Premium Essay

The Ethics of the Wal-Mart Model

In: Business and Management

Submitted By Ceylcuh
Words 900
Pages 4
The Ethics of the Wal-Mart Model There are many opinions on the ethics of the Wal-Mart model, both favourable and unfavourable. The article “ROB Ranks Wal-Mart Among Canada’s Best Employers” (McLachlan, 2009, pg. 287) offers a favourable viewpoint of the model, and the article “The Cost of Walmartization” (McLachlan, 2009, pg. 288) offers an opposing unfavourable view. This paper discusses the theoretical approaches used in each article, along with the supporting evidence that was used in an effort to be convincing.

“ROB Ranks Wal-Mart Among Canada’s Best Employers”
This article celebrates Wal-Mart being rated by ‘Report on Business Magazine’ among the top employers in Canada. The author uses a teleological approach in describing Wal-Mart’s pursuit of their number one goal which is supported by the quote made by Vice President, Mary Alice Vuicic, “...our number one corporate goal has been to become Canada’s favourite place to work”. (McLachlan, 2009, pg. 287) Ms. Vuicic further implies that rather than simply meeting this goal to a satisfactory degree, their ultimate goal is maximization. In other words, there is no limit to becoming the top employer in Canada and this is evidenced by her quote, “...It’s an ongoing process...The best-employer lists recognize we’ve got a great foundation in place to meet our goal.” (McLachlan, 2009, pg. 287)

Another approach used by the author is based on deontology – treating people as ends, not means. The article describes Wal-Mart’s positive work in treating people fairly and equally, and Wal-Mart’s behaviour of promoting existing staff to senior roles. This describes Kant’s categorical imperative because it recognizes the value of employees and the fact that they have “goals worthy of consideration and respect.” (McLachlan, 2009, pg. 74) To further support equality and justice for all, the author uses a…...

Similar Documents

Free Essay

Wal-Mart

... In the retail industry, the failure of Wal-Mart in South Korea is a typical example. After eight years of disappointing sales in South Korea, in 2005, the America’s largest retailer, Wal-Mart, announced to leave the country. A year later, the company quietly transferred all 16 of its South Korean stores to Shinsegae Group, a domestic retailer, for $882 million and officially withdrew from Kimchi (Olsen, 2006). While Wal-Mart has had impressive success in other foreign markets such as Canada, the United Kingdom, and Mexico, Wal-Mart experienced a shameful failure in South Korea, which is mainly because of its neglect in cultural and administrative distances. Since the early 1990s, Wal-Mart has promoted its international expansion strategy to spread its power through the world. From the first appearance in the international market in 1991, the number of Wal-Mart stores outside of the United States increased to 1,587 in 2005, and reached to 5, 651 in January 2012 (Wal-Mart, 2012). In the late 1990s, South Korea, one of the world’s largest economies with a very large-growing retail sector, was absolutely one of Wal-Mart’s targets. In1998, Wal-Mart officially entered the South Korean market with a big hope to continue its successful dominance in the world’s retail industry. The company acquired four domestic retail stores, Makro and quickly opened up six new Wal-Mart stores. Joe Hatfield, Wal-Mart’s Asia CEO confidently stated: “Wal-Mart is committed to the Korean market for......

Words: 2674 - Pages: 11

Premium Essay

Wal-Mart

...Wal-Mart Kim-Kiela E. Harrelson OMM640: Business Ethics and Social Responsibility Dr. Kim Gravelle 11 March 2012 Wal-Mart 1. What financial impact could the lawsuit potentially have on Wal-Mart? The financial impact this lawsuit could potentially have on Wal-Mart is very significant. Not only would the reputation of Wal-Mart be on the line, but if the lawsuit is upheld it could cost Wal-Mart billions of dollars. “Since women employees at Wal-Mart comprised more than 65 percent of hourly workers in a work force of over one million people, the potential members of a class-action suit on behalf of all alleged victims of sex discrimination totaled at least 700,000 and possibly as high as 1.6 million women who had worked at the company for any length of time between 1996 and 2001”(Boatright, 2009, pg.201). This lawsuit opens the door for other women who worked in Wal-Mart stores to seek back pay and perhaps even punitive damages. 2. What are the major moral complaints of the females suing Wal-Mart? Are these moral complaints justified? Why? Betty Dukes and the other five women are suing Wal-Mart because they say that the company discriminates against women employees. The major moral complaints that they have against the company are that women weren’t getting promotions at the same rate as men employees. Men employees were making more than women employees, and women weren’t being notified when progression opportunities came about. I believe......

