Annual Report 2014

In having such a close contact with the end-consumer, Walmart has the opportunity to inform and engage society in a quest for a more sustainable and healthy life. Seeing that the world is increasingly connected through these type of networks, Walmart has launched a virtual platform to achieve greater proximity to its consumers. Through Walmart's corporate profile on Facebook, navigators of the Internet can get to know more about the company and even converse directly with it by pressing the Can I Help? button, which connects the consumer to the customer call center. Counting all the brand-name profiles on social networks, fans and followers of the company had passed the 1 million mark by the end of 2013.

The social media were also used in a new institutional marketing campaign, He Who Saves, Achieves More, the focus of which was to translate to the consumer what in the Everyday Low Price concept actually means in practice, and how it can generate benefits for customers. In order to give this concept tangibility, the campaign recounted real stories experienced by customers while also maintaining an open space for the exhibition of new initiatives on the part of users. In addition to online channels, the company also used traditional media, such as TV, radio and newspapers.

Walmart Brasil monitors the comments and complaints made on these profiles. For example, the criticisms made by the residents association in the region of Alphaville, in Grande São Paulo, with respect to the parking facilities at the Walmart and Sam's Club stores, resulted in the company explaining the measures taken to resolve the problems. As a consequence there was an immediate rise in the number of positive comments about Walmart, as well as an increase in the level of sales at the stores.

This process is present throughout the company's operations, especially in its mission to always provide the customer with an ever better service – offering Atendimento UAU. (Wow! Service) The name itself conveys that the program training has involved 100% of the employees in Walmart’s store network throughout the Country, being aimed at guaranteeing and broadening the level of customer satisfaction.

In 2013, the program covered the theme techniques of providing convincing argumention to customers and retaining them. Based on the complaints received at the stores and through the customer call center, 53 principal consumer demands were identified that can lead to queries on the part of those attending customers. In order to resolve such queries, printed material was produced to be used at floor meetings, which take place on a daily basis in the stores, and for consultation by employees.

The company reformulated its Atendimento Nota 10(10 out of 10 for service), which gives recognition to employees that provide a good service to customers. Publicity material encourages customers to use contact channels, such as 0800 or 4020-5050 toll-free numbers. This initiative resulted in a 300% increase in the level of praise received by employees. The six workers with the highest score were rewarded with a trip to the United States to get to know the company's headquarters in Bentonville.

During 2013, the company carried out the task of turning its three regional customer call centers into one single unit in São Paulo, a process which aims to capture synergies, resulting in greater flexibility in responding to consumer demands. This task was carried out based on an analysis of demands to assess customer sentiment when their expectations were not met, through the identification of key words used by the customer. Based on this material, Walmart came up with the concept of Walmart's 10 commitments to the customer, due to be launched in 2014.

Call center indicators	2013	2012	Variation (%)
Contacts received	635,014	760,713	(16.50)
Personal service	313,297	365,769	(14.30)
Telephone (0800)	273,772	330,723	(17.20)
E-mail	21,973	21,736	1.00
Social media	9,687	3,636	166.40
Others	7,865	9,674	(18.70)
URA (electronic service)	321,717	394,944	(18.54)
Complaints	40,025	44,982	(11.00)
Complaint coefficient*	11.5	12.8	(1.3)

* Calculated by the number of complaints for every 100,000 transactions.

In order to discuss problems with the services provided by the Bompreço brand-name, in Bahia, the company created a Customer Committee, consisting of 15 members per unit, selected based on a screening carried out of the complaints registered at the Call Center. The Committee holds meetings every 45 days to discuss how customer service can be improved in the stores. As a result of this committee, Bompreço brand-name stores have implemented changes, such as the replacement of the dough used in French bread and the suppliers of beef jerky. This idea was so successful, that in addition to the committee being continued for another 1 year, 20 further committees will be introduced in selected stores, to improve their results.

In addition to the committees, the company also created a specific cell to monitor cases of damage in store car parks, such as that resulting from collisions between vehicles. The introduction of an information technology-based system and the formalization of the various steps to be carried out by unit managers, resulted in a reduction in the time taken to resolve such cases, by 80%, from 140 days to 24 days. In addition to this, this measure represented a saving of R$ 3.6 million a year for Walmart. The accumulated backlog of cases was reduced from an average of 3000, to 600.

