The program was formed as a public- private alliance with the participation of the Health Department and the Business Association for Development. Guatemala We visited the Fundación Escuela Hogar“Nuestros Pequeños Hermanos”in Chimaltenango, which is the permanent ho me of 348 children who are orphaned, abandoned and/or referred by Family Courts.The associates painted the balconies, classrooms and lounges; remodeled offices and bathrooms; outlined the sports fields and worked on the preparation of grounds where a pig corral will be built. El Salvador WehelpedtheCentroEscolarLasVictorias,whichserves 211childrenfromtheCalucomunicipality,whichisone ofthepoorestofthecountry.Roofsandbalconieswere repaired,educationalmuralswerepainted,theclassrooms gotanewpaintjob,andastudentvegetablegardenwas prepared.Someworkwasalsodoneonthegrounds. Honduras We aided the Hogar Prepace (Cerebral Palsy Rehabilitation Program) inTegucigalpa, a rehabilitation center that offers help to 120 handicapped children and/ or children with special educational needs.The volunteers painted the outside wall of the Hogar and gave talks on healthy diets and personal and oral hygiene.We also provided entertainment activities for the children. Nicaragua We worked with the Hogar Nuestros Pequeños Hermanos of Jinotepe.Walmart Central America associates planted trees and painted the facilities of the Hogar, which is home to 40 orphaned and/or abandoned children. Costa Rica We helped the HogarVista de Mar de Goicoechea, which houses 76 orphaned children.There, the volunteers undertook multiple tasks: painting the exteriors of the ten existing houses, the administrative offices, the dining room and the school; tidying up the grounds; cleaning; and entertaining all the children; and the company donated the necessary materials for a hydroponic vegetable garden. Focus onVolunteering This activity included the donation of materials, transportation, snacks and over 1,000 days of volunteer work by associates from all levels of the organization: offices, stores, production plants and distribution centers from the five countries. As part of the 2010 Annual Social Investment Program, Walmart Central America will sponsor Volunteer Days for each new Office, Store, Production Plant and/or Distribution Center. This will be a first approach that will encourage relationships between our associates and the communities that receive us. Adapting to the needs of every community, region and country is the commitment that Walmart Central America makes every day to become a good neighbor and to be able to give back to our clients a small amount of everything they give us.
  • 8. 14 Wesaveyoumoneysothatyoucanlivebetter 15 SocialResponsibilityandSustainabilityReport2009Communities Communities In contact with the communities Walmart Central America is constantly working towards being a good neighbor and benefiting the communities where it operates its stores, production plants, distribution centers and offices. This cornerstone of the culture of the company encourages that most of the donations be made at the local level, benefiting causes that are important to the clients, the community and the associates. In 2009, Walmart Central America donated $2,529,000 dollars, in cash and products, intended to help a range of causes related to: Nutrition/Poverty, Education/Childhood, Disasters, the Environment, Pymes (small- and medium-sized businesses), Community Works, Health, Consumers and Donations/ Sponsorships. This social investment benefited more than 385,000 people in the region. Furthermore, strengthening its commitment to the development of projects with high added value that allow for the optimization of resources and results, Walmart Central America allocates a part of its social investment budget to the implementation of programs in five specific areas: Nutrition, Pymes, Consumers, Workplace Equality and Sustainability. The scope of this program includes initiatives such as“Eating Healthy is Cheaper”in Costa Rica, “Healthy Diets for Boys and Girls”in Nicaragua. These two programs combine a nutritional education component with the provision of groceries to children at social risk. For Pymes there are regional programs such as “A Hand to Grow”,“Fertile Ground”and“Caluco” in El Salvador. Also, campaigns are carried out for communication and education about Consumer Rights and Environmental Protection. Helping Hands On September 8, 2009, Alvaro Colom, the President of Guatemala, declared a state of emergency due to severe food shortages that more than 54,000 families living in the“Dry Belt”(an area made up of the districts of El Progreso, Zacapa, Chiquimula, Jalapa, Jutiapa, Santa Rosa and Baja Verapaz) were enduring, and for the increasing cases of malnutrition that had led to the deaths of 25 children. This was due to a severe drought that had led to extensive losses in the harvests and worsened the already precarious food situation of the Guatemalan peasants in the region. In this setting, Walmart Central America and the Walmart Foundation responded with the implementation of several specific actions designed to help the affected communities: The Friendly Hands program, which invited customers and associates to donate food items requested to create family rations, was launched in Guatemala in coordination with CONRED (National Coordination Center for Disaster Reduction). 74 tons of products were gathered. Walmart Central America associates were invited to make a cash donation. The amount was matched by the company and delivered to the communities in need in the “Dry Belt”. The associates donated $40,273. In total, $80,546 were donated, which allowed the creation and delivery of more than 3,500 family rations. The Walmart Foundation (USA) donated $100,000 to the UN World Food Program to be used in Guatemala. This donation allowed the purchase of 90 tons of Vitacereal®, a food product fortified to meet the nutritional requirements of around 100,000 children and 50,000 pregnant women or nursing mothers. Socially Responsible Company For the second consecutive year, Walmart Central America in Honduras was certified as a socially responsible company for it s far-reaching efforts in the development of projects and programs aimed at improving the lives of Hondurans. This distinction is bestowed by the Honduran Foundation for Corporate Social