...A large corporation such as Wal-Mart has the ability to generate and demonstrate many unethical behaviors in their pursuit of profit and the scandal uncovered in 2005 displays that in several ways. Wal-Mart’s use of bribery in Mexico, and subsequent denial and “ignorance” of the allegations, presents many ethical issues such as; overconfidence bias, ethical fading, framing, and obedience to authority. In order to prevent these unethical behaviors corporations must have a set of core values and goals that align with legal business practice and they must set up checks along the way in order to prevent harm to the company and the communities that they serve. If companies can do this they can prevent losses both monetary and of public favor. To summarize the issue briefly, in the early 2000’s Wal-Mart was attempting to expand business into Mexico. In order to hurry along business and obtain the highest profits possible, it was discovered, that Wal-Mart had employees bribe many public officials in the Mexico City area. These bribed officials helped to rezone and pass legislation along that would give Wal-Mart the right to build on land that had previously been unavailable. This is known as a "dishonest graft" which is an act of self-enrichment, which in this case exposes the grafter to legal penalties since it is considered in the United States to be a form of bribery. In 2005 some parties involved in the corrupt practice sent an email to company’s higher up officials, which outlined...
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...Wal-Mart’s Organizational Ethics Leslie Conley ETH/316 October 1, 2015 Lawrence Pickett Wal-Mart’s Organizational Ethics Everyone in business is worried about doing what is right and not being seen as wrong. There has been a lot of attention focused on ethics and integrity in business these days. Every organization is driving and pushing for changes in these areas. Any thoughts of quick-fixes for ethical behavior in businesses can be scary, but good ethical behavior for any business is fundamental to its success. For entrepreneurs, ethical conduct is usually missed or ignored. Many business experts regard ethics as something to preach, but not acted on and, therefore, make it even more unethical. According to Suttle and Demand Media, Organizational ethics is the principals and standards by which businesses operate (n.d.). They are best demonstrated through acts of fairness, compassion, integrity, honor and responsibility. The key for business owners and executives is ensuring that all employees understand these ethics. One of the best ways to communicate organizational ethics is by training employees to company standards. With these thoughts in mind, we need to address organizational ethics with awareness and support for all involved within the organization. External social pressures influencing organizational ethics External social pressures have driven most companies in business to be aware of the expectations on them to act in a manner that is ethically correct. They have...
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...WOMEN VERSE WAL-MART Women Verse Wal-Mart, the Largest Class Action Lawsuit in History Jeremy Banks LEG100 October 31, 2012 Professor, Harden WOMEN VERSE WAL-MART Abstract Women nationwide have joined a class action lawsuit against Wal-Mart. The women are suing based on gender bias. They claim men are promoted faster and receive higher pay. This is especially noticed in the management ranks. The lawsuit could have been avoided with better training within the company. If the company trained managers in different or better ways of evaluation, the situation would have been avoided. The other training managers need is that is documentation. Everything that happens to an employee from the date of hire to the end of employment should be documented and kept on file. The awareness of managers of federal and state statutes will allow them to forego any further such lawsuits. Alternative Dispute Resolution (ADR) affords managers and companies ways to avoid going to trial. This allows settlements to be negotiated, mediated, or arbitrated instead of having a court appearance. WOMEN VERSE WAL-MART Women Verse Wal-Mart, the Largest Class Action Lawsuit in History As of October 1, 2012 over one million women across all fifty states are suing Wal-Mart for gender bias. Despite race, religion, or education women are tired of being treated as inferior employees. Women feel Wal-Mart has promoted men more often and pays those men at higher...
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...Morality, and Social Responsibility of Wal-Mart’s Response to Sex Discrimination and Pay Lawsuits Nova Southeastern University MGT5015_Legal, Ethical, Social Value Business September 9, 2012 We certify that we are the author of this paper and that any assistance received in its preparation is fully acknowledged and disclosed in the paper. We have also cited any sources from which were used data, ideas of words, whether quoted or paraphrased. I also certify that this paper was prepared by us specifically for this course. Table of Contents Abstract (Natalie Rondon) 3 Introduction ( Natalie Rondon) 4 Legal Section (Franciso Amado) 5 Ethic Section Utilitarian Ethical Analysis (Kyle Lozito) 8 Kantian Ethical Analysis (Christian Varillas) 14 Additional Ethical Analysis (Natalie Rondon). 18 Social Responsibility Section (Shirley Simmonds). 20 Conclusion (Natalie Rondon). 25 References. 26 Abstract This is a library research paper on the integrating values of Wal-Marts to sex discrimination and pay lawsuits that Wal-Mart has encountered over the years. The paper will discuss the legality of the situation and how Wal-Mart might be able to fix the issues that they are having. The paper will also discuss Utilitarian ethical analysis, Kantian ethical analysis and Socrates and the Socratic method. It will go into detail if Wal-Mart as a company has acted ethical or moral against its employees based on the ethical analysis just listed. Social Responsibility...
