Case Analysis: Wal-Mart Rosemead

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Case Analysis: Wal-Mart Rosemead

When Wal-Mart tried to establish one of its Superstores in Rosemead, CA, its Corporate social responsibilities are questioned when the company is met with heavy opposition. With the opening of the new Wal-Mart in Rosemead there are groups of people that will gain and groups of people that will lose. This paper will analyze, using John Stuart Mill’s Utilitarian reasoning of “the greatest good for the greatest number” and theory of social responsibility by Milton Friedman, whether providing low cost merchandise to the masses outweigh consequences of the expansion of Wal-Mart into the residential city of Rosemead.

The groups that stand to lose the most with the introduction of the Wal-Mart store in Rosemead created an organization Save Our Community (SOC). This group consisted of attorneys, university professors, local business owners and local residents who would be affected by potential increase in traffic and noise. The group that was most to gain was shareholder and stakeholders of the company. Other groups that were set to gain from Wal-Mart is a certain demographic of the city with low income, this low income group was probably best represented by Wal-Mart own grassroots organization, Rosemead PRIDE, to counter the SOC group. This group was managed by a consulting firm based in a different city and did not consist of residents like the SOC group.

One of the major points that the City council liked that they favored Wal-Mart was the increase in revenue for the city. As stated by Gloria Molina, a County of Los Angeles Supervisor, “the bottom line is that revenue is so vital to the well-being of the residents of a city, that cities are having to resort to this kind of big box retailers that we are having all over the area”. This implies that Rosemead is looking to increase revenue for the entire city of Rosemead even though it may come at the expense of certain residents; this is in line with the Utilitarian...
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