Walmart Unethical Behavior
Ciara Vensel
Principles of Management
Individual Research Project Part VI
2/15/13
Wal-Mart, is one of the biggest well know companies in the United States and in the world since 1962 when founder Sam Walton created Wal-Mart. It has been the place where a lot of people usually do their shopping for the low prices and variety of products. This is why it is so controversial Wal-Mart continues to grow even with the accusations of unethical business practices. Wal-Mart has been accused of sexual discrimination and unfair pay for employees, and destruction of small towns, excessive amounts of corporate power through the government and how Wal-Mart is turning into a monopoly. With all of these allegations, Wal-Mart is still one of the leading discount retailers in the country, and as a corporate office, they still stand tall and state that they follow fair ethical values.
Walton was an entrepreneur with a vision that started his own company and made into the leader of discount retailing like it is today. Walton borrowed some money from his father-in-law and opened a variety store after serving as an Army captain in World War II. A chain of drugstores followed, Walton went into business with his brother and by 1960 the Walton’s' had 15 stores that were taking in $1.4 million a year. However, Walton soon saw a new competitor arise, which was the discount store. The Walton brothers opened their first Wal-Mart in 1962 in Rogers, Arkansas. Specializing in name brands at low prices, the chain of Wal-Mart stores sprang across rural America. Walton's management style was popular with employees and helped to spur growth. As the years past, the chain of stores grew sporadically. The sales grew to $26 billion by 1989. (Store Wars, www.pbs.org) However, as sales grew ethical standards lowered throughout the company.
Wal-Mart’s poor labor practice consists of avoiding non-unionizing of all employees, low wages, expensive benefit packages, and sexual discrimination. They insist on
Principles of Management
Individual Research Project Part VI
2/15/13
Wal-Mart, is one of the biggest well know companies in the United States and in the world since 1962 when founder Sam Walton created Wal-Mart. It has been the place where a lot of people usually do their shopping for the low prices and variety of products. This is why it is so controversial Wal-Mart continues to grow even with the accusations of unethical business practices. Wal-Mart has been accused of sexual discrimination and unfair pay for employees, and destruction of small towns, excessive amounts of corporate power through the government and how Wal-Mart is turning into a monopoly. With all of these allegations, Wal-Mart is still one of the leading discount retailers in the country, and as a corporate office, they still stand tall and state that they follow fair ethical values.
Walton was an entrepreneur with a vision that started his own company and made into the leader of discount retailing like it is today. Walton borrowed some money from his father-in-law and opened a variety store after serving as an Army captain in World War II. A chain of drugstores followed, Walton went into business with his brother and by 1960 the Walton’s' had 15 stores that were taking in $1.4 million a year. However, Walton soon saw a new competitor arise, which was the discount store. The Walton brothers opened their first Wal-Mart in 1962 in Rogers, Arkansas. Specializing in name brands at low prices, the chain of Wal-Mart stores sprang across rural America. Walton's management style was popular with employees and helped to spur growth. As the years past, the chain of stores grew sporadically. The sales grew to $26 billion by 1989. (Store Wars, www.pbs.org) However, as sales grew ethical standards lowered throughout the company.
Wal-Mart’s poor labor practice consists of avoiding non-unionizing of all employees, low wages, expensive benefit packages, and sexual discrimination. They insist on
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