...Unethical Business Practice of Walmart Wal-Mart is a multinational corporation that runs chains of big retail stores and has its roots in America, where its first store opened in 1962 by Sam Walton. Fortune Global 500 2012 lists Wal-Mart as the third largest public corporation in the world. It is also the World’s leading private employer giving jobs to over two million people. Wal-Mart is the world’s largest retailer. According to Frank (2006), Wal-Mart’s founder Sam Walton is “freakishly cheap. Cost-cutting was an obsession in the Wal-Mart culture, on business trips, everyone, including the boss, flew coach, and shared hotel rooms.” Sam Walton’s quest to provide low cost goods to consumers came naturally to him (Frank, 2006). Sam Walton preferred to hire as few people as possible and disliked paying them more than minimum wage. He did this so he could keep his costs as low as possible and thus be able to sell goods to his customers at low prices. His employees accepted his terms and conditions. Walton lived a very modest life himself and always kept in touch with them. He termed them as his associates (Frank, 2006). Following his death in 1992, the company’s reputation has been on a continual downslide due to ethical issues raised on its operations. According to Brewer (2004), the business ethics of Wal-Mart were questioned following allegations that its operations limit the ability of local businesses to survive. Frank (2006) notes that, it was not...
Words: 648 - Pages: 3
...UNETHICAL BUSINESS PRACTICES OF WALLMART AND NIKE INTRODUCTION Wal-Mart Stores, Inc., branded as Walmart is an American multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is the world's second largest public corporation, according to the Fortune Global 500 list in 2013, the biggest private employer in the world with over two million employees, and is the largest retailer in the world. Walmart remains a family-owned business, as the company is controlled by the Walton family, who own a 48 percent stake in Walmart. It is also one of the world’s most valuable companies. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969, and publicly traded on the New York Stock Exchange in 1972. It is headquartered in Bentonville, Arkansas. Walmart is also the largest grocery retailer in the United States. In 2009, it generated 51 percent of its US$258 billion sales in the U.S. from grocery business. It also owns and operates the Sam's Club retail warehouses in North America. In the late 1980s and early 1990s the company rose from a regional to national giant. By 1988, Wal-Mart was the most profitable retailer in the US and by October 1989 it had become the largest in terms of revenue. Geographically limited to the South and Lower Midwest up to the mid 1980s,...
Words: 5418 - Pages: 22
...In the beginning when Walmart was small and maturing business, they were an ideal company in the eyes of employees. But as the company grew into a worldwide empire, so did the number of ethical issues they faced. With promises of low prices to keep to its customers, they have made decisions which have impacted employees. People say Walmart has poor management, have poor wages for both local and outsourced workers. Many people would call these things uneithical, but Walmart claims otherwise. They claim they are helping people by creating jobs, which meet minimum wage standards, and they care about the ethics within their company. There is an abundance of arguments that call out Walmart as being unethical, but what people easily ignore are these lesser known ones that argue for Walmart’s ethical side. The most predominate unethical issue Walmart has received criticism over for countless years is their poor treatment of employees. The retailer is known for paying its store associates minimum wage. These low wages make it tough for an employee to support a family let alone themselves. Because of the low wages that Walmart pays its employees, many of them have to use government assistance such as food stamps in order to survive. This is not only bad for the employees but it is also costing taxpayers. Walmart does not offer benefits to their part-time workers who work less than twenty-eight hours a week. This can be seen as unethical because the employees are already being paid such...
Words: 1320 - Pages: 6
...Aubrey Weekes Cross Cultural Perspectives The Walmart Corporation is a large, major, and successful retailer in the United States. Walmart’s attempt at branching out in countries such as China, Mexico, Brazil, and Germany has failed. Globally Walmart is not performing well; they have had difficulties in these countries. Their global revenues, “grew by a mere 1% in 2013, and its revenue per square feet declined by 4.2%” (Team, 2014). The China market does not add much to Walmart’s profits, but it is important to Walmart in regards to enduring perspective. Mexico is a principle global site, but there are many problems there also. In Germany, Walmart failed basically because they thought they could implement American standards in the stores. Walmart is handling these issues, and solving them would be their main concern (Team, 2014). Walmart Culture Issues Hong Kong, Indonesia, and South Korea are failures for Walmart, mainly due to not adhering to the cultures of these countries, and abiding a code of ethics. A couple of obstacles are food and products were placed on shelves, not in line with the country, and stores were constructed a long distance from the cities making it difficult for people to reach them. Foreign people many of them walk to stores or take public transportation. American people will travel to buy food stocking up for a month or more. Buying in bulk is a major issue in Walmart. Foreign people either walk or take public transportation...
