Walmart Inc (NYSE:WMT) announced this week that it would be raising the minimum age for firearms purchases to 21. We’ve seen several companies break ties with the National Rifle Association (NRA) already as the gun control debate in the U.S. is starting to take center stage.
In the case of Walmart, if the company truly wants to get on the side of gun control and prevent the number of mass shootings that take place in the U.S., then it needs to do a lot more than simply raising the minimum age for firearms purchases. If minimum age was an effective deterrent, underage drinking wouldn’t be as prevalent as it is today.
Walmart yields significant power and can do something impactful, but instead it has decided to stay on the sidelines. I say sidelines because while it raised the minimum age, it knows that the impact on sales will be minimal, but it can say that it has tried to make an effort. At the same time, it’s still ensuring that sales will be largely unaffected. After all, people under 21 years of age have barely enough money to buy booze, let alone firearms.
Investors should expect more from a company like Walmart, because in the end it’s not just profits that matter. Sales and net income might matter in the short term, but over the long haul ethics will play an important role as well. Social values can have a big impact on a company’s day-to-day operations, and you only need to look at the number of green energy initiatives and companies that are looking to hire local rather than outsourcing their labour as proof of that.
