>> rose: welcome to the program. we begin this evening with nancy gibbs, the editor of "time" magazine, and theji3wçó magazis choice for person of the year. >> this year the more we thought about ito.kmonths ago this is tt was going to go. it became clearer and claireer as we talked to these people, heard what they were doing, watched what they were doing, and a global health system that did not perform very well and that's the crucial part of it. >> rose: we conclude with doug mcmillon. he's the ceo of age 48 of wal-mart. >> rose: we know he loved the company but does he love it enough to change it? how will we know the answer to that question? >> you have to watch with a we do. so, think of our associates and

the opportunity that we're trying to create for them. how can we over these next few years, do an even better job creating ton for our people. on can we embarrass environmental sustainability in new ways and make a bigger difference in these are the thing we're working on today. >> rose: "time" magazine's person of the year and wal-mart's challenge when we continue. @)

captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: today "time" magazine unveiled its choice for 2014's person of the year. since 1927, the magazine's editors have recognized the person or persons who in their words, quote, most affected the news and our lives for good or ill, and embodied what was mportant about the year. this year, it is a group of people, the ebola fighters. they are the doctors, scientists and felt workers battling a disease that has already taken more 6,000 lives. to talk about this and the heroism of its subjects, i'm pleased to have nancy gibbs back at this table. welcome. >> thank you charlie. >> rose: let me read what you said. not that the weapons fights thes

heart fights the fight. it is true of the war that is waged with bleach and# a prayer. first responders refuse to cry wolf even as the danger grew but the people in the field, the special forces of doctors without borders medicine's frontier of the christian medical relief workers and many it's from all over the world who fought side by side with local doctors and nurses, ambulance drivers and teams. there you go. those are the heroes you're talking about. >> they are. and the kind of courage it took for them to fight the fight and the risk to each of them individually and to their families was extraordinary. ebola is an especially dangerous disease. anyone who treats the victim becomes one. we've seen a number of doctors and nurses, more than 300 have died of it fighting it.

>> rose: does it seem to make the choice obvious and easy. >> in a way. this year the more we thought about it, we sort of decided a couple months ago this was the way we were going to go. it became clearer and claireer as we talked to these people, heard their stories and watched what they were doing. in the context of a global health sils tell that did not perform very well and that's the crucial part of it. on one hand you have extraordinary heroism and courage which was all the more important because they're protecting the rest of us. it is not as though in a globalized world, a pandemic is not able tongfaster than ever b. and so if our disease surveillance is tell don't work, if the alarm aren't heeded, then the entire world is at risk. these are the people who basically bought us time. >> rose: with that time what are we doing. >> finally what's extraordinary in march and april the frontline

workers, the doctor and people yelling and screaming this is different, this is really serious. and they were basically being brushed off. they were accused of crying wolf it took dr. kept brantly and te doctor to be flown back to emery for the world to really wake up. after a week after dr. brantly's evacuation the bank allocated a million dollars to the fight, the world health organization declared it a health emergency. but it was months after the alarms started sounding at that time this thing was spreading. >> rose: why were they late to the fire. >> they lost a certain amount of funding in the years. par a of it is bar accurate ig battles. they are gel else of their

privacy. the local office told the cdc go away we've got this. you haveqvktçó a headquarters in geneva who can't control what's cloarg to the ground and more and more people are getting infected. >> rose: where are they in term of the progress. >> there are scientists who have literally been working on this disease for decades. there are vaccines being fast tracked. off yesly tragically we've learned a lot about this disease and what works in treating it. >> rose: gives you a mirror into the disease. >> it does. and what's remarkable,qj(!ree of the five people we feature are themselves survivors and are in many cases survivors are donate knowledge their plasma help victims beit helps confer some kind of extra immunity. >> rose: we'll come back to the ebola fires. number two u at least among those others considered were the ferguson protesters. what was the argument for them

and what was the argument that said not now? >>2qñi well, certainly what stad in targetson and has since spread all across the country and gathered even more momentum with the case of rice in cleveland and garner here in new york, with a have restarted the long standing conversation in this country about race and justice and accountability. and it was those pro, it was not as though michael brown was the first black man to be killed by a police officer, and yet in this case, it became the center of a debate about police and the militarization of police and how these interactions go that has continued ever since that day in august. so we looked very hard. it's too soon to say in a way what the long term impact of those protest is going to be but i think what the protesters themselves say isñpeople pay ato

