Walmart

A case study of Ethical

Practices
Overview
Wal-Mart is most certainly an
American institution. Wal-Mart
occupies a unique position in our
world by virtue of its size, reach and
responsibility for the livelihoods of
millions of workers and the needs of
billions of consumers. And with such
overwhelming influence come certain
moral responsibilities.
 Ethical Problems
In its 2006 Ethical Sourcing report,
Wal-Mart reveals the results of more than
16,000 audits of supplier factories and
announces enhancements to its sourcing
programme, including expanded
environmental criteria.
The total number of audits is 15%
higher than in 2005 and unannounced
audits rose to 26% last year from 20% in
2005.
 Unethical practices
( Conts.)
• Labor Union Opposition
bribing employees for it
encourages dishonest behavior.
• Unfair Treatment of Employees
discriminating against women
• Very low wages for workers
• under investigation
for the use of illegal immigrants
as
workers in year 2003
 Failed issue in Ethical
area
§ Reveal the results
§ play with numbers, ignores plants
that have been of particular concern,
gives only a vague sense of how
exactly it codes factories and avoids
clear goals for the future
§ without a commitment to “paying the
price required to lift up the
company’s exploited workers
Applying to Ethical
Theory
• Utilitarianism theory :
Own purpose Vs people
benefits
• Immanuel Kants’ theory :
Sense of duty and right
thing to do.
Therefore, it can say that
Wal-Mart has an unethical
practice.
 How the failure was
detected?
Wal-Mart reports that in 2006 it
conducted more factory audits than any
other company in the world – at nearly
8,900 supplier factories producing goods
on its behalf. The total number of audits is
15% higher than in 2005 and
unannounced audits rose to 26% last year
from 20% in 2005.
 Accepted or unaccepted the
failure?
Wal-Mart’s refusal to rethink its core
business strategy, which consists of paying
absolute bottom prices for its products, all
but ensures that it will make little progress in
respecting workers’ rights.
 How Walmart prevent in the
future
• finding ways to collaborate
with other brands and
retailers to effect lasting
improvements for workers.
• Showing that Walmart care
about ethics by treating
employees fairly.
• needs to be socially
responsible :
- avoid economic harm
- maintain the
legitimacy granted by
 Prevent in the future
(Cont.)
• The ICCR says the report shows
progress and recognition by Wal-Mart of
the need to “go beyond monitoring”
• Ethical standards programme is “in
place to do what is right for factory
workers and the environment” and
acknowledgement introduced workplace
diversity initiatives
 Prevent in the future
(Cont.)
The Interfaith Center on Corporate
Responsibility (ICCR)
A large coalition of US religious
investors that owns more than two
million shares of Wal-Mart stock, has
long called for improvements in Wal-
Mart’s factory conditions.
Thank you for your
attention