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...Wal-Mart Ethical Analysis Abstract Wal-Mart prides itself on having one of the strictest and most stringent ethics policies in the industry. Employees are not allowed to accept any type of gift, including a cup of coffee. And its 1.3 million employees are encouraged to report any ethics violations that they might suspect or see. With having such a strict policy, Wal-Mart faces around 5,000 lawsuits a year from unethical business practices. Wal-Mart's rating as a company that consumers trust and respect has steadily declined in the last few years. Their image is declining due to negative press giving the perception that Wal-Mart is bad for the economy and is unfair to workers. Wal-Mart Ethical Analysis Wal-Mart was established in 1962 when Sam Walton, who had operated stores in Arkansas and Missouri, decided to open a discount store. In fifty years Wal-Mart has grown to be the largest retail chain in the world. Wal-Mart Stores, Inc. is not only the largest retailer in the world; it is now also ranks as the largest corporation in the world. Wal-Mart operates over 6,000 stores in the US and 13 international markets including the UK, Canada, Japan, Mexico, Brazil and China. It also retails products through its online site. The company is headquartered in Bentonville, Arkansas and employs around 1.3 million people. A business Code of Ethics (COE) is a written set of guidelines issued by an organization to its workers and management to help them conduct their actions in...
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...implementing innovative business models within his operations and finance departments (complex supply chain management and low profit cost-cutting schemes, respectively). Over the next 65 years, Wal-Mart grew to be the largest corporation in the United States with over 5,000 stores and a staggering 1.2 million employees. In fact, Wal-Mart’s staff accounts for 1% of the United State’s working population (Blodget, 2010). Unfortunately, such an enormous presence, combined with negative reviews, has turned Wal-Mart into the country’s most hated retailer of all time (Picchi, 2015). As such, Wal-Mart is constantly investigated, scrutinized, and sued. The following essay analyzes Wal-Mart’s effect on local communities and the corresponding implications the effects may have. In this essay, a community is defined as the combination of local businesses and people surrounding a Wal-Mart store. The analysis is divided into three Parts. Part 1 analyzes Wal-Mart’s effects on local businesses. Part 2 analyzes Wal-Mart’s effects on local populations. Both Part 1 and Part 2 suggest the potential organizational/ethical implications associated with Wal-Mart’s perceived effect. Lastly, Part 3 outlines potential solutions to Wal-Mart’s problems. Part 1: Effect on Local Businesses Wal-Mart reduces the number of small businesses within a community. According to a Hunter College study, local discount stores’ sales decline an average of 10-40% after a Wal-Mart moves in (De Blasio, 2011). As a result...
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...also describe how ethical principles can address organizational issues. Other issues such as external social pressures will also be covered in this paper. The organization I selected to research was the largest retailer in the United Sates of America, Wal-Mart. Over the past decade Wal-Mart has experienced quite a number of controversies that have generated world- wide news. So some individuals may say that there is no reason to research an organization that underpays their employees and forces so many local businesses to close because of a perceived unfair advantage of selling goods at a cut rate price. This paper will not argue for or against Wal-Mart. This report will simply focus on the company’s written code of ethics. Organizational Ethics In all facets of our life ethics play a role, from the way we deal with the local store clerk to the way we file our taxes, we are burdened with a general code of ethics. Organizations have to do the same or more for the image of their organization to remain positive. A negative reputation in ethics in the business world will overtime cost that company more profits. And with the intense media coverage of negative stories… every aspect of the company is an organizational issue. Wal-Mart is in the business of wholesale retail to consumers of the world, and with every new store that opens, also opens the opportunity to criticize the large chain about crushing local businesses. This has been and will continue to be an issue for this organization...
