...WalMart Manages Ethics and Compliance Challenges In 1950, Sam Walton purchased a small store from Luther E. Harrison in Bentonville, Arkansas called Walton’s 5 & 10. Walton’s 5 & 10 is now called WalMart Visitor’s Center in Bentonville, Arkansas. In 1962, founder Sam Walton opened the first WalMart store located in Rogers, Arkansas. Sam Walton was inspired by other discount department chain stores. By keeping his retail prices lower than the other competitors stores he was able to open his second WalMart store the same year in Rogers, Arkansas. There were a total of 24 stores in the state of Arkansas by 1967 with earnings of $12.6 million in sales. In 1968, the first store was opened outside of Arkansas in Claremore, Oklahoma and Sikestone, Missouri. WalMart expanded to South Carolina and Georgia in the early 80’s. By this time WalMart was launching their jewelry divisions, auto service centers and pharmacy departments. Later on as WalMart grew they introduced their first WalMart Supercenter in 1988 in Washington, Missouri. The WalMart Supercenter’s features one-hour photo processing lab, portrait studio, banks, hair and nail salons, fast food outlets and video rental stores. “Although it got off to a slow start, over the next 40 years the company grew from a small chain to more than 8,000 facilities in 27 countries” (Ferrell, Fraederich & Ferrell, p. 407). Sam Walton believed in customer satisfaction and invented the “10 foot rule” meaning all...
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...Adams ETH/316 May 4, 2015 Michael Esquivel Organizational Ethics Walmart started from a small discount retailer in Rodgers Arkansas. There are now thousands of Walmart stores within the United States and the company has also expanded internationally. Walmart created the one stop shop for anything, anywhere and at any time with most of its stores allowing a 24 hour shopping experience to the customers. The company operates over 11,000 retail units under 71 banners in 27 countries and e-commerce websites in 11 countries. ("Walmart", 2015) Over 2.2 million people are employed by the corporation around the world with 1.3 million in the United States alone. The company’s founder, Sam Walton, said “personal and moral integrity is one of our basic fundamentals and it has to start with us” when he spoke of his company’s ethics and integrity. ("Walmart", 2015). High moral and ethical standards are embedded in the company yet controversial ethical issues haunt the company like proverbial retail ghosts. One such ghost is Walmart’s treatment of its employees. Walmart has been criticized and publically assaulted due to the treatment of the retailer’s employees. A documentary titled Walmart: High Cost of Low Price, was released. The documentary included interviews of former employees and managers who presented critical views of Walmart’s policies in respect to the treatment of workers. Walmart was so concerned with the content of the documentary that the company formed...
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...Michella Amonson ETH/316 January 16, 2014 Mr. Harralson Cross-Cultural Perspectives This paper is an overview and analysis of the ethical perspective and cultural issues that a global organization faces when interacting outside the United States. I will address and identify the cultural and ethical perspective of the global organization named Walmart. I will also analyze ethical and social responsibility issues that WalMart deals with as a result of being a global organization. I will further compare these ethical perspectives with other cultures that do business with Walmart. Walmart’s Ethical Perspective Walmart belief is built on a foundation of integrity , values of honesty, fairness and objectivity. Sam Walton founded Walmart with the strong conviction that a retailer could help people save money and live better. Since, Sam’s passing away, Mike Duke, Chief Executive Officer, President and CEO of Walmart states “culture is how we work together to fulfill that purpose. It's incorporated into every aspect of our business”. He further states “Our beliefs are the foundation of our culture: service to our customers, respect for the individual, and striving for excellence which rest on the foundation of personal integrity and responsibility(p.1).” Strong adherence to these principles has created a unique work culture at Walmart. No matter where you go — to any of our stores and offices in any of our brands around the world — our associates live these values”...