something that's been a source of enormous pain within these communities for a long time. obvious the year started in sochi with this huge coming out party and then the next thing he's basically redrawing the map of eastern europe. and reassert russian nationalism in a way we have not seen in the post cold war e raw and what people thought were settled and forcing the rest of europe and the rest of the world to really think what do we do with this guy and how do we draw the line and how do we enforce the lawns that are drawn. >> rose: why isn't isis isn't in this mess. is this a force trying to create a state that's engaged in hoe receiving violence. >> it is. and the vehicle for telling that story and addressing that we choose is barzani the leader of the iraq kurds who arguably hole the future of iraq if not much

of the region in his hands. he'sá%ó=>> rose: into three pat could find some defining centralization. >> he has 350 mile long line fighting against isis. and how this plays out and the future of iraq is going to have an awful lot to do. >> rose: did you have a hard time putting isis on the cover as the person of the year? >> i would have a hard time doing that. >> rose: would you have a hard time of somebody who had americans the way he does or the organization does. >> when it comes to setting the priority i'll go back to where we ended up which is that as much as the individual acts of the ebola fighters mattered enormously. they're looking forward at what we faced as a global community and what we learned this year. look at the conversations we had as a result of the ebola outbreak in this country.

ha is allowed to order someone to be quarantined, who is allowed to post a guard outside your door. topeople's temperature at the airport. when chris christie quarantines casey him caulk it's who has authority. this is a disease as horrible it it's not nearly as infectious as an airborne pathogen would be. and so as a test run, about our ability to face a threat like this, we learned a lot from this. if we didn't learn, if we don't apply those lessons then we would have missed an enormous opportunity at the cost of a great many lives. >> rose: the also reminds us or reminds me of a death like this five nights a week. it reminds me they are out thee

in the rill many of global health dressed like ebola we haven't come to pressure. >> that's right much the same globalization that makes it easier for us to unite in fighting a threat like this also makes the threat greater so it can travel -- >> rose: threats we don't even appreciate. just beginning to understand the power to multiply. >> ebola has been around 40 years but it's never behaved in this way. it's behaving in ways we've never seen before and that's where it posed an extraordinary danger. >> rose: so why jack -- >> the alibaba was the largest in history. we'll see but he is in a powks to remake global commerce in a way that i think we're going to be paying a lot of attention in years to come.ua you take an enormous market and in his case you link small

businesses and merchants and suppliers in a very frictionless way. i think that is going to be, it's a very different model in a way than other e commerce like amazon. i'm sure you will be him here at the table. >> rose: he does represent that kind of stuff. why not taylor swift. >> we had her on the cover a few weeks ago not only as the biggest pop star in the world, she, she's bigger than anyone,:í bigger than lady gaga, bigger than bayonce. but she's a business woman where she's become a spokesperson for the value of content. when she pulled her music from spotify and says i think the contempt needs to be valued and

artists need to be paid for their work. that's a debate that's happening across all different areas of media and she really put a flag in the ground. and i think it's going to be fascinating to seat impact of that going forward. >> rose: who was the last entertainer who was the person of the year? >> i would say depends on how you count this, but and i think in 2004, we made bill and melinda gates and bono the person of the year. >> rose: that's bought of their -- >> you can say was it bono because of the wayjhis powers ar a new kind of philanthropy. >> rose: can i show these pictures. >> absolutely. >> rose: this is jerry brown. >> both of her parents died in a single week. they ran a medical clinic. she is a nurse who counsels ebola patients. she's a survivor herself so she's able to go into the treatment centers and essentially give patients hope.

because she says i got it, i survived it, you can too. that just the possibility of hope has enormous power with these patients. this is el law watson striker who is a health educator for doctors without borders. she's on the ground from the very beginning in guinea and elsewhere trying to educate the community about how ebola spreads and get the word out because you have to be able to contain it, keep from infecting each other. this is an ambulance driver, runs an ambulance team. also a you are -- survivor. he contracted it when he was helping a little boy. he said i will try to save others. because it has benefit to issues a. and finally kent brantly who was at the same hospital of dr. jerry brown. he too contracted the disease and wasog brought back to emory for treatment. >> rose: thank you. glad to have you here.

