Sustainability Report to Shareholders

Whereas, It is encouraging that Wal-Mart has recently met with investors in constructive conversations and reported the company is seeking to implement an integrated approach to corporate responsibility. However, there has been no stated commitment for the company to develop a public sustainability report on its efforts to protect human rights, worker rights, land and the environment.

According to Dow Jones Sustainability Indexes, "Sustainability leaders encourage long lasting social well being in communities where they operate, engage in an active dialog with different stakeholders and respond to their specific and evolving needs thereby securing a long term 'license to operate,' as well as superior customer and employee loyalty." (http://www.sustainabilityindex.com/djsi_pdf/DJSI_brochure.pdf, December 2004)

Recent articles in the press reflect negative public perceptions about Wal-Mart’s corporate responsibility policies and practices: New York Times articles, April 5, 2004 “Stymied by Politicians, Wal-Mart Turns to Voters”; April 8, 2004 “Voters in Los Angeles Suburb Say No to a Big Wal-Mart”; June 30, 2004 “Social Issues Tug Wal-Mart in Differing Directions”; September 28, 2004 “No, the Conquistadors Are Not Back. It’s Just Wal-Mart”. Wharton strategic management report states, “Wal-Mart’s Mega-Growth Continues, But is Its Image Getting a Bit Tarnished?” (http://knowledge.wharton.upenn.edu)

As the largest Fortune 500 company, we believe Wal-Mart has significant influence on its workforce, suppliers and the communities in which it does business, and should address corporate responsibility at the highest decision making levels of the company with appropriate resources and systems to manage these issues. In the absence of open transparent public reporting, it is reasonable to conclude that the company has not addressed these issues adequately.

The October 6, 2004 statement published by social research analysts reported that they value public reporting because “we find compelling the large and growing body of evidence linking companies’ strong performance addressing social and environmental issues to strong performance in creating long-term shareholder value…We believe that companies can more effectively communicate their perspectives and report performance on complex social and environmental issues through a comprehensive report than through press releases and other ad hoc communications.” (www.socialinvest.org)

We believe that Wal-Mart’s business success is dependent on its domestic and global workers receiving a sustainable living wage to meet their basic needs, and the environmental viability of the communities in which the company operates.

Resolved: Shareholders request the Board of Directors to prepare a sustainability report, at reasonable expense and omitting proprietary information, by December 2005.

Supporting Statement

We believe the report should include:

1. The company's operating definition of sustainability.

2. A review of current company policies and practices related to social, environmental and economic sustainability.

3. A summary of long-term plans to integrate sustainability objectives throughout company operations.