Wal-Mart stores, the world’s biggest retailer, owns more than 4,000 stores, including 1,475discount stores 1750 Wal-Mart Supercenter combination discount and grocery stores and 540 Sam’s Club Warehouse stores. With close to two million employees worldwide, Wal-Mart is the biggest employment provider in the world. In this paper I am going to discuss; 1.
What financial impact could the lawsuit potentially have on Wal-Mart? 2.
What are the major moral complaints of the females suing Wal-Mart? Are these moral complaints are justified? Why? 3.
What, if anything, should Wal-Mart do to correct these discrepancies? Should the company institute an “affirmative action” promotion program for female employees? If so, what should this program look like? 4.
Do women deserve to win their lawsuit?
Though Wal-Mart suffered lots of lawsuits which included child-labor, illegal immigrant workers, failure to pay over time charges the recent and major law suit they are facing now is the discrimination against female employees in promotions, pay, management training and job assignments. It was, therefore, a noteworthy event in June 2004 when a federal judge expanded a lawsuit filed by six California women to a class action. The case has now mushroomed to cover 1.6 million women Wal-Mart workers, employed nationwide since 1988, making it, by far, the largest class action in U.S. history. What financial impact do you think lawsuit could potentially have on Wal-Mart? We all know, Wal-Mart is the biggest or largest retail store in the world. Naturally, their earning and employees are also more compared to other corporate. The lawsuit against the company was not the company needed when they were facing other legal issues such as the child labor and employment of illegal immigrants. The lawsuit was filed by six women who say women were treated lower than the male even if they acquired equal posts, qualification and experience. The news already reached every household, street and public place thus bringing the name of the company down. This could have a huge impact on the company’s earnings and here we are not saying in terms of hundreds or thousands of dollars we mean millions and billions of dollars. Some of the impact could occur in the following forms: The six women who filed the case against Wal-Mart are not only asking the company pay for the unfair deed but also asking them to pay back and compensate for all 1.6 female employees against whom Wal-Mart discriminated. This would cost the company a fortune because these 1.6 female workers were entitled to promotions, salary increment, trainings and other such things. To compensate or reimburse that much amount for that much workers would surely have a huge and major impact on the company’s financial position. The other way how this lawsuit could affect the company’s financial position would be through the transaction or sales. Since major part of the shoppers constitutes women, after hearing what Wal-Mart has done and how women are treated at Wal-Mart they would certainly feel insecure and ripped off. They would turn their backs and look for a better place to shop. This would lead to a fall in sales and increase in competition. Other thing is the reputation and goodwill of the company. The lawsuit already has brought the name of the company down and on top of that if the company fails to win the case, then the company would suffer a huge fall of share in the market. They would even have to close most of the stores and start all over again which would be impossible looking at the current market situation and all the competition worldwide. And not to forget the turnover of workers or employees. Reaching this news of discrimination I personally believe that most of the women employees will quit their job, even those who did not experience the situation. So interviewing, selecting or recruiting those new employees would cost Wal-Mart another million. Moreover, those new employees would...
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