Business Report on Business Ethics and Equal Opportunities: Wal-Mart’s Hrm-Policy

Topics: Wage, Minimum wage, Employment Pages: 6 (2539 words) Published: May 21, 2013
EXECUTIVE SUMMARY
Wal-Mart, employing more than two million workers worldwide, has endured a great amount of criticism in the last decade, coming from both the workers as different research centers. More specifically, this critique is mainly directed towards the company’s HRM-policy. The purpose of this report is to examine whether Wal-Mart’s employment policy is beneficial or harmful for the welfare of an average worker. On the one hand, Wal-Mart argues that there are multiple advantages of the company’s HRM-policy. Firstly, the company’s policy of labor compensation is based on wages accompanied by both financial (e.g. 10% discount on merchandise) and non-financial benefits (e.g. receiving a life insurance). Secondly, Wal-Mart states in its Supplier Partner Standards that child-labor, both within the company itself and related to its suppliers, won’t be tolerated. Lastly, the company consists of a department founded specifically to strengthen the cooperation of a diversified workforce. On the other hand, keeping in mind these pro-Wal-Mart statements, there are still numerous morally inspired accusations directed towards this enterprise. To begin with, The workers earn a wage below self-efficiency forcing them to rely on public health and welfare programs. In addition, other retailers follow the company’s example, exacerbating the overall welfare of the labor force. Furthermore, notwithstanding the company’s anti-child labor policy, children are still continuously being employed in Wal-Mart stores. The critique ends with Wal-Mart being prosecuted by 1.5 million women regarding sex discrimination. The report concludes that disadvantages outweigh the benefits, branding the company’s HRM-policy as “immoral”. The solution provided in this report is to increase wages, significantly improving the living conditions of low-income families and slightly decreasing the welfare of the consumers.

T A B L E O F C O N T E N T S

A.INTRODUCTION…………………………………………………………………...............3

B.WAL-MART’S HRM-POLICY……………………………………………………………….3 1.ABOUT WAL-MART…………………………………………………………………………………..3 2.HRM-POLICY…………………………………………………………………………………………….4 3.CRITIQUE………………………………………………………………………………………………….4 4.SOLUTION………………………………………………………………………………………………..6

C.CONCLUSION……………………………………………………………………………………7

D.REFERENCES…………………………………………………………………………………….8

A. INTRODUCTION
The current society is being increasingly influenced by the leading companies all around the globe. On the one hand, these so called multinationals are private corporations seeking to maximize their profits. On the other hand, they take the role of economic trendsetters for their competitors, making their corporate decisions crucial for the every-day life of their customers. In relation to this, many new opportunities kept arising for these companies to increase their customer’s satisfaction and thus their profits. Nevertheless, these opportunities came hand in hand with new responsibilities, best described by economic terms as ‘corporate governance’, ‘public responsibility’ and ‘business ethics’. It is impossible to deny that Wal-Mart is one of these leading companies. Wal-Mart, being the most important public employer on the earth (Rediff business, 2012), is clearly a great target for investigation of its employment ethics. This is exactly the purpose of this business report. To begin with, some general background information about Wal-Mart and a more detailed part on the company’s HRM-policy will be provided. Next, the report includes an extensive investigation of the criticism expressed by both Wal-Mart workers themselves and the academics researching this topic. Lastly, this report ends with a possible solution to improve the company’s HRM-policy and a conclusion. B. WAL-MART’S HRM-POLICY

1. ABOUT WAL-MART
Wal-Mart (Wal-Mart stores, inc) is an international company, originally founded in the United States of America in 1962. About half of the...

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