2014 Financial and Corporate Responsibility Report slide image

2014 Financial and Corporate Responsibility Report

G4-20 NNNNN Stemming from communication with our stakeholders, a socially responsible company is "one that shows its commitment to economic development and improves the quality of life, generates social programs, and works in favor of the environment, with the ability to identify its risks, be truly transparent in handling information, and holding dialogue with its stakeholders." Moreover, materiality allows for in-depth analysis of the Company's situation in each of the primary subjects of Corporate Responsibility, leading to the proper identification of the challenges, strategic programs, long-term goals, and performance indicators that will enable meeting the highest of standards for social, environmental, and corporate governance issues. This is how we authenticate our interest in helping generate value for our stakeholders. Corporate Responsibility Management In Mexico the Direction of Corporate Responsibility is in charge of the Executive Vice President of General Counsel and Institutional Affairs for Mexico and Central America. In Central America the Corporate Responsibility area is in charge of the Direction of Corporate Affairs, which reports directly to the head of Central America. The strategy is reviewed in the Corporate Responsibility Committees developed in conjunction with the areas involved in each of the fields of endeavor; the Board of Directors is informed on these activities. It is fundamental to establish work plans, indicators, and policies and procedures so as to involve the organization in building a company with an increasingly robust Corporate Responsibility. Corporate Responsibility Management is aimed at: 1. Involving top management in the scope of posed objectives, the analysis of challenges, the defining of the plan and in assuming leadership in the promoting of value generation; 2. Establishing long-term vision and strategic priorities; 3. Supporting the consolidation of structural changes, policies, and procedures; 4. Implementing individual performance metrics for top management by integrating the Corporate Responsibility Indicator in their performance evaluations, such that the score obtained and other variables have an impact on salary increase percentages. Materiality as an ongoing process The materiality study conducted by a third party in 2009 for Mexico and in 2010 for each of the countries in Central America- helped to establish our five strategic pillars: associates, suppliers, communities, the environment, and ethics. Moreover, based on the study results we were able to create programs with key objectives and specific action plans, and have a better approach with improved outcomes. Each year the study is upgraded with internal surveys, measurement tools, and information on the perception and concerns of the most important stakeholders for the Company - our customers, suppliers, associates, communities and sustainable investors. All of this allows us to monitor the impact of Corporate Responsibility and its primary challenges. In 2014 we requested to a third party firm to conduct a new materiality study, incorporating the following subjects: Internal self-service sector trends Context in the 6 countries where we operate Stakeholder expectations and concerns 2014 Financial and Corporate Responsibility Report Importance of Materiality in defining the strategy As part of the commitment to align our strategy with the reality of the social and environmental context in which we operate, since 2009 Walmart de México y Centroamérica periodically updates the Materiality Study, as the core of our strategy for Corporate Responsibility. The purpose of this study is to validate the direction of the strategic actions, as compared to the challenges currently faced, therefore making it possible to establish a long-term vision based on knowledge of the subject, its needs, and expectations. This updating process included the following stages: 1. Sector Materiality to identify maturity and importance of subjects managed by leading companies, and their future commitments; 2. 3. Evaluation of current approaches for the Company; Dialogue with customers, associates, suppliers, non- governamental organizations, opinion leaders and sustainable investors, conducted by third parties through surveys, one-on-one interviews and feedback sessions; and 4. Materiality of Walmart de México y Centroamérica, resulting in the validation of 11 strategic material aspects, 7 relevant aspects and 2 non-material ones. 104
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