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...In the beginning when Walmart was small and maturing business, they were an ideal company in the eyes of employees. But as the company grew into a worldwide empire, so did the number of ethical issues they faced. With promises of low prices to keep to its customers, they have made decisions which have impacted employees. People say Walmart has poor management, have poor wages for both local and outsourced workers. Many people would call these things uneithical, but Walmart claims otherwise. They claim they are helping people by creating jobs, which meet minimum wage standards, and they care about the ethics within their company. There is an abundance of arguments that call out Walmart as being unethical, but what people easily ignore are these lesser known ones that argue for Walmart’s ethical side. The most predominate unethical issue Walmart has received criticism over for countless years is their poor treatment of employees. The retailer is known for paying its store associates minimum wage. These low wages make it tough for an employee to support a family let alone themselves. Because of the low wages that Walmart pays its employees, many of them have to use government assistance such as food stamps in order to survive. This is not only bad for the employees but it is also costing taxpayers. Walmart does not offer benefits to their part-time workers who work less than twenty-eight hours a week. This can be seen as unethical because the employees are already being paid such...
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...in an ethical manner. This paper has been designed to discuss the Walmart Corporation, its role of ethics and compliance, the procedures used to ensure ethical behavior, the processes Walmart uses to comply with SEC regulations, and a review of Walmart’s financial performance over the last two years. Role of Ethics and Compliance of Walmart The Walmart Corporation prides itself on its ethics and compliances to standards and regulations. Walmart shares all of its strategies and performance ratings in its annual reports, news releases, public filings, conference calls, and Internet resources so that all information is readily available to the public and potential and current stockholders. In regard to financial ethics of Walmart, the requirements are that the Chief Executive Officer (CEO) and Senior Financial Officers (SFO) must supply fair, full, understandable, and timely release of financial rankings in the periodic reports, which the Securities and Exchange Commission (SEC) examines. The CEO and SFOs of Walmart are responsible for reporting information that there may be in regard to deficits in operations in specific or general areas that could have a negative impact on the accurate reporting of financial data. Fraud involving associates who may be acting unethically must be brought to the attention of the SFOs, CEO, and any other corporate managers so they follow appropriate disciplinary actions to resolve the issues. The CEO and SFOs of the Walmart Corporation...
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...governs how they will reply to both an internal and external stimulus. Walmart is one of the largest organizations in the world, that’s why it was chosen for this essay. Furthermore, they deal with lots of external social pressures that influence their ethics. They have had more than their fair share of lawsuits because they was sued 4,851 times in the year 2000 alone Willing, R. (2001, August 13). Lawsuits a volume business at Wal-Mart. USA Today. Whenever an issue arises they always fall back on their code of ethics in order to figure out the best possible solution. These issues are relevant to organizational and personal decisions and it will be explained how later in this paper. The relationship between legal and ethical issues will also be covered. External Social Pressures Walmart is the world’s largest retailer and private sector employer. They employ over 2.2 million employees. With tons of money, locations, and power, they have been the target for thousands of law suits. As we all know, Walmart has replaced thousands of mom and pop businesses by carrying the same items at much lower prices. They not only made businesses shut down due to undercutting competitor prices but they also made lots of people lose well-paying jobs in the process only to pay employees poverty wages and benefits and encouraged them to seek government assistance in order to supplement their incomes (Logan 2014). Walmart experienced many external social pressures but the one that’s being...
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...Guidelines for Analyzing Cases Problem and Issue Identification 1. What are the central facts of the case? What assumptions are you making about these facts? 2. What is the major overriding issue in the case? What major question or issues does this case address that merits study at this point in the course? According to this case, the major issue is the conflicts between Walmart and local manufacturers. Because of the low price in Walmart, local manufacturing business cannot survive in the market. Also, production process in Walmart creates many environment problems. Meanwhile, importAlso, to produce low cost merchandise, Walmart provides extremely low wages and benefits to labors, which put workers in a hard condition. taking advantage of illegal immigrants. •Gender discrimination against women. • Most sued company in America in respect of lawsuits. 3. What sub-issues or related issues are present in the case that merit consideration now? Analysis and Evaluation 1. Who are the stakeholders in the case and what are their stakes? What challenges, threats or opportunities are posed by these stakeholders? From government perspective, US government gain good reputation. Walmart, as a US company, brings many good reputations. For Chinese government, it is a good supplier to Walmart. Walmart creates many job opportunities in China. However, Walmart harms nature environment in China. From owners perspective, The Walton Family earns a lot of money...
