Ethical Issues Surrounding Walmart

Ethical issues surrounding Wal-Mart Ronald L. Reeves Columbia S out(a)hern University Ethical issues surrounding Wal-Mart surface-to-air missile Walton, founded Wal-Mart over forty years ago, where it started as a five-and-ten store in Bentonville, Arkansas (Stanwick &038 Stanwick, 2009). Since so it has become one of the largest retail stores in the world, with an estimated annual sales of close to $300 billion (Stanwick &038 Stanwick, 2009). His task philosophy was to digest low prices to its customers everyday (Stanwick &038 Stanwick, 2009).With much(prenominal) tremendous success in mesh depart and growth, it has as well as brought m any ch totallyenges relating to estimable issues in regards to off-the-clock-work, sexual discrimination, health returnss, the portion of sodalitys, use of illegal aliens, and issues relating to child and labor movement laws. It is the intent of this bailiwick content to identify the ethical issues Wal-Mart has faced, as well as, discu ss four questions of thought. Off-the-Clock-WorkFrom 2000 to 2007, Wal-Mart has been in court facing numerous law suits, in which they suck in remunerative out millions of dollars, for violation of laws surrounding non-payment of overtime compensation to its employees (Stanwick &038 Stanwick, 2009). Several employees claimed that soldieryagers postulate them to work off the clock by requiring them to work after punching out their time card (Stanwick &038 Stanwick, 2009). If the employee refused to work after their shift and off the clock, then they would be threatened with termination of employment.One of the many complaints include the use of lock-ins (Stanwick &038 Stanwick, 2009). concord to Stanwick and Stanwick (2009) they stated, Managers would lock the doors after the store had closed and would force the workers to stay in the store until all the work had been recognized (p. 410). Employees were also told that if they could non complete their assigned work in their ei ght hour shift, that they would dupe to last out at work, off the clock, until their work was complete.It was evident that the mangers had no obedience or appreciation for the employees, who should have been valued as stakeholders that contributed to the success of the store. Sexual contrariety In 2001, Wal-Mart faced a lawsuit with regards to sexual discrimination for non promoting women to managerial positions and for not paying them a wage equivalent to what the mannish employees were making (Stanwick &038 Stanwick, 2009). any(prenominal) of the facts that bread and buttered the lawsuit include 65% of the periodical employees and 33% of the managers were women, and on average women received 6. % less in earnings than their male counter distinguishs received (Stanwick &038 Stanwick, 2009). One example of discrimination included a female employe being told that a man was promoted over her, who was drug-addicted, because the man had to support his family (Stanwick &038 St anwick, 2009). An new(prenominal) example of discrimination was when a women was told that a man was paid to a greater extent than becauase according to the Bible, Adam came sooner Eve. The managers involved in these and other sexual discrimination cases included in this lawsuit made misfortunate ethical decsions by discriminating against its female employees.Health Benefits Stanwick and Stanwick (2009) mentioned, In 2003 Wal-Marts polity of lower represents in every bug out of its operation was highlighted ground on the type of health benefits that it offered to its employees (p. 413). New employees had to wait six months before being eligible for the health c are benefit, and retirees were not allowed to forestall their benefit (Stanwick &038 Stanwick, 2009). Wal-Marts payout for employee healthcare benefits in 2002, were 40% lower than the average that all companies in the U. S. ere paying and 30% less than their competive retailers (Stanwick &038 Stanwick, 2009). In an effort to bind health care costs shore, Wal-Mart recommended to the board of directors that it should wage more(prenominal) part time employees and try to discourage unhealthy employees by requiring all employees responsibilities to include some type of physical activity (Stanwick &038 Stanwick, 2009). It is evident that Wal-Marts board of directors and upper management were more bear on with profit than the offbeat of the employees. The Role of the UnionsIn an effort to keep low prices for its customers, Wal-Mart kept its labor cost low (Stanwick &038 Stanwick, 2009). There has been a constant battle between Wal-Mart and its employees, who wanted to create a union. The purpose of the union was to ensure that employees, who were members of the union, would receive a wage that was competitive to others in the workforce. Stanwick and Stanwick (2009) stated, In 2002 a comparison of earnings for unionized workers and Wal-Mart employees showed that unionized Kroger employees woul d get four to five dollars an hour more than the Wal-Mart employees (pgs. 15-416). It was discover that Wal-Mart would discourage employees from forming unions, by firing those that promoted it (Stanwick &038 Stanwick, 2009). Of the contrary, the Wal-Marts in China were allowed to have unions, as they received pressure from the All-China Federation of Trade Unions which is belived to be unconnected of Chinese Communist Government (Stanwick &038 Stanwick, 2009). Use of Illegal Aliens In an efforet to keep their costs low everyday for its customers, Wal-Mart used a campaign motto of Roll Back the Prices, but agian it came at the sacrifices of its employees.Wal-Mart outsourced to third party contractors to hire janitors to clean its stores afterhours (Stanwick &038 Stanwick, 2009). To keep cost down, these third party contractors, with Wal-Marts knowledge, employ illegal aliens to clean the stores afterhours (Stanwick &038 Stanwick, 2009). This was discovered after federal agents, f rom the Immigration Servive, raided sixty Wal-Mart stores in an operations called Operation Rollback, in 2003 (Stanwick &038 Stanwick, 2009).As a result of the raid, more than 250 illegal aliens were arrested, and Wal-Mart faced thiteen felony indictments and paid $5 million dollars in fines (Stanwick &038 Stanwick, 