>> thank you. >> rose: back in a moment. stay with us. >> rose: tonight a conversation with wal-mart ceo doug mcmillon. consumers with find low prices on-line all the time. wal-mart is determined to catch up with the transformation in retail and with amazon. experimenting with delivery and store format. since taking over mcmillon has investment in e commerce and he's the youngest ceo since sam walton founded the company in 1962. he rose quickly through the ranks. he led the international unit and we spoke with himvy at a buy wal-mart at washington d.c. last week and here is that conversation. we just went through one part of the holiday season. what did we learn. >> i think one of the things we learned from black friday and thanks i gooding weekend is just how retail is changing so

quickly. some of themes that have been talked about are really starting to become important. >> rose: you even said it's a transformation of the retail business. >> it is, no doubt. the internet has changed all kinds of businesses. when you put internet together with mobile, it is going to be revolutionize retail even more and faster than maybe retail might have changed in the past. if you go back and look at history, retailers km and go. you could list them. go back a hundred years in this country and retailers have groan and whatever reason they have declined. in some cases unique reasons. in our case, we're now 52 years old. we've done a good job for opening and operating stores for customers and fulfill our purpose. we have to today learn new skills, many of which are digital. some of which are based on data and technology and put them together in a way our supply chain is efficient and serve customers in a way they want to be served. otherthly -- ultimately the

winner is the customer. you have ag cess through your phone or cab let or website an incredible number of items, incredible number of retailers. you also have more transparency that relates the a price that an item cost. you can come to a store and get, you can go by and pick it up which we're seeing tremendous growth people coming to the stores and picking items up and you can have it delivered to your home. >> rose: when you look at the past holiday thanksgiving, friday and then cyber monday, sales were down on black friday and up on cyber monday. >> relative to our plan, sales did bounce around. if you look at all of november, some of the efforts retailers made to ved the business out did start to take hold and i believd the internetting related =stphaoeufplt they can buy earlier. >> they can buy early, late. we had events on-line thursday morning when you might have been preparing the meal and cyber monday and cyber evening.

but the store were really cranking during thursday and friday. we on thursday had over 22 million visitors to the wal-mart stores. people downloaded 25 million times. we are seeing customers increasingly on-line and mobile device in increasing ways. that's what i'm referring to describing a transform agent. mobile for example which has been increase in importance, surprised me over the black friday weekend that 730% of the orders we received digitally came from mobile device rather than from the website. >> rose: that surprised you. >> it's higher than i would have guessed. >> rose: how do you explain it? simply people are more familiar with digital or more mobile and become aware how they can crew it and second they can take it to the store and see something and order it right now. >> people are smart and adopting new tools and technology very

quickly. we have for example this too many called saving catcher. on our app you can download this part of our app that's got scanner receipt and we'll go out and look at local competition and let you know if we found lower prices and give you that amount on at< gift card. the customer option is everybody wants some form of price insurance and we are the low price leader so it made sense for us to do that. that's an example of customers adopting technology very quickly. >> rose: you mention the fact people now order on-line and come pick it up themselves. what's behind that and what's the psychology at work. >> people are working and moving around and they don't want to eight at home. they can also save freight in some cases. the uk is the best example i could give you. we've been delivering groceries to home for 15 years in the uk. that's something in this country and other countries people are interested in and they think it's going to be more important

in the future. in the uk, we still have over 90% our sales down in store. and the last few years our team has been adding a pick up capability on the parking law, drive-throughs and's to even taking a truck and parking it at a tube station so they can meet people home from work. customers don't want to break stroyed. if they're going home from work, lee don't want to miss stride,.. we want capability however a customer wants to shop. >> rose: what does this mean for the size of the store you're building. >> great question. if you look atjsnft united stato over 2,000 square feet. we started adjusting super centers down to a smaller size. 150, 180, ranges like that.

