Safe working conditions. Reasonable hours. No child labor.

These are among the rules that Wal-Mart Stores Inc. and other retailers imposed on their foreign contractors after a series of scandals in the 1990s. Yet just how well Wal-Mart's contractors abide by its standards is something of a mystery — and a source of controversy.

Unlike other retailers, Wal-Mart refuses to open its suppliers' factories to independent inspections.

That prompted Domini Investments, which runs a "socially responsible" mutual fund, to dump its 1.3 million Wal-Mart shares in 2001. "At the very least you want some transparency," said Domini's Kyle Johnson.

Wal-Mart insists that it rigorously enforces its code of conduct, sending inspectors on unannounced visits to about 300 plants a week. The company says it won't open the factories to independent audits for competitive reasons.


PART I: An Empire Built on Bargains (11/23/03)

PART II: An Obsession With Costs (11/24/03)

PART III: Unions Battle to Stop Invasion (11/25/03)

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Few expect the giant to budge. "They want to set their own agenda and do it the Wal-Mart way," said Vidette Bullock Mixon, director of corporate relations and social concerns for the $11-billion United Methodist Church Pension Fund.