...Wal-Mart Stores, Inc. vs Dukes The case of Wal-Mart vs Duke which was filed in court June 19, 2001 (Wal-Mart Stores, Inc. v. Dukes, 2017) and it was granted certiorari by the United States Supreme Court for review where the females received billions for the company. There were five other women with Betty Dukes, who started the case. The plaintiff stated that the company was engaged in discrimination against female workers under the violation of Title VII of the Civil Rights Acts of 1964. This law was passed by Congress to end racial discrimination, including women so they could feel protected on their job from discrimination. (Brown, 2014) The company did not want to give females promotions, pay decisions, job assignments and did not want to train the females, because the supervisor said that this was not a place or job for females. Wal-Mart now appeals to the Supreme Court, arguing that the class certification does not meet the requirements of Federal Rule of Civil Procedure 23(a). “Wal-Mart also claims that class certification was improper under Federal Rule of Civil Procedure 23(b) (2) because the employees primarily seek monetary compensation in the form of back pay, and Rule 23(b) (2) does not authorize the certification of claims seeking monetary relief.” (Rumpf, 2011)...
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...the company by the time he or she takes a coffee break at 10:30 A.M” (Riper, 2005). Walmart management has violated several employment laws, and they were aware for many years that they had problems companywide concerning Fair Labor Standard Act, but they still chose to ignore it without any sufficient action. The following are just few highlighted and noted violation Walmart has made: * Extensive violation of Child labor * Sexual discrimination (different wages and promotion standards for men and women) * Exploitation of illegal immigrants. * Violation of state regulation, requiring time for breaks and meals. An internal audit of Walmart for one week of time record indicated the following: * 60,767 missed breaks * 15,705 lost meal times * 1,371 instances of minors working long hours or during school hours. Despite the knowledge of this violation's by the management, they still continued to take place till someone filed a lawsuit against the organization. Since 1999 Walmart has settled multiple lawsuits amounting in excess of $500 million. Even with these lawsuits the company hasn't changed the way it handles the employee issues. As of now Walmart has 76 wages, hour and overtime cases still pending against them. Women Vs Wal-Mart Betty Dukes Vs Walmart, which is considered to be the largest class action lawsuit in history. * Started with Betty Dukes and 5 other women suing Wal-Mart in 2001 * 1.5 million women are suing Wal-Mart for...
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...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 largest...
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...Walmart It all began in 1962, Sam Walton opened his first Wal-Mart store in Rogers, Arkansas. This was when grocery stores were becoming popular and he wanted to take a different spin on the idea. He followed behind Kmart and Target. Today Walmart has over 8500 stores in 55 different countries and employees over 1.4 million people. Walmart has set a precedent that others have tried to follow, but have not been as successful. Walmart has built its empire on the “one stop and shop.” Walmart offers everything from groceries to clothes, cell phone service, tires, oil changes, and even gas at discount prices. Walmart’s organizational structure has been successful and is still growing. It is evident in the amount of revenue generated each year, their marketing strategy, and the number of new stores they open yearly. Walmart vs. Target vs. Kmart Walmart’s structure consists of a board of directors and below the directors is the senior management. This type of structure is vertical. The board consist of 15 members, including the head chairperson Sam Walton and Mike Duke the CEO. The committee also has inside directors. Target is another store that also has vertical structure with a board of directors. Kmart is on a smaller scale due to recent financial and restructuring of their organization. Target Target is also a discount store, but they offer a different spin. They are more focused on the style. Target’s corporate strategy is one that has changed little over the years: to provide...
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...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 against the largest retail store chain in America, Wal-Mart. “The gender discrimination lawsuit against Wal-Mart is over ten years old. It began in 2000, with a woman named Betty Dukes, who had then been employed as a greeter for nearly six years. She alleged that, despite excellent reviews, she had never been promoted by Wal-Mart; Wal-Mart, in turn, alleged that they had declined to...
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...deals together. It is also important that customers trust a company in order to make purchases from it. If customers feel that their money is going to be used for an unethical cause, they may choose to do business with another company. One often overlooked aspect of trust in a business setting is how much employers trust their employees and vice versa. This paper focuses on two companies (Walmart and Hewlett Packard) that have taken a major public relations hit recently. We will describe the events that caused these major hits and steps that the companies could have taken to prevent them and their responses to the incidents. Walmart Walmart has been one of the most successful companies in recent history. According to cnnmoney.com, they have ranked as one of the top 2 companies in the Fortune 500 since 2007 (Fotune 500, 2011). Walmart has over 2 million employees and is the second largest employer in the world. In the next five years it is estimated that they will add 500,000 more employees (Gardner, 2011). Former Senior Vice President of Walmart, Ron Loveless gives ten reasons why Walmart has been so successful. He credits leadership, communication, corporate structure and ethics, among other things as the reasons for success. He says, “The effort to be an "ethical" company was a key ingredient to our success” (Walmart's Top Ten Building Blocks for Success., 2011). Many people would argue that Walmart’s lack of ethics is the reason that they are so successful. One reason they...