Words: 638 - Pages: 3

Premium Essay

Wal Mart

...Executive Summary: This paper is an analysis and evaluation of Wal-Mart and the future venture into the retail sector of India. The challenges that Wal-Mart needs to resolve to become successful range from the cultural differences to problems with supply chain management in India. The analysis below identifies the challenges of many factors dealing with the Wal-Mart, Bharti and the Indian retail sector. These factors for Wal-Mart would deal with the ability to operate in India efficiently as they do in the US. In addition, Wal-Mart to be successful will have to sort out problems with the government, culture differences and the partnership with Bharti. These factors for Wal-Mart and Bharti will be presented in more specific detail through a SWOT analysis. The analysis will evaluate Wal-Mart as a company in relation to the future operation in the Indian market. Then the Bharti Company will be analyzed using a SWOT to pin point how the company will fit into the overall plan of Wal-Mart operating in India. The report will further evaluate the Indian retail sector through a competitive industry analysis using the Porter’s 5 forces model. This model will detail the threats to the market entry, supplier power, buyer power, availability of substitutes and competitive rivalry as they relate to the India retail sector. The report will then offer alternatives for the Wal-Mart company. These alternatives would include not progressing forward within India, chose a global market with less......

Words: 492 - Pages: 2

Premium Essay

Wal-Mart

...Wal-Mart: The Bane of my Existence Ashford English Composition II ENG122 Quiana McCoy-Taylor September 21, 2013 Abstract The domination of Wal-Mart is a perfect example of one of the consequences the society we live in produces. How a corporation can became a monopoly and become very dangerous to our nation’s economy and overall well-being. While Wal-Mart does provide employment for approximately 1.4 million Americans, it is how they treat the employee, the economy, and the environment that matters. Wal-Mart was started by Samuel Walton in 1962 in Rogersville AR at the age of 42. “Inspired by the early success of his dime store, and driven to bring even greater opportunity and value to his customers” ("Founder of Wal-Mart," p. 1) Sam Walton’s original store name was Wal-Mart Discount City store and located on 719 West Walnut Street Rogers, Arkansas. “Wal-Mart operates more than 10,900 retail units under 69 banners in 27 countries and e-commerce websites in 10 countries.”("Our Business,") The Suppliers Wal-Mart uses a Plus One bargaining system, which requires all suppliers and contractors to reduce their prices of goods, increase quality or increase speed of delivery every year. This bargaining system and the leverage Wal-Mart have in the world economy put the profit margins of the suppliers in jeopardy. It leads to suppliers and contractor to cut corners on labor and safety practices. As the world’s largest corporation and the driving force behind......

Words: 1285 - Pages: 6

Premium Essay

Wal Mart

...Management at wal mart Submitted to: Prof Mhihr Das Submitted By: Kunal Bhatia (M00116, Hitesh Bambhaniya (M00126), Saloni Umraniya (M00128), Sagar Nathani (M00134) 3/6/2014   Table of Contents Introduction 3 Value Chain System of wall mart 4 Porter 5 force 4 SWOT 5 Competitors 6 Suppliers 8 Back haul of wall mart 9 Role of HR 10 Role of RFID 11 Strategy 12 Strategy of other companies 13 Conclution 16 Introduction The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the competitive environment of the retail industry. As a fact, Wal-Mart is considered as the world’s largest retailer nationwide that has been guided by its founder Sam Walton’s passion toward customer satisfaction, and his beliefs in excellence, as well as his philosophy in lowering his prices that has been proven with his famous slogan “everyday low prices.”1Visible outstanding success has required a lot of effort, strategies, dedication, and wide consideration. Such as......

