Preview

Walmart: the Future Is Sustainability

Better Essays
Open Document
Open Document
966 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Walmart: the Future Is Sustainability
Wal-Mart: The Future Is Sustainability

Wal-Mart is one of the most influential businesses in the world. However, with power comes scandal and backlash. Ethical issues with management, and treatment of its workers and suppliers has been on the front line of un-popular public relations for Wal-Mart. This paper will analyze Wal-Mart’s attitudes to its women employees focusing on the lawsuit of Dukes vs. Wal-Mart, the alleged sweat shop work overseas producing merchandise sold in the Wal-Mart stores and illegal immigrants, and Thomas Coughlin’s embezzlement of as much as $500,000. I will also explain why I feel Wal-Mart is a prime example of leadership and ethics in today’s business world. First, in 2001, 54-year-old California resident Betty Dukes filed a sexual discrimination case against Wal-Mart after six years of employment. She claimed she was denied promotions and training that would have allowed her to move up in the company violating Title VII of the 1964 Civil Rights Act that protects workers from discrimination based on sex, race, religion, or national origin. In 2001 Women of Wal-Mart made $5,200 less then the male workers and only 14% of the women working were in management. Joining Betty in her suit against Wal-Mart were 1.6 million women who had worked for Wal-Mart from December 26, 1998 to 2007. In 2004 a federal judge ruled in favor of Betty, February of 2007 a 3-judge panel upheld the decision, December 2007 they altered and upheld the decision, and in February 2009 Wal-Mart was granted a rehearing negating the 2007 decision. “Abuse of the class action mechanism”. (ERA: Legal Advocacy and Policy Projects) Wal-Mart agreed to pay $11 million in 2005 to settle a federal investigation that found hundreds of illegal immigrants were hired to clean its stores. (Washington Post) However Wal-Mart claims they have no wrongdoing in this case. This sparks concern from the public in how ethical Wal-Mart is as a tycoon in the business world. The text also



Cited: Ferrell, O. C., John Fraedrich, and Linda Ferrell. Business Ethics: Ethical Decision Making and Cases. Mason, OH: South-Western Cengage Learning, 2011. Print.  "ERA: Legal Advocacy and Policy Projects." ERA: Welcome. Web. 26 July 2011. <http://www.equalrights.org/professional/walmart.asp>. Barbaro, Michael. "Wal-Mart to Pay $11 Million (washingtonpost.com)." The Washington Post: National, World & D.C. Area News and Headlines - The Washington Post. 19 Mar. 2005. Web. 26 July 2011. <http://www.washingtonpost.com/wp-dyn/articles/A48612-2005Mar18.html>. Roguski, Randy. "Former Wal-Mart Exec Thomas Coughlin Resentenced to Home Detention | Cleveland.com." Blogs - Cleveland.com. 1 Feb. 2008. Web. 28 July 2011. <http://blog.cleveland.com/business/2008/02/_a_federal_judge_in.html>.

You May Also Find These Documents Helpful

  • Better Essays

    Walmart has a Global Ethics Office in place that serves as a guide and resource for ethical decision making, provides a confidential and anonymous reporting system, and leads a continuing ethics education and communication…

    • 1060 Words
    • 5 Pages
    Better 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
  • Powerful Essays

    Wal-Mart Health Care Dilemma

    • 3563 Words
    • 15 Pages

    There have been some concerns about Wal-Mart’s treatment of its employees, suppliers, the environment, and the overall economic impact on communities. Wal-Mart has been criticized by some community groups, women’s rights groups, grassroots organizations, and labor unions, specifically for its extensive foreign product sourcing, low wages, low rates of employee health insurance enrollment, resistance to union representation, sexism, and management efforts to pressure employees to vote for specific parties during national elections. Wal-Mart, one of the world’s largest retailers, has the reputation of paying its employees poorly, along with providing inadequate and unaffordable healthcare plans. The Bentonville, Arkansas based retailer is the largest private employer, yet the employees are not treated as the number one priority.…

    • 3563 Words
    • 15 Pages
    Powerful 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
  • Good Essays

    Walmart vs Target

    • 671 Words
    • 3 Pages

    I decided to research the competing stores of Walmart and Target. Sam Walton opened his first store in Arkansas in 1962. His visions included helping customers and communities save money and live better. Walmart was considered the nation’s top retailer by the 90’s and enjoyed its first $100 billion sales year by 1997. In the New Millennium, “Walmart made a major commitment to environmental sustainability, announcing goals to create zero waste, use only renewable energy and sell products that sustain people and the environment. (www.walmart.com)” “ In 2010, Walmart launched a global commitment to sustainable agriculture, aiming to strengthen local farmers and economies, while providing customers access to affordable, high-quality food. (www.walmart.com)” Walmart celebrated their 50th anniversary in 2012 and currently employs over 2.2 million associates worldwide and serves 200 million customers each week at more than 10,000 stores in 27 countries. According to the Walmart website, their core beliefs are service to our customers, respect for the individual, and strive for excellence and to act with integrity. After some research, it appears that the organizational culture of Walmart is still subject to an authoritarian culture. Authoritarian means favoring complete obedience or subjection to authority as opposed to individual freedom. The culture is viewed this way after multiple lawsuits against Walmart from their employees regarding wages, work hours, and advancement opportunities. There are many female employees of Walmart that would like to be eligible for promotions to management, however Walmart has made it difficult for women to take those positions. They have created the management structure in a way that most women are simply unable to accept. They do this by making relocation a fixed policy for management positions.…

