Preview

Walmart Manages Ethics and Compliance Challenges

Better Essays
Open Document
Open Document
1347 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Walmart Manages Ethics and Compliance Challenges
Walmart Manages Ethics and Compliance Challenges
Regina Fernanders
Professor Ziegler
Ethics and Advocacy for HR Professionals
April 26, 2015

Walmart Manages Ethics and Compliance Challenges
Examine the manner in which Walmart’s business philosophy has impacted its perception of being unethical towards supply and employee stakeholders. Provide one example of Walmart in an unethical situation. Wal-Mart stores, Inc. is the world’s largest retail enterprise. It is also the world’s largest employer. Mr. Walton the founder of Walmart always believed that customer service and low pricing where the main ingredients for a successful company. Mr. Walton had a 10 foot rule from the beginning which meant that if his employees where within 10 feet from a customer that they must greet the customer and ask if help was needed. He also believed that you shouldn’t wait for tomorrow what you could do today. During past years Walmart has changed Mr. Walton’s philosophy by trying to make everybody happy instead of keeping with the original mantra. Walmart started to compete with other retailers and started to raise prices and remove certain items that Walmart originally sold. One unethical situation that Walmart was involved in is their reluctance to be unionized. Walmart went out of their way to threaten workers not to join unions or they would be terminated. Another unethical decision Walmart made was hiring people as part time workers so they would not have to pay medical benefits, also by making employees only eligible for benefits if they work 30 hours or more, and when they fell short of 30 hours they would lose their benefits.
Determine the major effects that Walmart’s business philosophy has had on its human resource practices and policies. Walmart’s human resource department is also known as the people division. Wal-Mart employs more than two million employees around the globe. There are many business risks that the HR department encounters as any given

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Wal-Mart went public in October of 1970. Their IPO was 3,000 shares at a price of $16.50 per share. By having a smart business model and keeping cost low though a variety of tactics including low employees wages and benefits, Wal-Mart has been able to sustain an incredible rate of growth. Since their IPO Wal-Mart has undergone eleven full 2-1 stock splits. That means that just one share of their IPO has turned into 2,048 current shares. The current market value of Wal-Mart stocks on the NYSE is $62.30 per share. If an investor bought just one share in 1970 for $16.50, today that investment would be worth $127,590.40. In addition to rising stock value, investors receive a quarterly cash dividend payment that was paid out at $0.2725 per share as of July 2009. People start and invest in businesses to make money. Wal-Mart should concentrate on serving their shareholders by producing profits because the business would not exist in the same capacity without their investment. They have certainly done this, keeping their expenses low by paying minimum wage and limiting employee benefits in addition to a number of other influential factors has allowed Wal-Mart to recognize large profits, which serve its shareholders well.…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    When you hear the words low prices it is hard not to think of Wal-Mart. The company that revolutionized discount shopping. But what happens behind the scenes? How is it that the world’s largest retail chain can offer so many deals? In the last 20 years the anti-Walmart campaign seems to continuously be on the minds of many. Sebastian Mallaby and Karen Olsson share radically different views on the ethics of the Wal-Mart Corporation. In “Up Against Wal-Mart” we are forced to believe that Wal mart is a vicious company that shows no remorse when firing employees and cutting their benefits. The author produces factual information and eyewitness accounts pointing to these horrible deeds that the large corporation run by money hungry businessmen have cheated many employees out of proper wages, proper benefits and even their jobs. While Sebastian Mallaby depicts Wal-Mart like the average American company. In his article “Progressive Wal-Mart. Really.” He states that while Wal-Mart is responsible for many questionable deeds, they are merely doing what they have to in order to survive.…

    • 1238 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Walmart Ethical Issues

    • 174 Words
    • 1 Page

    There are many discussions and theories of ethical practices regarding corporate social responsibility. When many corporate companies focus solely on their bottom line, many of their leadership and ethical decisions come into question. In particular, Walmart is the largest "big box" retailer in the world doing billions in sales every year with their low price philosophy. Though starting as a humble neighborhood store, Walmart has now become an unstoppable behemoth which many people are now taking a notice of. This paper is about analyzing the Walmart’s leadership and ethical practices. In 2005, Walmart faced various stakeholder problems in spite of its tremendous achievement as a retail brand. Walmart was related to various issues: outsourcing…

    • 174 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Ethic violations includes bribes, theft, personal conduct violations, and falsification of company assets, system hacking, or global trading malpractices. While Founder Sam Walton had a vision of employees of excellence. In the past 20 years Walmart’s ethics regarding employees has been questionable in the eyes of today’s workforce. It is evident by visiting several Walmart stores that customer service, excellence and engagement of Walmart employees is often inconsistent among locations and the individual leaders or Store Managers of each locations. It is not uncommon that the customer experience varies greatly from one Walmart location to the next. Walmart has long been criticized for low employee wages, unethical employment practices, which has resulted in thousands of employee related lawsuits. In a move to improve company image, culture and ethics, Walmart introduce new opportunities to employees, which included higher wages, flexible schedules, advancement opportunities, benefits and investment opportunities. Walmart also prides itself with by offering advancement opportunities for those stakeholders who practice dedication and commitment to the company. While these efforts appear to be long overdue by Walmart. Employers across the country are watching and measuring results as workforce challenges continue to plague industries throughout the…

    • 680 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Walmart Business Ethics

