Ensuring fairness and consistency

Globally, we’re committed to fair and consistent employment practices. We’ve created a framework for global compliance with applicable labor and employment laws, and identified seven universally fundamental areas that will provide strategic guidance for domestic and international employment compliance efforts. They are:

We’ve undertaken several recent initiatives to support progress in these seven areas. For example, in the U.S., a cross-functional team – including operations compliance, realty, health and wellness, and legal – assessed accessibility compliance with the ADA for our stores and clubs. The team then developed action plans to resolve any outstanding issues.

In 2013, we conducted a global risk assessment of our labor and employment practices across our seven fundamental areas. We’ve identified current compliance priorities for each market, and we’re partnering with the market compliance teams to address them.

Licenses and permits

As we deliver on our promise to help our customers save money and live better, it’s important that each of our facilities open and operate with all licenses required to sell the product assortment our customers need and want. In 2013, our U.S. license and permits team handled more than 60,000 license renewals and obtained more than 2,900 new licenses for over 1,300 new, relocating, expansion and remodel projects (99.98 percent license execution rate).

Internationally, we’re developing an enhanced global licensing management system that will be launched in 2014 to support the procurement and maintenance of licenses in all our retail markets. This system will provide a centralized repository of documentation associated with licensing and permits, in addition to allowing each market the ability to customize tracking methods.

Operations Compliance

In our U.S. facilities, the Operations Compliance team regularly visits each store to monitor, teach and train. In 2013, we began a process to develop similar formal teams in each of our international markets. This year, the U.S. team’s efforts have included:

Right Start training: Consistent with our commitment to “The Right Way Every Day” operating philosophy, the operations compliance field team conducted more than 120 Right Start training programs in our facilities in 2013. These training programs allow us to collaborate with and engage with our operators to create, build and influence a culture of compliance through training initiatives.

Compliance National Oversight Program (C-NOP): We strive to provide a safe and compliant environment for the customer shopping experience and associate work environment, and we measure compliance performance results. In 2013, we used the C-NOP to help improve our compliance scorecard results through: 18,000 compliance support contacts, more than 3,300 compliance focus walks, more than 1,800 in-store trainings and 33 targeted compliance deployments, covering more than 1,000 store visits. Our store-level compliance scores improved from 83 percent in 2012 to 87 percent in 2013.

Pricing accuracy programs: Our customers count on us for low prices. We continue to help our associates understand that our lowest advertised price is nothing less than our promise – and to deliver on that promise. Working with the Weights and Measures Compliance team, we developed key strategies to help operations meet core pricing accuracy standards. The Operations Compliance field team conducted oversight programs covering more than 28,000 Pricing Integrity Assessments, more than 65,000 Scale Accuracy Checks, weekly operational routines and ongoing training.

Alcohol, tobacco and firearms (ATF): Some of our facilities in the U.S. sell alcohol, tobacco or firearms. The U.S. compliance team includes an ATF Compliance team to address the regulations applied to these products. In 2013, we made substantial enhancements to our ATF compliance program. The team furthered firearms compliance by enhancing our training program with a robust Firearms Sales Authorization process to ensure all associates who sell firearms receive appropriate training. We also drove improvements to our firearms sales system to reduce the most common errors that occurred in sales compliance documentation. Finally, we limited the associates who can sell firearms to: store management, zone management supervisors, sporting goods associates and support managers.