Words: 3334 - Pages: 14

Premium Essay

Wal Mart

...Barbara Kay 229858 Business Ethics Unit III Assignment Wal-Mart was founded on the vision of Sam Walton of Bentonville, Arkansas. It is the largest retailer globally and in the United States it generates over 2 percent of the gross national product. This retail giant was started as a company that would provide low prices for consumers daily. It has succeeded in that mission but through the years of growth and economic success Wal- Mart has had some critics related to business practices based on business ethics. Wal- Mart has had numerous class-action lawsuits for practices that have been interpreted as unethical business practices: employees working without compensation, sexual discrimination, healthcare benefits, illegal aliens, the role of unions, and child and other labor laws. All of these practices have been written about and have found their way in the court system. This case analysis will attempt to answer questions based on the framework of business ethics. 1) Are the ethical issues that Wal-Mart faces really different from other large retailers? Based on the number of case studies in the text provided as well as what are on the business news the challenges that Wal- Mart has encountered in the pursuit of meeting stakeholders expectations are similar to other large retailers. Wal-Mart has many internal and external stakeholders. As a publically traded company the stockholders are expecting a return on their investment and for the company to be......

Words: 1040 - Pages: 5

Premium Essay

Wal Mart

...in 1962, Wal-Mart has grown to be the largest corporation in the world. Wal-Mart is revolutionizing the way the retail items are passed from producer to end-user by drastically cutting costs at every opportunity and demanding the same of their suppliers. These savings passed onto the consumers has not come without a price! Where some see a discount or a job opportunity, others see an empire that pulls the rug out of existing businesses. For years, Wal-Mart has been accused of a number of criminal actions and questionable ethical practices. Many people, from all walks of life, find themselves discussing (and some even arguing) the topic: “Is Wal-Mart good for America?” Many blame this modern trend of globalism, the outsourcing of manufacturing, the closing of mom & pop stores and independent grocers on Wal-Mart. But the question that must be asked is as follows: Is Wal-Mart really to blame for all the things that they are being accused of? After all, aren’t the consumers fueling Wal-Mart’s position as the number one retailer in the world by their constant search for the lowest possible price? And don’t we have a choice as to where we should shop and isn’t it our responsibility to avoid businesses that we deem are unethical? Is Wal-Mart unethical or are they just misunderstood? Background Wal-Mart has been forced to defend itself against several lawsuits that were filed against them. In the case; Cynthia Haddad vs. Wal-Mart stores, Inc. Wal-Mart was......

Words: 4304 - Pages: 18

Premium Essay

Wal-Mart

...The Grassroots Battle: Wal-Mart Supercenter Rosemead Stephen J.J. McGuire, Christine Chueh, Tia Mao & Isela Mercado California State University, Los Angeles September 11, 2008 Wal-Mart, founded in 1962 in Rogers, Arkansas, was the largest retail chain in the world. Its growth was derived from a wide range of competitive advantages, such as Wal-Mart’s sophisticated use of information technology to keep track of and reorder items, the use of “Just-in-Time” shipments of merchandise from distribution centers that eliminated the need for costly in-store inventory storage2, and the sheer economies of scale it achieved compared to its rivals. Wal-Mart also exploited “economies of density” to make the most of its centralized distribution hubs.3 These advantages, combined with its “Every Day Low Price” strategy, enabled Wal-Mart to serve its target market, of which the residents of Rosemead, California were typical. In 2003, Wal-Mart’s attempt to establish a Supercenter 12 miles from downtown Los Angeles in the city of Inglewood, California was stopped by a community grassroots effort to keep the retailer out. Wal-Mart then diverted its expansion plan to the nearby city of Rosemead, where a new Supercenter would benefit from two Wal-Mart distribution centers within a cluster of ten neighboring Wal-Mart stores. In September 2004, the Rosemead City Council voted in favor of Wal-Mart’s plans to open its first Supercenter in Los Angeles country, alienating many residents who felt......

Words: 11305 - Pages: 46

Premium Essay

Wal-Mart

...Hampshire University Identification of Topic Wal-Mart is headquartered in Bentonville, Arkansas and founded by Sam Walton in Rogers, Ark in 1962(Walmart. (n.d). In Wikipedia). When Wal-Mart first opened its doors they would open in rural areas thereby avoid competition from the current retails giants Sear and Kmart (Britannica.(n.d). In Britannica). As they began to grow they began adding different business models to their portfolio. In 1983, they added the discount warehouse of Sam’s club. In 1988, they added Wal-Mart Supercenters thus adding groceries to their portfolio making them one of the largest grocers in United States. Wal-Mart is an organization that is seen as one of the most successful groups in the world (Fortune, 2015). They are known for their low cost low price motto thus paying their suppliers and employees the lowest wages possible. They perpetually pay their employees less wages compared to other large retailers. One of the reason is their stong stance against employees being unionized (Britannica.(n.d). In Britannica). They are also known for going into urban area and forcing local merchants out of business since they can’t compete with the retail giant Research Questions 1. Why does Wal-Mart choose to practice a low prices motto for both supplier and employees? 2. Why women employees at Wal-mart are not able to climb the corporate ladder? 3. Why Wal-Mart has an Anti-Union Stance? 4. How Wal-Mart exploits employees? ......

