Walmart Chinese Suppliers

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Wal-Marts Chinese Suppliers

Business ethics are the accepted principles of right or wrong governing the conduct of businesspeople. Wal-Mart corporation had discovered ethical issues when dealing with companies in other nations. Wal-Mart has high ethical values and a strict code of conduct. Wal-Mart is only willing to do business with international businesses that value their ethics and follow good principles.

We need to understand that working conditions in factories in China compared to the U.S. are completely different, because of the their economic differences. Wal-Mart understands that in order to keep its low prices they must source goods from cheaper countries like China. In order to make sure that factories are making the products under ethical principles, Wal-mart has hired third-party firms to undergo unannounced audits to find any violations that break their ethical standards. Wal-Mart discovered that most of these factories were violating their ethical code of conduct.

The factories are faced with ethical dilemmas because they know that accepting child labor is bad, but they also realize that child workers are the sole providers for their families. They also know that employees in these factories work the extra hours, without overtime pay, because this is there only way to survive. Unrealistic expectations may sometime blind these companies to overlook the unethical practices because they only see their own goals. Wal-Marts main interest is to be productive and sell cheap in order to be dominate against other competitors. Wal-Mart continues to aggressively audit these factories, some of them have no choice but to falsify paperwork in order to pass the audits. The decisions that factories have to make are crucial because if they followed all of Wal-Marts ethical values they would not make money of their own. This makes it hard to believe that countries like China are practicing Wal-Mart ethics when their own economy has become one of...
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