>> rose: you did that because you didn't need those end do of stores because people are shopping on-line, you didn't need the space. >> we found out how big was too big and some customers don't want to walk all that far. so there's kind of a natural adjustment that's taking place over time. as i look forward, i am very confident that great stores will still be important to the customers. they will get smaller and continue to have the fastest turning goods. other items you might order on-line and stick up at the store a little later. >> rose: what do we know about shoppers. have we seen a decline on impulse shoppers because now they have more access to information and they can plan more. >> i think that's a interesting point. some people do say on-line shopping doesn't enable spontaneous shopping. and i just don't think that's true. you can surf on-line.

people still are people and they want to find a new item, something that's exciting. they're interested in self gratification . sometimes they'll be in the store or browse>> rose: is thee changing in terms of who come to wal-mart and who shops on-line versus who doesn't. does it have to do whether they pay cash or not, that kind. >> so the u.s. demographic is basically what the wal-mart customer in the united states is. we look very much like that in the statistics in every i with a. we do have a little bit of a lower income level, mid lower income is a sweet spot but middle income shoppers and basically everybody who is value conscious which includes wealthy people shop at wal-mart for some things and sometimes. >> rose: does it change your product. looking at the profile has your product offering changed because of the profile of your shoppers.

for example you have more high priced items. >> think about the ability on-line to fill a broader assortment. in the beginning when the internet was taking hold it wasn't about average income consumer but that's passed. >> rose: where is wal-mart going. for example, i'm told you're getting involved in selling gasoline. you can't sell gasoline on-line. you can't ship gasoline to somebody so they've got to come to the store to pick it up. what's the market for that and why is wal-mart interested in that. >> we operate some fuel stations in some on our locations. some of our sam's clubs andwal-. we're able to show the customer value. we love to put a low price on a gallon of fuel on the street and let people know we're the low price leader. we try to do that with the soft drink machines at the(pin stores well. traffic matters, fuel, pharmacy, fresh food, categories like that bring people to the store so those important. >> rose: who is your

competition. >> seems like everybody today. >> rose: costco and. >> yes, and brick and mortar, puree tom. it's very competitive i the person who is going to win is the customer. and the sharper we have to be. going backer to sam walton. part of our dna was interest in learning from others. learn good ideas. don't be so proud you can't implement a good idea. >> rose: when you talk about wal-mart you talk about amazon. everybody is speculating on the competition between wal-mart and amazon. it is said that that's the company that you look at and see the most competitive force at play. it is said that you've given every executive of your company a copy of the biography about

jeff. >> we believe about learning from other people. what amazon's doing and jeff's doing is1world what's possible i admire that. having the ability to innovate and learn what's possible is very common and understood within wal-mart. >> rose: what are they doing that you admire. >> very customer focused. moving with speed. just putting ideas at work that are directly beneficial to customers. >> rose: the irony of this is that he started sam walton, jeff bezos studied sam walton and you're studying jeff baker. >> we're trying to learn from sam walton, learn from competition and on a global basis be able to be the very best and we try to bring it altogether. and to me that's what is most exciting about being at wal-mart. i'm confident that the thing that we have done to build the business still largely apply in

the future. and yet there are some other things we can put together with this that will make us be even more successful. >> rose: that's e commerce isn't it. >> it's the marriage of both. people can run the store. we edit assortments. we have a great team of merchants not only in the u.s. but argument the world. i takes a category, and really understands it working with our suppliers to come up with the very best items to put into our store. that curation process or editing process will still apply on-line. will still apply at some point on-line. now, todayabout access to tens s of items and how broad it is. well, definitely in the future the customer will have access to more than they would have years ago. but the ability tush a merchant and show customers what they want next before they might even know they want it is still going to matter. part of our business still matters and we have that in our dna and i think that will help us. >> rose: you're building a

fulfillment center. >> we are. >> rose: it's a key to the development of their business as they expanded. you expect to see them and e commerce companies like people who make glasses became a phenomenon because of a on-line shopping for glasses now have stores. apple has stores. talk of google having stores. is it we're going to seep> i think that's what the customer wants and therefore yes. it's the integration of how you put it altogether that results in lowest prices, broader assortment and customer service that is above their expectation that's the winning formula and it's always been the winning formula. but how we do it will be different. as a customer, you may get on your mobile phone and tell us i want to come by and pick

something up at 5:00 and come through the drive through nextp to the store or in some cases it might not even with the store and pick it up. we opened the store, we just have one in northwest arkansas a few months ago that you can't go in and shop. it's just a pick up point. so you order on your mobile device or on our website and you schedule a time slot and you tell us i want to be there between 4 clark and -- 4:00 and 6:00 and you come and pick it up. guess who loves it. mom loves it. she has a child in a car seat or other pressing issues. there are times when she wants to come into the store, pick out a tomato and come see what's new but other times we'll save her time. >> rose: in interviews and speeches i've read and seen, what worries you the most in terms of your own performance. in terms of margin, in terms of the challenge you have to meet