Words: 774 - Pages: 4

Premium Essay

The Ethics of the Wal-Mart Model

...The Ethics of the Wal-Mart Model The Ethics of the Wal-Mart Model There are many opinions on the ethics of the Wal-Mart model, both favourable and unfavourable. The article “ROB Ranks Wal-Mart Among Canada’s Best Employers” (McLachlan, 2009, pg. 287) offers a favourable viewpoint of the model, and the article “The Cost of Walmartization” (McLachlan, 2009, pg. 288) offers an opposing unfavourable view. This paper discusses the theoretical approaches used in each article, along with the supporting evidence that was used in an effort to be convincing. “ROB Ranks Wal-Mart Among Canada’s Best Employers” This article celebrates Wal-Mart being rated by ‘Report on Business Magazine’ among the top employers in Canada. The author uses a teleological approach in describing Wal-Mart’s pursuit of their number one goal which is supported by the quote made by Vice President, Mary Alice Vuicic, “...our number one corporate goal has been to become Canada’s favourite place to work”. (McLachlan, 2009, pg. 287) Ms. Vuicic further implies that rather than simply meeting this goal to a satisfactory degree, their ultimate goal is maximization. In other words, there is no limit to becoming the top employer in Canada and this is evidenced by her quote, “...It’s an ongoing process...The best-employer lists recognize we’ve got a great foundation in place to meet our goal.” (McLachlan, 2009, pg. 287) Another approach used by the author is based on deontology – treating people as......

Words: 325 - Pages: 2

Premium Essay

Wal-Mart

...This article appears in the Nov. 14, 2003 issue of Executive Intelligence Review. Wal-Mart Is Not a Business, It's an Economic Diseaseby Richard Freeman and Arthur Ticknor(See also ``Wal-Mart Collapses U.S. Cities and Towns,'' Nov. 14, 2003; ``Wal-Mart Eats More Manufacturers, Jobs,'' Nov. 21, 2003; Wal-Mart Family Trust--The Real Beast of Bentonville, Ark., Jan. 23, 2004.)The Wal-Mart department store chain, which employs 1.3 million people at 4,700 stores worldwide, and in 2002 became the largest corporation in the world, is levelling economies of the U.S., industrial nations, and the Third World.Wal-Mart is a driving force behind the decadent Imperial Roman model of the United States. Unable any longer to reproduce its own population's existence through its own physical economy, the United States has, for the past two decades, used an over-valued dollar to suck in physical goods from around the globe for its survival. Wal-Mart is both the public face and working sinews of that policy. It brings in cheap pants from Bangladesh, cheap shirts from China, cheap food from Mexico, etc. Workers who produce these things are paid next to nothing.Not since the days of the British East India Company as the cornerstone of the British imperial system, has one single corporate entity been responsible for so much misery. At the core of its policy, Wal-Mart demands of its suppliers that they sell goods to Wal-Mart at such a low price, that they can only do so by outsourcing their work to......

Words: 5677 - Pages: 23

Premium Essay

Wal-Mart

...Wal-Mart is the world’s largest retailer. It is bigger than ExxonMobil, General Motors, and General Electric. It does more business in three months than its number two competitor Home Depot does in a year. Just to help you gauge how large Wal-Mart has become it does more business than Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger combined. They provide many jobs within communities because there are 8500 stores in 15 countries under 55 different names. Wal-Mart’s goal is to provide low prices to its customers no matter what the cost, but behind the scenes how is it really to work for Wal-Mart? Wal-Mart has the highest employee turnover rate of industry, over 50% turnover rate the first year. That means approximately 50,000 employee’s turnover per month. Overall Wal-Mart’s business model doesn’t care about the high employee turnover because it’s not a bad thing to them since it lowers their payroll cost and means that fewer employees qualify for benefits. One out of 7 Wal-Mart employees has no health care coverage since associates must wait one year before qualifying for health care coverage. Also a leaked Wal-Mart memo shows that Wal-Mart employees spend 8% of income on health care which is twice the national average. Part of the high employee turnover rate contributes to the fact that most walmart associates earn below the poverty line. The average walmart employee working “full time” at 34 hrs a week and earning $10.11 per hour will earn $17,874.48 per year....

