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Essay / Analysis of Ethical Issues Faced by Wal Mart Corporation
Walmart is a global company that many people are familiar with. Walmart is known to have many ethical issues in the past. The mission statement that was created was to help people save money and live better. In the face of these numerous controversies, Walmart has attempted to repair its image by focusing on diversity, charitable giving, support for nutrition and sustainability. Walmart had been accused of corruption in Mexico, which created significant ethics and compliance issues. Walmart's goal is to once and for all become socially responsible as a retailer. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Ethics and Social Responsibility at Walmart Walmart began without a formal ethics program in place. Mr. Walton always relied on his own personal ethics and he believed that this would have no effect without the ethics program. Walmart began implementing the Sustainability Index which was used to be able to rate and share information about its products. It was also used as a model for American private labels. Walmart is also using this to apply new evaluation criteria to key sourcing merchants to encourage sustainability to become a more important consideration in shoppers' daily work. The Sustainability Index evaluates products and suppliers on various issues such as sourcing, chemicals, etc. Walmart has taken the initiative to manufacture products in America. Walmart increased its purchases of goods in the United States by $50 million in just 10 years. They say Walmart doesn't take care of its employees. It was said that Walmart had failed to provide health insurance to more than 60 percent of its employees. Armed with these rumors, Mr. Walton took matters into his own hands. Walmart has begun to improve its relations with its employees. Not only did they increase salaries linked to their performance, but they also increased the minimum wage. Walmart has also created better health benefits, but one factor behind the decline is that fewer employees are and were eligible. To be eligible for their insurance, you had to work more than 30 hours per week, otherwise you were ineligible. As Walmart grew, they reduced their workforce by 1.4 percent and increased their retail stores by 13 percent. Because Walmart didn't have enough employees to meet the needs of its customers, it was more difficult for it to have the best customer service and implement the 10-foot rule. Walmart has faced a surge in lawsuits against it for denying meal breaks to its employees, during which it had to pay $172 million to more than 100,000 employees in California. Walmart has struggled with ethical leadership issues over the years. Hillary Clinton was one of the executives who served on Walmart's board of directors before her husband's presidency. Thomas Coughlin was forced to resign from his position because he stole approximately $500,000. Walmart recovered from this horrible situation by hiring CEO Lee Scott from 2000 to 2009, until it suffered another blow in 2012. Since these incidents occurred, Walmart has invested a lot of time to implement a renewed commitment to ensure the company adheres to ethics and compliance standards. Ethical Issues Walmart Has Faced Walmart has experienced many different scandals over the years. Walmart has experienced numerous frauds..