to meet the future. >> yes. some ways it's pretty simple. we have to be great at the things we've always done. our in stock the at store level, our associates have got to be friendlyand appreciate them bei. today we're hiring data scientists -- >> rose: you've got so much data available now. >> we do. >> rose: you've got to analyze so it instructs you as to what the future's>lçó going o be. >> it's possible today and what will be possible today is just different than with a we used to do in the past. one of our business es challenge is how do we keep the things that still matter and we've been great at and continue to get better at it. and then add on these new capabilities so when we bring it altogether we're the one to surprise and delight customers. >> rose: you spent a fair amount of time in san burno.

what's there. >> talent, people. i'm really proud of the team we've got in california that's driving our e commerce initiative starting with neal ash. we're learning how customers shop with a mobile device. we're building capability to enable that. we're learning how customers think about pricing on-line. when you think about pricing in a store, it's not possible or practical to change a price and you don't want to every day. customers want every day low price. on-line prices move more frequently. what does that mean to us and how do we learn how to build trust with customers so that they know in fact whether it's in a store or on-line. they don't need to shop anywhere else. >> rose: it is said that amazon has been one struckive going from every day pricing to dynamic pricing. that was a clear case that you looked at what amazon was doing deal of the day or bargain of the day. and said this is something we ought to look at closely. >> the reality is we study all e commerce competitors that are referral in this country and othersultimately what we're tryo

do is to make sure that our cost structure enables us to sell for less and that our customers believe that we do because it's in fact true. customers need to be able to believe in us for low prices, breadth of assortment and what we have in the store. >> rose: what are you going to do for healthcare. >> we've done a lot for healthcare. i don't think people know what the company's done over the years. we've got a great offering. a price point plan is $21.90 a pay period. it's 25% cheaper that were the average retail employee in the united states pays. we work really hard to try and keep that number as low as we can. we cover over a million lives in this country. we certainly have felt cost pressure as a result of that partially because we just had more people scene up. but i'm really proud of what we offer in terms of health care. what i hope is that the country,

the medical profession, government and others will work on increasing efficacy. and try to make sure that we're getting costs out because look at the u.s. healthcare system relative to the countries, it has room to improve. >> rose: however would -- how would you improve it. >> in some cases it needs to be run more like a business. >> you need to take care of doctor. when you continue to i est inr&d and the next thing tht needs to be created but we need to find a way to get rid of bureaucracy and i hope that happens. >> rose: does offering healthcare attract five to your store judicial the customer won't have a good experience. >> rose: you want your employees to earn at least minimum wage. >> higher than -- we're going

to -- >> rose: 6,000. >> 1.3 million. we're going to make some changes in a few months that will create a situation where no wal-mart associate in the united states makes federal minimum wage. we'll be ahead of that with our starting wage. there will still be some states where the minimum wage is higher than federal but we'll pay the state minimum wage. ideally what we're trying to create is this ladder. i can see a ladder in wal-mart. >> rose: you come to work for wal-mart, you can see not only where your entry level is but where you might be up the ladder if you continue to stay there. >> that's one of the thing that attracted me to the company and i know it attracts many others. so when you think about the investment that we can make in people, how we allocate that is interesting. so you can spend some money on healthcare, you can spend some money on the starting wage. you can invest money when people get promoted so they get anincrease, you can give people increase when they get their

evaluation to begin. we have a profit sharing business sothe associate concer. that's important. you need to have an incentive. we invest in those different areas so we create a merit acracy. >> rose: you have a perception why does it exist. >> with a get caught up in there and retail does in general. we can run a good business if we don't air california of people and have compensation plans that work. sometimes people want to talk about the bad news and not the good news. sometimes it's hard to get a story. if you walk around this store while you're here i would encourage you to do that and just talk to some of the associates and ask them about their job. we opened the store about a year ago. this is my third or fourth time here. >> rose: what do you say to

them when you come. >> how are things going. >> rose: you're looking as much as you're talking. >> sure. asking questions. and they're proud of their jobs, they're proud of the opportunity wal-mart represents. that's the vast majority of the time. >> rose: if there is a:$obetwey in your mind, does that suggest you're doing a poor job of communicating who wal-mart is. >> we did do a better job at that. if you rewind the clock, there were two stakeholders that sam walton and predecessors were focused on customers and associates. >> rose: your employees and people who came in your store. >> in you take care of associates customers will be happy and your effort needs to be aimed at customers. a some point charlie it became big. i don't know when that magic moment was but that happened.

