Walmart is the world’s largest retailer as well as the largest private employer with approximately 2.2 million employees. However, in previous years they have been in newspapers and newscast about the outrageous employment practices (Jordan,“the Good, the Bad”). I went to a Walmart to buy some house items and I saw an incident. An employee stepped into a juice spill on the floor and fell. She was feeling pain and had to go to the hospital. A week later, I asked an employee, “What did the manger do?” and he said they gave her the rest of the week off, but they did not cover her hospital bills. I am not a frequent shopper at Walmart because of their unfair labor practices. Exploitation of workers, low wages and health care are the main reasons why Walmart is not an advocate of customer and employee success. Walmart exploits those who are essentially powerless to defend themselves. This exploitation is due to the business model that started when its founding father, Sam Walton, opened his first stores. He exploited the pools of surplus labor that resulted from corporate agricultural consolidation and the ravages of the Great Depression (Aubry, “Walmart’s Exploitation”). Walmart does not provide safe equipment for their unskilled employees who worked in the factories. According to one report, in Walmart’s cost-benefit analysis, it was cheaper to wash workers’ blood from clothing before shipping the clothing overseas for sale than it was to provide gloves; these workers were
With Wal-Mart being the site of various lawsuits little perplexity is left surrounding the multitude of cases involving discrimination and violations of the United States Equal Employment Opportunity Commission (EEOC) laws. In 2006, there was an average of 5,000 lawsuits per year, or about seventeen suits per day; as well as, a video documentary, that was made public knowledge of the aspects involving Wal-Mart’s policies and procedures, and the company’s regard for respect of its employees (Brantner, 2006). After reviewing, two of the most recent cases of Wal-Mart’s discrimination of the company’s employees, one is left to wonder if there is ever going to be a change in Wal-Mart’s compliance with the EEOC laws?
Walmart has the right to describe about the current benefits and job security they offer to their employees. They can also explain employees about how they are better than other unionised stores. They can also explain about the negative effects of unionising the store like strikes and job hour losses. They can inform them about the union fee employees has to pay if they join the unions. They can inform about the negative motives of people who run these unions. They can also explain them that the employees are treated as “associates” rather than just “employees” so it is duty of them to protect the best interests of the company.
In “Labouring the Wal-Mart Way”, Deenu Parmar discusses Wal-Mart’s poor business practices and mistreating of their employees. Parmar is biased in that she focuses primarily on the negative aspects of Wal-Mart and discusses mostly from the employees’ point of view. The essay attempts to sway people to stop shopping at Wal-Mart because the author portrays it as unethical by focusing on the poor wages, anti-unionization, and paying off charges instead of properly addressing the laws being broken. Parmar does point out that people will continue to shop at Wal-Mart, seemingly guilt-tripping those who do shop there. The whole article relies heavily on an emotional appeal, which forces the reader to sympathize for the employees of the company without
In a state analysis, the Massachusetts Department of Health and Human Services found that in 2003, Wal-Mart covered only 52% of total health care premium costs compared to K-Mart which covered 66%, Target which covered 68%, and Sears which covered 80%. Wal-Mart takes advantage of their employees and suckers them into their costly healthcare plans. But, if something happens to an employee, lets say two months after their hire date, they will not be covered by any healthcare plan whatsoever. "Part-timersanybody below 34 hours a week must wait 2 years before they can enroll. Moreover, part-time employees are ineligible for family health care coverage. Full-time hourly employees must
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)
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”
Next you look at inhumane working condition in those Walmart stores vs. happy and healthy employees in family business stores. Even though, the small family businesses are not union they are taking care of employees and their families despite Walmart that is union and they are not fighting for employee’s rights and benefits. The bottom line of this corporations is how to make
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, 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
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
As stated on the corporate website (2017), “Walmart is the largest retailer in the world, where 2.3 million associates meet the needs of more than 260 million customers every week.” These numbers are huge, and with so many locations around the globe, they have had allegations been made by employees regarding their dissatisfaction about poor work conditions, gender discrimination, low wages, poor benefits, and inadequate health care. Walmart has been criticized for its policies against labor unions and this issue has prompted public outrage, (Johansson, 2005) which is of great concern for the market. The company has also faced criticism for being anti-union, but it has claimed that it is rather pro-associate, whereby employees
In the United States Walmart effects negatively retail worker wages as well as retail employment. In addition, University of California researchers found that workers in Walmart earn on average 12.4 % less than retail workers as a whole (UNI Global Union, 2012). Walmart’s workers demonstrated thier dissatisfaction with working conditions and low wages by protesting on Black Friday 2012, which is the day the company is making the biggest profit. Walmart workers stood up and more than 1,000 demonstrations in a hundreds encouraging Walmart to act ethicaly towards them. For workers protesting it was a huge risk as they are oficially not protected by any labour union (Progress, 2012). Another evidence that Walmart treats its employees unfairly are discrimination claims. Women workers in California pursue discrimination claims saying that Walmart systematically treats them unfairly. According to women workers retail giant denied to pay raises and promotions due to gender bias (Levine & Gupta, 2011).
On the other side of this issue is that Walmart does a good job in providing employment. Walmart employs 2.1 million associates worldwide. This is a good thing that Walmart provides so many jobs especially in a tough economy. Some would argue that it has positive effects on our economy. It seems that everywhere I read that the negatives of employment at Walmart overpower the good. And because of this it is an ethical concern. I think that some of the possible resolutions would be to raise the wage for the employees so that they could be able to afford more. Also they should have kept their employee benefits that they cut.
With every company there come strengths, weaknesses, opportunities, and threats and Wal-mart is no exception. Wal-mart sits at the number one spot when it comes to retail businesses but they have had many issues; in particular labor law violations because they did not allow their employees to take required lunch and meal breaks.
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.