Words: 1218 - Pages: 5
...ethical or unethical to shop at Walmart? “If we work together, we’ll lower the cost of living for everyone… we’ll give the world an opportunity to see what it’s like to save and have a better life.” –Sam Walton (“What We Do”) Walmart was founded on the belief stated above by its founder Sam Walton in 1962. “Saving people money, so they can live better,” was the main objective when Sam Walton opened the doors to the first Walmart (“History”). Today, Walmart is the world’s largest retailer and corporation in the United States and have been awarded and recognized by various organizations for being the best employer throughout United States and other countries. By the Fortune magazine, it is listed as one of the most admired companies in America and many others praise Walmart for its accomplishments (“Is It Ethical to Shop at Walmart?”). Although, Walmart has earned popularity for the low price it provides, they are frequently faced with a lot of criticism and law suit for its employment practices made nationally and internationally. Some of the unethical practices the public criticize Walmart for are discrimination against women, low wages, and bad working conditions. Today, Sam Walton’s promise of a “better life for all” is questioned by employees, unions, environmentalists, recording artists and human rights organizations [Source]. This leaves many consumers to ponder if it is ethical or unethical to shop at Walmart? As mentioned in the above paragraph, Walmart is one the...
Words: 2953 - Pages: 12
...Is Walmart Ethical? Walmart Stores Inc. is an American-based public multinational corporation which runs a large number of discount retail stores. In recent years, Walmart has become the world’s largest public corporation. It owns over 8400 stores and employs more than 2.1 million people (Answers.com par. 1). But, with the extreme popularity, and continuous media attention, this world-leading company has faced numerous criticisms regarding its unethical business practices. On the contrary, Walmart is a business, and like any other business, its main focus is to maximize profits, and outperform competitors. Although Walmart has been negatively judged, it has not been recognized for the various positive contributions it has to offer. While Walmart may not conduct business in a solely ethical manner, most companies are guilty of this as well. Walmart’s business practices may not be the most angelic, but it still serves its owners, customers and employees in a moral and sufficient way, and therefore should not be criticized. Low wages is one of the criticisms that Walmart faces, although employees are aware of their pay before they agree to work. Also, Walmart has been accused of unjust business practices, but in reality they are just an expanding corporation that thrives on their price-leading strategy. A lack of Corporate Social Responsibility is an additional misconception the public has regarding Walmart, as the corporation has multiple initiatives concerning the environment...
Words: 1584 - Pages: 7
...Cross Cultural Perspectives The Walmart Corporation is a major American retailer. Walmart is the largest and most successful general merchandise retailer from the US. However, when Walmart attempted to branch out into new countries they failed time and time again. Is this report I am going to cover a few of the reasons they failed in several countries. Identifying the actual issues at fault. Then describe the issues in detail and how they affect Walmart as a result of being a global company. Walmart Cultural Issues One major issue Walmart ran into is bulk sales. In America people travel longer distances with their own cars and buy enough food to last them a month or more in one trip. It is typical for foreign countries to buy food daily. Foreign cultures are more accustomed to buying fresh food from butchers or local markets. Additionally Walmart is notorious for selling items in bulk. This again is an American cultural habit. In most foreign cultures people take public transportation or walk to the stores. This they do not have the ability to buy multiple bottles of shampoo at once, and prefer to buy it one bottle at a time. On a different note, Walmart failed again on the design of their stores. I will use South Korea as example here, mainly because I lived there for four years and have experienced all of these. In South Korea everything is about presentation. Their largest vendors, E-Mart, Home-Mart, etc. are all finished with an artistic design. They...
