Walmart's Compliance Issues

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Walmart Compliance Issues Introduction Walmart is now a trans-national corporation. All such corporations have major problems in the labor front. The reasons are various. Firstly Wal-Mart's motto is to give quality goods at very cheap prices. All its operations are therefore designed to that end. Walmart has suppliers who offer competitive prices. Since the company has to serve various parts of the globe, they have the policy of sticking to the most reasonable prices. Thus the awareness of cost, customers, and need for investing in continuous improvement and the bifurcation of the various retail units to small supplier stores as individual firms have made the company's functions seamless and cost effective. However it cannot be sustained for long and the natural result is that the company looks out for cheap labor and less cost of production and supply units. Thus it regards the labor at the overseas units as lesser and tries to push costs down. Thus it can be seen that in controlling cost and being conscious of costs the company has all along made the labor at the receiving end. (Christopherson; Lillie, 2005) In a research on major multinational retail firms, like IKEA and Wal-Mart, the fact is noted that there is a new era of labor standards. The global labor concerns are coming to the fore and the rights of labor all over the globe are being enforced by the nations, and secondly the multinationals find it better to enforce their voluntary codes rather than through

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