Ethical Issues of Wal-Mart - 2640 Words

The ethical issues of Wal-mart Introduction: A stakeholder is a person or a group that has an investment, share or interest in a business or an industry[1], it can also be classified as anyone that has an influence on the business. There are two types of stakeholders, primary and secondary. Primary stakeholders are necessary for the company’s survival, meaning people from the workers, supervisors, managers, to the customers, shareholders and board of directors; and secondary stakeholders do not typically engage in transactions with the company and therefore not essential to its survival, meaning the media, special interest group, etc. Since they have an influence in the company when there are any changes, they become a very important†¦show more content†¦Wal-Mart ignores the rights of the employees, and they have little control on the higher post staffs. Wal-Mart did not maximize the stakeholders’ wealth and value, they do not respect their business culture as much and uses forceful methods to get to an a greement. Why do you think Wal-Mart has had a recent number of ethical issues that have been in the news almost constantly? Wal-mart is the largest retailer in the world, which is possibly the most controversial business in America. Its sales are over $312,000 billion in 2006 and approximately 1.7 million employees around the world. Wal-mart has saves the average family an estimated $2329 per year[4]. Although Wal-mart is producing lower cost product to customer, but it also producing lots of ethical issues when it provides this benefit to their customers. Relatively low payment of Wal-mart employees: Why Wal-mart can provide such a low price product, from my opinion, there are two main reasons. A company usually minimize its cost by lowest its labor cost and lower its cost when import product. The reason of why Wal-mart can minimize its labor cost is because in most Wal-mart store, Wal-mart is the monopsony, as a monopsony Wal-mart will be the single buyer of the labor force. As long as Wal-mart is the single buyer, they have a monopoly power to become a â€Å"wage maker† because the wage rate it must pay varies directly with the number of workers it employs. As a monopsony, Wal-mart has such monopsony power at itsShow MoreRelatedWal-Mart Ethical Issue Paper3080 Words   |  13 PagesRunning head: ETHICAL ISSUE IN BUSINESS Ethical Issue in Business (Wal-Mart’s Ethical Controversy) Michael J. Charley, Deniqua Jackson, Beatina Marshall, Tom Pletzke University of Phoenix Instructor: ROBERT OXLEY Course: ETHICS IN MANAGEMENT  PHL/323 Date: May 21, 2008 This paper will obtain information about a researched issue that deals with business ethics. The paper will include a summary of the Article and issue. This paper will also touch on the following topics, whatRead MoreEthical and Legal Issues Within Wal-Mart1562 Words   |  7 PagesIntroduction Wal-Mart is commonly known for its low prices, clean appearance, and large variety of products; however, the super store has constituently been the center of many ethical issues. From working conditions, wages, benefits, product issues, and even bribery, Wal-Mart has been shrouded in ethical disputes for years. In the next few pages I intend on discussing these issues, the impact they have had on the company, and the actions that management has taken in response to them. PredatoryRead MorePhl 323 Week 3 Ethical Issues Walmart Paper1535 Words   |  7 PagesCurrent Ethical Issues in Business Introduction There are several factors that account for the changes in the way business is conducted today. Factors such as increased global competition, economic conditions, technology, electronic commerce, workforce diversity, and ethics have all play a significant role in how business is conducted. How a company conducts itself as a business and a corporate citizen is critical to its success. Wal-Mart is the largest retailer in the world; howeverRead MoreInternal and External Factors1610 Words   |  7 Pagesexternal factors affect the four functions of management in the Wal-Mart Corporation. For any organization to survive, irrespective of its size, it must develop and implement its own management concept. Management is the process of working with people and resources to accomplish organizational goals (Bateman amp; Snell, 2011). The four traditional functions of management include planning, organizing, leading, and controlling. The Wal-Mart Corporation has managed to use the internal and external factorsRead MoreCross Culture Perspectives: Wal-Mart924 Words   |  4 PagesCultural Perspectives: Wal-Mart ETH/ 316 June 11, 2012 Laura Brodkey-Scott Cross Cultural Perspectives: Wal-Mart Introduction Wal-Mart is defined as the giant of retail and it is one of the largest companies in the world. It has grown to not only be a staple in America but internationally as well, touching base in countries such as Japan and China. It is a popular supercenter that is located worldwide. Wal-Mart is the largest retailerRead MoreEssay on Ethical Perspectives1301 Words   |  6 PagesEthical Perspectives Organizational Issues ETH/316 11/28/2012 Ethical Perspectives It is evident that Wal-Mart’s ethical perspective or moral view is contingent on profit or profit potential. The global labor force of Wal-Mart enables this retail giant to continue to grow and succeed by providing lower operating costs. The legal ethics of this company are asserted globally and would withstand scrutiny in most cases. However, the virtue ethics of Wal-Mart are questionable about the well-beingRead MoreCurrent Ethical Issue in Business1476 Words   |  6 PagesCurrent Ethical Issue in Business Your Name Here PHL/323 Date Here Instructor’s Name Here Globally, Wal-Mart is the second largest revenue generating company. It is surprising to see so many discriminating issues within the company. Women working for the company are consistently treated unfairly, yet other issues exist. It is as if Wal-Mart has fallen into the negative economic routine. The company is guilty of everyday social discrimination;Read MoreWalmart and Its Associates Efficient Operator or Neglectful Employer1479 Words   |  6 PagesTable of Contents Introduction: Ethical Issues 3 Employee compensation issues 3 Alleged Sexual Discrimination 4 Dominance Policies 4 Unionisation 5 Wal-Mart: Past and new allegations 5 Conclusion 6 References 7 Introduction: Ethical Issues (Appendix A) Wal-Mart had been criticized for its worst CSR practices which includes low wages for the employees (Karen, 2004). Immoral activity of paying low for more and the overtime works had been held (Karen, 2004) .The quantitativeRead MoreMoral Ethics Of Business Entities Toward Society1496 Words   |  6 PagesIntroduction The purpose of this documentary study is to analyze the ethical and moral action of Wal-Mart, one of the biggest retailer corporations in the United States, towards society and its employee. The â€Å"Wal-Mart: The High Cost of Low Price† is a documentary movie directed by Robert Greenwald and released in the market on November 4, 2005. Being the biggest competition of the retail industry toward the small local business owner, Wal-Mart claims to be one of the reasons why local small businesses areRead MoreCross Cultural Perspectives1102 Words   |  5 PagesCross Cultural Perspectives Cross Cultural Perspectives Wal-Mart is one of the largest corporations and private employers in the United States, and one of the most admired companies in America as reported by Fortune Magazine (â€Å"Fortune 500†, 2012). Netting billions of dollars in profits each year, there are not many other retailers who can compete with them. They give millions back in donations to non-profit companies around the country each year, yet put mom-and-pop establishments out of