Analysis of Walmart's Ethical Failures: CRSE108 Report, Group Project

This report provides a detailed analysis of the ethical failures of Walmart, examining various unethical practices and their consequences. The report covers employment discrimination, including gender-based disparities and issues related to overtime pay and working conditions. It also addresses allegations of labor law violations, such as employing minors and resisting unionization efforts. Furthermore, the report explores Walmart's impact on the environment through the use of harmful chemicals and improper storage of fertilizers. The analysis includes the actions taken by Walmart to address these issues, such as investments in employee development, collaborations with NGOs, and initiatives to reduce waste. The report also discusses the impact of these ethical failures on Walmart's financial strength, brand image, and customer relationships. Finally, the report offers recommendations for Walmart to improve its ethical conduct, emphasizing the importance of treating all stakeholders with dignity, maintaining transparency, and prioritizing sustainability.

UNETHICAL
ISSUES WITH WAL-
MART

Company Overview
• Walmart Inc. is a U.S based retail MNC founded in
1962 by Sam Walton.
• Presently it is operating with approx. 21.957
billion dollar and It’s revenue is around 514.405
billion dollar
• Greg Penner is the chairman of the organization
• The products it offers include MP3 player, digital
cameras, printers, laptops, computers, Jewellery
other grocery items, movies, music and others
• It also offers the financial services like, money
transfer, bill payment, debit and credit cards.

Unethical Issues
• Walmart failed to act ethically and faced the
issues like
o employment discrimination on basis of gender. In
Walmart women were provided with less opportunities
than men.
o Non payment for overtime. Managers refused to pay for
extra work.
o Wretched working condition. The workers were forced to
work for long time without any lunch break, employees
were discriminated.
o Allegation of violating the labour law through employing
minors.

Unethical Issues
o Allegations against distribution of health care benefits.
Walmart covered only 44% employees for the benefits
which is 30% les than its competitors and other
organization
o Resistance to the unionization. Walmart always tried
actively to resist the unionization of the employees.
o Unjustified termination. Walmart terminates its
employees on ground of trivial or no reason.
o Harming environment. Walmart used to put harmful
chemicals and store the fertilizers without any protection
which causes harm to both the environment and
humans.

The Way Issues
Addressed
• It is investing millions for providing opportunity
and develop the worker careers.
• It is collaborating with multiple NGOs, industries
and suppliers to address these social issues.
• Walmart has taken initiatives to minimise waste
production and emission of carbon which helped
the organization to reduce the cost with the
welfare of environment.

The Way Issues
Addressed
• Walmart fired as well as disciplined the
managers who used to force the employees for
extra work.
• It allowed the formation of OUR Walmart , the
union body of Walmart.
• Walmart introduced the program named
Associates out Front which ensure managers in
every individual sector must communicate with
the workers to assess their requirements.

Impact of the Issues
• Wal-Mart had to pay millions to settle the suits
and allegations.
• To some extent this affected badly in the financial
strength or the economy of organization.
• It detrimentally affected the brand image and
caused the loss of some potential customers
which in turn influenced the long term value of
the organization. .

Conclusion
Wal-Mart must address all the issues or criticism
regarding the unethical business conduct. To
achieve its prior image it must treat all equally with
dignity. It must incorporate transparency, credibility,
sustainability within business action planning.

Recommendations
• Wal-Mart should treat all equally with dignity and
respect.
• It must maintain credibility for every activities or
practices of it.
• It must place right people in right place.
• Wal-Mart must consider the welfare of both the
environment and humans.
• It must obey all rules and regulations.
• It should not recruit the minors and violate labour
law.