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...Corporation Forbes Magazine, the leading source of reliable business news and financial information develops an annual list of the world’s billionaires and lo and behold who has four members of its’ family in the top twenty of the richest people on the planet? The wealthiest family on earth, the Walton’s, whom control the world’s largest revenue public corporation, Wal-Mart (The World’s Billionaires). The American multinational retail corporation manages chains of large discount department stores. The corporation is also the world’s largest private employer with approximately 2.2 million employees; the company’s employee roll exceeds the population of over 50 countries in the world including Qatar, Trinidad and Tobago, Iceland and Suriname. Walmart is essentially the largest retailer in the entire world. The company, which is controlled by the Walton family who own a 48% stake, have been bashed in the media time and time again for “failing America.” Applause must be given to the Mega Corporation, they came from being just one department store to a multi-billion dollar corporation however, the treatment of Wal-Mart’s employees and the greediness of Wal-Mart’s owners combine to make it a monster corporation with negative effects on both individuals and competing companies. To be reasonable, we must touch on the benevolence of Wal-Mart because to be a $465 billion dollar corporation they must be doing something correct, right? The children of Wal-Mart's founder, Sam Walton, in contrast...
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...! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America:...
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...! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America:...
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...! ! ! ! ! ! ! ! ! ! ! ! !!!!!!!!!!! ! ! Did Wal-Mart Wake Up? How Strategic Management Handled Wal-Mart’s Reputation [ABSTRACT] The nation’s largest private corporation and retail giant Wal-Mart has faced multiple opposition from labor unions, grassroots organizations, religious groups, and even from its own employees, impacting its corporate reputation and ultimately its bottom line. This case study will demonstrate the strategic communication Wal-Mart used for its corporate reputation management (CRM). In particular, the case describes the company’s response to criticism regarding its current business policies and practices. Table of Contents Introduction………………………………………………………………3 1. Company History……………………………………………………..5 1.1 Wal-Mart’s Early History: 1960s to 1970s…………………………….5 1.2 Wal-Mart Expands and Goes International: 1980s to 1990s…………...6 1.3 Attack of the Advocacy Groups: 2000 to present……………………....7 1.4 Repercussions…………………………………………………………...8 2. The Issue: Employee Relations and Workers’ Rights…………………9 3. Opposition…………………………………………………………….10 3.1 Labor Union-Funded Groups…………………………………………...11 3.2 Gender Discrimination………………………………………………….12 3.3 Wal-Mart: The High Cost of Low Price……………………………………..13 4. Wal-Mart’s Response……………………………………………………15 4.1 Response to Labor Union-Backer Groups………………………………...16 4.2 Response to Gender Discrimination Lawsuit……………………………..17 4.3 Response to Greenwald’s Film……………………………………………18 4.4 Wal-Marting Across America:...
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...Running Head: WAL-MART STORE INC Wal-Mart Stores Inc. Chrisp, Courtney; Richardson, Maria E.; & White, Sherri Leadership & Org Behavior GM591 Professor: Robert Churilla mariae.richardson@yahoo.com DeVry/Keller University Online 02/17/2013 Introduction Wal-Mart Stores Inc., founded by Sam Walton in 1962, is one of America largest discount department stores. Wal-Mart’s primary mission is to bring consumers high quality goods at a low, discounted price. Wal-Mart operates more than 8,692 retail units across three business segments of retail worldwide that offer a wide array of general merchandise, including groceries, apparel, electronics, and small appliances. In addition, the company is the world’s largest retailer and grocery chain according to sales volume and just over half of their sales comes from grocery items. Over 54% of the company’s stores are located in the United States, with the majority of international stores located in Central and South America, and China. (Jaeah, 2012). Wal-Mart was started in Rogers, Arkansas during the early 1960’s. Sam Walton traveled all around the country researching what consumers wanted in a retail store. When Walton first opened Wal-Mart he “built it under the foundation of honesty, respect, fairness and integrity”. Walton tried to create a culture that shared the same beliefs as he did. Out of his beliefs he chose the three strongest which he felt best suited his store: respect...