2009). Some of the illegal aliens also filed lawsuits that claimed they were forced to work every night and did not receive compensation for overtime (Stanwick &038 Stanwick, 2009). This was not only a violation of federal law, it also showed a lack of the citizenship article of belief where every employee should respect the law (Stanwick &038 Stanwick, 2009).Child and other Labor Laws From 2000-2005, Wal-Mart was faced with fines and lawsuits pertaining to violations of child and labor laws. It was set by audits, that employees under the age of cardinal were workings past midnight, working during school hours, and working more than eight hours a day (Stanwick &038 Stanwick, 2009). find were employees under the age of eighteen operating machinery that was dangerous, which included chainsaws and cardboard balers (Stanwick &038 Stanwick, 2009).Also, exposed were employees who were not taking their breaks or given time off for a meal period (Stanwick &038 Stanwick, 2009). Questions for Thought 1. Are the ethical issues Wal-Mart faces really any different from other large retailers? I dont reckon the ethical issues facing Wal-Mart are any different than that of its competitors. I do believe though that since Wal-Mart is considered the largest retailer and it promises to keep the lowest prices everyday for its customers that they are misusing the reliability principle of taking care of its employees.Stanwick and Stanwick (2009) stated, Traditional violations of the reliability principle would include br distributivelying a promise or contract or not fulfilling a promised action (p. 9). An example of this is when Wal-Mart managers did not pay the ir employees for working overtime. 2. Wal-Mart officials have stated that they dont feel women are interested in management positions at the company. Do you agree or disagree? I disagree. Based on the case study, it seems to me that women are discouraged from looking positions in management by sexual discrimination.If women were not oppressed by comments such as a man needing the promotion over a qualified woman because he needed to support his family, or that a man works at Wal-Mart for a career and women do not, then they whitethorn feel more competitive for managerial positions (Stanwick &038 Stanwick, 2009). Wal-Marts managers in this case demonstrated a failure in the dignity principle by not respecting all of its employees (Stanwick &038 Stanwick, 2009). 3. Wal-Mart is continually criticized for its health care policy. Is this really and ethical issue?Why or why not? I do not think that Wal-Marts health care policy is wrong and meets the requirement of the lividity princip le. Of the four types of fairnesss reciprocal, distributive, fair competition, and adjective fairness, they demonstrate the distributive fairness (Stanwick &038 Stanwick, 2009). They do provide both part time and full time employees with a choice to enroll in its health care policy and at different levels of coverage (Stanwick &038 Stanwick, 2009). The also have provided a health savings account for its employees.Stanwick and Stanwick (2009) stated, In a Wal-Mart survey of 220,000 employees, it was found that 90% were covered using Wal-Marts health insurance (p. 415). The 10% that did not have their insurance were either covered under their spouses insurance, insured by Medicaid, or through a military health insurance plan (Stanwick &038 Stanwick, 2009). 4. Should Wal-Mart be touch about unionization of stores since allowing unionization of workers in China? Wal-Mart should be concerned about unionization in stores outside of China, as they have allowed it in China.This is a double standard that is not fair to the other Wal-Mart employees end-to-end the world. The case study identified that employees who were in favor of a union were either discouraged or terminated (Stanwick &038 Stanwick, 2009). The National Labor relations Board, ordered Wal-Mart in 2003 to negotiate with former employees of the meat market, whom create a union, to bring back the meat department that was originally closed when the employees formed a union (Stanwick &038 Stanwick, 2009).This thought encompasses the values of the fairness principle, with regards to the reciprocal fairness (Stanwick &038 Stanwick, 2009). Wal-Mart should address the thought of a union fairly as the employees seek a way to have competitive wages. Conclusion While Wal-Mart is considered to be one of the highest grossing retailers in the world, which strives to offer the lowest prices everyday to its customers, it has done so by adversely affecting their employees.The managements efforts to keep prices down res ulted in poor ethical choices which resulted in employees being forced to work beyond their normal working hours and not be correct for their overtime. In addition, many employees were forced to work during their breaks or denied mealtime breaks, in which they were not compensated for either. Sexual discrimination was also an issue, as women were discouraged or discriminated against for desire management level positions.Although Wal-Mart did offer health benefits to its employees, they were questionable and came at a high cost for low paid employees. Wal-Mart also set a double standard by allowing its stores in China to have a union, while it discouraged or terminated employees in other separate of the world who were in favor of developing a union. Child labor laws were another issue for Wal-Mart, as they required employees under the age of eighteen to work late at night, working during school hours, working more than eight hours a day, and operating dangerous equipment in some of its stores.The results of their wrong acts and violations of federal laws, has caused Wal-Mart to review its policies and identify ways to improve its ethical principles concerning the interference of its employees. Stanwick and Stanwick (2009) mentioned, The managers at Wal-Mart agreed to meet with the ten rank-and-file workers every week from each of its 4,000 stores to get employee feedback (p. 419). This program that Wal-Mart created is called Associates out Front (Stanwick &038 Stanwick, 2009). Reference Stanwick, P. A. , &038 Stanwick, S. D. (2009). Understanding business ethics. Upper Saddle River, NJ Pearson-Prentice Hall.