Responsibility on the company that puts forward a business vision that harmoniously combines respect for ethical values, the people, the community and the environment. Campaigns carried out in collaboration with customers*, 2009 Campaign Country Beneficiary Entity/Cause Results Manos Amigas Guatemala National Coordination Center for Disaster Reduction. Helps communities affected by the severe drought and malnutrition. S74,000 kg of products were collected. Walmart Central America and its associates donated $80,456. TheWalmart Foundation donated $100,000. Mano a Mano El Salvador Department of Social Inclusion / Fusal1 Communities affected by Hurricane Ida. 1,074 kg of products collected. Walmart Central America donated $26,332. Costa Rica The Embassy of El Salvador in Costa Rica Communities affected by Hurricane Ida. 4,000 kg of food items were collected. Dulce Ayuda Guatemala Funsepa2 . Program“Technology for Education” Computerequipmentforpublicschoolswithextremelylimitedresources. $142,000 delivered. El Salvador Fusal. Pounds of Love nutrition program The fight against child malnutrition. $31,986 delivered. Honduras The Honduran Foundation for Children with Cancer Assistance provided to children being treated and their families. 34,228 delivered. Nicaragua The Dr. Oscar Rosales Hospital of the City of Leon Neonatal medical equipment donation. $49,000 delivered. Costa Rica Omar Dengo Foundation Educational opportunities for at-risk children. $140,000 delivered. Verde Ayuda, Pégate a la Isla Costa Rica Friends of the Island of Coco Foundation Biodiversity preservation on the Island of Coco, NaturalWorld Heritage Site. $40,000 collected. Walmart Central America donated $60,000. * For every campaign,Walmart Central America assumes the costs associated with advertising, training, distribution and auditing of all processes involved. 1 Fusal: Fundación Salvadoreña para la Salud y Desarrollo Humana (Salvadorian Foundation for Health and Human Development) 2 Funsepa: Fundación Sergio Paiz A LA ISLA
  • 9. 16 Wesaveyoumoneysothatyoucanlivebetter 17 SocialResponsibilityandSustainabilityReport2009Suppliers In its never-ending pursuit of new ways of doing business that are conducive to and stimulate mutual growth, Walmart Central America present its suppliers with“Joint Business Plans”. This is a mutual development initiative designed for strategic suppliers, which aims at identifying and making use of the existent synergies in the commercial, logistics and social responsibility areas, to enable not just mutual growth, but also reinforcing the social function of the company in its relationships with the community. These comprehensive plans involve every sector of the Company, require the commitment of Upper Management on both sides, and promote joint efforts that focus on achieving client satisfaction. Using this methodology, the original work plans, with monthly reviews, quarterly meetings and Top to Top meetings with the executive presidents of each participating company, were decided upon. The progress of these business plans is measured against three principal variables: Sales (jointly planned growth during an entire year) Profitability (jointly planned total profit target for the year) Fill Rate Joint Business Plan Communities Guatemala Aldeas Infantiles SOS • Asociación Camino Seguro • Asociación Cultural de las Hermanas Clarisas • Asociación Cultural Los Niños de Colores • Asociación de Apoyo a la Secretaría de Asuntos Sociales de la Municipalidad de Guatemala • Asociación de Damas Franciscanas • Asociación de Hermanas Misioneras de La Eucaristía • Asociación Estudiantes Universitarios • Asociación Luz de la Virgen de Fátima • Asociación Misioneros del Sagrado Corazón • Asociación Módulos de Esperanza • Asociación para la Investigación de Comercio Exterior • Banco de Alimentos • Cámara de Industria de Guatemala • Cámara Empresarial de Comercio y Servicio • Casa Jackson • CentraRSE • Centro Misionero Santa María del Camino y Francisco Javier • Ciudad de la Felicidad Hogar Marta y María • Confraternidad Evangelística Pentecostés • Coordinadora Nacional para la Reducción de Desastres • Dirección de Atención y Asistencia al Consumidor • Embajada de Costa Rica • Esclavas del Santísimo y de La Inmaculada • Escuela de Educación Integral • Escuela Frida Kahlo • Escuela Oficial Rural Mixta San Jorge • Escuela Oficial Urbana Mixta “Mateo Flores” • Federación de la Pequeña y Mediana Empresa • Fundación “Defensores de la Naturaleza” • Fundación Escuela Hogar “Nuestros Pequeños Hermanos” • Fundación Hogar de Niños • Fundación Kinal • Fundación Paiz • Fundación Remar • Fundación Sergio Paiz Andrade • Fundación Teoxché • FundaNiños • Fundación Museo de los Niños • Fundación para el Desarrollo de Guatemala • Funsilec • Hogar Campestre Los Pinos • Hogar del Niño Minusválido “Hermano Pedro” • Hogar Bethania para la Tercera Edad • Hospital de Zacapa • Instituto de Gobernanza • Instituto para la Promoción de la Responsabilidad Social, Universidad del Istmo • Ministerio Semillas de Esperanza • Misión Cristiana Torre Fuerte • Municipalidad de San Martín Jilotepeque • Municipalidad San Juan Comalapa • Parroquia San Marcos Evangelista • Parroquia San Martín de Porres, Cobán, Alta Verapaz • Patronato de Asistencia Social del Hospital Roosevelt • Programa Capacitación e Información a Consumidores • Seminario Mayor de la Asunción • Siervas del Sagrado Corazón de Jesús • SIFE • Unidad Nacional de Atención al Enfermo Renal • Universidad Rafael Landivar • El Salvador Fundación de Asistencia Técnica para el Desarrollo Comunal Salvadoreño • Administración Nacional de Acueductos y Alcantarillados • Alcaldía Municipal de Soyapango • Asociación. Salvadoreña de Ingenieros y Arquitectos • Asociación Ágape • Asociación de Hijas de la Caridad de San Vicente de Paul • Asociación Pro Hogar Permanente de Parálisis Cerebral • Cámara de Comercio e Industria • Centro Escolar Caserio Barracón, Cantón Sunapa • Centro Escolar El Tránsito • Centro Escolar Juana López • Club Rotario San Salvador Cuscatlán • Comité de Festejos de la Ciudad de San Salvador • Cruz Roja Salvadoreña • Embajada Americana • Fundación Empresarial para el Desarrollo Educativo • Fundación Empresarial para la Acción Social • Fundación Éxodo • Fundación Hogares Providencia • Fundación Internacional Crisálida • Fundación Judá • Fundación Reciplast • Fundación