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...“Bricks-and-Mortar” vs. “Clicks-and-Mortar”: an Equilibrium Analysis Fernando Bernstein Jing-Sheng Song Xiaona Zheng The Fuqua School of Business The Fuqua School of Business Guanghua School of Management Duke University Duke University Peking University Durham, NC 27708 Durham, NC 27708 Beijing, China 100871 Forthcoming in European Journal of Operational Research The Internet has provided traditional retailers a new means with which to serve customers. Consequently, many “bricks-and-mortar” retailers have transformed to “clicks-and-mortar” by incorporating Internet sales. Examples of companies making such a transition include Best Buy, Wal-Mart, Barnes & Noble, etc. Despite the increasing prevalence of this practice, several fundamental questions remain: (1) Does it pay off to go online? (2) Which is the equilibrium industry structure? (3) What is the implication of this business model for consumers? We study these issues in an oligopoly setting and show that clicks-and-mortar arises as the equilibrium channel structure. However, we find that this equilibrium does not necessarily imply higher profits for the firms: in some cases, rather, it emerges as a strategic necessity. Consumers are generally better off with clicks-and-mortar retailers. If firms align with pure e-tailers to reach the online market, we show that a prisoner’s dilemma-type equilibrium may arise. Keywords: Supply chain management, Game theory, E-commerce, MNL model...
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...Journal of Economic Perspectives—Volume 21, Number 3—Summer 2007—Pages 177–198 The Causes and Consequences of Wal-Mart’s Growth Emek Basker W al-Mart plays a large and ever-growing role in the U.S. economy. As of January 31, 2007, Wal-Mart operated more than 3,400 U.S. Wal-Mart stores along with more than 550 Sam’s Club locations. Wal-Mart is the largest private employer in the United States, with 1.3 million employees, and the largest retailer in the United States. In 2004, Wal-Mart handled 6.5 percent of U.S. retail sales (8.8 percent if automobile sales are excluded); this number has since increased. Wal-Mart is the top U.S. seller of apparel, groceries, and music, among other products, and is the top retailer in most states. Wal-Mart’s 2005 revenues exceeded those of the next five U.S. retailers combined; these are Home Depot, Kroger, Sears Holding Company (which includes Sears and Kmart), Costco, and Target (Schultz, 2006). Wal-Mart currently accounts for 28 percent of Playtex’s sales, 25 percent of Clorox’s, 21 percent of Revlon’s, 13 percent of KimberlyClark’s, and 17 percent of Kellogg’s (Weinswig and Tang, 2006). Wal-Mart also accounts for over 15 percent of U.S. imports of consumer goods from China. More than 120 million U.S. consumers shop at Wal-Mart every week, and 84 percent of Americans shopped at Wal-Mart at least once during 2005 (Pew Research Center, 2005).1 Wal-Mart is also the largest retailer in the world. From a global perspective, Wal-Mart’s sales...
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...employee, and present facts and numbers that would be crucial in making an educated decision, following this information I will present what I believe is strong and weak about Wal-Marts current way of doing business, and then offer my solutions to answer these questions and answer the big question. Is Wal-Mart good or bad for America? Does Wal-Mart Treat Their Employees Right? As a Wal-Mart employee, I have gotten to see how things are ran, how we receive the goods, how they are taken to the floor, how it is stocked, and cleaned. I have been an overnight stocker at one of the larger stores in Eastern Kentucky since November of 2010. I, like many, started working there just to make some money until I could find something else, or in my case, graduate college. I heard more than one employee admit they had only planned on being there for six months or less, and now have been working there for over ten years. This would lead one to believe that they are happy in their...
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...The Evolving Food Chain: Competitive Effects of Wal-Mart’s Entry into the Supermarket Industry∗ Emek Basker University of Missouri Michael Noel University of California–San Diego September 2008 Abstract We analyze the effect of Wal-Mart’s entry into the grocery market using a unique store-level price panel data set. We use OLS and two IV specifications to estimate the effect of Wal-Mart’s entry on competitors’ prices of 24 grocery items across several categories. Wal-Mart’s price advantage over competitors for these products averages approximately 10%. On average, competitors’ response to entry by a Wal-Mart Supercenter is a price reduction of 1–1.2%, mostly due to smaller-scale competitors; the response of the “Big Three” supermarket chains (Albertson’s, Safeway, and Kroger) is less than half that size. Low-end grocery stores, which compete more directly with Wal-Mart, cut their prices more than twice as much as higher-end stores. We confirm our results using a falsification exercise, in which we test for Wal-Mart’s effect on prices of services that it does not provide, such as movie tickets and dry cleaning services. JEL Codes: L11, L13, L81 Keywords: Wal-Mart, Retail Prices, Supermarkets, Price Competition ∗ Contact: emek@missouri.edu or mdnoel@ucsd.edu. We thank Saku Aura, Roger Betancourt, Paul Dobson, Luke Froeb, Jerry Hausman, G¨nter Hitcsh, Ephraim Leibtag, Saul Lach, Daniel Levy, Ye¸im u s Orhun, David Parsley, the editor and two anonymous referees...
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