>> rose: you became huge. >> society started looking at the company and saying we expect more from you some we had lots of stakeholders to think about, not just a come . again our credit lee scott. lee started opening the conversation. you may remember when you spoke to him, he probably said something like we decided to listen to our critics, and instead of trying to dispute what they were saying with a fact and argue or debate, we started listening and asking, what can we do to actually make this a better company. so we embraced environmental sustainability and we started making it a better company. and i think we got some credit for that for a period of time from a reputation point of view. but it's a never ending part of my responsibility and the other leaders at wal-mart to try and let people know who we really are. >> rose: but you muststhat at u operate, you're a disruptive force in a community. on the one hand you offer jobs and offer place for people to

buy things at a cost but at the same time you do drive small businesses who can't compete because of your pricing force gives you an ton to do things. if jeff bezos would admit, acknowledge that amazon is a disruptive force. >> first of all i'm very proud of our purpose. our purpose is to save people money so they can live better. customers. so we want you to sharp at wal-mart and use your saving to hip pay for your kids college education or make a health payment, maybe go buy a car if you can make that first payment. that's the meaningful purpose. i think it adds value to society. and over time what you find what a market evolve is that competition adjusts and i believe competition's a good thing. and whether it's merchants in a town that didn't have a wal-mart and how they change their business to created their own future or other changes i think that's actually good for

society. >> rose: let me talk about international. india had some opposition to retailers coming in and competing with local retailers. where is wal-mart today and what's the future in india for wal-mart? >> india is an incredible country. i've been there quite asr few times these last few years. we had a joint venture that didn't work out partially because of the rules the government wants to have in cash and carry unit that serves small businesses in india. and they're all doing really well. and we've got a strong team there, small but mighty ask we're just going to be patient and keep building those cash and carries. at some point india may open up toward what's called multibrand foreign direct investment for retail. if they do, that will be brate. frankly i think they need it because they need a supply chain

investment. too much produce is going to waste. the food supply chain is not in tact and we could help. >> rose: china? >> china's an amazing opportunity for us. we've got about 400 stores. e commerce business is based in shanghai. i've been going to china for 20 years. i think that our opportunity in china to build a retail is -- >> rose: why is that other than the size of the population in china. >> just a lot of people that need access to goods that are safe, safety is a huge issue in china and they also need value and that's what we do. >>e3 rose: there's a fellow named jack mott i'm sure you know. you know him. >> we met once. >> rose: had huge ambitions. he's in the e commerce business as well.

how do you see the challenge from them because he wants to be there as you want to be in china. >> again, i think competition's good. whether it's amazon or others, we're going to do the best we can to learn from them and not be stuck in our ways. talk about change for a second. wal-mart has always changed a lot, all the way back to sam. he changed thing in wal-mart at a face pace. we still have to be face. and some ways we may be big, frankly inside the company it's still so small in some ways and we still operate one store at a time. but whether it's alibaba or amazon, one of the things they teacher us is that speed is really important. and i think that's important to be able to move with speed without losing who we are. we have a purpose that matters. we've got a set of core values that matter to us and our associates that will stand the test of time but almost anything else should be open to change.

>> rose: define what you mean by speed. how fast you order and you can have it in your hand or something else? >> yes. well let's say there's a.÷ new capability we figure out customer want on the mobile device. how long does it take us to get that done. let's say end cap there's a maryland end cap that's got movies on it. if one of them's not selling we have to flip it out and move on to the next one. we can't become bureaucratic or too slow. >> rose: if that's scale, what's central to the success of wal-mart in the future? >> beyond the cultural tough, you know, which matters. along with speed, risk taking. we started with one store. we were entrepreneurs. now we're older. we're 52 years old, but it's every bit as important to be entrepreneurial in our approach. we have to have people who are willing to take a risk, a well thought out risk but not

