Ethical Issues Surrounding Walmart
Ethical issues surrounding Wal-Mart
Ronald L. Reeves
Columbia Southern University
Ethical issues surrounding Wal-Mart Sam Walton, founded Wal-Mart over forty years ago, where it started as a five-and-ten store in Bentonville, Arkansas (Stanwick & Stanwick, 2009). Since then it has become one of the largest retail stores in the world, with an estimated annual sales of close to $300 billion (Stanwick & Stanwick, 2009). His business philosophy was to provide low prices to its customers everyday (Stanwick & Stanwick, 2009). With such tremendous success in profits and growth, it has also brought many challenges relating to ethical issues in regards to; off-the-clock-work, sexual discrimination, health benefits, the role of unions, use of illegal aliens, and issues relating to child and labor laws. It is the intent of this case study to identify the ethical issues Wal-Mart has faced, as well as, discuss four questions of thought. Off-the-Clock-Work From 2000 to 2007, Wal-Mart has been in court facing numerous law suits, in which they have paid out millions of dollars, for violation of laws surrounding non-payment of overtime compensation to its employees (Stanwick & Stanwick, 2009). Several employees claimed that managers required them to work off the clock by requiring them to work after punching out their time card (Stanwick & Stanwick, 2009). If the employee refused to work after their shift and off the clock, then they would be threatened with termination of employment. One of the many complaints include the use of “lock-ins” (Stanwick & Stanwick, 2009). According to Stanwick and Stanwick (2009) they stated, “Managers would lock the doors after the store had closed and would force the workers to stay in the store until all the work had been completed” (p. 410). Employees were also told that if they could not complete their assigned work in their eight hour shift, that they would have to remain at work, off the clock, until their work
Ronald L. Reeves
Columbia Southern University
Ethical issues surrounding Wal-Mart Sam Walton, founded Wal-Mart over forty years ago, where it started as a five-and-ten store in Bentonville, Arkansas (Stanwick & Stanwick, 2009). Since then it has become one of the largest retail stores in the world, with an estimated annual sales of close to $300 billion (Stanwick & Stanwick, 2009). His business philosophy was to provide low prices to its customers everyday (Stanwick & Stanwick, 2009). With such tremendous success in profits and growth, it has also brought many challenges relating to ethical issues in regards to; off-the-clock-work, sexual discrimination, health benefits, the role of unions, use of illegal aliens, and issues relating to child and labor laws. It is the intent of this case study to identify the ethical issues Wal-Mart has faced, as well as, discuss four questions of thought. Off-the-Clock-Work From 2000 to 2007, Wal-Mart has been in court facing numerous law suits, in which they have paid out millions of dollars, for violation of laws surrounding non-payment of overtime compensation to its employees (Stanwick & Stanwick, 2009). Several employees claimed that managers required them to work off the clock by requiring them to work after punching out their time card (Stanwick & Stanwick, 2009). If the employee refused to work after their shift and off the clock, then they would be threatened with termination of employment. One of the many complaints include the use of “lock-ins” (Stanwick & Stanwick, 2009). According to Stanwick and Stanwick (2009) they stated, “Managers would lock the doors after the store had closed and would force the workers to stay in the store until all the work had been completed” (p. 410). Employees were also told that if they could not complete their assigned work in their eight hour shift, that they would have to remain at work, off the clock, until their work