Walmart is responsible for the labor trafficking that is caused by their subcontractors. Labor trafficking, or forced labor, is a practice where people are forced to work using “fear, coercion, or deceit” and are paid little to none. The most common form of labor trafficking today is debt trafficking (Laura, 506). Debt trafficking occurs when a trafficker promises to introduce his/her victim to a high paying job with an upfront fee. However, most victims do not have the ability to pay the upfront fee so the trafficker will then offer them a loan. Once the victim agrees to the loan, he/she will have no control over his/her wages and receives little or no wage at all because according to the trafficker, his/her wages are used to repaid the loans. Some victims also do not have the ability to leave as they are deceived into signing contracts that leaves them unable to escape from their traffickers. The International Labour Organization reported that there are at least 21 million people worldwide who are subjected to some kind of forced labor and the profit extracted from the forced labor by private businesses has exceeded $44 billion (LeBaron, 237). Walmart should be held accountable for the forced labor caused by their subcontractors because human rights are being violated and the company is benefitting from the forced labor.
Walmart is responsible to making sure that their subcontractors are not mistreating the workers and stripping the workers of their basic human rights.
This article is written using an enlightened self-interest approach. The author describes Wal-Mart behaving in a way that increases its own benefits, with the outcome of their actions being the most important consideration. An example of this is the author’s notion that Wal-Mart’s low prices are due to “the exploitation of its workers” (McLachlan, 2009, pg. 289), “systematic use of ‘maquiladoras’ in conditions of extreme exploitation” (McLachlan, 2009, pg. 289), and Wal-Mart’s threat to move production to China to obtain lower prices. In this article, the author implies that Wal-Mart’s actions demonstrate that they are not concerned with finding the most ethical behaviour; they are merely interested in the action(s) that most closely achieve their goal to remain the “biggest chain of direct sales to the consumer in North America”. (McLachlan, 2009, pg. 289)
Karen Olsson believes that Wal-Mart, the world’s largest retailer company, under pays their employees for the amount of work they do daily. They do not offer good working conditions for their employees or enough medical benefits to support themselves and their families. Sebastian Mallaby says that Wal-Mart is not wrong for the way that they run their business; he feels as though Wal-Mart does their consumers a favor by keeping the wages low and offering “low prices” (620). It’s just business! They have to do what it takes to remain the world’s top retailer and continue to, “enrich shareholders, and put rivals out of business” (620). Karen Olsson and Sebastian Mallaby both address the topic of big
Wal-Mart, the multi-billion company and the second largest employer in the world, is the most controversial corporation in the world. Wal-Mart is a global powerhouse and affects many people around the world. Wal-Mart is constantly getting attacked from unions, human rights groups, small towns and small businesses. Wal-Mart is accused of treating their workers poorly and driving small businesses out of business. But however these accusations are false or over exaggerated. Wal-Mart offers families and low income people quality products. Also, they pay their workers competitive wages and treat them with respect. Wal-Mart opens their stores in rural and under developed areas. Wal-Mart improves the lives of the people who live rural area and
Walmart is the world's largest company by revenue (approximately four hundred and eighty billion dollars) and the largest private employer in the world with two point three million employees. Walmart is also one of the world's most valuable companies by market value, and is also the largest grocery retailer in the U.S. “One Nation Under Walmart” is a case about how Walmart has taken over the retail business and the effects of their market domination. The case also shows statistics of how much percentage Walmart is of many suppliers’ sales. According to the case Walmart has a 30% market share of all household items. Twenty-eight percent of Dial’s business and twenty-four percent of Del Monte’s business go through Walmart stores. It is also worth noting that Walmart imports ten percent of all United States imports from China. The case states that Walmart is able to offer cheaper prices because they put so much pressure on their suppliers to lower their prices. The case, “One Nation Under Walmart”, explains the problems that some people have with the massive retailer. One of these problems is how Walmart has forced numerous local businesses to close their doors through their extremely competitive pricing. They are able to purchase bulk goods at such low prices and thus pass the savings onto customers. As a result of these lew costs, rivals are driven out of business which results in a loss of jobs. Jobs are vital to the success of a community and with Walmart causing job
Wal-Mart founded in 1962 by Sam Walton is now the largest American retail corporation. With thousands of chains of stores and warehouses Wal-Mart monopolized the American retail industry. In addition, Wal-Mart is the second largest retail corporation in the world employing of two million employees world-wide. As one of the most valuable corporations in the world Wal-Mart continues to improve their sales annually while offering some of the lowest prices available. Wal-Mart’s famous low price guarantee, come at a high expense of the environment, the small businesses, education, the rights and safety of the consumer, but most importantly their employees. Although Wal-Mart has plays a dominate role in American economy, this “American”
Walmart however claims that their managers can handle complaints and grievance and that their employees do not need to pay a union to advocate for them.
