Walmart: A Report on Competitive Environment, Ethical Issues, and CSR

This report provides an analysis of Walmart, focusing on its competitive environment, ethical issues, and social responsibility. The report examines Walmart's position within the retail industry, highlighting its competition with other major retailers and the strategies employed to maintain its market share. It addresses ethical concerns such as workplace favoritism, worker treatment, and sourcing practices, discussing the impact of these issues on the company's reputation and operations. Furthermore, the report delves into Walmart's social responsibility initiatives, particularly in the context of ethical sourcing and labor rights. The analysis includes references to academic sources and provides a comprehensive overview of Walmart's business practices and their broader implications.

Running head: MARKETING AND MANAGEMENT
MARKETING AND MANAGEMENT
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1MARKETING AND MANAGEMENT
Marketing environment of Walmart
Competitive issues faced by Walmart
The competitive environment of Walmart is quite unique. The primary competition that is
faced by Walmart is mainly from the general merchandise retailers, warehouse clubs and other
supermarket retailers. The other supermarket retail industry provides discount and is substantial
in size. The supermarket retail industry is experiencing growth and high rate of change therefore,
Walmart competes both nationally and internationally. There exists an extensive price
competition in the market, the store size, layout of the store and environment, technology and
innovation and the overall image of the organization. The competitive environment is highly
characterized by large economies of scale. The large scale functions provide the competitors with
significant cost advantage over the small scale competition. The major competitors of Walmart
are Target and Kmart. Other competitors such as Circuit city, Bed Bath provide high retail
competition. However, the overcome the stiff competition in the market, Walmart offered lower
price, better variety of service and good quality service (Kopnina, Helen and John Blewitt).
Innovation is required to meet the changing needs of the customers; else the business will be left
behind.
Ethical behavior of Walmart
Ethical issues of Walmart

2MARKETING AND MANAGEMENT
Walmart faces a lot of negative publicity from the media due to its ethical issues. There
are issues regarding the corporate culture of Walmart, there are problem with favoritism, there
have been conflicts with the workers of the organization. One of the ethical issues that are faced
by Walmart in its workplace is favoritism, especially during their promotional period. It has been
observed that the company avoids the female managers during their promotional period, and the
employees which are labeled as non Wal-Mart people (Weiss, Joseph). Moreover, the company
also faces ethical issues; there has been conflict of values. The company has been reported unfair
treatments to workers, there have been discriminating against the women managers and
employees of the organization. Further, they are providing low wages to the workers Walmart
have been refusing to change its core business strategy, which consists of paying bottom prices
for the products sold by the company. However, Walmart takes little measures to respect the
workers’ rights (Caraway 907-920).
Social responsibility issue of Walmart
Ethical sourcing
The have been various issues faced by Walmart, one of them is ethical sourcing. It has
been identified that the company violated some of the Wal-Mart’s standards, including lack do
protective gear in the work areas, thus the workers are at high risk. The company has failed to
meet the locally mandated labour hours; it implies that the workers have been working overtime
with fewer wages and salaries. There has been inadequate social insurance and benefits of for the
workers of the organization (Kampf, Constance). Moreover, it lacks proper maintenance of
required fire safety equipments. There have been labour and human rights concerns of Walmart.

3MARKETING AND MANAGEMENT
Walmart has failed to create comprehensive procurement policies that can ensure sustainable and
ethical sourcing to provide to its customers.

4MARKETING AND MANAGEMENT
References
Caraway, Brett. "OUR Walmart: A case study of connective action." Information,
Communication & Society 19.7 (2016): 907-920.
Kopnina, Helen, and John Blewitt. Sustainable business: Key issues. Routledge, 2018.
Weiss, Joseph W. Business ethics: A stakeholder and issues management approach. Berrett-
Koehler Publishers, 2014.
Kampf, Constance. "Corporate social responsibility: WalMart, Maersk and the cultural bounds of
representation in corporate web sites." Corporate Communications: An International
Journal 12.1 (2007): 41-57.