Business ethics case study on walmart

Business ethics case study on walmart

1. GM524: Ethics & CSR Prepared by : MD. Arafat : 1001542070 Lohan : 1001025520 Sidharth : 1001643545 Mobasher : 1001643395 Nasif : 1001439325

2. HISTORY-The growth of WALMART Founder Sam WALTON First Outlet in Rogers Arkansas (2 nd July 1962) NOW Walmart serves more then 200 million Customers weekly

3. Walmart's Sustainability Walmart over the years had many image problems: discrimination, illegal immigration issues and leadership misconduct, environmental issues Yes, Indeed, they have ethical department - ethic standards Emphasizing on “Go Greens” concept e.g. Colorado, Texas, and California: solar power, wind power New technologies to improve energy consumptions and reduce the use of fossil fuels Shoppers can identify the healthier food items, the company help them through the icon of “Great for You” To improve the stakeholder relationship, especially those communities they are located in

4. Walmart's Sustainability They work with their suppliers to reduce packaging and shipping, e.g. to reduce packaging by 5% by 2013. Manufactures working with Wal-Mart have to comply with rules and laws, In 2009, suppliers in China began the process of compliance. By 2012, suppliers must work with Wal-Mart make 20% improvement energy efficiency, outsourcing 95% of their production: environment. The Walmart company has prevented 80.9% of the waste produced by the clubs, stores and the distribution center all over the nationwide going to the landfill, e.g. Through the zero landfill programs, the Walmart company gained hallmark of $231 million.

5. Problems WALMART Faces Walmart faces problems in the domain of business practices called the "predatory pricing” proposed to drive out rivalry .Walmart claims this is not as much ruthless, as much as it is a longing to convey the most reduced conceivable expenses to customers. But, the outcomes drives out local and little organizations that can't compete with Walmart because of its bulk purchasing power. Next, is in the domain of work relations. Working without unions, Walmart sets its own compensation scale and also its own worker practises. There have been a few charges of regardless of whether some of these practices have been moral, for example, the denial of collective bargaining and addressing hiring practices. The issue of child labour statutes also have been raised.

6. Solution WALMART Gives Wal-Mart has come out some noteworthy improvements to address this issues. For example Wal-Mart hired an anti-sweatshop expert to help them in battle against global sweatshop work. Wal-Mart likewise signed a memorandum with the All-China Federation of Trade Unions which permitted unions in their stores. They additionally have even taken measures to decrease waste and carbon emission which has help the organization save money, as well as it has demonstrated to the general population that Wal-Mart is going to play a part with green activities.

7. WALMART tended to improve performance while other retail stores were suffering financially First of ALL , other retail outlets have been suffering because of Walmart’s Predatory Pricing During the economic downturn in 2008-2009, Walmart have introduced Moneycard to help low-income families in their spending which helped consumers to make purchases with low prices in Walmart boosting up Walmart’s sales Walmart have opened up stores in international market in India, South Africa, Japan, Canada which is helping them penetrating the International market directing to strong growth potential to come

8. How Walmart improves ethics & social Responsibilities Spread an ethical corporate culture among its global stakeholders Donated over $1.5 million in relief aid for the victims of the Haiti earthquake Embarked on a heath initiative toaddress the growing problem of obesity in America