Salvador del Mundo • Fundación Salvadoreña para el Desarrollo Económico y Social • Fundación Salvadoreña para la Salud y Desarrollo Humano • Fundación Salvadoreña para la Tercera Edad • Secretaría De Inclusión Social • Honduras AldeasInfantilesSOS•AsociaciónColaboraciónyEsfuerzo•AsociaciónNacional deIndustriales•AsociaciónRehabilitacióndeMarginados•CámaradeComercioe IndustriadeTegucigalpa•FundacióndeCentrosdeRecursosyTecnología•Fundación Abrigo•FundaciónAtenciónparaelNinoQuemado•FundaciónBenéficaporlosniños deHondurasSolidaridad•FundacióndeBecariosTutoresdelConsejoHondureños delaEmpresaPrivada•FundaciónElAzúcar•FundaciónGuarderíasInfantiles• FundaciónHondureñadeResponsabilidadSocialEmpresarial•FundaciónHondureña paraelNiñoconCáncer•HogardeAncianosDivinaProvidencia•HogardeNiños NazaretdeComayagua•OlimpiadasEspeciales•ParroquiaMedallaMilagrosa• ProgramaMundialdeAlimentos•ProgramaRehabilitaciónParálisisCerebral• Nicaragua Alcaldía de Managua • Asociación Pan y Amor • Casa Alianza • Cámara de Comercio Americana de Nicaragua • Cámara de Comercio de Nicaragua • Centro de Asistencia a la Mujer • Centro de Desarrollo Infantil Samuel Calero • Colegio San Agustín • Comedor San Luis Gonzaga • Consejo Superior de la Empresa Privada • Fundación Nueva Vida • Fundación Teletón • Hogar Nuestros Pequeños Hermanos • Hogar San Antonio • Hogar San Francisco de Asís • Hogar San Pedro Claver • Hospital Doctor Oscar Danilo Rosales • INCAE • Instituto Pajarito Azul • Los Pipitos • Misión Adventista del Séptimo Día • Pasos Producciones • Santuario Mariano Arquidiocesano “Nuestra Señora de Lourdes” • Visión Mundial Internacional • Costa Rica Asociación de Desarrollo Específico Pro Pabellón Enfermo Alcohólico • Asociación Empresarial para el Desarrollo • Asociación Movimiento Solidarista • Asociación de Jóvenes Escuadrón S.C. • Asociación Consumidores de Costa Rica • Asociación de Fibrosis Quística • Asociación Lucha contra Cáncer Infantil • Asociación Vida Nueva • Cámara de Comercio • Centros de Educación y Nutrición & Centros Infantiles de Atención Integral • Club Leones de San Sebastián • Club Rotario Escazú • Comisión Nacional de Emergencia • Consultores en Desarrollo • Cruz Roja Costarricense • Escuela Arturo Morales • Escuela Aruba • Escuela Carmen Lyra • Escuela Colonia Isidreña • Escuela El Cañal de Nicoya • Escuela El Carmen de Tilarán • Escuela Ezequiel González • Escuela Fray Casiano de Puntarenas • Escuela Los Ángeles de Nicoya • Escuela Los Geranios • Escuela República de Corea • Escuela San Francisco La Unión • Escuela San José de Heredia • Escuela Santa Cecilia • Escuela Santa Cruz de San Isidro • Escuela Tuetal Sur • Escuela Unidad Pedagógica Sotero • Federación Costarricense de Natación y Afines • Fundación Amigos de la Isla del Coco • Fundación Ayúdenos para Ayudar • Fundación Dare • Fundación Gema • Fundación Omar Dengo • Fundación Parque Nacionales • Fundación Pro-Unidad de Cuidados Paliativos • Fundación Terra Nostra • Fundación Un techo para Mi País • Fundación Voz Propia • Fundación para el Desarrollo Cultural y Social de la Etnias indígenas Costarricense • Hogar Crea • Hogar de Ancianos Alfredo y Delia González • Hogar Niños Baik • Hospicio de Huérfanos de San José • Huellitas del Corazón Desamparados • Junta de Educación Escuela San José de San Rafael de Heredia • Municipalidad de Escazú • Municipalidad de Grecia • Parroquia Corpus Cristi Aurora Heredia • Parroquia Santa Lucía de Paraíso de Cartago • Parroquia Sagrado Corazón de Jesús • Teatro Popular Melico Salazar • Temporalidades de la Arquidiócesis de Guadalupe • Universidad Estatal a Distancia • Agro-industrial Development Asociación Albergue de Rehabilitación al Alcohólico Adulto Mayor • Asociación Casa Provincial del Buen Pastor • Asociación Centro Diurno de la Tercera Edad • Asociación Centro Materno Infantil Mi Tía • Asociación Ciudad Refugio Vida Abundante • Asociación Costarricense de Fibrosis Quística • Asociación de Beneficencia Rostro de María • Asociación de Movimiento de Vida Cristiana • Asociación de Rehabilitación y Restauración Teen Challenge • Asociación Ejército de Salvación • Asociación Hogar Crea Internacional Incorporado Capitulo de Costa Rica • Asociación Hogares Crea de Alajuela • Asociación Hogares Sagrada Familia • Asociación Interdenominacional Nueva Vida en Cristo • Asociación Misión Consuelo • Asociación para el Desarrollo Interior del Individuo • Asociación Pro Ayuda a Niños en Riesgo • Asociación Servicio Solidario y Misionero Unidos en la Esperanza • Escuela La Trinidad de los Chile • Escuela María Vargas Rodríguez • Escuela para Niños Sordos de Cartago • Escuela Quince de Agosto • Escuela San Vicente • Fundación Hogar Manos Abiertas • Fundación Jesús Vive en el Necesitado • Fundación Pura Vida Coffee • Hogar de Ancianos Hortensia Rodríguez de Atenas • Junta de Educación Escuela de Santa Marta de Montes de Oca • Universidad de Costa Rica - Escuela de Educación Física y Deportes • Beneficiary Organizations, 2009
  • 10. 18 Wesaveyoumoneysothatyoucanlivebetter 19 SocialResponsibilityandSustainabilityReport2009 Suppliers In the area of Social Responsibility, the participants have committed to supporting, with their experience and technical skills, different region-wide programs for Nutrition, the Environment, Sustainability and Consumers’Rights. Among them are:“A Helping Hand for Growth”,“Eating Healthy is Cheaper”,“Knowing Your Rights”(consumers), “Hand in Hand with the Client”,“Energy in Moderation”,“The Trees of Tomorrow”and “Recycling is Life”, among others. Even though in 2009 Joint Business Plans were created with 29 suppliers, the project provides for incorporating new companies into this work strategy. The first companies that took part in this initiative were: 3M, Applica, BDF, Bimbo, Cargill, Clorox, Coca-Cola, Colgate, Dos Pinos, Frito Lay, Fruit of the Loom, Guateplast, Hanes, Heinz, Henkel, Kellogg’s, Kimberly Clark, Kraft, Nestlé, Pepsi, Procter & Gamble, Quaker, Reckitt Benckiser, Roma Prince, Samsung, SC Johnson, SCA, Sigma Alimentos and Unilever. Awards for Excellence Walmart Central America annually recognizes the best practices achieved by suppliers. The following were the companies distinguished by category, according to activity, in 2009: Distinguished Suppliers Category 2009Winner Supplier in support of Sustainability Henkel VPI Henkel Best Service Colgate Perishables