Ethical Issues of Wal-Mart
Wal-Mart was founded by Sam Walton. The first store was opened in year 1962 in Rogers, Ark. It is the place where people can shop variety of products for low prices and is leader in discount retailing. Wal-Mart is one of the biggest retailers in USA and has hundreds of stores worldwide. Being the lowest retail outlet Wal-Mart is always criticized by many groups. Community groups, Labour unions, religious organization and environmental groups had protested against Wal-Mart for their business practices and company policies. Wal-Mart is also criticized for foreign product sourcing, environmental practices and security policies.
Wal-Mart is facing many controversies for their unethical business practices. Some of them are mentioned below: - Open Door Policy and bribing employees
In ‘Open door policy’ of Wal-Mart employees can directly take their complaints, thoughts to management. Wal-Mart feel that there should be no involvement of the third party therefore Wal-Mart employees cannot be a part of any labour union. And this policy effect employees in many ways. First of all employees are paid low wages at the start than unionized corporations and due to this many employees leave the corporation and have to search for the new job. According to National Labour Relation Act, employers must not discourage any of his employees to be part of any union or to form. But Wal-Mart prohibits his employees to do so. Even they are not allowed to talk to any to any union representative. In year 2005, a union filed the complaint with National Labor Relations Board, ‘alleges that Wal-Mart violated federal labor law by "bribing" employees to report on co-workers who favored a union’. But Wal-Mart called it ‘union’s pure fantasy’. It is said that US$500,000 was spent on anti-union activities by Thomas M. Coughlin, Former Vic-President of Wal-Mart. According to him that money was spent for welfare of the organization. Money was paid to people to keep...
Please join StudyMode to read the full document