    • 2244 Words
    • 9 Pages

    Wal-Mart, the big giant, the place where a lot of people usually do their shopping for the low prices and the variety of products were founded by Sam Walton. Walton was an entrepreneur with an innovative vision started his own company and made it into the leader in discount retailing that it is today. In fact, Wal-Mart is considered to be the biggest company in the U.S. and it has stores worldwide. According to PBS, “Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line.”(www.pbs.org) In addition, Wal-Mart likes to portray itself as a seller of U.S. manufactured goods but in reality the company has products on its shelves made in foreign countries and at questionable workshops. It would seem that Wal-Mart encourages “made in the USA” but it really encourages products made outside the USA. As a result, Wal-Mart has forced many manufacturers out of business. As a matter of fact, this big giant is facing a significant amount of controversy for unethical business practices. In fact, some of these unethical business practices include the following.…

    • 2244 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Walmart-Business Ethics

    • 878 Words
    • 4 Pages

    I wanted to pick Walmart because my own company is very small and the policies are…

    • 878 Words
    • 4 Pages
    Better Essays
  • Better Essays

    The decision that Walmart makes is to benefit the company and create additional growth opportunities by maximizing profit. It is up to us as individuals to decide if we want to work there or not even though the job market is difficult at this time. External social pressures are related to both organizational and personal choices aid us in determining if our ethics are aligned with reality. Occasionally people change their personal ethics so they are not scrutinized in the media and to avoid being the topic of a debate. Organizations typically reevaluate their ethics when they’re questioned by key decision makers such as shareholders and the government. External pressures can be both positive and negative depending on the individual or organizational issue which is being addressed. On the other hand, external pressures has changed a number of individuals and organizations for the best by posing their views and beliefs on individuals and organizations for…

    • 977 Words
    • 4 Pages
    Better Essays
  • Satisfactory Essays

    1. What is the ethical dilemma facing Wal-Mart in this case? Do Wal-Mart’s associates also face an ethical dilemma? If so, what is it?…

    • 261 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Walmart Impact On Society

    • 1218 Words
    • 5 Pages

    As the largest retailer in America, Walmart has been called “one of the most impactful organizations in the history of humanity” (Roberts 1); however, we must ask ourselves what type of impact Walmart is making. Because they are such a large corporation, Walmart has the power and ability to greatly influence our society either for the good or for the bad, and most people agree that their impression on our current society is a negative one. There is lots of controversy over the ethical and economic repercussions our country faces because of Walmart. It is evident to most people that Walmart negatively impacts communities, treats employees unfairly, and facilitates child labor in American and abroad.…

    • 1218 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Wal-Mart Controversy

    • 755 Words
    • 4 Pages

    Wal-Mart is the world’s largest retailer, but controversy surrounds their operating practices (Ferrell, Fraedrich, & Ferrell, 2013). The company known for significant sales profits, a large employee base, and the everyday low price provided to consumers is clouded by the pressure applied to suppliers requiring continuous reduction in pricing (Smith & Young, 2004). The small startup company that has grown to a multitude of stores across several countries does have some positive impact, but is it overshadowed by debatable ethical choices.…

    • 755 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    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.…

    • 2735 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    Ethics plays a major role at Wal-Mart. Wal-Mart’s statement of ethics includes three sections, respect for the individual,…

    • 2056 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Ethical Perspectives

    • 1302 Words
    • 6 Pages

    It is evident that Wal-Mart’s ethical perspective or moral view is contingent on profit or profit potential. The global labor force of Wal-Mart enables this retail giant to continue to grow and succeed by providing lower operating costs. The legal ethics of this company are asserted globally and would withstand scrutiny in most cases. However, the virtue ethics of Wal-Mart are questionable about the well-being of their employees, specifically the hourly employees. Wal-Mart is targeted by its own labor force in the United States and in China as well. In the United States, Wal-Mart operates on the brink of ethics by using its legal stature to suppress worker wages and benefits. In China, Wal-Mart is facing legal repercussions from workers’ unions because of unfair labor practices. There have been examples of underpay, denying overtime, poor working conditions, and physical abuse in China. This big-box retailer boasts its low prices and drives its profits at the expense of its labor force but should focus more on integrating value with values.…

    • 1302 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    What Is Walmart Ethical?

    • 372 Words
    • 2 Pages

    The major issues are that Walmart is destroying small town businesses and stripping the cultures of the towns that they are entering. The four part CSR models starts with economic which means that the business needs to make a profit, Walmart is definitely making a profit. The next step is legal, which means following all the laws. Walmart does that all the time except for in very rare circumstances. Then there is ethical. Walmart does work ethically a lot by there has been times when it is questionable. An example of Walmart being ethical is that Walmart pays all of its employees 10 dollars an hour which is more than minimum wage. An example of Walmart having questionable ethics is with the way in which the suppliers overseas are handling…

    • 372 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ethical Issues In Walmart

    • 452 Words
    • 2 Pages

    The company selected for the discussion is Wal-Mart. It is recognized to be an American multinational retail corporation that is into hypermarkets, discount department stores and grocery stores enjoying its presence worldwide. The company works well upon customer’s expectations and wishes and draw in favorable response as well. It turns up very much helpful from the standpoint of realizing greater growth and progress as well. There rests great necessity going for understanding the situation and adapting accordingly.…

    • 452 Words
    • 2 Pages
    Satisfactory Essays