Ethical Issues Facing Walmart

There are many opinions on the ethics of the Wal-Mart model, both favourable and unfavourable. The article “ROB Ranks Wal-Mart Among Canada’s Best Employers” (McLachlan, 2009, pg. 287) offers a favourable viewpoint of the model, and the article “The Cost of Walmartization” (McLachlan, 2009, pg. 288) offers an opposing unfavourable view. This paper discusses the theoretical approaches used in each article, along with the supporting evidence that was used in an effort to be convincing.

The values and attitudes in Walmart’s business situation deals with a lot of the overall ethics. This paper will discuss some situations that comes in walmart .ethics. This paper will include clear definitions of organizational values and a description of the organizational values of Wal-Mart. This research is conducted to understand the success of Walmart’s employment rate. The values and attitudes will be related to some examples of other companies and how Walmart was successful. Some arguments that will be addressed in this research paper is basic and common.

The CEO and all senior financial officers also have an additional code of ethics. They are responsible for full, accurate, and timely disclosure in reports required to be filed by the SEC. Each member is also required to report any material untrue fact that comes to their attention or any deficiency in the design/operation of internal controls. Each member must report any violation of their code of ethics or any violation of other laws, rules, or regulations (Walmart 9). This additional codes of ethics is important because it holds all of the executives accountable for their actions. This should aid in preventing fraudulent reporting by management because this code can be cited when looking at disciplinary action.

Discuss: Laws are set rules that may help guide our conduct but they do not always agree. Some ethical issues are not legally required, but ethically warranted. We have recently seen a prime example of someone standing by their ethics, but breaking the law in the recent case of the Kentucky woman refusing to provide a certificate of marriage to a gay couple. There is a connection between ethical behavior within an organization and its chances of long-term survivability. Any unethical issues will come to light at some point and they will destroy the company. Although some unethical behaviors may not be unlawful, they can destroy a brand. Kathy Lee Gifford did not do anything illegal by allowing children in other country to sew her clothing

The term “ethics” is defined as moral principles that govern a person’s or group’s behavior. When speaking of business ethics, one is referring to the study, and examination of moral as well as social responsibility relating to business practices, also including its application to the four functions of management as well as the decision-making process in business (Batesman, pg.167). This internal factor can easily influence the how an organization goes about accomplishing the four functions of management. Wal-Mart, like most businesses believe they uphold ethical standards in their business practice. According to Wal-Mart’s statement of ethics, leading with integrity in a workplace is key to running a business (Wal-Mart Ethics pg.10). Leading with integrity, and expecting teammates to work with integrity is one of their main focuses- Wal-Mart’s original founder Sam Walton said,” that it has always been an ethically led company” (Wal-Mart Ethics pg.4). They follow their three basic beliefs: respect for individuals, service to the customers, and striving for excellence (Wal-Mart Ethics pg.5). Although organizations may have their code of ethics, they still come across the occasional ethical problem in the company. Wal-Mart for example, had an issue with an employee named, Chalace Epley Lowery. Lowery believed that another

It is said that “The only social responsibility that there is, is to obey laws and pay taxes,” but according to Milton Friedman, “social responsibility is to increase profits.” This kind of responsibility also a form of giving back. Many people believe that the future of Wal-Mart is sustainability. Wal-Mart Stakeholders are the associates, otherwise known as employees, the suppliers, and the investors of this company. I believe that Wal-Mart is doing enough to become more sustainable both locally and globally by the resources, its key stakeholders.

People know and choose Wal-Mart because of its daily low prices. Wal-Mart sells its bargains every opportunity it gets, and convinces customers forgetting about everything except the low prices. Undoubtedly, Wal-Mart is one of the most successful corporations of all time. However, the tremendous success of Wal-Mart certainly comes with a correspondingly massive amount of responsibility. The strategy of low prices usually comes at a deadly unethical cost. Although some of its business practices such as “Low prices, always”, and helping in saving money are ethical, most of its business practices are unethical.

