Walmart started as a retail store in 1950 with the first store bearing the name opened in Arkansas in 1962. Sam Walton who was the founder of the company, funded 95% of the first store. The mission was to provide lowest prices anytime and anywhere. The company was incorporated as Walmart Stores Inc. in 1957 after recording success in the areas where stores were existent (Muñoz, Kenny, & Stecher, 2018). The company went public in 1970 to grow its reach to more areas. Walmart became the number one retailer in the USA in 1990, and it has maintained this position to date. Despite the founder dying in 1992, Walmart’s headquarters are still located at Bentonville.
Mission Statement
The mission statement of the company is to save people money to ensure that they can live better. The founder’s words drive the company as well as seen from his assertions received the Presidential Medal Of Freedom in 1992. He said that it is possible to lower the cost of living for everyone and the world will be able to learn about what is like to save with the aim of having a better life by working together (Muñoz, Kenny, & Stecher, 2018).
Delegate your assignment to our experts and they will do the rest.
Products and Customers
Walmart sells various products for all customers regardless of age, income, and race. The company has opened thousands of stores across the United States with the aim of reaching more clients in the market (Reich & Bearman, 2018). Its products include movies, music, and books, clothing and shoes, food and household goods, auto, furniture, baby products, electronics, sports, and games (Green, 2018). Although it did not have many products when it started, Walmart has been able to expand its brand portfolio to meet the growing needs of the consumers in the American market. The company does not have a specific target audience, but it aims at attracting all the possible customers to the company.
Sales Figures
The company has been able to record an increase in sales in the last couple of years especially when it comes to electronics and grocery segments (Green, 2018). In 2017, its sales were around 481.32 billion US dollars, which was an increase of 0.8% from the previous year (Muñoz, Kenny, & Stecher, 2018). In 2017, Walmart had about 11000 stores around the world, and this number is expected to increase as the company continues with its program to expand into some of the emerging markets. The company’s market share was at 26% in the USA as of 2017.
The State of Diversity at Walmart
The company has always tried to position itself as one that promotes diversity at all times. This is done through the process of ensuring that it has an inclusive workplace where all the employees working in the organization feel empowered to continue working in the organization (Muñoz, Kenny, & Stecher, 2018). With a population of about 1.5 million employees in the US, the company has 22% being African American, 14% are Hispanics, 4% are of Asian origin, while Native Hawaiian and American Indian making 1% of the population at the organization. This shows that diversity is at the core of its activities and that every employee is welcome in the company regardless of their ethnic or racial background.
Diversity is not only in regards to racial inclusion but also gender. The company has 55% of those associated with the company being women. Consequently, women also make around 43% of the managers as well as 31% of the company’s officers (Green, 2018). To cement the existing diversity policy, all employees should uphold respect for the individual, always strive to uphold excellence, and ensure that all the actions are based on excellence and integrity. The issue of diversity in the organization extends to the communities where the associates live (Reich & Bearman, 2018). For instance, the company has always developed productive relationships with those organizations reflecting the diverse nature of the American society. The aim is to ensure there is collaboration on some of the issues that impact on the lives of the consumers and neighbors. Working with these groups helps the company stay in touch with the communities where it operates in and also ensures that Walmart position in the industry as a company that handles its corporate social responsibility remains undefeated.
Walmart constantly invests in diversity causes with the aim of improving the lives of the communities. This is achieved through funding initiatives such as education, health, and training of the associates. The investment helps improve the lives of thousands of people living in various communities across the globe. With the expansion into some of the emerging markets, Walmart will look to spend more on diversity initiatives, which will put the company closer to the community.
Situational Analysis of the Company’s Title VII Compliance Issues `
Walmart has always faced some challenges in regards to compliance with Title VII of the Civil Rights Act of 1964 (Green, 2018). Title VII of the Civil Rights Act of 1964 is a law that usually prohibits all employers in the USA to discriminate employees based on sex, race, color, national origin, or religion (Liu, Macgill, & Vora, 2016). This Act applies to employers who have more than 15 employees. Title VII forbids any form of discrimination in any aspect of employment that includes hiring and firing, compensation and classification of employees, transfer and promotion, layoffs, job advertisements, recruitment, testing, and payment.
Based on research, Walmart has been able to deal with all the issues that pertain to racial discrimination. The company has one of the most elaborate diversity models in the United States as each race is considerably represented in the workforce. However, it has been recording an increase in lawsuits filed by current and former employees for discrimination based on sex (Green, 2015). For instance, the company has been accused of discrimination against women in the hiring process where women were not hired in warehouse jobs while their male counterparts were allocated slots (Liu, Macgill, & Vora, 2016).
For example, in 2010, the company entered into an agreement with the court on how to settle a legal suit by paying $11.7 million in back wages as well as compensatory damages (Green, 2015). This occurred after some women sued it for giving priority to women in warehouse jobs instead of allowing equal opportunities. The court was able to establish that the process of excluding women from positions of employment and excluding them from some positions as a result of gender is a violation of Title VII of the Civil Rights Act of 1964 (Lewis, 2018). However, the company has been commended for its practices of allowing women to work in their facilities and that they make around 53% of the total employees.
The other challenge that the company has faced in regards to Title VII compliance relates to the payment of women compared to men (Hirsh & Cha, 2018). Walmart has been sued for sometimes for discrimination against women and paying them lower wages as compared to men despite the women doing the same jobs or even holding superior positions. In the early 2000s, the company was sued for discrimination against its female employees when it comes to promotions, payment, assigning jobs, and training (Lewis, 2018). Walmart was seen as retaliating against those who opposed some of the unlawful practices of the organization. It was said that most of the employees worked in the lower paying hourly jobs, they earned less than the men doing the same jobs, and were not given promotions to management positions and in case they were promoted, the promotions occurred slowly compared to their male counterparts (Liu, Macgill, & Vora, 2016). The company had an ongoing and continuous pattern and practice of intentional sex discrimination as well as reliance on policies and practices that hurt female employees (Hirsh & Cha, 2018).