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...Walmart is the world’s largest retailer. It employs …….. employees and on average serves…….. customers a day. The ethical policy of Walmart applies to millions of its associates, management people, suppliers, contractors, consultants and other service providers. SUMMARY OF WALMART’S ETHICAL POLICY As stated in its statement of ethics the three basic beliefs of Walmart that guides its decisions and leadership are: (talk about belief as a guiding principle as per objectivism) 1. Respect for the individual 2. Service to customers 3. Striving for excellence Beside these beliefs, Walmart has guiding principles to help its associates make right decisions and to act with integrity which are as follows: Make the right decisions, and to act with integrity. Always act with integrity. Lead with integrity and expect others to work with integrity. Follow the law at all times be honest and fair. Reveal and report all information truthfully, without manipulation or misrepresentation. Work, actions, and relationships outside of your position with the company should be free of any conflicts of interest Respect and encourage diversity, and never discriminate against anyone. Ask your manager or the Global Ethics Office for help if you have questions about this Statement of Ethics, or if you face an ethical problem. Promptly report suspected violations of the Statement of Ethics. Cooperate with and maintain the private nature of any investigation of a possible ethics violation. ...
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...Evaluation of Business Code of Ethics Many companies and organizations employ codes of ethics that can enhance their image and endorse a form of legitimacy to that company or organization. A company such as Walmart with local and global outreach has incorporated into its system a culture of ethics and integrity that defines who they are as a company. This culture of ethics determine how customers and suppliers are treated by the company and how workers treat each other within the company. Walmart with many years of experience as a company deals with many ethical issues and there is need for constant evaluation and analysis of systems and structures to meet expectations, and remain in compliance with the demands of the corporate world of business. The company was founded by Sam Walton in 1950, started out with as a single discount store in Northwest Arkansas and grew to become one of the world’s largest retailer in less than 50 years, with thousands of stores and clubs and millions of associates. Walmart is a value-based company that has ethics at the forefront.The company has three basic beliefs, (1) Respect for individuals. (2) Service to its customers and (3) Strvving for excellence. The vision statement is to promote ownership of Walmart’s ethical culture to all stakeholders globally. The company also has some guiding principles to assist their associates in making the right decisions and acting with integrity. These principles are, to always act with integrity. Lead...
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...Sara Jones 8/2/2015 Ethics and Enterprise BUS4801 Ned Preble Ethical Motives u3a1 Sustainability Ethical Motives Sustainability Ethical Motives There is a massive ethical dilemma concerning sustainability. This the fact that without utilizing sustainable practices the earth is suffering, this has a direct impact on our lives. From using up our earth’s natural resources for power, we have created pollution and increased global warming effects. Besides everyone on an individual basis needing to practice sustainability, it is highly important for companies to utilize sustainability ethics. Companies big and small have immensely contributed to dwindling our natural resources and polluting our planet. Raw material suppliers, manufacturers, distributers and the companies they operate for all need held accountable for their part, and each link in the chain needs to develop and implement a sustainable ethics policy. Walmart has been a big contributor to this ethical dilemma. Walmart not only operates unethically regarding sustainability in their retail, warehouse and distribution locations; they also are responsible for the unethical actions of their suppliers. Walmart has received many different scolding from activists and has been boycotted for many different unethical actions and inactions. The company has decided to tackle the ethical dilemma of sustainability directly. Walmart is taking steps to develop a standing sustainability ethics policy throughout their entire...
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...Corporate Ethics And Values - Pranav Chheda Corporate Ethics What is a Code of Ethics? A code of ethics outlines a set of certain principles established by the corporation. These principles can be used both as the basis for requirements and limitations. Typically, a code of ethics is founded on a set of core principles or values and is not designed for expedience. These principles are illustrated with behavioral examples. Those subject to the code are expected to understand and apply the examples in situations the code does not specifically address. Organizations expect that the principles, once communicated and illustrated, will apply in every case, and that failure to apply the principles can be a cause for disciplinary action. How is a Code of Ethics Created? To create a code of ethics, an organization must define its most important guiding values, formulate behavioral standards to show the application of those values to the roles and responsibilities of the persons affected, review the existing procedures for guidance and direction as to how those values and standards are typically applied, and establish the systems and processes to ensure that the code is introduced and effective. Codes of ethics require lots of time to establish. Ideally, the development of a code will be a process in which Boards and senior management actively debate and decide core values...
