Read Case Study 3: Walmart Manages Ethics And Complia 098264

Read Case Study 3 Walmart Manages Ethics And Compliance Challenges

Read Case Study 3: Walmart Manages Ethics and Compliance Challenges. Then, read the article titled, “The Good, the Bad, and Wal-Mart,” located at . Write a four to six (4-6) 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 has 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.

Paper For Above instruction

Walmart Inc., as one of the world’s largest retail corporations, has been at the center of numerous ethical debates concerning its business practices, stakeholder relationships, and corporate governance. The company’s foundational business philosophy emphasizes cost leadership, efficiency, and providing affordable goods to consumers, which has significantly shaped its approach to operations, including its treatment of employees and supply chain stakeholders. However, this philosophy has also contributed to perceptions of unethical behavior, especially regarding labor practices and supply chain management. This paper critically examines how Walmart’s business philosophy influences its ethical image, evaluates specific unethical incidents, and analyzes the legal and ethical frameworks underpinning its decision-making processes and human resource policies. Ultimately, it recommends strategies to improve stakeholder perceptions and ensure more ethical compliance in Walmart’s operations.

Impact of Walmart’s Business Philosophy on Perceptions of Unethical Behavior

Walmart’s core business philosophy revolves around offering low prices through aggressive cost-cutting, supply chain efficiency, and economies of scale (Cui et al., 2019). While such a strategy has allowed Walmart to dominate the retail sector, it has also indirectly fostered perceptions of unethical behavior, particularly in relation to its supply chain management and labor practices. The relentless pursuit of cost reduction often leads to labor exploitation, diminished wages, and poor working conditions, especially among low-wage employees and suppliers in developing countries (Reich, 2020). For instance, Walmart has faced criticism for pressuring suppliers to cut costs, which sometimes results in unethical labor practices such as underpaid workers and unsafe working environments (Ferrell & Fraedrich, 2018).

An illustrative example includes allegations of Walmart suppliers violating labor laws in countries like Bangladesh and India, where factory workers reportedly endured excessive working hours, low wages, and unsafe conditions (Bair & Palpacuer, 2021). These incidents have tarnished Walmart’s image as a responsible corporate citizen and created public perceptions of unethical exploitation, despite the company’s claims of compliance and corporate social responsibility initiatives.

Effects on Human Resource Practices and Policies

Walmart’s business philosophy has had profound effects on its human resource (HR) practices. Focusing on cost efficiency often results in measures that prioritize minimizing labor costs over worker well-being. This includes practices such as limited employee benefits, minimal investment in training, and a focus on part-time rather than full-time employment to reduce payroll expenses (Kessler & Purcell, 2019). These policies have sparked criticism, with employees alleging that Walmart offers low wages, insufficient health benefits, and limited career advancement opportunities, which diminishes employee morale and engagement.

Furthermore, Walmart’s emphasis on standardization and operational efficiency tends to constrain HR’s ability to tailor policies to address local labor issues, often leading to a perception of employee mistreatment and a lack of ethical regard for workers’ rights. As a result, Walmart’s HR policies are frequently viewed as reactive rather than proactive, aiming more at compliance than fostering a proactive ethical workplace culture (Bach, 2018).

Legal Mandates Violated by Walmart

Two significant legal mandates that Walmart has been accused of violating are the Fair Labor Standards Act (FLSA) and the Occupational Safety and Health Act (OSHA). The FLSA mandates fair wages, overtime compensation, and minimum employment standards. Walmart has faced lawsuits alleging failure to pay overtime wages to hourly employees, effectively violating the act (US Department of Labor, 2020). These violations often stem from misclassification of workers or insistence on unpaid work hours that are legally required to be compensated.

The OSHA violations pertain to workplace safety regulations. Walmart has been criticized and legally challenged for inadequate safety measures in its warehouses and stores, resulting in injuries or hazardous work environments for employees. Specific violations include failure to provide proper protective equipment and insufficient safety training, which contravene OSHA’s mandates aimed at protecting workers from occupational hazards (OSHA, 2019). These breaches are often attributed to cost-cutting priorities overshadowing employee safety concerns.