Division Productos Alimenticios Sellos de Oro, S.A. (Aves) General Merchandise Division Electrónica Dayton Textiles Division Undesa, S.A. de C.V. Groceries Division Frito Lay Consumer Goods Division Nestle Purina Best Supplier of Regional Private Brand Alimentos, S.A. Best PYME Supplier, Costa Rica Nueces Industriales Best PYME Supplier, Guatemala Escocesa PymesDevelopment Walmart Central America seeks to support, in a consistent and collaborative manner, the development of small- and medium-sized suppliers, endeavoring to bring its clients the best selection in price and quality. This is a strategy which, from the start, allows us to promote the development and well-being of the communities where we operate by creating new job opportunities, and increase profits for the small- and medium-sized businesses that supply it. In this manner, diverse projects stimulating local production have been encouraged, in the agricultural as well as the business field, to achieve constant growth of the small- and medium-sized businesses that supply Walmart Centroamérica stores. The Fertile Ground Program The Fertile Ground Program was created in 1973 as a result of the need for a secure supply of fresh, high-quality agricultural products. The strategy of working directly with small- and medium-sized farmers in the region has proven to be a successful practice, both economically as well as socially, as it raises the income levels and competitiveness of the producers and the quality/quantity of products offered. We Drive Growth Walmart Central America stimulates local production and the development of communities.
  • 11. 20 Wesaveyoumoneysothatyoucanlivebetter 21 SocialResponsibilityandSustainabilityReport2009 PymesDevelopment Thanks to this program, the participating farmers have access to: permanent technical assistance (provided by agro-engineers), information concerning prices and the variation in demand, a guaranteed market, fair prices, timely payments, higher incomes, special training in Good Agricultural Practices, Good Manufacturing Practices, and subjects related to administration and finances. Fertile Ground and Hydroponics Hydroponics is a method whereby plants are grown without using soil. Cultivation is undertaken in a substrate with the addition of water with nutrients that contain all the essential elements for the plant to complete the normal development cycle. In 2003, the company initiated a research-and- development pilot program for the commercial production of lettuce in protected environments. Today, Walmart Central America promotes this type of sustainable production, which was adapted by several farmers taking part in the Fertile Soil program. Among its advantages are: reductions of problems caused by blights and diseases associated with the soil, reduction of the use of agro-chemicals to almost zero, reduction in cultivation time and fertilizer costs; furthermore, the system is environmentally friendly and uniform, high-quality products are obtained. Integrated Producers In an environment that fosters continuous improvement through diagnostics and oversight, Walmart Central America is carrying out programs that support small poultry and livestock producers. Chicken and Eggs: Two work programs related to controlled chicken growth and commercial egg production have been developed. These activities involve 41 small producers in Costa Rica, who supply 100% of the chickens and 58% of the eggs commercialized in theWalmart Central America stores of the country. Bovine Livestock: A similar work plan aimed at fattening up the livestock is being carried out. This program is developed in Costa Rica and Nicaragua and covers seven small livestock farmers who provide 5% of the company’s needs. Rice and Beans: Financing is provided to farmers for the development of these crops. In 2009, 60 producers were financed with loans totaling 4 million dollars. The Inclusive Market Alliance for Rural Entrepreneurs This initiative, lasting three years, financed by Mercy Corps, USAID, Walmart and the AGIL Foundation (Support for the Generation of Local Incomes), was launched in Guatemala in March 2008, and was implemented with the goal of allowing small farmers to reach the market and receive better incomes. During the program’s second year, producers were consolidated into groups. Good Agriculture Practices, Good Manufacturing Practices and Good Business Practices were implemented, the amount of cultivated land was increased significantly, and a step-by- step planning for subsituting for Walmart Centroamérica was initiated. During this stage, the increase in agricultural output led to increased sales. Total sales reached $1,207,661, of which 55% was commercialized through Walmart Central America and the remaining 45% through the informal sector. Furthermore, through Walmart, these small producers exported a total of $73,318 to the Central American region. In 2009, the program, which includes 25 groups of beneficiaries and brings together 461 producers, created more than 900 jobs in Guatemala. Based on the results obtained, the proposed objectives have been surpassed, as small producers have widely accepted this program. Furthermore, requests have been received from other interested groups, from districts outside the project’s area of influence, to become part of the program and receive the associated benefits and support. Fertile Soil – Socioeconomic impact – 2009 (Grains, vegetables, fruit) Variables Costa Rica Nicaragua Honduras El Salvador Guatemala Total Agricultural Suppliers 480 382 716 352 160 2.090 Families benefited* 4.049 3.970 3.040 380 1.894 13.333 Districts/Municipalities 91 32 7 31 110 271 Alliances with Agricultural Organizations 18 2 15 9 4 48 Agricultural Projects 7 37 150 81 51 326 Jobs created 520 830 2.130 786 518 4.784 *Many producers are grouped into cooperatives, associations, etc. *67.54% of private-brand suppliers are small- and medium-sized businesses. PymesDevelopment Turning the Supply Chain Green In January 2009, in a demonstration of commitment to its suppliers to build a sustainable supply chain, Walmart Central America, in cooperation with the World Environmental Center (WEC) presented “Turning the Supplier Chain Green”, an initiative that promotes practices and technologies for cleaner production (PML) and energy efficiency (EE) among small- and medium-sized