Walmart Inc. is an American global retail corporation, one of the largest companies in the world by revenue, with the Walton family as its controlling shareholders.Headquartered in Bentonville, Arkansas, Walmart primarily engages in the wholesale industry and is one of the world's largest employers, having been for three consecutive years in the United States.Ranked first among the world's most powerful companies by Fortune magazine.

Why do a Walmart factory audit?

That's a good question; it's much like asking why you would accept an order.

1. Leading suppliers from various countries to flex their creative muscles, giving suppliers from prosperous and culturally rich nations an edge in price competition; they have procuredThe focus shifted to Southeast Asian countries with lower wage levels and the populous China, which also spurred domestic and international merchants to compete fiercely in establishing factories and shipping goods in these regions.Rising nations and developing countries often exhibit trade surpluses. Locally, policies such as requiring suppliers and factories to pass factory inspections are implemented to alter the trade surplus situation.

2. Human rights movements prompt customers to question: Is the low price obtained at the expense of human rights? For instance, issues like child labor, prison labor products, excessive overtime, low wages,Withholding wages, disregarding workers' poor living conditions, etc., many overseas clients often face immense pressure on these issues, which directly impacts their competitiveness in the market.To enhance their brand image, these clients demand that their supplier factories must pass factory audits and inspections.

3. For some international clients, the company's own culture and values place a strong emphasis on human rights and quality. They might ask, "If this factory doesn't even adhere to its own country's laws..."If none of them are adhered to, who will believe in your quality and delivery guarantees?

WAL-MART ES Factory Audit Overview?

Ethical Standard Audit, abbreviated as ES

2. Factory audit results are categorized as:

Green Light: Re-assessment after 2 years, surprise inspections at any time.

Yellow Light: Re-assess after 1 year, eligible for order and shipment.

Orange Deng: Review after about 6 months, order acceptance and shipment depend on the number of orange lights.

Red light: All current orders have been cancelled, including those not yet shipped; no eligibility for new orders.