Wal-Mart Ethical Issue Paper

This case study involves America’s largest and most recognizable retail chains. Walmart steadily grew from its founding in 1962 as a small Arkansas based retail store into the multi-national giant that it is today. One of the issues that Walmart’s unprecedented growth has raised is how it can maintain the ethical standards and principles held by its founder, Sam Walton, when it has grown past its humble roots and continues to grow in an ever more competitive and hectic world. Some of the current ethical issues that Walmart is facing are the treatment of its employees, the methods it employs to obtain retail goods at low prices, the sustainability of its products, and the use of bribery to further corporate interests (Ferrell 407). Therefore, this paper will examine each of these ethical issues and the stakeholders that are involved in the issues to create a global picture of the totality of the ethical dilemmas currently facing Walmart.

The term “ethics” is defined as moral principles that govern a person’s or group’s behavior. When speaking of business ethics, one is referring to the study, and examination of moral as well as social responsibility relating to business practices, also including its application to the four functions of management as well as the decision-making process in business (Batesman, pg.167). This internal factor can easily influence the how an organization goes about accomplishing the four functions of management. Wal-Mart, like most businesses believe they uphold ethical standards in their business practice. According to Wal-Mart’s statement of ethics, leading with integrity in a workplace is key to running a business (Wal-Mart Ethics pg.10). Leading with integrity, and expecting teammates to work with integrity is one of their main focuses- Wal-Mart’s original founder Sam Walton said,” that it has always been an ethically led company” (Wal-Mart Ethics pg.4). They follow their three basic beliefs: respect for individuals, service to the customers, and striving for excellence (Wal-Mart Ethics pg.5). Although organizations may have their code of ethics, they still come across the occasional ethical problem in the company. Wal-Mart for example, had an issue with an employee named, Chalace Epley Lowery. Lowery believed that another

There are several factors that account for the changes in the way business is conducted today. Factors such as increased global competition, economic conditions, technology, electronic commerce, workforce diversity, and ethics have all play a significant role in how business is conducted. How a company conducts itself as a business and a corporate citizen is critical to its success.

Wal-Mart started as a single store in 1962 and since then has expanded to over 3,600 stores in the United States and operates in 15 international markets. This paper will discuss the role of ethics and compliance in the Wal-Mart organization as it relates to the financial environment. We will describe the procedures in place to ensure ethical behavior and identify the processes used to comply with SEC regulations. Using the annual report information for Wal-Mart we will evaluate the financial performance over the past two years and calculate financial ratios. Based on those financial ratios, we will discuss the trends evidenced and the organization’s financial health.

Walmart has an official statement of ethics which is meant to be applied to not only the associates and directors employed by the organization but also third parties. These third parties include suppliers, consultants, public relations firms, contractors and all other third party companies who conduct business

Walmart has created the Global Ethics to promote its ethical culture to all associates, customers, shareholders, suppliers, and any company or individuals conducting business with them. The Global Ethics provides a Statement of Ethics which serves as a guide and resource in order to reach an ethical decision. Walmart is one of the largest corporations in the United States with a social responsibility to both the customers and the people it employs which is outlined in their Statement of Ethics.

A couple of others issues is the absence of cleanliness and orderliness, racks not being restocked sufficiently quick, store format and configuration being poorly arranged now and again, updated advanced administrations waiting to be coordinated into stores, offering a more extensive item grouping, and the consistent matter of being a more client benefit situated association (Peterson, 2015). These issues will not just go away overnight and take time to address and do it right. Walmart has expanded worker pay to $9.00 an hour, and all day pay beginning at $13.00 an hour which can increment again once preparing has finished. They said that it could eat into the transient benefits, yet that it is a valuable long haul speculation. Mitchell (2015) reported, "Walmart said the fleeting hit would yield longer-term benefits not far off, as more joyful, better prepared, longer-tenured representatives will convert into more client activity." Not exclusively does Walmart need to begin on the little changes, yet they additionally need to divert the concentration from all the negative reputation and concentrate on making more positive results for the corporation. This

