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Published bySibyl Robinson Modified over 9 years ago
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Wal-Mart Business Ethics
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Author Jon Lehman worked for Wal-Mart for 17 years, managing six stores in four different states before he left the company in 2001 to work for a union trying to organize Wal-Mart employees.
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Opening Price Point They did a study -- a very critical study, very thorough study -- and found that Wal-Mart was not always the low price. Customers will form an opinion that this is the best place to shop. The customers are duped.
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Relation to Suppliers Communication between Wal-Mart and their suppliers is a one-way relationship. These two are not partners. Move to China because it increases their profit margin
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Who is To Blame? Benedict Arnold CEO’s are not to blame. They are being forced to move offshore by the big retailers.
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Relations to Employees They said 90 percent of its workers have health insurance. But they may have it through their spouse's employer, who, by the way, may be a union employer. The union contract employer is actually bearing an undue burden.
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Employees poverty-level wage lousy benefits worked off the clock cheated out of overtime gender discrimination lawsuits
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Investors Book the products to their bottom line before they are sold.
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Author Nelson Lichtenstein teaches U.S. labor history at the University of California, Santa Barbara, where he is at work on a book about Wal-Mart and 21st century capitalism.
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Secret of Their Success Technology Communication Workers easy to replace so can tolerate high turnover Low-wage, low-benefit model Rise of Sunbelt
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New Model low-wage low-benefit rapid turnover Low skill immigrant labor High unemployment areas
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Re-defining Work The idea of two jobs, of temporary employment, of a very weak relationship to the employer -- that is, you may get fired at any moment or just quit -- that becomes the norm.
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Community Wal-Mart places an unfair burden on the public services of the local community. It relies upon social services to provide support for their employees.
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Fairness What you need to do is equalize and make complementary these two societies Labor standards Environmental standards
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Externalities An externality occurs when a decision causes costs or benefits to stakeholders other than the person making the decision. In other words, the decision-maker does not bear all of the costs or reap all of the gains from his action. With negative externalities, costs are shifted onto others.
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Current Issues Maryland lawmakers drafted a bill requiring organizations with more than 10,000 employees to spend at least 8 percent of their payroll on health benefits -- or put the money directly into the state's health program for the poor.
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Current Issues Wal-Mart, which has 15,000 workers in Maryland, was the only company that would be affected.
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Current Issues The Associated Press reported on the release of a new state study that shows Wal-Mart tops Massachusetts’ Medicaid lists, with 2,866 employees and their dependents costing Bay State taxpayers $7.9 million.
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Current Issues The company agreed to pay $11 million to settle claims that one of its cleaning contractors hired illegal immigrants, The Company is also battling a sex discrimination complaint filed by current and former female employees.
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