Walmart is the one of the biggest retailers in the United States and one of the foremost and influential corporations in America. It has become one of America 's most successful retail chains by offering “everyday goods at low prices” for middle and lower class families. Even with all of its financial success, the company cannot open a store without dealing with an abundance of protest groups. Walmart always overcomes these groups, but nonetheless there is always opposition against them. Walmart has had a reputation for unfair labor practices by refusing unionization, offering really low wages, and discrimination. The protest groups defend local store owners, the environment, employee salaries, and discrimination against various minority groups. Walmart displays an image of being charitable and giving back to the community, but they are responsible for unjust and discriminating actions in the United States. To maintain its low-cost strategy, Walmart has been involved in ethically questionable practices, including gender discrimination in promotion and pay. While the Supreme Court recently ruled against class certification of 1.5 million women in the Dukes v. Walmart case due to a lack of proof that Walmart operated under a “general policy of discrimination”, there is much evidence that shows that gender discrimination is still a problem rooted in the culture of Walmart, despite gender-neutral policies (Biskupic, 2011).

Wal-Mart Stores, Inc. is the world 's largest retail enterprise, with total revenue of $421.8 billion and a net income of $16.4 billion in 2011. 1 It is also the world 's largest employer, with 2.1 million employees worldwide in 2010 2, not including workers hired by its providers. In my opinion, Wal-Mart provides a clear illustration through which to look at how many multinational companies (MNCs) take part in an illegal and unethical behavior. They use their bargaining power and market control to pressure countries to overlook environmental degradation and violation of national labor laws. They dictate expected pricing for products, particularly through imports from overseas countries. Labor is fulfilled mostly by underage and underpaid employees. In the United States, since 2005, Wal-Mart has paid about $1 billion in damages to U.S. employees in six different cases related to unpaid work. 3 Furthermore, Wal-Mart opposes any form of collective action, even when employees are not seeking unionization, but simply more respect. 4 The fact that Wal-Mart opposes unions exist. The company has a long history of fighting them, to the point of closing stores after employees organize. Managers have been instructed to talk to their teams about why unions are so unwanted in their business. Overseas, the company was involved in a series of scandals, including multiple cases of bribery. In April 2012, The New York Times published a story that

In the early ‘80s the Johnson & Johnson company was a very successful brand. So successful, that some of their most popular brands were able to corner more than a third of their market. However, all of their accomplishments were threatened when a series of unfortunate murders tarnished one their most popular names: Tylenol.

If Wal-Mart has such little regard for their own employees, it would make it difficult for a company to have minimal regard to where their merchandise is coming from. On the documentary, The High Price of Low Cost, informs of the countries and Wal-Mart’s effects on these countries, including its presence for manufacturing in China. The workers work in conditions of extreme temperatures from morning until dawn and provided boarding, which is shared with several others and lined with bunk beds. The board and utilities are deducted from their wages even if the workers choose not to stay on the facilities the board is still deducted from their pay. These workers that are looking for employment to make a better future for their families are

Wal-Mart, the big giant, the place where a lot of people usually do their shopping for the low prices and the variety of products were founded by Sam Walton. Walton was an entrepreneur with an innovative vision started his own company and made it into the leader in discount retailing that it is today. In fact, Wal-Mart is considered to be the biggest company in the U.S. and it has stores worldwide. According to PBS, “Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line.”(www.pbs.org) In addition, Wal-Mart likes to portray itself as a seller of U.S. manufactured goods

This paper will discuss the structure of Wal-Mart's corporate culture and how it influences their employees. In order to understand an Organization Behavior there are different elements that will create the employees perspective of the organization’s culture such as the management’s philosophy, vision, values, and goals. The driving force of these elements will create the culture of the organization. An organization’s culture will define the leadership, and dynamics of the organization. With each element listed the employees of the organization will identify this as work life that will guide their level of motivation. Depending on which level of motivation the employees are at

Unions can construct a huge impact on important workforce issues. I believe with the right understanding of the federal laws (NLRA/NLRB) and following them accordingly unions can have a huge voice in their workplace. Being fully educated about federal laws helps unions become aware about what should be posted on the web 2.0, and how they express themselves about the issue. When members learn the regulations they should also keep in mind about other consequences that may occur because of the outcome. Despite the risks that unions may have I think that social media can positively benefit them with opportunities. If Walmart employees were seeking to form a union I would use social media tools to support the joining of unionization. Social media tools give unions many opportunities that can help Walmart employees advocate their work force issues.

1. What is the ethical dilemma facing Wal-Mart in this case ? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it ?