producers and manufacturers in Guatemala and El Salvador. The programs consists of providing 24 months of free technical support to the selected businesses, with the aim of improving competitiveness by taking better care of the environment in the areas of energy and water savings; reductions in waste, raw material use and emissions; implementation of environmental systems, administration, and access to financial resources. The project includes three stages: evaluation and diagnosis, required technical support, and follow-up. This initiative is one of the benefits of the “A Hand for Growth“, which opens doors to Pymes, enabling them to become Walmart Central America suppliers by providing access to the tools that help them become competitive, minimize environmental impact, and at the same time improve productivity. In Guatemala, 11 companies are actively participating in the project. It is estimated that together, they may achieve a projected $194,900 in savings annually. As of December 2009, $15,750 in savings were attained by implementing the recommendations. In El Salvador, eight companies are participating. Together, they are estimated to reach an annual projected savings of $336,790. The renovations undertaken to this point will generate $173,480 in annual savings (52% of what was projected), while the verified savings have reached $49, 290 as of December 2009. Private Brand Development In addition to local, regional and imported brands, Walmart Central America adds an extensive line of private brand merchandise to the selection, offering our clients a significant price difference while maintaining a level of quality similar or superior to that of other brands. During 2009, Private Brand products were produced by 151 companies in the region, of which 102 (67.54 %) are small- and medium-sized businesses. The program is a significant source of income for all of the participating suppliers, while both the products and the manufacturing plants are regularly inspected and subject to numerous tests and quality controls to assure the highest levels of customer satisfaction. Private Walmart Central America brands in the region are: Sabemas, Supermax, Suli, Equate and Great Value. In pet food, Ol’Roy, Special Kitty and Miocane are also offered. Furthermore, this offer is complemented with a broad selection of private brand fresh products (meat, vegetables, grains, cereals and breads) produced to exacting control standards by Agricultural Development production plants. Private-brand Suppliers * – Cases of improvement Supplier Initial Grade Nov-2009 Observations Brinsa S.A. (Coopeprosa) 5.39 8.18 Improvement in facilities, implementation of pre-requisite programs and documentation systems. Mazu S.A. 5.83 8.98 Implementation of the HACCP food inspection system and improvements in documentation systems. H5 Industrial 6.48 8.71 Establishment of a documentation system within the quality system.
  • 12. 22 Wesaveyoumoneysothatyoucanlivebetter 23 SocialResponsibilityandSustainabilityReport2009 A Hand to Growth “A Hand to Growth”is Walmart Central America’s social responsibility program, which supports the development of small- and medium-sized local suppliers that operate within established norms and can supply at least one of the stores in the chain. Through this program, with the participation of the commercial team, which interviews potential new suppliers, periodic Business Rounds are conducted. If the product adds value to the business, purchase terms are negotiated. “A Hand to Growth”directly benefits the Pymes for a period of three years, offering: preferential rates in anticipation of the payment of invoices, discounts on commercial activities, company training and monitoring of the performance of the included products through semi-annual meetings with the commercial team. From the beginning of the program in June 2007, 18 business rounds have been conducted, and 102 new suppliers added. During 2009, 162 manufacturers demonstrated their products during the five business rounds conducted, and 34 of them became the chain’s newest suppliers. As of December of the same year, 564 small- and medium- sized companies in the region are actively participating in the program. “A Hand to Growth”also organizes management training aimed at supporting the managers and/or owners of Pymes, strengthening their business skills and knowledge. In 2009, 276 hours of training were given to 205 executives of the Pymes supplying Walmart Central America. If your company wishes to participate in this program, please visit: walmart-centroamerica. com,“Una Mano para Crecer”Apoyo a Pymes section, where you will find more information and toll-free contact numbers for every country. Success Stories Guatemala Pyme: Restaurantes y Alimentos de Centroamérica S.A. Product: chimichurri sauce Alma Ruiz bought“La Chicharronera”, a restaurant offering traditional Guatemalan food in May 1983. That is where this chimichurri sauce was born, and with time it gained a reputation and became very popular. In 1988, Alma decided to package the sauce for use at homes and started selling it through Supertienda Paiz Américas. In 1999, with her son and daughter, she started a company named Restorantes y Alimentos Centroamérica, which administers the restaurant and the production plant. The growth was surprising. In 2007 the company joined A Hand to Growth, which allowed it to start exporting its product to El Salvador. Currently, this Pyme supplies more than 40 retail locations, its production plant is working at 100% capacity, its profits have grown, and general business skills have been sharpened through participation in seminars organized by the program. Furthermore, as a participant in the“Turning the Supplier Chain Green”program, the company receives support of the World Environment Center and the Cleaner Production Center, which have helped it put to use processes that are more efficient and environmentally friendly. El Salvador Pyme: Encurtidos Lupita Product: Foods, sauces and pickled products Encurtidos Lupita is a Pyme that came about out of necessity, since Guadalupe’s second son, Rios, was diagnosed with cerebral palsy. This news changed the lives of the whole family, and also meant that Guadalupe had to leave her job, with the resulting reduction in income for the family. However, in 1993, the popularity of a