Examine the manner in which Walmart’s business philosophy has impacted its perception of being unethical towards supply and employee stakeholders. Provide one example of Walmart in an unethical situation. Wal-Mart stores, Inc. is the world’s largest retail enterprise. It is also the world’s largest employer. Mr. Walton the founder of Walmart always believed that customer service and low pricing where the main ingredients for a successful company. Mr. Walton had a 10 foot rule from the beginning which meant that if his employees where within

Wal-Mart Stores, Inc. is the world 's largest retail enterprise, with total revenue of $421.8 billion and a net income of $16.4 billion in 2011. 1 It is also the world 's largest employer, with 2.1 million employees worldwide in 2010 2, not including workers hired by its providers. In my opinion, Wal-Mart provides a clear illustration through which to look at how many multinational companies (MNCs) take part in an illegal and unethical behavior. They use their bargaining power and market control to pressure countries to overlook environmental degradation and violation of national labor laws. They dictate expected pricing for products, particularly through imports from overseas countries. Labor is fulfilled mostly by underage and underpaid employees. In the United States, since 2005, Wal-Mart has paid about $1 billion in damages to U.S. employees in six different cases related to unpaid work. 3 Furthermore, Wal-Mart opposes any form of collective action, even when employees are not seeking unionization, but simply more respect. 4 The fact that Wal-Mart opposes unions exist. The company has a long history of fighting them, to the point of closing stores after employees organize. Managers have been instructed to talk to their teams about why unions are so unwanted in their business. Overseas, the company was involved in a series of scandals, including multiple cases of bribery. In April 2012, The New York Times published a story that

After reviewing the three videos that were recommended for me to watch about Walmart, I later had a different perspective of Walmart as a company. With Walmart opening in many countries and towns it has lessened the amount of the small businesses in the area by competition. 5,000 Walmart are opened and still counting. This is an ethical problem to a certain extent. Small business owners know that they are small and that there will be some type of competition, but they probably never imagined that the competition would be a multimillion dollar company. That is not ethically Walmart’s fault. Where Walmart has a problem with is the amount of money and benefits that they give their employees. Walmart doesn’t compensate their employees the amount

Business Ethics can be extremely complex and many people wonder if the situation is legal or ethical? Businesses create their ethical standards for their employees to follow to create good standards for their business and community. This paper will discuss the Wal-Mart Stores, Inc. and the unethical issues they have faced with their employees, consumers and the products they sell. Is Walmart following ethical standards while maintaining low prices for their consumers? “Ethics is a branch of philosophy dealing with the values that relate to the nature of human conduct and the values associated with the conduct.

Walmart’s code of ethics state their number one goal is saving people money so they can live better. “Through your ethical behavior and willingness to speak up for the highest standards, we earn and keep the trust of our customers, each other and our local communities. We believe in everyday low cost and everyday low prices, but only if accomplished through our everyday integrity”. (Walmart Handbook) Walmart says they can do this by gaining an honest relationship with their customers. Their code of ethics is, to be honest, and fair every day with everyone they come in contact with.

Walmart has been the largest American employer, with a workforce of nearly 2.2 million people and in 25 separate U.S states and it is also the single largest importer from China that was worth an estimated $12 billion in 2002. Its marketing strategy always has been to emphasize low prices with marketing campaign “everyday low prices”. Walmart is able to achieve the strategy by leveraging its buyer power and controlling its labor costs. Walmart holds on its own values in order to keep its strategy in line or stable. These values are to promise financial benefits to its stockholders by giving low prices to the customers, offering jobs to the employees, other businesses have the benefits from supplying goods and services, and communities benefit

Ethics is a philosophy which identifies the difference between right or wrong. It serves as a pathway in almost all walks of life with minor differences of behavioral approaches in domestic or corporate sectors. Similarly when we discuss about business ethics, several questions comes in our mind that to what extent is it necessary? How can it be implemented? What grounds are to be set to govern business ethics in an organization? And what is the importance of business ethics

Given financial scandals and the resulting new mandates on business, firms find themselves pressed to develop strong codes of ethics to guide the behavior of board members, managers, and employees. Although the concern with ethics has always been a part of doing business, business leaders today are beginning to think about ethics as a set of principles and guides of behavior rather than a set of rigid rules. In this sense, business ethics is not only an attempt to set a standard by