Global Business and Ethics Essay

852 Words 4 Pages
Global Business and Ethics

1. Any company doing business in the United States and abroad has a responsibility to be socially responsible. This responsibility is guided by business ethics – basic values that guide a firm's behavior. These ethics come into all decisions made by businesses. Including what goes into the products, how they are advertised and sold, and how they are disposed of. Wal-Mart, the world's largest retailer, is the largest corporation and private employer in the United States. Wal-Mart is consistently listed among America's most admired companies by Fortune magazine. At the same time, it is frequently the target of criticism for its employment practices and its effect on the larger economy and community. How
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This giant in the retail market puts stores up anywhere it can. This makes it hard for local stores to make it because they can't offer the same low prices without taking a loss. I have a friend whose dad is a store manager at a grocery store in my hometown. Wal-Mart is building a Super Center in this town. My friend's dad had to decide whether to stay on a commission paid system or take salary. Needless to say my friend's dad, worried about the business doing well took salary and will take a huge pay cut. This is a personal experience. I know not every person will be affected in this way with Wal-Mart coming into town. Some people will even gain jobs and save a lot of money by shopping there. But, I don't think this is such a good thing. I think it is more important to help out the smaller businesses of the town then support a huge company.
3. Ethnocentrism is the tendency to prefer products or people of one's own culture. Ethnocentrism has affected Wal-Mart in entering foreign markets. Wal-Mart has had great success in Mexico, Canada, and Germany. With only 2 stores in Mexico in 1992, Wal-Mart has grown to over 640 in Mexico and 240 in Canada. In Germany many customers are used to "service with a snarl". These same customers enjoy the friendlier demeanor of Wal-Mart associates. (Marketing. Real People Real Choices. Page 96) Wal-Mart hasn't been without failure in foreign markets due to ethnocentrism. In Japan the multi-tiered distribution system,
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