everything is going to work. i was talking to sharyl sandberg. we had been to facebook a long time trying to learn about speed and and culture and how that applies to wal-mart. sharyl was explaining when they want to create something new they might assign two or three teams to go deliver it. when the first team fails they celebrated. they clapped had a cake figured on you that didn't work. then they go focus on the other two ways to try and solve that problem. we have to be like that. we have to celebrate some failures and be able to recover from those. >> rose: what failures can you celebrate. >> items that didn't sell. tools that weren't adopted for customers. we've got to invent something. >> rose: what's the biggest that wal-mart made? was it countries like japan. was that a mistake. >> no, japan wasn't a mistake. but we exited germany and south

korea. japan, our team, while the market's not growing as fast as we would like, it's the third biggest market in the world and our team in japan is doing a great job. growing sales and improving profitability. >> rose: what about the recession in japan. >> actually customers became more value conscious and that was in our favor. >> rose: qz what happened in germany. >> we were early in our international growth at that time and we only knew what we knew. so we tried to take too much of wal-mart, wal-mart u.s. and install it in germany. and there were issues, the stores we bought weren't the best stores. we didn't do a great job of assessing the situation and then rung it afterwards. what's good about that is that we learned from it, we made a decision to exit. went on to the next thing and our international turned out to be great. >> rose: what are the lessons of the experiences in mexico and the investigation there. >> i'm really pleased with the way that we typically respond to

a challenge and this one's no exception. the work we've done over these lastár few years to improve compliance is helpful to the can i. >> rose: is this a risk that goes with the landscape if you deal with this kind of money. >> no. for usate starts with talent. we needed subject matter expertise in some cases and we didn't visit. i'm talking 13 dimensions of compliance not just permits and licensing but everything from food safety to how we handled data, data security. so what we've done over these last few years is to ad subject matter expertise. number one talent, improved process and systems and we feel really good where we're at today from a compliance point of view. it's a journey and we've still got work to do but we've responded appropriately. >> rose: and wages in those countries. >> similar story. we want a situation where we're paying above market to get the

talent and create the opportunity for people to become store managers. here in the u.s. 75% of the management in the stores came from hourly rank. being a store manager is a great job, highly compensated. around the world in every country we want those principles to apply.>> rose: the kind of t you have, the kind of connections you have, how does a modern ceo, not only take his company into the future like you're doing by learning everything you can, by analyzing the data. but also by saying we want to play an important role within the society that we live in, whether it's domestic or foreign. my question is, how do you do that. and how much of a part of your own sense of responsibility of a leader is that? >> it's big. growing up within the company,

and knowing how our board feels about it, how the management team feels about it. causes me to feel empowered to have a lone term view and causes us as a leadership team to know that we have the support to do what's right. and we have a great management team. the team that i work with is really strong. and so one person doesn't do it. it's a team. and we are supported to think about things like environmental sustainability. we set three big goals a while back to eliminate waste and today about 80% of the waste generated by our stores is being recaptured and we've eliminated it. we set a goal of being supplied by renewable energy. we made great progress in this country and mexico and others being able to do that. we're the largest on site solar power producer in the country because of the way we use our roof tops in our stores. in the neighborhood of 25%

renewable energy already. we decided to engage in our supply chain and care about not only the product but trying to he eliminate packing when we can or take water out when freight is less. but we've started to get more involved as the years have gone on how the people that work in factory or people who produce the products we sell are treated. we care in the contact trees farther only in this country or around the world whether people are getting paid overtime. with a inspect factories and partner with associations to make sure things are becoming more sustainable over time. i don't know if your going fast enough but i can really see the scale of the company being applied for good and that's one of the reasons why i love working forw]çó wal-mart. >> rose: when you look at growth domestically is it mostly urban. >> no. when you think about growth in the united states, i would start with e commerce. e commerce is going to be -- >> rose: it's the place. >> yes. the physical location that we

need, where we put them, how many pea have, what size they are. that can all be rethought going forward because of what's happened with the internet and with mobile. and we're working on that and trying to of course it out. >> rose: you're involved in a litigation with a well-known entertainer who was injured in a collision. what do you say to his fans and people have rallied to his sued because of the tragedy that fell him. >> it was a tragedy. i would first of all say to mcnair family, we're sorry for their loss and tracey morgan and everyone involved in it. we're very sad and from the beginning we've said we want to take responsibility for it and that's what we're trying to do and hopefully have that evolve at some point. >> rose: hoping it be resolved without going to trial. >> i want to say one other