snack that she had prepared for a party convinced her to start her own business.The first product that she offered was papaya preserve, which was already a hit among her acquaintances. Then, her husband quit his sales job and joined the family business to manage the commercialization of the products. In 2000, Hiper Paiz opened its doors for them and approved four products that were quickly accepted, which allowed them to also enter the Dispensa de Don Juan.Today, Encurtidos Lupita has a product line consisting of 33 items and employs 65 people. “Walmart has truly been a guide for us, since fulfilling its quality standards and its cultural values has led us to apply them within our company and our personnel”, stated Guadalupe Rival, the General Manager of the company. Honduras Pyme: Agrocomercial Iorana Product: Nacatamales, Snail Soup, Seafood Soup, Doughnuts, Torrejas The idea to bring a wide variety of typical, genuinely Honduran dishes to the table came from the mind of Jose Francisco Mejia, a resourceful Honduran.That is how Agrocomercial Iorana, which commercializes its products under the label“De mi Pais”, was born   Through its“A Hand to Growth”program, Walmart Central America is a part of the history of this company, which since 2008 has distributed its products through Paiz, Hiper Paiz, Maxi Bodega, and most recently, Despensa Familiar stores. “I never imagined that such a big company would provide me with the means to have my product in their aisles. Entering the “A Hand to Growth” program has meant receiving a lot of support. Today, thanks to Walmart, the product is known and consumed by the Honduran people. Our dream is to export to other countries, and we know that with the help of Walmart we will achieve it”, said Jose Francisco Mejia, the owner of Argocomercial Iorana. This company, which is growing every day with the help ofWalmart, today is a Pyme that has expanded its product line, improved its packaging, positioned its brand name, and above all, provided employment to single mothers. Nicaragua   Pyme: Industrias Fatima Producto: Favorita Candles, Grupo Llanes Candles, Mystic Candles In 1990, Jaime Llanes founded a small family business dedicated to the production of candles, which is now managed by her four children. Through constant innovation they were able to expand the product line, from conventional candles to aromatic and decorative candles. Today, their products are offered to our clients at 48 Pali stores and seven Supermercados La Union. “Walmart Central America is helping us grow and develop to become more competitive in other markets”, says Mrs. Ligia Llanes, Marketing Manager. For Industrias Fátima the opportunity to participate in training and conferences for free was also very important. “Compared to last year, our sales at Walmart Central America stores in Nicaragua have increased by 27%. We have really felt the support that the company provides to small- and medium-sized businesses. Our goal is to keep growing”, stated Llanes. Currently, their products have been accepted to be one of the regional suppliers of the company. Costa Rica Pyme: Cosmeticos Laita Hair care products Cosmeticos Laita began in the year 2004, after Laura Arce won first place in the Innovations Category at the V National Entrepreneurial Contest organized by the Costa Rica Institute of Technology and sponsored by Walmart Central America. As a part of the prize, Laura submitted two of her products to be sold at 12 of the company’s stores. Today, Cosmeticos Laita sells at over 500 retail locations with 15 products throughout the nation’s territory, employs 11 people, and their sales through Walmart Central America account for 25% of its total revenue. “Walmart Central America and its A Hand to Growth program allowed us to make the big step and become a company ready for any kind of challenge, a better organized company that develops products which are better presented and more attractive to the customer”, Laura stated. In the process, they came across the need to make changes to its image with the aim of preparing the company for a new challenge: exportation. PymesDevelopment PymesDevelopment
  • 13. 24 Wesaveyoumoneysothatyoucanlivebetter 25 SocialResponsibilityandSustainabilityReport2009 Sustainability “Sustainability is a part of our business and is completely in line with our business model, our mission and our culture. Sustainability helps us offer low prices every day, because the savings gained from sustainability initiatives that we develop are transformed into lower operation costs and constant savings for the consumers. Furthermore, we endeavor to make the environmentally friendly products more accessible to our clients”. These words from Mike Duke, President and CEO of Walmart Stores, reveal the strategic importance that becoming a more sustainable company has for Walmart. Within this framework, and seeking to more effectively integrate sustainability in its operations, Walmart Central America launched its“Sustainability for a Better World”program in 2009. This proposal promotes the performance of actions in line with the Company’s sustainability objectives and is centered on efforts that generate the greatest impact for the benefit of the environment and the community. Sustainability for a Better World Suppliers Sustainable Supply Chain Responsible Supplying Sustainable Products and Packaging Operations and Associates Sustainable Constructions Sustainable Store Operations Sustainable Plant Operations Conscious Associatess Sustainable Offices Community Conscious Clients Volunteering and Social Investment Sustainability Platforms “The Walmart family understands that we have a responsibility and an opportunity to make a difference with sustainability.” Mike Duke Sustainability “Sustainability for a Better World”is a multidisciplinary initiative including ten specific work platforms that evaluate and develop sustainable activities to be implemented with a view of the suppliers, communities and clients. Each platform, headed by a vice-president, has the objective of reaching sustainability goals and spreading sustainability objectives. The platforms, although comprised of associates of the company, may also receive support from non-governmental organizations, academic institutions, government agencies and supplier companies. This approach provides for the acquisition