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 http://www.workplacefairness.org/reports/good-bad-wal-mart/wal-mart.php.
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Case Study
Walmart Stores, Inc., is an icon of American business. From small-town business to mul- tinational corporation, from a hugely controversial company to a leader in renewable energy, Walmart has long been a lightning rod for news and criticism. With 2012 net sales of more than $443 billion and more than 2 million employees, the world’s second largest public corporation must carefully manage many stakeholder relationships. It is a challenge that has sparked significant debate.
While Walmart’s mission is to help people save money and live better, the company has received plenty of criticism regarding its treatment of employees, suppliers, and economic impacts on communities. Walmart has the potential to save families hundreds of dollars a year, according to some studies. At the same time, however, research shows that communities can be negatively affected by Walmart’s arrival in their areas. Moreover, feminists, activists, and labor union leaders have all voiced their belief that Walmart has engaged in misconduct. Walmart has attempted to turn over a new leaf with emphases on diversity, charitable giving, support for nutrition, and sustainability, all of which have contributed to a revitalized image for Walmart. In fiscal year 2012, the company, along with its Walmart Foundation, donated more than $1 billion in cash and in-kind contributions. However, more recent scandals such as bribery accusations in Mexico have created significant ethics and compliance challenges that Walmart must address in its quest to become a socially responsible retailer.
This analysis begins by briefly examining the growth of Walmart; next, it discusses the company’s various relationships with stakeholders, including competitors, suppliers, and employees. The ethical issues concerning these stakeholders include accusations of dis- crimination, leadership misconduct, bribery, and safety. We discuss how Walmart deals with these concerns, as well as recent endeavors in sustainability and social responsibility. The analysis concludes by examining what Walmart is currently doing to increase its com- petitive advantage and repair its reputation
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