Wal-Mart Ethical issues
Assignment #4
The Ask: Does Wal-Mart have an ethical obligation to oversee labor violations and low labor wages occurring in its supply chain?
Wal-Mart continues to ignore employee wage dissatisfaction and is now facing legal charges from indirect laborers and contractors.
Wal-Mart oversees every aspect of their supply chain and have set the standard on how to keep cost the production, transportation and handling of goods to a bear minimum. This type of business model has placed an economic burden on all labor cost within their supply chain. Something must be done to prevent other business entities from the same cost cutting methods that lead to wage deficiencies and abuse.
Wal-Mart sets unfair contract standards that make it difficult for contractors to meet their requirements and still make enough profit to pay their workers fairly.
The amount of control they hold over their contractors should make Wal-Mart legally accountable for the exploitation of indirect laborers.
Wal-Mart views worker empowerment as a major threat to their business model and have fought long and taken extreme steps prevent worker organization. Unionization can lead to higher income and better working conditions.
Wal-Mart employs over 1.4 million Americans, that’s 1% of the working population. Unionization by this great number can lead to negative results to the company’s bottom line.
The average Wal-Mart employee associate makes $20,744 per year, that’s below the $22,000 poverty line. By raising its prices by 1.4% Wal-Mart can get its employees above poverty line threshold with no affect on profit.
Wal-Mart has annual profit of close to 15 billion per year. This very strong evidence that have the financial means to raise wage expectations for their employees.
*Business Insider Sept 20, 2010
Wal-Mart targets low-income communities as a base for cheap labor and customer base. Low-income workers and communities should seek other low cost alternatives and backing from local
The Ask: Does Wal-Mart have an ethical obligation to oversee labor violations and low labor wages occurring in its supply chain?
Wal-Mart continues to ignore employee wage dissatisfaction and is now facing legal charges from indirect laborers and contractors.
Wal-Mart oversees every aspect of their supply chain and have set the standard on how to keep cost the production, transportation and handling of goods to a bear minimum. This type of business model has placed an economic burden on all labor cost within their supply chain. Something must be done to prevent other business entities from the same cost cutting methods that lead to wage deficiencies and abuse.
Wal-Mart sets unfair contract standards that make it difficult for contractors to meet their requirements and still make enough profit to pay their workers fairly.
The amount of control they hold over their contractors should make Wal-Mart legally accountable for the exploitation of indirect laborers.
Wal-Mart views worker empowerment as a major threat to their business model and have fought long and taken extreme steps prevent worker organization. Unionization can lead to higher income and better working conditions.
Wal-Mart employs over 1.4 million Americans, that’s 1% of the working population. Unionization by this great number can lead to negative results to the company’s bottom line.
The average Wal-Mart employee associate makes $20,744 per year, that’s below the $22,000 poverty line. By raising its prices by 1.4% Wal-Mart can get its employees above poverty line threshold with no affect on profit.
Wal-Mart has annual profit of close to 15 billion per year. This very strong evidence that have the financial means to raise wage expectations for their employees.
*Business Insider Sept 20, 2010
Wal-Mart targets low-income communities as a base for cheap labor and customer base. Low-income workers and communities should seek other low cost alternatives and backing from local