Walmart Ethical Problems (assignment)

Walmart

A case study of Ethical Practices

Overview Wal-Mart is most certainly an American institution. Wal-Mart occupies a unique position in our world by virtue of its size, reach and responsibility for the livelihoods of millions of workers and the needs of billions of consumers. And with such overwhelming influence come certain moral responsibilities.

Ethical Problems In its 2006 Ethical Sourcing report, Wal-Mart reveals the results of more than 16,000 audits of supplier factories and announces enhancements to its sourcing programme, including expanded environmental criteria. The total number of audits is 15% higher than in 2005 and unannounced audits rose to 26% last year from 20% in 2005.

Unethical practices ( Conts.) • Labor Union Opposition bribing employees for it encourages dishonest behavior. • Unfair Treatment of Employees discriminating against women • Very low wages for workers • under investigation for the use of illegal immigrants as workers in year 2003

Failed issue in Ethical area § Reveal the results § play with numbers, ignores plants that have been of particular concern, gives only a vague sense of how exactly it codes factories and avoids clear goals for the future § without a commitment to “paying the price required to lift up the company’s exploited workers

Applying to Ethical Theory • Utilitarianism theory : Own purpose Vs people benefits • Immanuel Kants’ theory : Sense of duty and right thing to do. Therefore, it can say that Wal-Mart has an unethical practice.

How the failure was detected?

Wal-Mart reports that in 2006 it

conducted more factory audits than any other company in the world – at nearly 8,900 supplier factories producing goods on its behalf. The total number of audits is 15% higher than in 2005 and unannounced audits rose to 26% last year from 20% in 2005.

Accepted or unaccepted the failure? Wal-Mart’s refusal to rethink its core business strategy, which consists of paying absolute bottom prices for its products, all but ensures that it will make little progress in respecting workers’ rights.

How Walmart prevent in the future • finding ways to collaborate with other brands and retailers to effect lasting improvements for workers. • Showing that Walmart care about ethics by treating employees fairly. • needs to be socially responsible : - avoid economic harm - maintain the legitimacy granted by

Prevent in the future (Cont.) • The ICCR says the report shows progress and recognition by Wal-Mart of the need to “go beyond monitoring” • Ethical standards programme is “in place to do what is right for factory workers and the environment” and acknowledgement introduced workplace diversity initiatives

Prevent in the future (Cont.) The Interfaith Center on Corporate Responsibility (ICCR) A large coalition of US religious investors that owns more than two million shares of Wal-Mart stock, has long called for improvements in WalMart’s factory conditions.

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