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Wire Wiri

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International Business Assignment 4 1. Is it legitimate for an enterprise like Wal-Mart to demand that its suppliers adhere to a code of ethics? What are the benefits of this practice to Wal-Mart? What are the costs?
Wal-Mart has developed a code of ethics for its suppliers. The suppliers must follow and adhere to the code set by Wal-Mart if their suppliers want to do business with them. The code have been made in order to evaluate employment practices and environmental compliance in facilities producing merchandise for sale by Wal-Mart. Wal-Mart demands from its suppliers that the business may be conducted in an ethical manner. The code of ethics made by Wal-Mart includes standards such as compliance with laws, voluntary labor, labor hours, hiring and employment practices, compensation, freedom of association and collective bargaining, health and safety, canteen, environment, gifts and entertainment, conflicts of interest, anti-corruption, financial integrity, worker helpline etc.
We all know that Wal-Mart focuses on low prices of products in order to have the competitive advantage. This is the reason for the dominance of Wal-Mart in the market. If a company wants to give products or services to its customers at a cheaper price it must be taking various aspects and factors under consideration. In order to be able to deliver cheap products to its customers, Wal-Mart had to and decided to buy cost effective materials and products from the suppliers in under developed countries.

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