thing. our truck drivers do a great job. we have a private fleet. while this incidentsf is tragic, we take them seriously. if our truck drivers were standing around you, they want you to know they care a lot. this really impacted all of us. >> rose: was he just too tired though this driver in this case. >> i probably can't talk about the individual circumstance. i just want you to know that our people care about it. >> rose: colleagues care about colleagues and you care about doing the right thing. >> and the company. >> rose: as you look at the future, back to product mix for me, i mentioned healthcare. i was thinking not only about healthcare plan for your only employee and how you would be competitive there but al society kind of product. not only selling gasoline, i mean call and collect and all of that. but you're offering healthcare to people outside of wal-mart.

you're offering banking to people outside of wal-mart to your customers, correct? >> yes. we partner with someone else. we're not actually a bank in this country but we do offer financial services. >> rose: that's what i mean, financial services. are there other areas we'll be surprised that wal-mart can go there because it believes it has resources to provide a better product. >> if we think we can add value and our customers want it, we will try to provide that service to them. there are basically three service areas in this country that we're focused on. one is financial services. another would's be health and wellness. our pharmacy and optical offering and what we do with other items in the health and wellness area. and third entertainment. digital entertain many. we own a company called voodoo where you can download voodoo. >> rose: i know, i have it. >> glad to hear that. they are are the three areas.

>> rose: beyond your own teaching, what you learned from your customers and what you learned from your competitors, where else do you go to make sure that you are a fully informed and enlightened ceo. >> what you read matters and i try to pay attention to what i'm taking in in that way. other ceo's have been helpful. >> rose: including wal-mart ceo. >> mike is involved in helping vention. lee scott and scott before him, those are mentors of mine and giving me advice. i've read out to other ceo. i was at sam's club and i called steve up and asked for advice. american express. i called and asked him about a couple thing. >> rose: what do you ask them. >> leading change was the topic. >> rose: it's really the broad question rather than the

specific business problem. >> right, yes. it's, we probably know the retail business as well as anyone,#áçó but from a leadershp point of view, i'm learning a lot. >> rose: at your age and your experience, what are the qualities and experiences that you think are important for you to take this company into a period of transformation because of the internet, because of the fact that countries around world now have a new middle class, emerging nations. you have demand for the kind of product you sell. >> right. thinking in my role with the leadership team that i work with, we need to have a vision. where are we trying to go and why are we trying to get there. and i think our vision this last year has evolved and it's becoming clearer. >> rose: tell me what that is. >> let me start by saying there

are things about wal-mart that need to be repeated because we have some inherently strong qualities. >> rose: i got you. >> that need to be perpetuated. so the way i describble it within the company is our purpose will stand the test of time. we pay people money so they could live better the our values, respect for the individual, serving the customer, striving for excellence and doing all of it with integrity. those four core values i believe will stand the test of time. and i thought about that a lot, especially being in the international business these last few years. almost all of our cultural behaviors as aunder one of those values. so for our people, again remembering it's over two million, they need to know. if you're going to lead us through change, help anchor us on what it is that stays the same. so the list of thing that stay is same is relatively short. purpose. division going forward, you crew

capabilities possible today physical -- that's what sam walton. our stores did not stay the same. there was not a moment where he and the leaders back then looked at a source and said we're perfect we're done. that never happened and it's not happening now. >> rose: thank you. >> thank you, charlie. appreciate the time. >> rose: thank you. for more about this program and early episodes visitat pbs.org captioning sponsored by rose communications captioned by media access group at wgbh access.wgbh.org

report" with tyler mathisen and susie gharib. funded in part by -- thestreet.com and action alerts plus where jim cramer and fellow portfolio manager stephanie link share their investment strategies, stock picks and market insights. you can learn more at thestreet.com/nbr. stocks rock. the declines sharp and severe. the dow jones industrial average falls more than 260 points, as catering crews rattles investors. >> the fast and furious selling in the oil marketssent prices at the barrel, lowest since mid 2009. >> whether there's more selling ahead and the way to ride out the volatility. all that