Case Study: Ethical issues and their causes in Walmart
For a long time, Wal-Mart has been linked to a slew of unethical and criminal practices. With the aid of their dominant market position, they have been linked to a variety of unethical concerns such as fraud, bribery, and employee maltreatment. Wal-Mart is also renowned for manipulating power, and they utilize this strategy in the nations where they conduct business assignment help. By using their market power and influence, they are able to get away with environmental damage and violations of foreign labour laws. Wal-Mart has been involved in bribery scandals, one of which occurred in Mexico in 2012 and was exposed in the New York Times. It was discovered that there were $24 million in questionable payments to Mexican officials.
The most significant and biggest ethical disaster occurred in Bangladesh as a result of poor recruiting practices, training, and workplace safety, resulting in a large number of setbacks. These examples demonstrate that Wal-Mart is engaging in deceptive tactics in a new way. Wal-dishonesty Mart's demonstrates that they don't do a good job of fulfilling their corporate social responsibility. CSR necessitates abiding by the law, acting morally, and adhering to global norms. These are three points that Wal-Mart has clearly overlooked. Walmart's immoral and exploitative actions correspond to a number of Managerial Ethics lesson topics. Above all, there is the unmistakable Foreign Corrupt Practices Act of 1977, which bans bribing a government official, with criminal consequences.
One of the causes for Walmart's unethical behavior is the lack of government and municipal control and involvement. One of the underlying reasons of ethical difficulties in the business is an excessive trend toward commercialization in this period of globalization without much regard for values, ethics, and employee safety. Because they strive to bribe government officials in order to fulfil their self-interest at the expense of their employees, the organization's influence is also one of the key factors that allows them to do anything they want.
What impact does Walmart's action have on stakeholders?
There are several stakeholders to consider (both external and internal), and Walmart's choice affects these stakeholders either directly or indirectly. The employees are the most important stakeholders in these moral concerns. Walmart's pay policies and treatment of employees have a direct impact on them. Customers are also considered to be one of the most crucial stakeholders. If wages are raised or items are changed, customers may be impacted significantly since product costs may rise, limiting their purchasing power. The stockholders, who have a direct investment in the firm and are the ones who are the most affected. Wal-suppliers, who rely on Wal- Mart’s business, stay trapped. Wal-Mart is aware of this and takes advantage of it by forcing them to sell items at prices that are lower than they would pay elsewhere.
Justified Ethical Assessment-
Walmart is clearly engaging in shady business practices. Workers have been abused, and numerous employee rights have been violated. The saddest aspect is that this has been going on for quite some time. It's extremely disheartening how this successful company chooses to run the organization's final fate with such modest steps, just to end up hurting themselves. Because of the organization's prior records, it is difficult to trust the organization if government laws are not made severe enough and local authorities do not intervene to verify its operation. The general public's pleasure and well-being are extremely important, which may be harmed to some extent as a result of ethical concerns inside the business.
Walmart SWOT analysis
Strengths of Walmart
Identifying a brand – Walmart is the most well-known retail brand in the world, with millions of people visiting every day. Walmart's online store has over 60 million goods to choose from.
A worldwide footprint – Walmart established 47 new locations in Central America, 15 in Chile, 11 in the United Kingdom, and four in China in 2017. Its foreign activities have boosted sales and visibility.
Weaknesses of Walmart
Treatment of employees and working conditions - Walmart's staff has been the subject of several critiques and lawsuits. A number of the concerns that have been widely condemned include low salaries, inadequate healthcare, and terrible working conditions.
Large span of control - Walmart's vast size and enormous spread of control may make it vulnerable in some regions.
Expansion into new markets - Walmart may take advantage of this opportunity by growing its company into new areas. China, the Middle East, and Latin America may be among them.
Walmart has the option of forming strategic agreements with large corporations or merging with other global assignment help. Acquisitions of small businesses can be lucrative.
Legal and Political Issues – This is also a menace to the environment. Political and legal issues might always make it difficult for a firm to operate in some nations.
Small online e-commerce businesses – Many small-scale and individual internet selling businesses have entered the market, providing comparable items at similar rates. It might jeopardise the company's long-term viability.
Pestle Analysis of Walmart
Political Factors: Walmart
Political stability and the role of Money Centre Banks in the economy of the country.
The extent of corruption, particularly in the financial industry.
Government bureaucracy and meddling in the Money Centre Banks business.
Contract enforcement for legal framework
Economic Factors: Walmart
Economic system in operating nations – what sort of economy is in place and how stable it is.
Intervention by the government in the free market and related financial issues
Exchange rates and currency stability in the host nation
Social Factors: Walmart
Population demographics and skill level
In society, there is a class structure, a hierarchy, and a power structure (gender roles, social conventions etc.)
Technological Factors: Walmart
Technology's influence on product offerings
Impact on cost structure in the Money Centre Banks industry