Business Ethics & Corporate Governance

By Group 7

“There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else"

Sam Walton the co-founder of Wal Mart

• Headquartered in Bentonville, Arkansas

• Topped the list of Fortune’s Global 500 for the sixth time in seven years

• Over 2 million employees worldwide – one of the largest private employers in the nation

Q.1. Evaluate how Wal-mart has ranked and responded to various stakeholders

Ranking:1. Customers2. Society3. Suppliers4. Employees

Response to stakeholders

Customers - EDLP

Suppliers-Lowering of prices by at least 5% from one year to next year.-Implementation of RFID technology.-Dependence for sales due to size and volume of production.

-Movement of production centers to

cheaper locations.

Employee Discrimination

Female employeesSweatshop workersIllegal immigrantsLow benefits

Society

Violation of EPA’s storm water regulations

Q.2. Why do you think Wal-mart has had a recent number of ethical issues that have been in the news almost constantly?

Discrimination

• Gender discrimination• Disabled people being

discriminated

Sweatshop workers

No Union

Low benefits

Working Condition

Thomas CoughlinVice-chairman, Walmart stores

Q.3. What do you think Wal-mart could do to develop an improved ethical culture and respond more positively to its diverse stakeholders?

• A employee grievance committee can be formed

• Training to the store managers and other managers in the regional stores.

• Creation of healthy working environment at the workplace

• Making adequate payment to all workers

• Non inclusion of illegal immigrants