Crystal Miltimore Justin Bost Chris Nadeau

Background ► Newport, Arkansas, Sam Walton founder of variety store ► Rogers, Arkansas- First Walmart Store ► Walmart Stores was Incorporated ► 1970 – Trading as Publicly Held Company

Background ► 1972 – Listed on New York Stock Exchange (NYSE) ► 1988 – First Walmart Supercenter ► 1994 – Went International (Canada) ► 1998 – Neighborhood Market concept introduced

Background ► 2002 – Listed as America’s largest corporation on Fortune 500 ► 2005 – Energy efficiency moves ► 2007 – New slogan “Save Money Live Better” ► 2008 – New company logo “Walmart*”

Background ► Operating Segments  Walmart Stores US  Walmart Discount Stores  Walmart Supercenters  Walmart Neighborhood Markets  Marketside  Sam’s Club  Walmart International

Background ► World’s Largest Retailer/Employer  Over $404 Billion in sales in 2009  Approx. 8,159 Retail locations in 15 countries  Approx. 2.1 Million Employees ► International Locations  Mexico, China, Brazil, Canada, India, Argentina, Puerto Rico, Japan, United Kingdom

Background ► Governed by a 15 member Board of Directors (Hillary Clinton) ► Websites    ► Competition  Kmart, Target, Costco, BJ’s

Background  Walmart Strategies ► Low price everyday ► Effective inventory control ► Bargaining power over suppliers ► Global expansion for new market

Ethical Issues 1. Discrimination 2. Female Workers 3. Disabled Workers 4. Sweatshop Workers 5. Illegal Immigrants

Ethical Issues 6. Low Benefits 7. Poor Working Conditions 8. Unions 9. Leadership Issues 10. Environmental Issues

Ethical Issues ► Statement of Ethics - covers Associates, Directors, suppliers, consultants, law firms, public relations firms, contractors and other service providers  3 Basic Beliefs ► Respect for Individual ► Service to Customers ► Strive for Excellence

Stakeholders & Obligations ► Employees  Safe working conditions  Benefits ► Environment  Maintain safe environmental conditions ► Government  Pay Taxes  Financial Reporting

Stakeholders & Obligations ► Shareholders  Greatest return possible  Accurate reporting and Stock Prices ► Customers  Low Prices  Good quality products and services ► Suppliers  Continuance

Quote of the Day “There are really only two important points when it comes to ethics. The first is a standard to follow. The second is the will to follow it.” - John C. Maxwell, leadership expert

Core Ethical Values ► Commitment to employees ► Fairness  Discrimination ► Female workers ► Disabled workers ► Sweatshop workers

Core Ethical Values (cont.) ► Commitment to employees ► Fairness  Low benefits ► Health care, wages/ hours  Poor working conditions ► Denied rest breaks ► Reprimanded for claiming overtime

Core Ethical Values (cont.) ► Ethical behavior/ integrity  Poor working conditions ► Altered timecards  Illegal immigrants ► Suggested “shell companies”  Unions ► Thwart any union movements

Core Ethical Values (cont.) ► Ethical behavior/ integrity  Thomas Coughlin ► Corporate citizenship  Environmental issues ► Tennessee, Utah, California, etc.

Operational Issues ► Failure to comply  Settlements, penalties, fines ► Work environment  Could effect productivity ► Tone at the top  Failure to lead by example

Accounting Issues ► Bogus Expenses  Coughlin claims “anti-union expenses” for personal use  Understated expenses if overtime is being hidden ► Monopoly  Relationship with supplier allows manipulation of supplier prices

Response ► Improve Image  ► CEO- increase minimum wage ► Increase employee benefits ► Energy conservative measures ► Global Statement on Ethics ► Donations/Programs

Effects of Response

Critique Response