Wal-Mart – A Preferential Option for the Poor?

The Commitment to Justice Conference in Jesuit Higher Education was held at Fairfield University with Faculty, Jesuits and Administrators from over 32 national and international Jesuit Universities. I will be posting reflections from the different panels and seminars attended.


Fr. Stephen Rowntree SJ knew the session’s topic would generate a crowd. The standing room only classroom was there to hear his “What Wal-Mart Reveals about the Global Economy” presentation. Judging by the engaging dialogue post presentation one could say it did not disappoint.

The lens of choice for this academic exercise was simply justice. Is Wal-Mart a corporation that is doing justice work? It appeared the hole had already been dug as an early show of hands overwhelmingly found the basic view of Wal-Mart to be “somewhat unfavorable” with “quite unfavorable” as the closest second. What jumps to mind when you hear Wal-mart and justice? I immediately thought of low waged workers with limited (or no) benefits, no unions and small suppliers being run out of town.

Now imagine the intrigue when Fr Rowntree SJ in front of a cohort of faulty, administrators and alums of Jesuit universities called Wal-Mart a store that has a preferential option for the poor. It is no small reference as the preferential option for the poor is one of the core principles of Catholic Social Teaching and heralded as a rallying call by former Jesuit Superior Fr Pedro Arrupe SJ, referred to by one presenter as “the second founder of the Jesuits”.

Rowntree SJ acknowledges the lack of unions is a major problem in the equation but also staunchly supports the constructive benefits of the company. “Wal-mart employs 2 million people world wide, including 1.4 million in the US. The US work force is larger than the US Army" and it is the largest private employer in Mexico and Canada. He is quick to point out that it produces low skilled jobs for the young, the uneducated and the retired who otherwise would have difficulty finding work. In this light it is a company whose hiring practices are rooted in providing options to the many who have been left out of the capitalist system.

Wal-Mart grew from a single discount store in Rogers, Arkansas in 1962 to the world’s largest corporation (by sales) because of innovation – a favorite son of capitalism. According to Rowntree it revolutionized supply chain management by cutting out or squeezing the middleman. This may hurt the manufacturers and small suppliers but in a globalized capitalist system such is the way of life. Furthermore, Wal-Mart implemented a tracking/stocking inventory system that allowed it to lower its margins. Couple these innovations and what you get is the ability to greatly reduced the cost of the items sold. Here is where the second point is cemented. Wal-Mart has a preferential option for the poor due to its low low prices. Not only does it allow people to save money for goods they need and otherwise not be able to afford, but the money saved can be utilized for other spending or saving. Thereby, either further stimulating the economy or helping the costumer stay above water.

Although this was not mentioned in the session if we look at Wal-Mart’s new prescriptions for under $4 program and 90 day fillings for $10 we see the instant impact of Wal-Mart directly on access to cheap medications and medical savings in the community. “For instance, alendronate, the generic version of osteoporosis medication Fosamax, will be added to the list. Company pharmacies will fill 30-day prescriptions of alendronate for $9 and a 90-day supply for $24 at a comparison of $54 and $102, respectively, that women previously paid for the same amounts, the company said.” (Link to quote)

Of course like much of big business the devil is in the details and I have not research or studied them in this case. It is certain that beyond lacking health benefits, manipulating part time versus full time and the lack of unions are troubling, but the constructive creation that comes from the process has made the issues much more complex. The session did alter my view of Wal-Mart. It went from clearly “somewhat unfavorable” to a cloudy and murky “somewhat unfavorable”.