Walmart Case1
Essay by ayumwlr • April 28, 2017 • Term Paper • 653 Words (3 Pages) • 4,624 Views
Page 1 of 3
- Do you think Walmart is doing enough to become more sustainable? Yes, I think Walmart is doing a good job of becoming more sustainable. Walmart is the world’s biggest public corporation and saves its customers over $287 billion every year, which is about $970 per customer. First, Walmart is working to improve its ethical reputation with its reputation for sustainability. In the 2004 Walmart formed its Global Ethicals office and released a revised Global Statement of Ethics. The intent of the Global Ethics Office is to spread an ethical corporate culture to global stakeholders. Second, Walmart has also contributed to disaster management projects, economic empowerment for women. Third, this company has also develop a health initiative to address the growing problem of fat in America. Walmart not only improve social conscience, but also have a subject named “ Being green.” First, Walmart’s sustainability goals are its intentions to be supplied entirely by renewable energy, create no waste, and sell products that sustain the environment. In order to achieve these goals, Walmart has built relationships with influential people in supplier companies, government, NGOs and academia. Second, to reduce energy consumption, Walmart facilities conserve energy in a lot ways. Third, in order to measure the sustainability of its products and suppliers, Walmart has created sustainability Index. Even though some people are still keep doubt to whether it can accomplish its goals, but I think Walmart conform to the trend of our times and testify to the spirit of development through cooperation.
- What are the ethical issues Walmart has faced? First, although Walmart is the largest retail employer in the world, it has been criticized for low wages and benefits. Also, this company has been accused of failing to provide health insurance for more than 60 percent of employees. Second, a new Walmart policy eliminates healthcare coverage for new workers who working less than 30 hours a week. Third, Walmart decreased its workforce, it expanded physical store at the same time. Walmart decreased its workforce by 1.4 percent while increasing its retail stores by 13 percent. Then, Walmart think there is no need for unions to build between workers and managers. There is still a problem that against employee’s benefit. Walmart denied meal breaks and rest breaks to their worker. This is also an ethical issue about this company. In January 2006 Coughlin agreed to plead guilty to federal wire-fraud and tax-evasion charges. The biggest scandal blow to Walmart’s reputation in recent years. Walmart also suffered a safety problem. In November 2012 a fire broke out in the factory that burned down the building and killed 112 employees. In conclusion, Walmart has suffered significant influence after these ethical issues.
- How is Walmart attempting to answer concerns regarding misconduct? First, Walmart took action to improve relations with its employee. In December 2005, Walmart was ordered to pay $172 million to more than 100,000 California employees in a lawsuit. The company also improved its health benefits to their works. Because of Walmart is a global company, this company need to grow in different countries, and it necessary to accept a union. Walmart signed a memorandum with the ACFTU allowing unions in Walmart, and also negotiates with unions in Brazil, Chile, Mexico, Argentina, the United Kingdom, and South Africa. Then Walmart increase their right to stop business relationships with some suppliers immediately if they discovering a violation. On the other hand, Walmart also requires all suppliers to have an independent agency assess the electrical and building safety conditions of their factories. To address domestic complaints, Walmart applies the same monitoring system to U.S. suppliers. Walmart announced it will make unannounced visits to U.S. third-party operated warehouses by independent auditors to check whether they compliance to the ethical standards. Next, this company is working to improve internal control system and auditing procedure. Walmart is working to improve its ethical reputation and corporate governance.
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