Words: 1105 - Pages: 5
...Examples of unethical practices range from small to largely unacceptable. These practices have been around since the start of business only due to laws and policy have we been able to deem them inexcusable. By definition meaning lack of moral principles; unwilling to adhere to proper rules of con duct. In the 21 century in the United States we are very concerned of political correctness and fairness. We love the whistle blower and protect those who speak out against these injustices. Walmart will be the subject of discussion for list unethical behaviors. Walmart is the community super store, able to provide everything a shopper needs in one stop shop experience. From groceries to home and garden to optical care, Walmart is a powerhouse as a provider. Along with having multiple locations in major city and counties they have employed 1% of Americans. Walmart employs an astounding 2.1 million people. In the United States alone, the company employs 1.4 million people. This is a staggering 1% of the U.S.'s 140 million working population. Being a power house with employing just a vast amount of Americans they had many back lash with how they manage and treat these employees. But not limited to the locations in the United States, etablishments in Bangladesh, Mexico and 26 other countries worldwide. Cases dealing with exploiting workers, by increase the profits for the owners at the expense of their workers. Tax loopholes, to avoid paying taxes in the United States, while raking in...
Words: 547 - Pages: 3
...ethical dilemma concerning sustainability. This the fact that without utilizing sustainable practices the earth is suffering, this has a direct impact on our lives. From using up our earth’s natural resources for power, we have created pollution and increased global warming effects. Besides everyone on an individual basis needing to practice sustainability, it is highly important for companies to utilize sustainability ethics. Companies big and small have immensely contributed to dwindling our natural resources and polluting our planet. Raw material suppliers, manufacturers, distributers and the companies they operate for all need held accountable for their part, and each link in the chain needs to develop and implement a sustainable ethics policy. Walmart has been a big contributor to this ethical dilemma. Walmart not only operates unethically regarding sustainability in their retail, warehouse and distribution locations; they also are responsible for the unethical actions of their suppliers. Walmart has received many different scolding from activists and has been boycotted for many different unethical actions and inactions. The company has decided to tackle the ethical dilemma of sustainability directly. Walmart is taking steps to develop a standing sustainability ethics policy throughout their entire supply chain. The results of their actions are being applauded. Every small change Walmart makes is important. The universalism moral decision making principle best describes the...
Words: 583 - Pages: 3
...Walmart Movie Analysis Threat Level Midnight MGMT 382, 12:00pm Monday Class Rheanna Ladron De Guevara Mohammad Shojaei Danielle Seymour Teresa Radtke Curtis Anson Amy Self Walmart is quite arguably one of the largest multinational grocery retailers in America. The corporation routinely produces record sales, earnings, and employs more than 2.1 million full time employees. Last year Walmart earned a record four hundred and five billion dollars in revenue. The company was founded in 1962 by business entrepreneur Sam Walton. Walmart’s past (2006) advertising slogan, “Low prices, always”, accurately reflects the appeal the store has to the masses. In an attempt to attain a wider and more diverse customer base, in recent years Walmart has adopted the new slogan: “Saving people money so they can live better lives.” While there’s no doubt about Walmart’s low prices, it’s questionable as to whether Walmart actually allows people to “live better lives.” Not only this, but the ethicality of Walmart’s business practices seem unsound to say the least. After watching the film “Walmart: the High Cost of Low Cost”, the ethicality of Walmart’s business practices and the impact the company has on the communities in which they expand into become apparent. While some argue that Walmart makes unethical decisions quite often that harm the communities they expand into, others assert that Walmart operates within the law and is simply doing business rather than acting unethically...
Words: 1661 - Pages: 7
...Culture Change Paper Walmart is a global retailer with one of the most profitable business strategies on the planet. Walmart’s objective to offer the lowest prices to a diverse customer base has proven successful over several decades. Walmart began with a humble business model in the early 1960s. Sam Walton, original founder, wanted to provide people with the best prices possible. Sam Walton launched over a dozen locations to the public in the late 1960s. The profitable groundwork and strategy of every-day low prices spread rapidly through the next several decades. Throughout the 1990s, Walmart’s growth soared globally as they continued to facilitate a cost cutting strategy. America’s recent recession encouraged many low-income families to shop for Walmart’s low priced products. Walmart’s low prices may attract budgeting Americans, but their questionable operations are steering many others away. Walmart’s public perception is declining because of their negative organizational culture. Walmart’s employee wages are consistently below the American average, resulting in workers resorting to government aid. Discrimination lawsuits occur annually because of management’s stereotyping and poor leadership. Even Walmart’s ignorance to safe working conditions in other countries is beginning to surface in America’s media. Walmart’s leaders have attempted to address these issues, but ultimately failed to create a climate for change. Walmart’s future leadership must overcome...