The Sell-by Date Brigade is the name that the store chain gives to members of the group of employees that within the correct time period take products off the shelves -the sell-by dates of which are due to expire or which fail to meet up to adequate sales standards. A significant step forward was made in 2013, with the implementation of an automated system that uses radio frequencies to carry out inspections, enabling the dates for the removal of products to be monitored. This made it possible to achieve an improvement of 20% in the carrying out of weekly verification checks. In 2013, automatic blocking was also introduced at the checkouts, of products taken off the market. This reduces the risk of selling food and non-food items that could pose a risk to customer health and safety.

An improvement was also made in the control of disposal of perishable products unfit for consumption, so that they cannot be sold to consumers or accessed by them. Those companies responsible for collection of these products, authorized by Walmart Brazil), are now required to provide quantitative and qualitative disposal data, ensuring that it is properly carried out.

The Corporate Movement for the Economic Development of Women has completed two years of existence, culminating in an important change: being now in the final phase of becoming a legal entity. Once the process is completed, the association will have bylaws, a code of conduct and internal regulations. More than 40 Brazilian companies have become part of this Movement, which maintains communication channels on the Internet, including a website, YouTube channel and profiles on Twitter and Facebook. Through these, relevant content can be accessed on themes pertinent to the initiative, which has four main goals:

During the commemoration of the movement’s two years of existence, which included an event at which various debates were held on the theme, two new publications were launched: Investment in Favor of Inclusion, published by the Walmart Institute in partnership with GIFE and available here, and the Guide to Good Business Practices which contains examples from signatory companies with the aim of attributing value to female target audiences, and their inclusion in the labor market – available here.

In 2013, the results of online poll research were published with respect to women's image in the area of communications carried out by the Movement for Women 360^o. Among the points raised in the poll research, of particular note was the need to eliminate stereotypes and to attribute worth to feminine diversity in advertising more than 70% of those responding to the poll affirmed that they felt that there was a lack of variation in the types of women featuring in advertising, while 71% agreed that advertising still needs to change a great deal in order to show how women really are.

The Walmart Institute concentrates on three priority causes in order to achieve its mission of promoting self-development so that people can live better, these are: Juventude e Trabalho (Youth and Work), Desenvolvimento Local e Geração de Renda (Local Development and Income Generation). To achieve its objective, the Institute works with various entities in different spheres of Brazilian society.

In addition to carrying out initiatives in the community, the Institute promotes the engagement of employees within the company to act in a voluntary manner in the regions where the stores are operating. For the offices and stores, the Institute has a Community Day. On this day, voluntary employees are encouraged by the company to provide services for social organizations. In 2013 more than 7000 employees participated in this initiative in May, carrying out more than 400 activities for the benefit of the communities where the stores, distribution centers and company offices have a presence. These stores also adhere to an Annual Calendar of Good Initiatives, which contains various commemoratives dates with themes for volunteer initiatives, for example, the collection of items such as jackets and coats, food and school material to distribute among the local community. Since 2006 employees have participated in Food Bank initiatives, such as Mesa Brasil Commerce Social Service (Sesc) and the Banco de Alimentos do Rio Grande do Sul (Food Bank of Rio Grande do Sul). This initiative consists of the separation and donation of products that are fit for consumption, but which fall short of sales standards. In 2013, more than 900 tons were distributed by the store chain, the equivalent of 3.6 million meals.

The Institute supports the Emergency Fund through which staff at Walmart can contribute to – or access if necessary – a support fund for employees. Employees authorize a voluntary monthly donation, and the funds accumulated are used to help work colleagues in the event of public calamities, states of emergency or collective accidents caused by extreme events. In 2013, a total of R$ 186,500 was raised, with 88 employees benefiting.

In order to contribute to the national debate on the principal causes that the Walmart Institute supports, the organization seeks to share all the content generated as part of its operations, in 2013 the Institute held four forums for the purpose of sharing this content, as follows:

International Seminar for Nutrition and Food Safety: Sustainability and the Combating of Hunger | Held in Salvador (BA), the meeting discussed experiences on these themes, throughout the world. The event brought together 350 people, including representatives from government, companies and social organizations, while also involving partnerships with Social Service in Commerce/Mesa Brasil and the Federation for the Commerce of Goods, Services and Tourism, of the state of Bahia. To learn more, click here.

