Ebc Essay
Business ethics assignment 2
1.
a) A stakeholder of a corporation is an individual or a group which either: is harmed by, or benefits from, corporation; or whose rights can be violated, or have to be respected, by the corporation. According to this statement the four main stakeholder groups in the video related to Wal-Mart are:
1. Competitors - Competitors are influenced negatively, by Wal-Mart’s operations. Many small retailers are forced to close down their business, even though there business are 40-50 years old, and they have good name at the market. Wal-Mart policy of “everyday low price” is pushing local stores to the edge of bankruptcy. In order to be competitive to Wal-Mart, smaller retailers have to cut down their costs, such as wages of their staff. Each year Wal-Mart drives down retail wages with $3 bln. The ability of Wal-Mart to sustain the low prices and wages creates a monopoly and unfair competition.
2. Employees – According to the Freeman’s stakeholder theory, a company should not focus only on shareholders interests, but also on the interest of whole range of groups, or stakeholders, part of which are the employees. Wal-Mart is in conflict with that theory, since they do not mind the opinion of their employees. The employees are closely related to Wal-Mart while they are working there and they receive the salaries from the shop. Since employees have contracts with the company their interests are protected and closely related to the companies operations. The employees are influenced negatively because they receive very low wages. Instead of paying for its employees to have health benefits, Wal-Mart is making the government to take care after them. The store offers an expensive medical-care health package, which employees cannot afford. What is more is that the job tasks for first floor staff are enormous, compared with the salaries they receive. Furthermore sometimes the additional working hours of the workers are not written properly,
1.
a) A stakeholder of a corporation is an individual or a group which either: is harmed by, or benefits from, corporation; or whose rights can be violated, or have to be respected, by the corporation. According to this statement the four main stakeholder groups in the video related to Wal-Mart are:
1. Competitors - Competitors are influenced negatively, by Wal-Mart’s operations. Many small retailers are forced to close down their business, even though there business are 40-50 years old, and they have good name at the market. Wal-Mart policy of “everyday low price” is pushing local stores to the edge of bankruptcy. In order to be competitive to Wal-Mart, smaller retailers have to cut down their costs, such as wages of their staff. Each year Wal-Mart drives down retail wages with $3 bln. The ability of Wal-Mart to sustain the low prices and wages creates a monopoly and unfair competition.
2. Employees – According to the Freeman’s stakeholder theory, a company should not focus only on shareholders interests, but also on the interest of whole range of groups, or stakeholders, part of which are the employees. Wal-Mart is in conflict with that theory, since they do not mind the opinion of their employees. The employees are closely related to Wal-Mart while they are working there and they receive the salaries from the shop. Since employees have contracts with the company their interests are protected and closely related to the companies operations. The employees are influenced negatively because they receive very low wages. Instead of paying for its employees to have health benefits, Wal-Mart is making the government to take care after them. The store offers an expensive medical-care health package, which employees cannot afford. What is more is that the job tasks for first floor staff are enormous, compared with the salaries they receive. Furthermore sometimes the additional working hours of the workers are not written properly,