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...Wal-Mart Inc. Ethical Treatment of Employees Prepared for Wal-Mart Corporation Prepared by Alexander W. Nash April 26, 2011 Table of Contents EXECUTIVE SUMMARYiii INTRODUCTION1 ANALYSIS OF WAL-MART’S ETHICAL TREATMENT OF EMPLOYEES 2 THE COMPANY: WAL-MART INC.2 THE PRACTICE: ETHICAL TREATMENT OF EMPLOYEES 2 WAL-MART’S ETHCIAL TREATMENT OF EMPLOYEES3 RECOMENDATIONS5 EVEN PAY SCALE 5 MORE ACCOUNTABILITY5 CHINA’S LABOR LAWS AND CONDITIONS 6 CONCLUSION6 Executive Summary Wal-Mart is one of the biggest empires in the world. It dominates many markets by providing many different products for the lowest prices guaranteed. You can’t go anywhere without seeing a Wal-Mart, which has more revenue than the entire workforce of Utah. It has revolutionized the world or commerce, through implementing state of the art inventory tracking systems and mastering logistics. Many argue that it has become so successful and powerful from being unethical with its employees. Wal-Mart is currently involved in the largest job discrimination class action lawsuit in U.S. history affecting about 1.5 million women. Wal-Mart also has lawsuits concerning wage and hour violations, executives also admitted to being told by superiors to not pay overtime. It continues to have problems with its labor force in china, forcing them to work seven days a week and paying them less than China’s minimum wage, and having employees work with dangerous chemicals without the “right to know”, as its...
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...University of Phoenix Management Planning Wal-Mart is the world’s largest retailer with $345 billion in sales in 2007 (Stumblerz, 2009). Being the world’s largest retailer store it is very necessary for Wal-Mart to have good management, plans, and goals. Without good management then Wal-Mart would not run as well as it does. There are some legal issues Wal-Mart runs into over the years, but they are very well taken care of. Management at Wal-Mart are people who have earned their place as management and are aware of their responsibilities and the other employees responsibilities as well. With the appropriate goals set Wal-Mart is going to make it a long way in this economy. Wal-Mart’s management has the authority to assign duties and responsibilities to other employee’s. The other employee’s that are being assigned responsibilities are usually subordinates within the managements group. While the other employees are responsible for completing the duties it is still managements responsibility to make sure the duties were completed and completed correctly. Delegation occurs within Wal-Mart from the regional management to store manager to assistant manager all the way down to the staff members (free online research papers, n.d.). The Walton family controls 40% of Wal-Mart and they delegate assignment of authority and responsibility to their lower level management to oversee the employees to carry out their specific duties. Wal-Mart’s management is required to plan where the...
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...1.0 Introduction Wal-Mart Stores, Inc. began in the year of 1962 and its founder is Sam Walton. Till now, Wal-Mart is so successful because its founder, Walton emphasized on the customer satisfaction and hard work. This creates a value on Wal-Mart. It is indeed popular in American business of its low prices and it is one of the world’s largest public corporations. Hence, it has to be more careful while handling the relationships between different stakeholders. Wal-Mart is reported to be able saving the average family of $3200 annually. However, the company has received many critics on the issues of its treatment towards its employees, suppliers and economic impacts on communities. Many stand out to say that Wal-Mart is engaged in immoral issues in order to provide low prices. This case attempts to show us about the controversy of both the positive and negative impacts on the society due to Wal-Mart’s low pricing. It involves various stakeholders here in the case, such as competitors, suppliers, and employees. In addition, some ethical issues such as the discrimination, illegal immigration issues, and leadership misconduct are brought out to discuss. 2.0 Wal-Mart’s Stakeholders relationship 2.1 Competitors Stakeholders Problem: Wal-Mart used predatory pricing which causes other companies out of business. This is because they work on volume. They can give greater discount than any other competitors can afford and yet still make a profit. There is lawsuit in Germany in...
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...Current Ethical Issue in Business Your Name Here PHL/323 Date Here Instructor’s Name Here Globally, Wal-Mart is the second largest revenue generating company. It is surprising to see so many discriminating issues within the company. Women working for the company are consistently treated unfairly, yet other issues exist. It is as if Wal-Mart has fallen into the negative economic routine. The company is guilty of everyday social discrimination; gender discrimination is just one main focus of our discussion. The affects of gender discrimination affect how women are treated, their income, and company policies. Women’s Rights have been an ongoing issue since the beginning of man. It wasn’t until the Women’s Rights Movement that equality began to present itself, amongst women in the workplace. Individuals face many moments in their lives dealing with ethical issues of what is right and wrong. One major ethical issue that the United States has faced in its young history is the fight over equality and discrimination. The evolution of equality in America has been truly substantial, but unfortunately the civilians in our country have yet to overcome all discrimination. There are many laws in this country to prevent workplace discrimination. These laws are designed to protect employees and applicants from unethical treatment. A current ethical issue in the business world today is that of a class action lawsuit...