Inspiração – Co-operativas de Catadores (Inspiration – Refuse Collection Co-operatives): Building Solutions for the Future | The launch of this publication involve the participation of more than 150 people, concentrated in São Paulo (SP). In the material, are described the good practices of Rede Cata Vida de Sorocaba (refuse collectors network of Sorocaba) (SP), Co-operativa Futura de São José dos Campos (co-operative for the future of São José dos Campos) (SP) and Co-operativa de Agentes Ecológicos de Canabrava de Salvador (ecological agents’ co-operative of Canabrava de Salvador) (BA), as well as setting out the challenges and opportunities for the sector in Brazil. This initiative involves partnerships with the Cata Ação (collection action) program, the Movimento Nacional dos Catadores de Materiais Recicláveis (National Movement for Recyclable Material Collectors), and Giral Viveiro de Projetos (Giral Project). Videos portraying these experiences can be accessed here. To learn more, click here.

Mapa de Soluções Inovadoras (Map of innovative solutions) | An event held in São Paulo marked the end of the series of meetings. More than 100 people were invited – including specialist, businessmen, investors and students – to discuss the practices of social entrepreneurs with successful experiences. This initiative by the Walmart Institute and Ashoka has been in place since 2011, with the purpose of discussing concepts, trends and experiences in the area. The schedule includes a retrospective look at the series, a presentation of cases of female entrepreneurialism in Brazil, and the launch of two publications: Negócios Sociais e Inclusivos – Descobertas e Aprendizados (Social and Inclusion Businesses – Discoveries and Lessons Learned) and Negócios Socias e Inclusivos no Brasil – Três Histórias um Caminho (Social and Inclusion Businesses in Brazil – Three Stories, One Path), both available for consultation on the Walmart Institute's website.

Investimento em favor da inclusão – Equidade para mulheres e meninas (Investment in favor of inclusion – equal treatment for women and girls) | In association with the GIFE Institute, a translation partner and through the launch of indicators, the Walmart Institute presented its guide Investment in favor of inclusion – Equal Treatment for Women and Girls, as part of the Grandcraft Project, an initiative of the Foundation Center (USA) and the European Foundation Center. This guide provides guidelines for companies, institutes and foundations that draw attention to the plight of women and their inclusion through social investment. The national version, in addition to a description of the practices and indicators in support of gender inequality, recounts three experiences by national organizations: the ELAS Social Investment Fund, the Avon Institute, and the Tide Setubal Foundation. To learn more, click here.

Social Retail School (ESV)

As part of its efforts in the cause for Youth and Work, the Institute maintains the Social Retail School (ESV), set up in 2010, and which has already trained more than 5000 young people, from the ages of 16 to 29, of which 80% have found positions in the labor market. The school trains young people to work in retail and prepares them for professional life. The entire curriculum was developed with the thought of strengthening the skills of young people for their first job, and continuing in the labor market to develop their careers. In 2013, ESV courses were held in the towns of Barueri (SP), Porto Alegre (RS), Curitiba (PR), Salvador (BA) and Recife (PE), with the certification of 587 young people.

The success of this initiative in Brazil has led to its replication in other Latin American nations. Thus, the ESV concept is already being employed both in Argentina, as well as Chile. This important step forward is the result of a partnership between the Walmart Foundation in the United States and the International Youth Foundation (IYF), with the support of the Walmart Institute (IWM) and the Alliance Institute (IA), responsible for the program in Brazil.

Bombando Cidadania (Citizenship Development in Bomba)

As part of its local development drive, Walmart Brazil coordinates the Citizenship Development program in Recife (PE), with a view to implementing improvements in terms of local sustainability in the district of Bomba do Hemetério. As part of the project, in 2013 the Walmart Institute created a "crowd-funding" financing channel in partnership with Portal Impulso. Through this channel, on a virtual Internet page, micro-entrepreneurs or cultural groups present their projects and goals, and the funds they need to put them into practice. During the year, five initiatives put themselves forward for funding support, of which four were successful (see box below).

