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Published byBryan Heath Modified over 9 years ago
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Group 2: Clara Nadya David Christian Ghifari Fadiama nto Nadia Febianita Peter Ronald Reonard Chandra
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Introduction
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Wal-Mart’s History 1945 Sam Walton started business by franchising a convenience store 1946 Sam Walton’s brother followed Sam Walton’s Path 1962 Wal-Mart Discount City was first established 1984 3 Sam’s Clubs was opened in this year for the first time 1988 Wal-Mart supercenter built for the first time 1992 Wal-Mart started to expand internationally 1999 Wal-Mart opened the first Neighbourhood Market 2006 Wal-Mart had $90 billion in this year
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Wal-Mart’s Business Model Wal-Mart has 2 main segments Wal-Mart Stores and Sam’s Clubs Wal-Mart stores has 3 product line Discount Stores Supercenters Neighbourhood’s Markets Sam’s Clubs Memberships warehouse clubs Aimed at small business, large family and non- profit organizations
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Implementing a Stakeholder Perspective
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Step 1: Assessing the Corporate Culture Mission Corporate Culture Value Norms Social Responsibility Program
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Corporate Culture Three basic beliefs : respect for the individual, service to their customers, and striving for excellence. Market orientation : focusing on customers, defeating competitors, and increasing shareholder value. Committed to “improving the standard of living for their customers throughout the world.” Key strategy “broad assortment of quality merchandise and services at everyday low prices (EDLP) while fostering a culture that claims to reward and embrace mutual respect, integrity, and diversity. Costs Low for EDLP
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Step 2: Identifying Stakeholder Groups
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Step 3: Identifying Stakeholder Issues Suppliers Wal-Mart is well known for its operational excellence Expect suppliers to continually improve their system (turun 5% per tahun) Jika tidak, akan mencari supplier lain (Pressure) Technology RFID Increase supplier cost to install RFID technology
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Suppliers Product Quality Wal-Mart wants low cost version Move Production From United States from cheaper locations, such as China
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Employee Female Employee Promotions, Pay, Training, and Job Assignments Disabled Employees Deaf applicants Rejecting a pregnant applicant Disabled Sweatshop Workers Paid below minimum wage in their country
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Employee Illegal Imigrants 250 illegal imigrants at 61 stores in 21 states Make “Shells” Companies Low benefits Work Hours High Tax Health Insurance Breaks Time
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Competitors Decrease in Wages (3.5%) Local Residents Lose Their Jobs
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Environment Tidak memenuhi Environment Requirement Stormwater Regulation
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Step 4: Assesing Organizational Commitment to Social Responsibilty Matching social responsibility and corporate culture Satisfying all stakeholders with the risk of: Increased cost Reduced profit margin
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Step 5: Stakeholders Issues Primary Stakeholder: Supplier Employee Government Secondary Stakeholder: Environmental Groups Media
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Step 5 : Possible Solutions Primary Stakeholder: Supplier -> Decrease price cutbacks (< 5%) Employee -> Increase Welfare (wages, insurance, benefits, working conditions) and Improve HR Government Regulatory Agencies* -> Comply with Regulations Secondary Stakeholder: Environmental Groups (EPA) -> Comply buildings with Environmental Requirements Media -> Clarify facts and CSR
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Step 5 : Determining Urgency Stakeholder Issues Resources (Financial & Organizational ) Pressure from Stakeholder Urgency SupplierPrimaryPressure on cutting priceHigh Least Expected5 EmployeePrimaryWelfareMedium Highly Expected1 Government Primary Economy and EnvironmentMediumExpected2 EPA Secondary EnvironmentMediumExpected4 MediaSecondaryCompany ImageMedium Highly Expected3
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Step 6 : Gaining Stakeholder Feedback 1. Stakeholders general assessment through satisfaction or reputation surveys
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2. Gauge stakeholders’ perceptions stakeholder generated media such as blogs, websites, podcasts, and newsletters can be assessed.
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3. More formal research may be conducted using focus groups, observation and surveys
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Alfamart Case (South Sulawesi, 2013) Perjanjian kerja sama antara peritel dengan pekerjanya di luar UU Ketenagakerjaan. Perjanjian HANYA menguntungkan pihak peritel dan disimpan sendiri Pihak peritel menahan ijazah asli, membebankan penggantian barang hilang dan kadaluarsa, mewajibkan karyawan laki-laki menginap di toko sebagai ganti security Mengakibatkan utang karyawan bervariasi dari Rp4 juta hingga Rp15 juta.
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Summary Wal-Mart sparks ethical issues (mainly) concerning the following stakeholders: Supplier Employee Government Environmental Groups Media Wal-Mart must resolve it’s ethical issues, even if it results in an increase of cost The Alfamart Case(2013) is another case where the company is punished when an ethical issue is left unresolved
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