In the reading “Up Against Wal-Mart” by Karen Olson, she explains the tactics used by Wal-Mart in order to avoid paying their employees the fair wages they deserve. By training their employees to be anti-union, they can keep their pay lower while getting more labor out of them. In doing this employees are less likely to ask or receive promotions because they do not expect it to happen. Many of those who have worked at a Wal-Mart speak out on the mistreatment because they want a fair wage for the work they are putting in. The main focus for the way Wal-Mart runs their business is to teach their employees about working in a place union free. Those who disagree do not gain much change because they are quickly put down.
Wal-Mart Stores, Inc. Walmart is the biggest importer of foreign products in the United States. For this, Walmart created a code of conduct for its foreign suppliers as “Standards for Suppliers”. To meet this code of conduct foreign supplier need to follow all the local law, rules and regulations of country and the working condition of industry like pay, hiring forced labor, child labor and discrimination. This code of conduct states Walmart may make on-site inspection to the foreign products that is going to be imported in Walmart USA by which it can cancel or reject the low standard product while site inspection. These are included in Walmart’s supply contract with its suppliers in foreign countries. The foreign workers who are importing goods to Walmart from China, Bangladesh, Indonesia, Swaziland and Nicaragua sued Walmart to the US district court alleging that they were third party beneficiaries to the Walmart’s contract to its foreign suppliers that due to the Walmart’s breach of standard they were due damages from Walmart. Their employees violated the standards because of Walmart failed to investigate on working condition of foreign suppliers. Even knowing the standards were being violated Walmart failed to implement the standards mentioned there in contract. The U.S. court held that the litigants were not intended third party beneficiaries to Walmart’s contract to its foreign suppliers and terminated the
Using cheap labor from the poor countries, US companies gain the massive profit. For example, Walmart is the biggest retailer in America, because the most products of Walmart import from China. To against the competitors, Walmart reduces the prices, but to hold profit stable, the company has to use the cheap labor. Walmart has the biggest numbers of employees, which is over one million workers, but the wage and working condition are horrible. The hourly wage is three cents, and the best workers receive ten cents. Walmart’s workers also include children and women, and these workers even get paid less than a man, even though they have the same amount of work. Walmart is famous with the cheap electronic products, but the quality isn’t good as
One the main reasons people go to work is for their physicology needs (salary) and Wal-mart make it clear in their ethics statement that the comply with state or national laws regarding pay. Managers in the business are expected to carry this out fairly without discrimination. It’s also a violation for managers to forces colleagues to work off the clock.
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last
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
Wal-Mart’s sheer size gives it unrestrained economic power which allows it to drive down costs in the retail and manufacturing sectors and to enact its own standards with regards to its work force.
Wal-Mart would rather bribe factories money to move on and brush it under the carpet instead of taking responsibility for their involvement. So, one would have to think this is not due to the lack of knowledge of the practices in the factories, but the choice to ignore and not care of these practices. In 2012, Wal-Mart choose to “make payments to Mexican officials of more than $24 million noted by The New York Times and in Asia there were 90 reports within a year and half period” (Sethi) to cover situations up demonstrating that money talks.
Wal-Mart is certainly credited with changing the retail world as we know it with its low prices and big stores with huge selections but it has come at a price. They have struggled with issues that question the ethics as a company and legal issues that question how they manage people. These issues will continue to hurt their organization unless a complete change in management thinking and actions are changed. As a socially responsible organization, their management planning in this area is second to none. Lets hope they take the same effort in improving their image when it comes to ethics and legal issues.