Part of the local development work is aimed precisely at strengthening tourism potential in the region. To this end, the Institute provided support, for the third year running, for the Festival Delícias da Comunidade (Community Gastronomic Festival), held by the Municipal Authority of Recife, which publicizes the tourism potential of the various localities, through typical dishes and portrayals of local culture. Also, of particular note was the inclusion of Terreiro Ogbon Obá, as part of the Cultural Center of Bomba do Hemetério, on the touristic route Saboreando Mãe África (tasting Mother Africa), part of the agency Loa Turismo de Experiência, the purpose of which is to promote local gastronomy with an African influence.

As part of these activities, an English course was also offered lasting 210 hours, for 15 agents of local culture and tourism, preparing them to receive tourists, especially over the period of the World Cup. This initiative was made possible due to the Pronatec Copa program, an initiative of the Ministries for Tourism and Education. In the middle of the year, the municipality of Recife confirmed the setting-up of a new Tourist Call Center in the region.

In addition to tourism potential, the program also aims to provide training for young people in the region. In 2013, approximately 20 young people took part in the creative mosaics course, offered by the Advisory Institute for Human Development (IADH). In addition to providing training for a new trade, the course also serves as a starting point for urban intervention in the district, with help from volunteers from the NGO Habitat para a Humanidade Brasil (habitat for humanity) (HPH Brasil). Another intervention initiative was the project Colorindo a Bomba (giving color to Bomba) which included the painting of Rua Arapixuma, where the headquarters of Reisado Imperial is located, a traditional society of Pernambuco. This stretch of road is a major attraction for tourists, as it combines typical residences and artists, also providing a beautiful panoramic view of the district. A further eight cultural attractions, part of the Bomba tourist route, were selected for repainting in new colors. This initiative involved a partnership with the company Iquine, which makes donations of paint and offered a course in house painting for six inhabitants of Bomba, who subsequently became replicators of their new skills in the community.

Flona

For six years Walmart has been working on stimulating local development in the Amazon region through its Program in Support of the Introduction of National Forest (Flona) in Amapá. The year 2013 was one of special achievements, because finally its Forestry Management Plan was approved for the region, developed by the Walmart Institute, International Conservation (CI-Brasil) and the Instituto Chico Mendes de Conservacão da Biodiversiade (Chico Mendes Institute for Biodiversity Conservation) (ICMBio). With this, Flona do Amapá became qualified to obtain a forestry concession and to manage community forestry. The National Forest has therefore become a driver for economic development in the state, and also for Brazil.

Walmart Institute Caravan

The Walmart Institute Caravan is an initiative which aims to encourage the mobilization of communities through which it passes. A mobile module, the caravan promotes partnerships and the spreading of solidarity. In practice, it acts as a stage from which initiatives may be developed by civic bodies, movements and networks, which are given the holograms that spread the word in the community about what these entities can offer. In its first two years of operation, the caravan passed through 8 state capitals, involving more than 300 institutions at meetings at which proposals were discussed for mobilizing the community and building partnerships. In 2013, the caravan visited eight cities: Rio de Janeiro (RJ), Salvador (BA), São Paulo (SP), Fortaleza (CE), Recife (PE), Curitiba (PR), Aracaju (SE) and Porto Alegre (RS). The project, which involves a partnership with Sesc, attracted 261 social organizations and 343 people. Under the program, participants reflect on their practices, mission and values and think about social intervention proposals for the communities where they operate.

Small giants

In a partnership with the organization Aliança Empreendedora (enterprise alliance) , the Institute launched a project for the selection of small businesses managed by women, for participation at 4 training meetings, each one lasting 8 hours. Of the 120 entrepreneurs that participated, 30 businesswomen were selected – working either in the formal or informal market, and with businesses that have a maximum annual turnover of R$240,000 – from the social classes C, D and E. B training sessions focus on themes such as self-image, leadership, market vision, production management, a repertoire of experiences, and the building of networks. In parallel, the entrepreneurs participated in a contest under which they must put forward a plan for how they would invest R$5000 in order to expand or improve their businesses. Three participants were chosen to receive this sum of money, and apply it to their businesses.