1. Introduction
1.1 Purpose
The purpose of this report is to determine, discuss and demonstrate how the management of Wal-Mart Stores, Inc. can apply the concepts of organizing and motivating to reach the organizational objective of resolving the ethical issues regarding wages and employee welfare by June 2012.
1.2 Background
Vesilind (1988) defined ethics as the study of systematic methodologies which can assist one in making value-laden decisions when one is guided by his or her individual moral values. Hence, one is said to be practicing ethics when he or she is implementing ethical values in decision-making.
When managers and employees do not practice ethical values, an organization will face ethical issues. In this report, the organization that is being discussed is Wal-Mart Stores, Inc. In the United States, Wal-Mart Stores, Inc. run large discount department stores and also warehouse stores. Even though Wal-Mart is the largest groceries retailer, the management of it has caused many ethical issues regarding wages and employee welfare as they did not practice ethical values.
Wal-Mart Stores, Inc. paid their workers low wages that are even lower than the federal poverty line. Bianco and Zellner (2003) stated that in 2001, documents filed in a lawsuit that is against the corporation showed Wal-Mart sales clerks earned $8.23 an hour, or $13,861 a year on average. The wages is definitely low and insufficient, especially for a family of three, as the federal poverty line at that time was $14,630 (Bianco & Zellner, 2003).
Besides that, Wal-Mart Stores, Inc. also forced their workers to work off the clock without paying them overtime and also disallowed them to take lunch breaks and rest. This became a lawsuit in year 2001, and was certified as a class-action in year 2005 (“Wal-Mart to Face”, 2005).
Wal-Mart Stores, Inc. did not provide a safe working