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... | |Main Ethical Dilemmas |5 - 7 | |Dealing with Ethical Issues |8 - 10 | |Walmart ASDA Best Practice |11- 12 | |Recommendations and conclusion |13 | |Reference |14 | Executive Summary This report will outline the ethical challenges faced by Walmart Asda. It will include the previous accusations made against the company and a list of the main ethical dilemmas. The report will then develop into covering the elements that ASDA are implementing in order to overcome its main ethical issues. The report will also be outlining ASDA’s best codes of practice looking into the positive impacts the company peruses due to it following an ethical code of best practice. In conclusion, the report will be highlighting the recommendations provided in order for ASDA to strengthen the companies’ ethical code values. Introduction The word “ethics” is about knowing what is...
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...Cross Cultural Perspectives The Walmart Corporation is a major American retailer. Walmart is the largest and most successful general merchandise retailer from the US. However, when Walmart attempted to branch out into new countries they failed time and time again. Is this report I am going to cover a few of the reasons they failed in several countries. Identifying the actual issues at fault. Then describe the issues in detail and how they affect Walmart as a result of being a global company. Walmart Cultural Issues One major issue Walmart ran into is bulk sales. In America people travel longer distances with their own cars and buy enough food to last them a month or more in one trip. It is typical for foreign countries to buy food daily. Foreign cultures are more accustomed to buying fresh food from butchers or local markets. Additionally Walmart is notorious for selling items in bulk. This again is an American cultural habit. In most foreign cultures people take public transportation or walk to the stores. This they do not have the ability to buy multiple bottles of shampoo at once, and prefer to buy it one bottle at a time. On a different note, Walmart failed again on the design of their stores. I will use South Korea as example here, mainly because I lived there for four years and have experienced all of these. In South Korea everything is about presentation. Their largest vendors, E-Mart, Home-Mart, etc. are all finished with an artistic design. They...
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...Introduction Wal-Mart is commonly known for its low prices, clean appearance, and large variety of products; however, the super store has constituently been the center of many ethical issues. From working conditions, wages, benefits, product issues, and even bribery, Wal-Mart has been shrouded in ethical disputes for years. In the next few pages I intend on discussing these issues, the impact they have had on the company, and the actions that management has taken in response to them. Predatory Pricing To begin discussing the ethical issues that Wal-Mart has faced in regards to predatory pricing, we must first understand what predatory pricing is. According to Investopedia.com; predatory pricing is “the act of setting prices low in an attempt to eliminate the competition” (Investopedia.com, 2013). Although many of us would think that a business could set whatever prices they choose; we would be wrong. A company cannot set prices with the intent of running another company out of business, and doing so is illegal. A company can, however, sell items at a lower cost because they are able to run more efficiently, have better, less expensive supply channels, or simply do not have the overhead of their competitors. Wal-Mart has been the focus of many lawsuits regarding predatory pricing. In fact, as recently as this year, Wal-Mart lost a price cutting lawsuit in Arkansas and was ordered to stop selling drugs and health products below their own cost (White, 1993). In addition...
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...tremendous one. The person needs to weigh many factors and take many things into consideration before making that step. This paper will use the movie The Insider, Ethical Theory and Business and material collected from the internet to (1) discuss definitions and conditions of whistleblowing; what motivates whistleblowers; ethical and other considerations including risks and typical results of whistleblowing cases. Definitions and conditions of whistleblowing “A whistleblower is an individual that believes that his or her organization is engaged in or willingly permits unethical, unlawful or otherwise reprehensible activities. Whistleblowers bring attention to the objectionable activity and attempt to effect change. Whistleblowers generally report these actions internally and may ultimately resort to reporting these activities to external authorities or interested parties.” (http:cosign.scu. edu505set01003WhistleblowerProfile.htm) In the essay “Whistleblowing and Professional Responsibility” published in Ethical Theory and Business (1995), Bok spells out the conditions needed for whistleblowing. They are: “it singles out specific persons or groups as responsible for threats to the public interest, the accusation of the whislteblower, moreover concerns a present or an imminent threat and a concrete risk must be at issue rather than a vague foreboding or a somber prediction” In The Insider, Dr. Jeffrey...
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