Business practices. (2015). Walmart Unethical Business Practices. [Online]. Available at: http://cnbc-tvn-biznes.com/unethical-business-practices/walmart-unethical-business-practices/
Introduction
As most people would agree, the primary objective of most of the businesses is to make money in the right manner and to conduct the activities according to the laid down ethics. However, not all the businesses perform their operations in honorable or ethical behaviors. Fundamentally, business ethics refer to the moral principles and values that govern how people conduct themselves in the world of business. Primarily, it relates to the commercial activities either with a single customer or other business premises. Even if the objective of firms is to make returns, they should also add to the interests of the community by making sure they practice legitimate businesses. Well, greed has led some of the markets to operate unethically. Being the largest retail company in the United States and having stores worldwide, Walmart has an obligation of treating its employees with respect, but this is not always the case. According to the article ‘Walmart Unethical Business Practices' in 2015 published by Business Practices, it is evident that the employees are maltreated. They start the job with lower wages than the ones outlined by the labor union, and they end up quitting. When it comes to complains, the company has an open door policy which instead of helping the employees, it only gives the company the leverage it requires for termination of the unwanted complaint help (Shaw and Barry 2015, p.179). The workers are also prohibited from speaking with the representatives of the union. This paper argues that Walmart Company has been maltreating its employees and according to the law, this operation is unethical and creates a negative image of the company in the society. It reviews the literature on the ethical responsibilities of Walmart in the business and identifying the principle of the United Nations Global Compact which is breached by Walmart Company. Also, the paper provides recommendations for the company to increase its global responsive business practices in the future.
Walmart has an ethical responsibility in its business practices to everyone who is associated with the company including the employees, suppliers and the customers. Majorly, the ethics guide the company in promoting its culture of integrity which includes actions to develop and uphold policies for ethical behaviors for all the stakeholders everywhere they operate. The company uses its strength to gain collaboration with other businesses to ensure the transformation of the systems which are relied on including the need to advance ambitious commitments and goals in the priority areas of sustainability, community, and opportunity (Writer Contributing 2017). Putting efforts in such areas is not only advantageous to the firm but also establishes shared values for the clients and the general society. Notably, the company has achieved essential responsibilities. They include diversion of 80% of waste from the landfills, doubling the amount of food sold locally, and generation of over one billion kilowatt hours of renewable energy.
Additionally, it is the ethical responsibility of Walmart to raise awareness concerning the policies of ethics and also to provide channels in which stakeholders will raise their ethical concerns. The company further has an ethical obligation of providing inexpensive health care to its employees to avoid shifting the costs to the country’s tax-payers. It is also responsible for providing adequate wages so that the employees can pay for the health plan. According to the policies of the company, every employee is supposed to be paid for every minute that they work and it is the company’s responsibility to ensure that everyone is paid.
Walmart Company breached one of the principles in the United Nations Global Compact on labor standards. The law violated requires all businesses to uphold the elimination of discrimination in employment and occupation (Compact 2011). Walmart has been blamed for discrimination against females by refusing to give them training opportunities and appraisals which are often provided to males. Also, the women are underpaid. It has been reported that current and former women employees of Walmart filed a case of sexual discrimination against the company since it failed to provide equal employment conditions for women (Hoovers Handbook 2005, p.907). Another ethical issue facing Walmart is the fact that the wages paid to employees are meager. As an outcome, the workers are forced to seek assistance from the public which comes from the taxpayers. Basically, Walmart low wages result from their want of cutting down operation costs so that they continue offering goods at low prices. Walmart ultimately defends itself with the low rates it provides thinking that somehow all the sins will be justified. It cares more about keeping low prices and not increasing the salaries of its employees.
Besides the low wages, the company provides health insurance plan which is very costly such that some of the workers cannot afford it. The workers who cannot pay for the health insurance will get their health care services from their spouses or the state from the taxes. While the wages are still low in the company, the employees do not get paid for overtime. Since Walmart is a massive company, there are instances where managers practice unethical things like forcing the employees to work overtime. Walmart has also been using illegal immigrants as their workers. The company cheated the immigrants on wages and the government on compensation for workers.
The corporate responsibility theory outlines the obligation of ethical responsibility. The theory's necessity relies on logical corporate culture which regards the business as a citizen in public with the kind of commitments that legal status contains typically. It requires doing what is right even when not needed by the law for the valuation of everyone's welfare (Blowfield and Murray 2014, p.3). Thus, Walmart should behave ethically towards the employees to ensure its benefits as well as the entire society.
For Walmart to increase its globally responsive business practices in the future, I would provide two recommendations. Firstly, the company should offer more job opportunities for women as well as paying them an equal amount as the men employees. Even if the company is so successful, it can do better if it stops discriminating women since it will save on the money spent on lawsuits. It should establish workplace diversity initiatives which are aimed at preventing further gender bias. Secondly, the company should periodically examine it practices for paying employees to ensure they get paid for all the worked hours and also perform a thorough background check of potential employees to help determine their integrity.
Conclusion
In conclusion, there is no company in the global setting which is immune to difficult situations. Those businesses which sustain themselves are the ones who can notice the moral issues and provide corrective measures before they result to issues. Regarding this case, Walmart failed to admit the possible challenges facing the company, and as a result, the company will pay for it probably. Hence, the unethical business practices by Walmart have destroyed and caused harm to its reputation. If the company wants to sustain itself, it will have to work hard in improving its image. Walmart needs to show that it cares about ethics through fair treatment of employees. As a result, good employees will be attracted, and people will lack reasons to protest concerning the firm. Also, Walmart needs to uphold social responsibility to do away with economic harm as well as maintaining the legitimacy granted to the company by the society.
References SHOW MORE
Blowfield, M. and Murray, A., 2014. Corporate responsibility. Oxford University Press.
Business practices. (2015). Walmart Unethical Business Practices. [Online]. Available at: http://cnbc-tvn-biznes.com/unethical-business-practices/walmart-unethical-business-practices/
Compact, U.G., 2011. The ten principles. Електронне джерело]: Режим доступу: URL: http://www. unglobal-compact. Org/AboutTheGC/TheTen Principles/index. html.
Hoovers Handbook of American Business (2005) Austin, Texas copyright 2004
Shaw, W.H. and Barry, V., 2015. Moral issues in business. Cengage Learning.
Writer, Contributing. (2017). What is Walmart's Code of Ethics? Bizfluent. [Online]. Available at: https://bizfluent.com/facts-7271082-wal-mart-s-code-ethics-.html