of knowledge in each area and for generating innovative and practical solutions. Environmental Objectives In October 2005, Walmart established three basic objectives to become a more sustainable company: using 100% renewable energy, generating zero waste and selling products that save resources and preserve the environment. In the last few years, these commitments have extended to social issues, such as respect for diversity, responsible supplying, and compliance with local laws and social and environmental regulations in the production of goods, among others. Energy All of the energy-saving initiatives put forth by Walmart Central America in the region have allowed the operation to save a total of $2,697,428 during 2009. This translates to electrical power savings equivalent to the annual consumption of 5,178 Central American families, or 15,534,508 kW/hrs. Also, the Agro-industrial Development plants have implemented various environmental programs related to informing the associates of the need to turn off lights, improvements in electrical installations, changing of light bulbs, reduction in the consumption of water and fuels, and the installation of tanks for the recuperation of rain water, among others. Energy – Projects carried out in new and existing shops Initiative Description Stores (2009) Total Stores Efficient Lighting Installation or conversion to high-efficiency fluorescent lighting (T5/T8). 91 360 Natural Lighting Installation of skylights making up from 12% to 15% of total roof area. 43 142 Refrigeration Using floating suction systems and electronic valves to make the maximum use of refrigerating equipment temperature. 143 179 Cold Rooms Installation of alarms and sensors to control the times that doors remain open. 65 144 Speed Controllers Their installation controls the speed of motors within the equipment. 28 46 Night Curtains Their use in refrigeration equipment allows for energy savings and improves efficiency. 80 80 Dehumidifiers Allows to control the humidity in the sales sector, making the use of refrigeration and air conditioning equipment more efficient. 14 52 Energy Administration (EMS Systems) Use of intelligent controls that administer the energy used for lighting, air conditioning and refrigeration. 50 181 LED lighting within refrigeration chambers LEDs are much more efficient in electric energy use. 75 stores (762 doors) 187 stores (2,307 doors) Power Factor Improvement Installation of capacitor banks to improve the use of the electric power system. 15 15 Night-use curtains on refrigeration equipment, allowing for energy savings and maintaining temperature.
  • 14. 26 Wesaveyoumoneysothatyoucanlivebetter 27 SocialResponsibilityandSustainabilityReport2009 Sustainability Waste Recycling Program Walmart Central America has been one of the pioneer companies in establishing a regional recycling program, collecting cardboard and plastics generated by its Stores, Distribution Centers, and Agro-industrial Production Plants. Said materials are compacted at the Distribution Centers for transportation to recycling centers, where they are converted to new products. In 2009, these recycling actions prevented the felling of 248,753 trees and saved us from buying 19,300 barrels of oil. Furthermore, the Agro-industrial Development Plants and the offices participate in various recycling programs, such as of organic waste, aluminum, glass, PET bottles, wood, electronic equipment, etc. In 2009, for example, 2,458 tons of organic waste and 220 tons of other materials were recycled. The practice of recycling, apart form reducing the use of natural resources, generates myriad benefits for the environment in terms of water and energy savings, as well as the reduction in landfill use and the emission of greenhouse gases. Reduction in Emissions Walmart believes that every company has the responsibility of reducing the emissions of greenhouse gases. To that end, it is working in several directions to reduce the Company’s carbon footprint, working together with suppliers and clients to help them to do the same. Currently, the company is also investing in renewable energies, and in increasing the energy efficiency of its stores, buildings and trucks. This way it takes advantage of its wide network of suppliers, stock holders, associates and clients to effect a sustainable change in the retail industry and beyond. During 2009, Walmart Central America’s operations emitted 118,825 tons of CO2 resulting from electrical energy use, refrigerants, and the use of fuels such as diesel, gasoline and liquefied petroleum gas. The emissions generated by 523 service stores, 16 agro-industrial production plants, 11 distribution centers and six administrative offices are included in this calculation. Reduction in the Consumption of Plastics The introduction and promotion of the use of reusable fabric bags, together with the standardization of the size and weight of plastic bags, has allowed Walmart Central America’s regional operations to save a total of 327,242 kg of plastic resin during 2009. For each ton of recycled cardboard, 17 trees are not cut, 26,500 liters of water, 4,102 kWh of electricity and 2.3 m3 of landfill volume are saved. Ecological Impact – Cardboard Recycling Program Year Tons Trees Saved Water Saved Energy Saved Unusedvolumeoflandfill 2007 10,457 177,772 277,115,535 lt 42,895,393 kWh 24,051.54 m3 2008 13,272 225,624 351,708,000 lt 54,441,744 kWh 30,525.60 m3 2009 14,633 248,753 387,761,250 lt 60,022,515 kWh 33,654.75 m3 For each ton of recycled plastic, 11 barrels of oil are not purchased, 3.5 tons of CO2 emissions are avoided and 2.3 m3 of landfill volume is saved.