Walmart Inc., founded in 1962 and incorporated in Delaware, is listed on the New York Stock Exchange (NYSE: WMT). As a public limited company, it is owned by shareholders, governed by a board of directors and regulated by the U.S. Securities and Exchange Commission (SEC).
With operations in more than 20 countries and revenues exceeding hundreds of billions of dollars annually, Walmart exemplifies the modern multinational corporation (Fishman, 2006). Its structure and governance reflect both classical shareholder-oriented models and more contemporary stakeholder considerations.
1.0 Organisational Structure
1.1 Centralised but Divisional Structure
Walmart operates through a divisional structure based on geographic and business segments, including:
- Walmart U.S.
- Walmart International
- Sam’s Club
This structure enables strategic control from headquarters while allowing local responsiveness (Brunn, 2006). According to Chiles and Dau (2005), Walmart’s supply chain integration and logistical coordination are central to its structural efficiency.
1.2 Supply Chain Integration
Walmart is widely recognised for its advanced supply chain management systems, including cross-docking, real-time inventory tracking and data analytics (Chiles and Dau, 2005). These systems support:
- Lower operational costs
- Faster replenishment cycles
- Improved bargaining power with suppliers
Mottner and Smith (2009) argue that Walmart’s market power significantly influences supplier performance, reinforcing its dominant retail position.
2.0 Corporate Governance Framework
2.1 Board of Directors
As a public company, Walmart is governed by a Board of Directors, responsible for strategic oversight and fiduciary duties to shareholders. Governance responsibilities include:
- Executive appointment and remuneration
- Risk oversight
- Compliance and ethics monitoring
Curran (2020) notes that Walmart’s governance decisions increasingly reflect broader societal pressures, illustrating a shift towards stakeholder responsiveness.
2.2 Shareholder Influence and Ownership
Although publicly traded, the Walton family retains significant ownership, giving it substantial influence over corporate decisions. This hybrid ownership structure creates an interesting balance between dispersed public shareholders and concentrated family control (Hart and Zingales, 2022).
Hart and Zingales (2022) argue that modern corporate governance is evolving beyond pure profit maximisation, and Walmart provides a relevant case of shareholder activism influencing corporate policies.
2.3 Corporate Social Responsibility (CSR)
CSR plays a visible role in Walmart’s governance narrative. Torres et al. (2012) highlight Walmart’s attempts to integrate corporate social responsibility policies into governance frameworks, especially regarding sustainability and ethical sourcing.
Harrison (2019) further explains how Walmart uses CSR communication to legitimise its private governance mechanisms across global supply chains.
3.0 Governance Challenges and Controversies
No case study of Walmart would be complete without examining governance challenges.
3.1 Labour and Stakeholder Activism
Caraway (2016) analyses the “OUR Walmart” movement, demonstrating how employee activism can influence corporate governance discussions in public companies.
3.2 Global Governance and Regulatory Complexity
Backer (2006) describes Walmart as operating almost as a “private regulator” within global markets, influencing labour standards and supplier practices through internal governance systems.
These issues illustrate the tension between:
- Shareholder primacy
- Stakeholder expectations
- Global regulatory compliance
4.0 Financial Performance and Competitive Advantage
4.1 Revenue and Profitability
Walmart consistently ranks among the largest companies globally by revenue. Martínez and Galván (2017) highlight strong liquidity ratios and consistent profitability as indicators of financial stability.
4.2 Operational Efficiency
Operational efficiency is central to Walmart’s sustained performance. Chiles and Dau (2005) demonstrate how best-practice logistics and cost leadership strategies reinforce financial outcomes.
4.3 ESG and Long-Term Performance
Moon, Yin and Hong (2023) argue that effective Environmental, Social and Governance (ESG) strategies can enhance corporate efficiency. Walmart’s ESG integration reflects an understanding that governance quality and sustainability performance are increasingly linked.
5.0 Theoretical Perspectives
5.1 Agency Theory
Traditional agency theory suggests governance mechanisms exist to align management with shareholder interests. Walmart’s board structure and executive compensation systems reflect this principle.
5.2 Stakeholder Theory
However, evolving governance debates (Hart and Zingales, 2022) show increasing emphasis on stakeholder considerations, including employees, suppliers and communities. Walmart’s CSR initiatives and sustainability commitments illustrate this broader orientation.
6.0 Strengths and Limitations as a Public Limited Company
6.1 Strengths
- Access to capital markets
- Strong governance oversight
- Global brand recognition
- Economies of scale
- Supply chain dominance
6.2 Limitations
- Exposure to public scrutiny
- Pressure for short-term earnings
- Regulatory complexity
- Labour and activist pressures
Walmart’s experience demonstrates that being a public limited company brings both financial opportunity and heightened accountability.
Walmart Inc. provides a rich case study of a public limited company operating at global scale. Its divisional organisational structure, advanced supply chain systems, and formal board governance framework illustrate core features of publicly traded corporations. At the same time, evolving governance debates—particularly around stakeholder engagement and ESG performance—highlight the dynamic nature of corporate governance in the twenty-first century.
Ultimately, Walmart’s sustained financial performance suggests that strong operational control, governance mechanisms and strategic adaptation can coexist within a publicly listed framework. However, its ongoing governance challenges remind us that scale amplifies both opportunity and scrutiny.
Walmart therefore stands as a powerful example of how structure, governance and performance interact in a modern public limited company.
References
Backer, L.C. (2006) ‘Economic globalization and the rise of efficient systems of global private law making: Wal-Mart as global legislator’, Connecticut Law Review, 39, pp. 1739–1784.
Brunn, S.D. (2006) Wal-Mart World: The World’s Biggest Corporation in the Global Economy. New York: Routledge.
Caraway, B. (2016) ‘OUR Walmart: A case study of connective action’, Information, Communication & Society, 19(7), pp. 907–920.
Chiles, C.R. and Dau, M.T. (2005) An analysis of current supply chain best practices in the retail industry with case studies of Wal-Mart and Amazon.com. MIT.
Curran, C. (2020) ‘Walmart and guns: A case study in modern corporate governance’, Columbia Business Law Review, 2020(3), pp. 789–845.
Fishman, C. (2006) The Wal-Mart Effect. New York: Penguin Press.
Hart, O.D. and Zingales, L. (2022) ‘The new corporate governance’, NBER Working Paper No. 29975.
Harrison, V. (2019) ‘Legitimizing private legal systems through CSR communication: a Walmart case study’, Corporate Communications: An International Journal, 24(3), pp. 439–456.
Martínez, A.B. and Galván, R.S. (2017) ‘Financial analysis of retail business organization: a case of Wal-Mart Stores, Inc.’, Nile Journal of Business and Economics, 3(6), pp. 45–60.
Moon, H., Yin, W. and Hong, M. (2023) ‘Four strategies for improving the efficiency of ESG activities: The case study of Walmart’, in The Strategies of Nations 2. Singapore: Springer.
Mottner, S. and Smith, S. (2009) ‘Wal-Mart: Supplier performance and market power’, Journal of Business Research, 62(5), pp. 535–541.
Torres, C.A.C., Garcia-French, M., Hordijk, R. and Nguyen, K. (2012) ‘Four case studies on corporate social responsibility’, Utrecht Law Review, 8(3), pp. 51–71.
