Case Study - Wal Mart: the Main Street Merchant of Doom (Corporate Social Responsibility Case Study)
Introduction
Since its establishment in 1962, Wal-Mart has grown to be one of the biggest conglomerates in the world. Inevitably, with the expansion of the company, the weight and number of social and ethical issues facing the company has increased.
The key issues discussed in this particular case are:
Wal-Mart's and America community Small merchants and the community's environment
Barriers to domestic expansion Wal-Mart and its Opponents
Wal-Mart's Corporate Social Responsibility (CSR) programmes: Merely gimmicks?
The company's responsibility to employees who lose their jobs and loyal customers when Wal-Mart pulls out of a community
International expansion of the company cultural sensitivity
Overview: Wal-Mart and CSR
Analyzing the company's CSR situation using the 4-part CSR model:
Economic Responsibilities: This has been amply fulfilled. The company is obviously profitable - net sales totalled $256.3 billion in 2004. Thus, the foundation for all other aspects of CSR has been set very well.
Legal Responsibilities: Wal-Mart has a rather poor showing in this area, being considered "the most sued company in America". It is embroiled in hundreds upon thousands of lawsuits, and has questionable labour practices. It is reputed for low wages and discrimination (based on gender etc). However, it must be noted that it is inevitable for such a large company to get sued by many parties, sometimes with no grounds at all.
Ethical Responsibilities: This responsibility has only been partially met. Wal-Mart's "Buy American" and "Environmental Awareness" plans are good examples of the company's attempt at ethical responsibility. Furthermore, Sam Walton offered his employees stock options and profit sharing to enable them to share in the company's wealth. However, it has neglected to fulfil its responsibility toward the small merchants it puts out of business when it enters a town. Moreover, the "Buy American" plan has been
Since its establishment in 1962, Wal-Mart has grown to be one of the biggest conglomerates in the world. Inevitably, with the expansion of the company, the weight and number of social and ethical issues facing the company has increased.
The key issues discussed in this particular case are:
Wal-Mart's and America community Small merchants and the community's environment
Barriers to domestic expansion Wal-Mart and its Opponents
Wal-Mart's Corporate Social Responsibility (CSR) programmes: Merely gimmicks?
The company's responsibility to employees who lose their jobs and loyal customers when Wal-Mart pulls out of a community
International expansion of the company cultural sensitivity
Overview: Wal-Mart and CSR
Analyzing the company's CSR situation using the 4-part CSR model:
Economic Responsibilities: This has been amply fulfilled. The company is obviously profitable - net sales totalled $256.3 billion in 2004. Thus, the foundation for all other aspects of CSR has been set very well.
Legal Responsibilities: Wal-Mart has a rather poor showing in this area, being considered "the most sued company in America". It is embroiled in hundreds upon thousands of lawsuits, and has questionable labour practices. It is reputed for low wages and discrimination (based on gender etc). However, it must be noted that it is inevitable for such a large company to get sued by many parties, sometimes with no grounds at all.
Ethical Responsibilities: This responsibility has only been partially met. Wal-Mart's "Buy American" and "Environmental Awareness" plans are good examples of the company's attempt at ethical responsibility. Furthermore, Sam Walton offered his employees stock options and profit sharing to enable them to share in the company's wealth. However, it has neglected to fulfil its responsibility toward the small merchants it puts out of business when it enters a town. Moreover, the "Buy American" plan has been