*23 New Stores vs. 2008. Ecological Impact – Plastics Recycling Program Year Tons Barrels of Oil saved CO2 Emissions avoided Unused volume of landfill 2007 1,004 11,043 3,514 tons 2,308.95 m3 2008 1,455 16,007 5,093 tons 3,347.01 m3 2009 1,755 19,300 6,141 tons 4,035.49 m3 2009*2008 0 20.000 40.000 60.000 80.000 100.000 120.000 Total tons of CO2 2008-2009 102,654tons 118,825tons Sustainability Products Year after year, Walmart Central America stores add new products that save resources and the environment. Articles using less packaging and/or using recycle materials are promoted as well. Also, all of the general consumption products participating in Earth Month 2009 had to present evidence demonstrating their environmentally-friendly nature. In perishables, Walmart Central America offers organic vegetables and promotes the development of hydroponic agriculture, which drastically reduces the use of fertilizers, agro-chemicals and water. Lettuces and other hydroponic produce is regularly sold at its stores In seafood, 60% of the production comes from fish farms. Endangered species are not sold and seasonal restrictions are respected. Sustainable sustainability With the aim of reinforcing its path towards sustainability, Walmart took on new commitments during 2009: Started selling only concentrated detergent in its US stores; Committed to a 70% reduction in phosphates used in laundry and dishwashing detergents in the Americas region in 2011; Announced a 5% reduction in packaging in Latin America by the end of 2013, with the aim of offering more sustainable packaging; Will develop an Sustainable Products Index on a global level. This index will allow us to know which products are the most efficient, most effective, and the best for the people and the planet. This initiative consists of three stages. The first stage is in development, and consists of a 15 question survey of the over 100,000 Walmart suppliers around the world. These questions focus on four important areas: Energy and Climate: Reduction in the use/cost of energy and in greenhouse gas emissions. Efficiency of Materials: Reduction in waste and an improvement in quality. Natural Resources: Responsible use of high-quality raw materials. People and Community: Production of goods in an ethical and responsible manner. As the second step, the company took part in the creation of the Sustainability Consortium, a group of experts from important universities that will develop a worldwide database containing information related to product life-cycles – from raw material to becoming waste. Walmart has provided initial funds for the formation of the Consortium, managed jointly by University of Arkansas and Arizona State University, and invited all of the retailers and suppliers in the world to participate. The company will also join forces with one or more leading technology companies to create an open platform to host this index. The last step in the development of the index will be the conversion of product information into a simple product description which informs consumers of product sustainability, offering more transparency as to the quality and history of the products evaluated. Withtheslogan“YouractionstransformthePlanet”,EarthMonthtookplacethroughoutWalmartCentralAmericastoresinthefive countriesoftheregionfromApril15toMay17,2009.Thisprogramwasdesignedtoincreasetheeducationandawarenessofour associatesandclientseducationandawarenessofhowtocarefortheplanetandthecontributionthateverypersoncanmake. DuringEarthMonth,educationaltalks,usefuladviceonenergysavings,wastereduction,recyclingandtheadvantagesofusing reusablebags,wereoffered;treesweredonatedtoclientsandassociates;volunteeractivitiesfocusedonreforestationandbeach cleanupwereconductedintheregion;and40newproductswereaddedtothestockthataremoresustainableintermsofsavings intheuseofnaturalresources,incorporatingorganicand/orrenewablerawmaterials,moreefficientpackaging,useofrecycled materials,etc. WiththegoalofhonoringthecommitmentthatWalmartCentralAmericamakestoitsclients,alloftheproductsparticipatingin EarthMonthunderwentarigorousselectionprocess. Earth Month For more information About the Sustainability Consortium, visit: sustainabilityconsortium.org About the Sustainable Product Index, the supplier survey, and statement from the leaders ofWalmart, visit: walmartstores.com/factsnews/newsroom/9277.aspx If you would like to evaluate the beta version of the index, please visit: goodguide.com
  • 15. walmart-centroamerica.com Awards and Recognitions 2009 InitsEdition181fromJune2009,theSummaJournal publisheditsannualsurveyaboutLeadingCompaniesinCentral AmericaandDominicanRepublic,whereWalmartCentral Americawasonthehonorroll,andwasdistinguishedas “TheBestMultinationalCompany”intheregion. Costa Rica The Costa Rican-North American Chamber of Commerce distinguished the“Eating Healthy is Cheaper”educational and nutritional program with an Honorable Mention.1 Nicaragua The Department of Labor, through the National Hygiene andWork Safety Council, certified Hortifruti as a model company, and awarded it the “Award of Excellence”. The National Hygiene andWork Safety Council awarded Industrias Carnicas Integradas the “Excellence in Hygiene and Safety”Prize. The Cleaner Production Center awarded Industrias Carnicas Integradas the “Prize of Excellence”. 2 FundaciónTeletón recognizedWalmart Central America in Nicaragua “foritsparticipationintheRaceforLove,withourboys,girlsandyoungpeoplewithspecialabilities,andforhaving helpedusreachandsurpassourgoals.” The Nicaraguan Corporate Social Responsibility Union recognizedWalmart Central America for its participation in the first application of CSR indicators in Nicaragua. Honduras The Honduran Foundation for Corporate Responsibility awardedWalmart Central America its “Socially Responsible Company Seal”for the second year in a row for its good social responsibility practices. 3 The Honduran Private Company Council and CHF International have awardedWalmart Central America the “Building a BetterWorld” Prize for its support of policies, initiatives and informational campaigns aimed at HIV/AIDS prevention. 4 The Cathedral ofTegucigalpa presentedWalmart Central America the Plaque of Recognition for its support of the restoration of the Cathedral of Archangel Saint Michael. Aldeas Infantiles SOS Honduras recognizedWalmart Central America for its continued support of the institution’s activities. Guatemala TheVice-president of the Republic, Dr. Rafael Espada, presentedWalmart Central America with the “Recognition ofTransparency”for its excellence in attainingTransparency in all of its processes. 5 The Center for Corporate Social Responsibility awardedWalmart Central America an Honorable Mention for its“The Inclusive Market Alliance for Rural Entrepreneurs”program. In an opinion poll of the most admired companies and businesspeopleofCentralAmerica,carriedoutamongthetop executivesoftheregionandpublishedbythejournal Estrategia& Negocios(Edition111,March2009),WalmartCentralAmerica waschosenasthe“MostAdmiredMultinationalCompany”. Regional 1 2 3 4 5