Wal Mart Case Study "The Challenge of Managing Relationships with Stakeholders"

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“The Challenge of Managing Relationships with Stakeholders” A Case Study on Business Ethics and Stakeholder Relationships

A Report by

Abdul Rahman Nawawi Holger Behrens Jurattana Jamkrajang Paphat Kriangthanapha Phikulthong Pangjunan Suttasinee Suebsahakarn Younten Phuntso

53060790 52027564 50019826 52032481 54055255 52047480 53060909

Submitted to

Ajarn Nakul Boonrod 29 May 2012

In partial fulfillment for the course: IBC 360: Business Ethics Semester 2/2011

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Table of Contents

Table of Contents Introduction Wal-Mart’s Ranking & Response to Various Stakeholders Wal-Mart’s Recent Number of Ethical Issues in the News Improved Ethical Culture & Positive Response to Stakeholders What are the relevant Facts? What are the Ethical Issues? a) Female Employees b) Disabled Employees c) Illegal Immigrants d) Low Benefits e) Working Conditions f) Ethical Leadership Issues g) Environmental Stakeholders What are the Primary Stakeholders 1) The Stockholders 2) The Wal-Mart Executives 3) The Employees 4) The Communities 5) Consumers 6) Non-Profit Organizations 7) Other Retailers 8) Online Retailers 9) Gasoline Retailers Possible Alternatives to Wal-Mart’s Ethical Issues I Employee Stakeholders 1.1 Discrimination 1.2 Female Employees 1.3 Disabled Employees 1.4 Sweatshop Workers 1.5 Illegal Immigrants 1.6 Low Benefits 1.7 Working Conditions 1.8 Unions 1.9 Ethical Leadership Issues II Environmental Stakeholders Violation of EPA’s Stormwater Regulations Violation of State Environmental Laws Violation of Air-Quality Restrictions Hazardous Waste- & Materials-Handling Practices Urban Sprawl & Impacts Conclusion

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Introduction This report is intended to give you an insight into our analysis, thoughts, interpretations and further evaluation of the given case study “Wal-Mart: The Challenge of Managing Relationships with Stakeholders”. We will determine the relevant facts the case study includes as well as evaluate and analyze examples of ethical issues of Wal-Mart with different stakeholders. We will identify the primary stakeholders of Wal-Mart, simulate or imagine various possible alternatives for the different ethical issue examples and further evaluate the ethics, practical constraints and right considerations of the alternatives and the decisions that were made in reality. Please keep in mind that our case evaluation, analysis and imagination of alternatives are not necessarily based on real legal practices, laws or regulations but more on our personal subjective opinion and perception as well as considerations of what we experience as right or wrong. Wal-Mart Stores, Inc. is an American multinational retailer corporation that runs chains of large discount department stores and warehouse stores in the United States and abroad. The organization was founded by Mr. Sam Walton in 1962 in Bentonville, Arkansas. Throughout its history Wal-Mart has gained a lot of experience and interacted with many different primary and secondary stakeholders. Despite having a positive publicity as a retailer with low prices, Wal-Mart gained negative publicity on many occasions for many reasons. Interestingly, Wal-Mart is a very large organization that prohibits its employees to interact or engage with unions in any way and much of its negative publicity concerns human right and ethical issues.

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Evaluate how Wal-Mart has ranked and responded to various stakeholders? Many groups have a stake in what Wal-Mart does. Stakeholders can be broken down into two diverse groups: market stakeholders (shareholders, employees, consumers, and suppliers and non-market stakeholders (labor unions and environmental stakeholders). Wal Mart, one of the most amazing success stories in the history of American business, has also shaped debate overr the relationship between cooperations and their stakeholder. Wal Mart has excelled...
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