Essay on Business Ethics

779 WordsJul 2, 20134 Pages
Kristine Martin Business Ethics Unit 3 Case Summary -China, India, and Wal-Mart: Issues of Price, Quality, and Sourcing:: Case Questions: 1. What are the ethical issues associated with Wal-Mart’s extensive sourcing of low-cost products from China? Wal-Mart pricing is too low. As the world's largest retailer, Wal-Mart leverages its huge orders to convince factories to sell goods at low prices that are not sustainable. This puts pressure on other brands to pay less, thereby setting a dangerous industry precedent. According to Correspondent Hedrick Smith: “We heard that story again and again from American manufacturers in sectors as diverse as electronics, apparel, bicycles, furniture, and textiles. They expressed private…show more content…
In the first national independent poll of Wal-Mart associates, conducted by Lake Research Partners in May and June of 2011, concerns about staffing levels were broadly cited by associates among top three things they would change with the company, after higher pay and more respect on the job. Among the other findings: * Nearly ¾ say understaffing has created problems such as stock-outs, messy stores and poor customer service; * In contrast to company statements regarding high levels of employee satisfaction, 84% say they would take a better job if they could find one * ½ say they are living paycheck to paycheck; only 14% describe their household as living comfortably. Across the country the reductions in staffing have translated into significantly increased workloads. A few examples convey the scale of the changes: * An associate in the electronics department in Southern California: “There used to be four or five people in consumer electronics at any given time, now it’s one or two;” * An associate in overnight stocking in Southern California: “I used to do five pallets a night, now they say I have to do 12;” * A former assistant manager in Seattle: “Our store used to have about 600 employees, now it’s about 350.” (Marshall) What

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