Wal Mart Doing Well By Doing Good

Wal-Mart used the occasion of its annual shareholder meeting Friday to crow about the achievements of the past year, which are considerable: sales, earnings and free cash flow have all been on the rise - at a time when most retailers are struggling.

The mood of the upbeat gathering at the University of Arkansas' Bud Walton Arena - part rock concert (Joss Stone and Tim McGraw were among the performers), part pep rally - contrasted with the darker days of H. Lee Scott's early years as chief executive, when Wal-Mart (WMT, Fortune 500) was battered by critics who accused the giant retailer of everything from gender discrimination to providing sub-par health care for its employees.

Over the past three years, Wal-Mart has set out to repair its image. It has improved employee benefits and used its great might to shrink prices even further - a strategy that is winning over cash-strapped customers.

A recent study by Goldman Sachs showed Wal-Mart to be the clear price leader on a variety of products, from health and beauty aids to food and household cleaners.

In the past year, the $374.5 billion in sales retailer has gone well beyond those parameters to address concerns of society as a whole, including environmentalism, where it is on a mission to reduce the carbon footprint of its stores, and the rising cost of health care with its $4 prescription drug plan.

"They want to know about our leadership on sustainability and health care," he said. "Leaders who want to get things done will see Wal-Mart as a partner."