    • 671 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Assignment: Wal-Mart

    • 724 Words
    • 3 Pages

    The latest advertising campaign is one of a surprisingly risky and unique platform for Wal-Mart. Still attempting to disassociate itself from the negative image of a discriminatory violator of employee rights and participant of extensive bribery allegations gave way to an, as interpreted, defensive almost challenging response from a seemingly naïve, oblivious, and loyal Lee Scott, CEO or one only too aware and guilt driven angry. That is giving the CEO the benefit of the doubt unless privy to undocumented evidence to refute the crimes allegedly committed. A lengthy investigation into the bribery allegations includes that sometime in January 2006, the case had reached a critical juncture. Wal-Mart’s leaders were again weighing whether to approve a full investigation that would inevitably focus on a star executive already publicly discussed as a potential successor to Mr. Scott, (Barstow, David, 2012); the same quoted in the latest ad campaign.…

    • 724 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Wal-Mart started as a single store in 1962 and since then has expanded to over 3,600 stores in the United States and operates in 15 international markets. This paper will discuss the role of ethics and compliance in the Wal-Mart organization as it relates to the financial environment. We will describe the procedures in place to ensure ethical behavior and identify the processes used to comply with SEC regulations. Using the annual report information for Wal-Mart we will evaluate the financial performance over the past two years and calculate financial ratios. Based on those financial ratios, we will discuss the trends evidenced and the organization’s financial health.…

    • 2059 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Walmart Impact On Society

    • 1218 Words
    • 5 Pages

    Walmart allegedly hired 16- and 17-year old employees, directly violating the Fair Labor Standards Act (“Critics Claim Labor Department Is Soft On Walmart” 17). While this is important and should have serious repercussions for Walmart, that is a mild example of Walmart’s history with child labor and harsh working conditions. Several of Walmart’s suppliers have been found to put employees in sweatshop like conditions overseas in countries like Bangladesh. One specific factory in Chittakong, Bangladesh subjects their employees to “physical and verbal abuse” (Gogio para 2); the workers are also sometimes forced to work up to 19 hours a day and earn a meager $25 a month. (Gogio para 2). Walmart’s response to these allegations has been to report even less about the ethics of their suppliers overseas and to be very lax about the audits they perform on the factories, which should be very alarming to the Labor Department and to the American…

    • 1218 Words
    • 5 Pages
    Good Essays
  • Better Essays

    I believe that Wal-Mart has a social responsibility to model a successful business through good moral ethics. Wal-Mart has become a popular retailer giant for having the lowest prices and a variety of products. While having low prices noticeably has benefits for consumer, growing evidence from across the country indicates that these benefits come at a steep price for employees earning low-wages, unaffordable health car, and poor labor conditions. Public outcry for Wal-Mart’s lack of social responsibility for their employees is a constant battle. They have the potential to improve their business practices in regards to low-wages, unaffordable health car, and poor labor conditions overseas with out changing their business model of “everyday low prices”. There will be others who disagree with my assessment of Wal-Mart. They might possibly show the benefits of Wal-Mart’s moral business practices; such as, how Wal-Mart creates jobs, new source of tax-revenue and their charity donations to communities.…

    • 2491 Words
    • 10 Pages
    Better 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
  • Powerful Essays

    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.…

    • 2005 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    The first article reviewed for the Business Ethics across Cultures article review was about issues with Wal-Mart and China. Almost every product that is sold in Wal-Mart stores today are made in China although that is not what Sam Walton would have wanted you to believe in the late 1980’s and early 1990’s. “One of Sam Walton 's earliest imports from Asia was team spirit. Enthused by a factory cheer he witnessed in 1975 at a Korean tennis ball plant, Walton instituted his own "Wal-Mart Cheer," still a staple of the company 's corporate culture. He liked the dramatic device for its "whistle while you work philosophy." Wal-Mart was not the first retailer to “cash in on low-wage Asian labor” (PBS, 2005) he followed in the footsteps of other big name department stores such as K-mart and Target. Although Wal-Mart was not the first in Asia, Wal-Mart certainly was the most business savvy, constantly “moving around to chase lower wages” (PBS, 2005).…

    • 1524 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Low Wage Work in America

    • 1031 Words
    • 5 Pages

    Several years ago, a series of predawn raids by federal agents were conducted in which they rounded up 250 illegal immigrants working as cleaning crews in 61 Wal-Marts across 21 states. Though not technically employees of the company, the company was accused by federal officials of knowing that its contractors were using the illegal immigrants as employees. The Immigration and Customs Enforcement program claimed it has wiretaps revealing that Wal-Mart knew contractors were using illegal workers in their cleaning crews. Wal-Mart continues to fight against the charges, because it reports that the company was cooperating with the government for as long as three years in federal investigations in Chicago and Pennsylvania. Wal-Mart reports that it was led to believe that it was not a target of the investigations…

    • 1031 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Ethical Issues In Walmart

    • 452 Words
    • 2 Pages

    The ethics statement of Wal-Mart is functioning as a lead and source for ethical decision making. Along with this, it supplies with a secret and unidentified reporting system. It used to lead a long-lasting ethics education and…

    • 452 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Kernaghan told Congress on April 29 that Mrs. Gifford’s clothing line was being made by 13 and 14 year old children working 20-hour days in factories in Honduras” (Strom, 1996). “Mr. Kernaghan stated that the mogul giant Wal-Mart was responsible for the KathyLee Gifford clothing line” (Strom, 1996). Wal-Mart makes billions of dollars in profits each year, because of strategic planning and a vision. With large corporation, they are easier to be placed under scrutiny and anything negative will be broadcasted faster than anything positive. Wal-Mart is a giver and rewards by giving millions back in donations to non-profit companies around the country each year. For this reason, Wal-Mart is recognized for outstanding achievements in employee and community relations yet have been charged with being associated with “sweatshops”. Never mind the fact that Michael Jordon and Jaclyn Smith had come under scrutiny for endorsing products made in sweatshops, and because of the…

    • 1233 Words
    • 5 Pages
    Better Essays