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...killing 112 employees. The Bangladesh factory produced garments for several well-known retailers, such as Wal-Mart Stores, Inc. and Sears Holding Corporation. According to the article, For Wal-Mart, Sears, Tough Questions in Bangladesh Fire, “Bangladesh has become the world’s second-largest clothing exporter, thanks in part to some of the lowest labor costs anywhere: The government sets the minimum wage for entry-level garment workers there at less than $37 a month” (Bustillo, Wright, & Banjo 2013, pg. 2). Wal-Mart Stores, Inc, faces the dilemma of seeking the lowest prices from suppliers globally to deliver low price products while projecting a corporate image of high ethical standards and corporate social responsibility. Traditionally, the purpose of a firm is profit creation, and sale of goods and services in a legal and moral manner. However, what has not always been a part of that tradition was the welfare of society and/or philanthropic endeavors. Due to numerous tragic events, like the one in Bangladesh, the issues of the role of business in social responsibility more frequently appears to be a topic of discussion. This has forced the corporate world to concern itself with the social impact of its decision-making. Firms are turning to ethical business models such as the Wall Street Journal Model to help them understand business ethics and to make ethical business decisions. The Wall Street Journal Model consists of three components: “(1) Am I in compliance with...
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...STUDENT NAME: _______________________ STUDENT ID NO: _______________________ Case 22: Wal-Mart: But We Do Give Them a 10 Percent Employee Discount Case Summary Wal-Mart stirs a lot of emotions from many people. People either love or hate the store and its influence has significantly impacted global retailing. Wal-Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal-Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 million employees worldwide. Therefore, there are huge financial benefits for Wal-Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal-Mart, but could also be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you leave” may not have any cost impact, Wal-Mart appears at times to abuse the loyalty of its employees by asking them to work long after they have clocked out. Health benefits are another area where Wal-Mart has been able to minimize their cost structure for the employees. Placing hurdles for eligibility and having high level of deductibles allows Wal-Mart to block some of its...
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...are sometimes considered to be motivated by organizational self-interest, the ethical perspective asserts the rightness or wrongness of specific firm actions independently of any social or stakeholder obligations.^ Customers are key stakeholders that help establish the firm's reputation and identification. For example, today Procter and Gamble is considered a textbook marketdriven global powerhouse with billion-dollar brands such as Bounty, Olay, Tide, Crest, and Folgers.^ Understanding customer needs and wants and providing customers with high-quality products are the key to the company's success. A market orientation focuses on an understanding of customers' expressed and latent needs and development of superior solutions to the needs.* Such an approach selects to elevate the interests of one stakeholder—the customer—over those of others. another in advertising campaigns, each declared that they provided the 'freshest' ingredients. The matter was taken to court and resolved through civil litigation. The importance of creating customer relationships and creating value for the customer as a part of market orientation should lead to increased performance. This article provides insights on foundations for ethical customer relationships, contingent knowledge about customers as stakeholders, and insights on establishing a balanced stakeholder orientation from a managerial perspective. Foundations for Ethical Customer Stakeholder Relationships The relationship between a customer and...
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...in 1962, Wal-Mart has grown to be the largest corporation in the world. Wal-Mart is revolutionizing the way the retail items are passed from producer to end-user by drastically cutting costs at every opportunity and demanding the same of their suppliers. These savings passed onto the consumers has not come without a price! Where some see a discount or a job opportunity, others see an empire that pulls the rug out of existing businesses. For years, Wal-Mart has been accused of a number of criminal actions and questionable ethical practices. Many people, from all walks of life, find themselves discussing (and some even arguing) the topic: “Is Wal-Mart good for America?” Many blame this modern trend of globalism, the outsourcing of manufacturing, the closing of mom & pop stores and independent grocers on Wal-Mart. But the question that must be asked is as follows: Is Wal-Mart really to blame for all the things that they are being accused of? After all, aren’t the consumers fueling Wal-Mart’s position as the number one retailer in the world by their constant search for the lowest possible price? And don’t we have a choice as to where we should shop and isn’t it our responsibility to avoid businesses that we deem are unethical? Is Wal-Mart unethical or are they just misunderstood? Background Wal-Mart has been forced to defend itself against several lawsuits that were filed against them. In the case; Cynthia Haddad vs. Wal-Mart stores, Inc. Wal-Mart was found...
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