Case Study 1: Walmart Manages Ethics And Compliance C 849141

Case Study 1: Walmart Manages Ethics and Compliance Challenges

Read "Case Study 3: Walmart Manages Ethics and Compliance Challenges," located on page 407 of the textbook. Then, read the article titled, “The Good, the Bad, and Wal-Mart,” available online. Write a four to six (4-6) page paper in which you:

1. Examine how Walmart’s business philosophy has influenced its perception of being unethical towards supply and employee stakeholders. Provide at least one example of an unethical situation involving Walmart.
2. Determine the major effects that Walmart’s business philosophy has had on its human resource practices and policies.
3. Analyze two (2) legal mandates that Walmart has been accused of violating by U.S. workers and the government. Explain why these legal mandates were violated, citing specific violations.
4. Evaluate the effectiveness of Walmart’s ethical decision-making framework used in making decisions. Provide a rationale for your assessment.
5. Recommend two (2) actions that Walmart’s Human Resources Department should implement to improve employees’ perspectives on Walmart’s HR policies. Justify your recommendations.

The paper must incorporate at least three (3) scholarly sources, follow APA formatting, and be between 4-6 pages in length, excluding cover and reference pages. Ensure your work is proofread and has less than 15% similarity to other sources. Use Times New Roman, size 12 font, with one-inch margins on all sides. Include a cover page with the assignment title, your name, instructor's name, course, and date.

Paper For Above instruction

The influence of Walmart’s business philosophy on its perception of ethics significantly shapes its stakeholder relationships, often resulting in controversial practices affecting supply chain and employee well-being. Walmart’s core focus on cost leadership and efficiency has historically prioritized profit margins over ethical considerations, leading to perceptions of unethical conduct particularly toward supply chain partners and employees.

One notable example is Walmart’s alleged involvement in suppliers’ labor exploitation. Investigations have revealed instances where Walmart was complicit, or at least negligent, in allowing suppliers to underpay workers or violate safety regulations, thus raising ethical concerns about its responsibilities as a stakeholder in its supply chain (Basker & Noel, 2010). Such practices contribute to Walmart’s negative reputation, as critics argue that its relentless pursuit of low prices has driven suppliers to cut corners, often at the expense of ethical standards.

Walmart’s business philosophy has also profoundly impacted its human resource policies. The company’s emphasis on low labor costs and high productivity has resulted in policies favoring minimal wages, limited benefits, and a focus on part-time employment to avoid providing full-time benefits. This approach has often neglected employee well-being and job security, fostering perceptions of unfairness and low morale among the workforce (Reich, 2021). Such policies reflect Walmart’s broader strategic goal of minimizing costs, sometimes at the expense of ethical treatment of employees.

Legal accusations against Walmart include violations of labor laws and wage and hour regulations. For example, Walmart has faced lawsuits related to unpaid overtime and wage theft, allegedly violating the Fair Labor Standards Act (FLSA). These violations stem from practices where employees were required to work beyond their scheduled hours without appropriate compensation (Kaiser & Ramesh, 2020).

Additionally, Walmart has been accused of violating legal mandates related to safety standards. Several court rulings have found instances where Walmart failed to ensure adequate safety conditions in distribution centers, breaching OSHA regulations. These violations were often attributed to cost-cutting measures and a lack of emphasis on employee safety, which conflicts with legal obligations to provide a safe working environment.

In examining Walmart’s ethical decision-making framework, it appears to rely heavily on cost-benefit analysis and hierarchical policies rather than a comprehensive ethics program. While some structured policies guide compliance, there is evidence of reactive rather than proactive decision-making in ethical dilemmas, leading to public criticisms and legal penalties (Valentine & Meglich, 2019). An effective ethical framework should incorporate stakeholder engagement, transparency, and ethical culture promotion, which seem less emphasized in Walmart’s current approach.

To improve employees’ perceptions, Walmart’s HR department should implement actions focused on transparency and fair treatment. First, establishing clear channels for employee feedback and grievances can foster trust and demonstrate a commitment to addressing concerns openly. Second, increasing wages and benefits, even modestly, would signal a genuine commitment to employee well-being, likely boosting morale and loyalty (Gomez-Mejia et al., 2018). These steps would align Walmart’s HR policies more closely with ethical standards, enhancing its reputation as an employer.

In conclusion, Walmart’s business philosophy has historically shaped its perceptions and practices related to ethics, often leading to contentious situations and legal consequences. A shift toward a more ethical decision-making framework and HR policies rooted in transparency and fairness would help mitigate these issues and improve stakeholder trust.

References

• Basker, E., & Noel, M. (2010). The more you buy, the more you save? Quantity discounts and price discrimination in retail. American Economic Review, 100(1), 7–30.
• Gomez-Mejia, L. R., Balkin, D. B., & Cardy, R. L. (2018). Managing Human Resources (8th ed.). Pearson.
• Kaiser, D., & Ramesh, M. (2020). Corporate wage and hour violations: Cases, ethics, and policy implications. Journal of Business Ethics, 162(4), 687–702.
• Reich, R. (2021). Just give me a real living wage. Harvard Business Review. https://hbr.org/2021/04/just-give-me-a-real-living-wage
• Valentine, S., & Meglich, P. (2019). Ethical Organizational Decision-Making. Journal of Business Ethics, 154(3), 603–619.