Words: 3823 - Pages: 16
...Ethical Dilemmas |5 - 7 | |Dealing with Ethical Issues |8 - 10 | |Walmart ASDA Best Practice |11- 12 | |Recommendations and conclusion |13 | |Reference |14 | Executive Summary This report will outline the ethical challenges faced by Walmart Asda. It will include the previous accusations made against the company and a list of the main ethical dilemmas. The report will then develop into covering the elements that ASDA are implementing in order to overcome its main ethical issues. The report will also be outlining ASDA’s best codes of practice looking into the positive impacts the company peruses due to it following an ethical code of best practice. In conclusion, the report will be highlighting the recommendations provided in order for ASDA to strengthen the companies’ ethical code values. Introduction The word “ethics” is about knowing what is...
Words: 3282 - Pages: 14
...head: THE UNETHICAL WORLD OF WAL-MART.1 OL 500: Human Behavior in Organization Final Draft SNHU Dr. Castellon Roger McGinness Abstract Ethical issues are problems faced by thousands of corporate workers on a daily basis. With technological advances these problems are more magnified than ever before and when you are the world’s largest employer and sit atop the Forbes Fortune Fifty list your ethical dilemmas become the focal point of millions. Building ethical principles and guidelines are vital to help Wal-Mart remain on top of the Fortune Fifty list and prevent unethical or immoral issues from rising. This paper will take an in depth look into policies, procedures and practices that are in place at Wal-Mart and have the nation if not the World debating their fairness. There are a number of people in which the blame can easily be placed to include corporate leaders and political figures however a vast majority of Wal-Marts unscrupulous business practices could be elevated by simple satisfaction of a smaller profit margin. Bigger Not Always Better In the internet, 24 hour news world we live in today business practices are more visible and evident than ever before. There is a saying that when you do something nice for a person they may tell one or two people, however do wrong by them and they will notify everyone they know. This saying holds very true with employees and corporations today. A quick internet search on unscrupulous business practices and you...
Words: 906 - Pages: 4
...ethically are better off and live more fulfilled lives, and unethical behavior can destroy an organization and the individuals who take part in it. Conducting business in the appropriate manner may not always generate the greatest profits however in the end it will lead to greatest personal satisfaction, fulfillment, and a successful outcome. What is Ethics? Ethics is the study of what constitute right and wrong behavior, it focus on morality and application of moral principals in the everyday life, also what is conform to our personal beliefs Business ethics focus on what constitute ethical behavior in the world of business, however it is not a separate behavior. Understanding business ethics is important to long viability to the business and the well-being of the officers and directors as well as the welfare of the employees (Merriam-Webster Dictionary). Ethical Standards and Behaviors The minimal acceptable standards for ethical business behavior are the compliance of the law. Ethical standards such as those in the company's policy and code of ethics must also guide decisions. Nevertheless, simply complying with the laws does not always does not necessarily make the business practice ethical. When can sometimes be ethical and still constitutes as being illegal? During the mortgage fraud, many families were pursued to purchase home priced way beyond their financial means, this was not illegal, but it was unethical in the end, the bank forecloses on those homes they sold...
Words: 1185 - Pages: 5
...UNETHICAL PRACTICES IN WALMART As America’s largest employer and most successful company ,it has tremendous influence. However the company’s business practices have negatively impacted its employee throughout the countries like USA. Walmart has let American workers down by lowering wages and by forcing good paying American jobs overseas. Its leaders have chosen to cut costs and violate labour laws. As a result of these practices walmart has been subject of criticism by various groups and individuals. Labour unions ,community groups, grassroots organizations, religious organizations, and environmental groups have all protested the company’s policies and business practices at various times. Some areas to be worth considering are as follows; LABOUR UNIONS: walmart appears committed to follow anti-union policies and preventing workers from organizing. In the past few years, over 100 unfair labour practices charges have been filed against walmart throughout the country. Violations include illegally firing workers who attempt to organize a union, unlawful surveillance, threats and intimidation of employees. So much so that when the first even union was formed in one of the stores in North America, it closed down. FLSA VIOLATIONS: walmart ,a frequent violator of wage and hour laws,now finds itself defending in labour practices in legal battles across the nation. It is currently facing more than 80 lawsuits alleging that employees were forced to work off the clock and skip lunch...
Words: 522 - Pages: 3