Evaluation of Walmart’s Ethical Decision-Making Framework

Walmart’s ethical decision-making framework appears to resemble a compliance-based approach, emphasizing adherence to legal standards and corporate policies. While this framework ensures a baseline of legal compliance, it often lacks depth in proactive ethical reflection and stakeholder engagement (Trevino & Nelson, 2021). The company’s reliance on a hierarchical decision-making model limits broad stakeholder input, which could otherwise identify emerging ethical issues earlier.

The efficacy of this framework is questionable because it tends to react to crises rather than prevent them. For example, Walmart’s responses to labor and safety criticisms often involve superficial policy adjustments rather than systemic reform. An effective ethical framework should incorporate stakeholder feedback, foster corporate social responsibility, and embed ethical values into corporate culture—areas where Walmart’s current structure reveals weaknesses (Schwartz, 2017). Hence, while legally compliant, Walmart’s decision-making is arguably insufficient for holistic ethical conduct.

Recommendations for HR Policies to Improve Employee Perspectives

To enhance employee perceptions and foster a more ethical workplace culture, Walmart’s Human Resources Department should implement targeted actions. First, adopting transparent communication channels where employees can voice concerns without fear of retaliation would build trust and demonstrate genuine commitment to ethical practices (Ferrell & Fraedrich, 2018). Such channels could include anonymous reporting systems and regular employee engagement surveys.

Second, Walmart should invest in comprehensive training programs focused on ethical standards, employee rights, and safety protocols. Enhanced training not only ensures compliance but also cultivates an organizational culture that values integrity and respect for workers (Kessler & Purcell, 2019). These initiatives would improve employee morale, reduce perceptions of exploitation, and align HR practices with broader ethical standards.

Implementing these recommendations would require commitment from top management but could result in improved stakeholder trust, reduced legal risks, and a more committed workforce aligned with Walmart’s long-term sustainability goals.

Conclusion

Walmart’s business philosophy, rooted in cost leadership and operational efficiency, has significantly influenced its ethical landscape, often leading to perceptions of unethical behavior towards employees and supply chain stakeholders. Legal violations concerning wage laws and workplace safety exemplify gaps in its compliance strategies. Although Walmart employs a compliance-oriented decision-making framework, it falls short in embedding ethical considerations into core practices. By adopting greater transparency and investing in ethical workplace training, Walmart’s Human Resources Department can improve employee perceptions and foster a culture of integrity. Addressing these issues is critical for Walmart to maintain its market dominance while upholding ethical standards aligned with stakeholder expectations and legal mandates.

References

• Bair, J., & Palpacuer, F. (2021). Global supply chains and labor practices: Ethical dilemmas. Journal of Business Ethics, 169(2), 211-226.
• Bach, S. (2018). The changing role of HRM in ethical business practices. Human Resource Management Review, 28(3), 276-284.
• Cui, L., Liu, J., & Peng, X. (2019). Cost leadership strategy and corporate social responsibility. International Journal of Business and Management, 14(7), 45-55.
• Ferrell, O. C., & Fraedrich, J. (2018). Business Ethics: Ethical decision making & cases. Cengage Learning.
• Kessler, I., & Purcell, J. (2019). High-performance work systems and employee well-being. Human Resource Management Journal, 29(4), 737-753.
• Osha (2019). Workplace safety violations by retail giants. Occupational Safety and Health Administration Reports.
• Reich, R. (2020). The work of the future: Building better workplaces. Harvard Business Review, 98(4), 98-107.
• Schwartz, M. S. (2017). Ethical decision-making in organizations. Journal of Business Ethics, 142(2), 219-229.
• Treviño, L. K., & Nelson, K. A. (2021). Managing business ethics: Straight talk about how to do it right. Wiley.
• US Department of Labor (2020). Walmart wage and hour violations settlement. DOL Reports.