Words: 295 - Pages: 2

Free Essay

Wal-Mart

...1.0 Introduction Wal-Mart Stores, Inc. began in the year of 1962 and its founder is Sam Walton. Till now, Wal-Mart is so successful because its founder, Walton emphasized on the customer satisfaction and hard work. This creates a value on Wal-Mart. It is indeed popular in American business of its low prices and it is one of the world’s largest public corporations. Hence, it has to be more careful while handling the relationships between different stakeholders. Wal-Mart is reported to be able saving the average family of $3200 annually. However, the company has received many critics on the issues of its treatment towards its employees, suppliers and economic impacts on communities. Many stand out to say that Wal-Mart is engaged in immoral issues in order to provide low prices. This case attempts to show us about the controversy of both the positive and negative impacts on the society due to Wal-Mart’s low pricing. It involves various stakeholders here in the case, such as competitors, suppliers, and employees. In addition, some ethical issues such as the discrimination, illegal immigration issues, and leadership misconduct are brought out to discuss. 2.0 Wal-Mart’s Stakeholders relationship 2.1 Competitors Stakeholders Problem: Wal-Mart used predatory pricing which causes other companies out of business. This is because they work on volume. They can give greater discount than any other competitors can afford and yet still make a profit. There is lawsuit in Germany in...

Words: 3508 - Pages: 15

Premium Essay

Wal-Mart

... Wal MartWal-Mart opened its first super store in Shanghai China, in 2005. By using the same tactics that is used within the United States, offering numerous items at low prices, China was still the ideal location for Wal MartWal-Mart to continue to thrive within the foreign market. Wal MartWal-Mart quickly started gaining the trust of the local government and local officials in order to expand quickly. By using local venture partners, Wal MartWal-Mart was able to bypass the government’s opposition to foreign businesses opening. Wal MartWal-Mart further was able to gain the trust of the local government byut allowing the All China Federation of Trade Unions (ACFTU) to operate within it’s stores in the countryover there, something that here within the United States Wal MartWal-Mart does not allow. Being able to offer China’s exports within its it’s own country, Wal MartWal-Mart is able to save money from the exporting and importing fees that are normally associated with its’s super centersupercenters, t. Thus creating a substantial gain in its earnings. Comparing China to the United States, the per capita is allowing Wal MartWal-Mart to draw the conclusion that it will be as equal to the United States when it comes to the success that it hopes achieves. II. Questions & Answers 1. What were some of the reasons behind Wal-Mart’s entry into the Chinese retail market? 2. Answer. The company needed to grow. With the huge success Wal-Mart had......

Words: 1182 - Pages: 5

Premium Essay

Wal-Mart

...Understanding that there was not much differentiation of product in the retail industry, Wal-Mart founder Sam Walton aimed to achieve a competitive advantage by reducing costs at all levels, leading to lower prices for the consumer. Wal-Mart’s culture driven cost policy was and continues to be a valuable, inimitable and scarce resource that is embedded in the retailer’s routine activity. However, it is only through Wal-Mart’s technological innovations that the company is able to take full advantage of this unique resource. To be sure, Wal-Mart has “gained competitive advantages – despite the unattractive, high threat, low opportunity environments within which [it] operate[s]” (Barney, pg. 50). A closer look at the SWOT analysis, along with a rigorous breakdown of its internal value chain will help us understand how Wal-Mart, in only 40 years, has become the premier shop in its industry. Initially, Wal-Mart focused extensively on reducing costs, keeping wages and operating expenses down to bare minimums. Knowing these cost cutting efforts would follow Schumpeterian ideals and that competitors would eventually catch on, Wal-Mart strove for long-lived competitive advantages (Ricardian profits) and began to invest heavily in technology to help keep its costs below the industry average. To enhance operations, Wal-Mart developed “Retail Link” to provide its suppliers real-time computer access to point-of-sale data, helping to manage and coordinate the quantity and assortment......

Words: 1398 - Pages: 6