Read Case Study 3: Walmart Manages Ethics And Compliance

Read Case Study 3 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,” located at [URL not provided]. Write a three to four (3-4) page paper in which you: Examine the manner in which Walmart’s business philosophy has impacted its perception of being unethical towards supply and employee stakeholders. Provide one (1) example of Walmart in an unethical situation. Determine the major effects that Walmart’s business philosophy has had on its human resource practices and policies.

Analyze two (2) of the legal mandates that workers and U.S. government have accused Walmart of violating. Provide an explanation as to why these legal mandates were violated, citing specific violations. Evaluate the efficiency of the structure of the ethical decision-making framework that Walmart has used in making its decisions. Provide a rationale for your response. Recommend two (2) actions that Walmart’s Human Resources Department should take in order to improve the employees’ perspectives of Walmart’s human resources policies. Provide a rationale for your recommendations. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other similar websites do not qualify as academic resources. Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.

Paper For Above instruction

Walmart, as one of the largest multinational retailers, has established a business philosophy rooted in low-cost leadership and wide product availability, aiming to provide affordable goods to consumers globally. This business philosophy, driven by cost-efficiency and profitability, has historically influenced the company's ethical stance toward its supply chain and employee stakeholders. While these core values have contributed to Walmart’s commercial success, they have concurrently engendered perceptions of unethical behavior, particularly in relation to labor practices and supplier management. This paper examines how Walmart’s business philosophy impacts its perception of ethics and explores specific instances and systemic issues related to its corporate conduct.

Walmart’s unwavering focus on low prices and efficiency has often resulted in strained relationships with supply chain stakeholders. A notable example of unethical conduct relates to labor practices in supplier factories, especially in developing countries. Investigations have uncovered instances where suppliers under Walmart’s procurement pressure have engaged in poor labor conditions, including underage labor, excessive working hours, and unsafe environments. For example, a 2012 report revealed allegations of sweatshop-like conditions in Bangladesh, where suppliers were accused of exploiting workers to meet Walmart’s cost demands. Such practices raise ethical concerns about Walmart’s oversight and responsibility toward its supply chain stakeholders, illustrating how the company's emphasis on cost reduction can compromise labor standards and ethical obligations.

Furthermore, Walmart’s business philosophy has heavily influenced its human resource practices, often emphasizing cost savings over employee welfare. This focus has led to controversial policies such as minimizing wages, reducing benefits, and limiting full-time employment to curb labor costs. These policies, justified by the desire to keep prices low for consumers, have contributed to a perception of Walmart as an unethical employer. The company's resistance to unionization and its efforts to prevent employee organizing efforts exemplify this approach, often resulting in accusations of silencing workers and suppressing their rights. The organizational culture prioritizes efficiency and cost control, sometimes at the expense of fair treatment and adequate compensation for employees.

Legal controversy surrounding Walmart reveals two major mandates allegedly violated by the corporation: wage and hour laws and anti-discrimination laws. First, Walmart has faced numerous lawsuits alleging violations of minimum wage and overtime regulations. For instance, federal courts found Walmart liable for unpaid wages and failure to pay proper overtime to thousands of employees, citing systemic violations of the Fair Labor Standards Act (FLSA). These violations occurred because Walmart maintained policies that classed many employees as exempt or failed to keep accurate records of hours worked, resulting in wage theft and violation of statutory pay rights.

Secondly, Walmart has been accused of discriminatory employment practices, particularly regarding gender discrimination. In a landmark case, the Equal Employment Opportunity Commission (EEOC) filed suit against Walmart, alleging systemic gender-based discrimination in pay and promotion practices. Walmart's failure to provide equal opportunities to female employees in management roles reflects a violation of Title VII of the Civil Rights Act. The company’s alleged oversight and failure to rectify discriminatory practices contributed to these violations, damaging its reputation and raising questions about its commitment to equal employment opportunities.

The ethical decision-making framework utilized by Walmart has been critiqued for its efficiency and effectiveness. Walmart’s approach appears largely driven by a utilitarian perspective, prioritizing overall profit and shareholder value while allegedly neglecting broader stakeholder considerations, including employee rights and social responsibility. This framework seems reactive rather than proactive, responding to legal challenges and public criticism after incidents occur rather than embedding ethical principles into strategic decision-making processes. Consequently, this reactive approach may compromise ethical integrity and reinforce negative perceptions among stakeholder groups. The lack of a comprehensive, preventative ethical structure hampers Walmart’s capacity to effectively manage emerging ethical dilemmas and uphold responsible practices consistently.

To improve its ethical stance and employee perceptions, Walmart’s Human Resources Department should consider adopting two key actions. First, implementing comprehensive ethical training programs focusing on human rights, labor standards, and anti-discrimination policies is crucial. Such programs would raise awareness among employees and management about ethical expectations and legal obligations, fostering a culture of accountability and integrity. Second, Walmart should establish transparent communication channels and grievance procedures that empower employees to report unethical behavior without fear of retaliation. This approach aligns with best practices in corporate ethics and demonstrates a tangible commitment to employee well-being and fairness.

These recommendations are grounded in ethical theories emphasizing stakeholder theory and corporate social responsibility (CSR). Ethical training enhances organizational integrity by aligning employee behaviors with ethical standards, thereby reducing misconduct and improving workplace climate (Crane et al., 2014). Transparent grievance mechanisms foster trust and demonstrate accountability, essential elements of ethical organizational culture (Ferrell et al., 2020). Implementing these actions would help Walmart align its practices with ethical principles, enhance employee trust and morale, and improve its overall reputation.

References

• Crane, A., Matten, D., GLOBE, A., & Spence, L. J. (2014). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press.
• Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2020). Business Ethics: Ethical Decision Making & Cases (12th ed.). Cengage Learning.
• Locke, R., & Romis, M. (2010). Improving Work Conditions in Global Supply Chains. MIT Sloan Management Review, 51(2), 51-58.
• Smith, N. C. (2014). The Ethics of Walmart’s Supply Chain. Business and Society Review, 119(1), 15-30.
• Watson, M., & Njoroge, M. (2017). Corporate Social Responsibility and Labor Standards in Retail Supply Chains. Journal of Business Ethics, 144(2), 319-330.
• World Trade Organization. (2012). Trade and Sustainable Development: The Role of Corporate Social Responsibility in Global Trade. WTO Publications.
• U.S. Department of Labor. (2022). Wage and Hour Division Enforcement Results. https://www.dol.gov/agencies/whd
• U.S. Equal Employment Opportunity Commission. (2019). Walmart Gender Discrimination Lawsuit Outcomes. https://www.eeoc.gov
• Vander Schee, B. A. (2017). Ethical Decision-Making in Multinational Corporations. Journal of Business Ethics, 144(2), 291-308.
• Yoshino, M., & Rangan, U. (2018). Corporate Culture and Ethical Policies in Large Retailers. Harvard Business Review, 96(4), 78-85.