In recent years, the company failed to consistently post some of the job and promotion announcements so that all the employees get an opportunity to apply. The concept of favoring pre-selected men for promotions discouraged women from seeking these promotions (Hirsh & Cha, 2018). Although Walmart has been at the forefront in denying any wrongdoing, some of these allegations tarnish its name and put it at risk of paying millions of dollars in solving the lawsuits (Liu, Macgill, & Vora, 2016). Title VII sought to protect the interests of the employees and ensuring that no one is discriminated against based on their sex, race, and religion.
Walmart has also been sued for pregnancy discrimination in some of its stores (Liu, Macgill, & Vora, 2016). The company also refused to accommodate some of the worker’s pregnancy-related medical restrictions. It was argued that despite Walmart having a light duty program that is allowed for employees with lifting restrictions, it deprived some of the pregnant workers the opportunity to participate in the program, with can be classified as discrimination and a violation of federal law (Green, 2015). Discrimination against pregnant mothers is a violation under Title VII of the Civil Rights Act of 1964. The act as amended by the Pregnancy Discrimination Act prohibits any pregnancy discrimination in employment. The lawsuit filed in 2018 was reached after EEOC failed to reach an agreement with the company.
The arguments concerning how Walmart deals with Title VII violation indicate that despite the company making some progress, there is still room for improvement in some areas (Liu, Macgill, & Vora, 2016). Discrimination not only tarnishes Walmart’s name but also makes it lose much money if it is found to have violated Title VII (Lamm, 2015). With the company facing much completion from other retailers, it is bound to be on the losing end as consumers are becoming more concerned about how the company manages its employees.
SWOT Analysis
|
Strengths A strong diversity foundation in the workplace Training on how to implement diversity in the workplace A diverse workforce |
Weaknesses The attitude of some managers Discrimination issues in some stores Misinterpretation of the company’s policies |
|
Opportunities Enhance awareness across the company on the need to uphold diversity. Training managers on how to ensure compliance with Title VII |
Threats Lawsuits that prevent the company from making any progress The rigidity of the management towards implementing measures to ensure compliance. |
Walmart has taken measures to ensure that it complies with all the requirements set by the law. For instance, it has ensured that both men and women have an equal chance of getting employed in the company (Lamm, 2015). As pointed out earlier, Walmart has 55% of its employees were women and 43% of those in management (Green, 2018). Managers are also trained in ways to promote all the elements of diversity in the organization. With an effective training program in the company, all the employees are required to treat their colleagues with respect (Liu, Macgill, & Vora, 2016).
Despite the strengths t, some weaknesses prevent Walmart from staying free from lawsuits. One of the weaknesses of the initiatives is the attitude held by the managers in regards to how management practices in the company should be managed (Green, 2018). Some of the managers have been found to violate federal laws by taking part in some discriminatory practices towards women. For example, transgender individuals have been discriminated against by being fired for attempting to fight for their rights at some point while working at the company (Lamm, 2015). Some of the managers are more concerned about results and not the wellbeing of individuals. The managers misinterpret the company’s policies to mean that all the stores should focus on getting good results.
Walmart has opportunities to enhance awareness across Walmart on the importance of diversity. Managers should also be trained on some of the best ways to ensure that no one working the company will feel discriminated based on all the factors outlined under Title VII (Lamm, 2015). Training managers and ensuring there is a task force aimed at guiding on matters compliance with Title VII provisions will also help the company reducing the number of lawsuits. Some threats prevent Walmart from attaining its desires of being free from any discrimination (Lewis, 2018). One of the threats that Walmart faces is the rigidness of some of the managers. Resistance to change prevents a company from implementing change (Liu, Macgill, & Vora, 2016).
Leadership Commitment
Walmart’s management is fully committed to ensuring the respect for diversity in the workplace. The commitment ranges from promoting those employees who respect diversity and providing training on some of the management practices that may bring some challenges for the company. All managers are required to ensure that there is no discrimination based on sex, religion, color, race, or nation of origin (Liu, Macgill, & Vora, 2016). The management has not only embarked on coming up with a plan on how employees should report discrimination cases but has also ensured that action is taken against managers and stores that have been implicated when it comes to discrimination cases.
Consequently, the company’s management has ensured the existence of measures aimed at providing equal opportunities for employees regardless of gender (Lewis, 2018). For instance, African Americans make around 22% of the total employees working in the organization. Latinos, on the other hand, make around 14% of the total population of the company. Therefore, the hiring practices are not discriminatory and that all potential employees get an opportunity to work in the company. With the workforce being diverse, the management has a simple task when it comes to being able to meet the goals of eradicating discrimination in all the affairs of the company.
Walmart’s management has also ensured that lawsuits are handled amicably where Walmart has been found culpable of any violation. The management had always admitted wrongdoing when necessary and sought out of court settlement for some of the lawsuits to ensure that the reputation of the company and the dignity of those affected are upheld (Green, 2015). By managing the affairs transparently, the management can ensure that there is considerable progress in trying to eradicate the vices found to hurt the company.
Action Plan
Despite the challenges faced by Walmart concerning the violations, the management can adopt various strategies to ensure that it is Title VII obedient. The first step relates to identifying some of the common and frequent violations that occur in its premises. This will ensure that enough effort is dedicated to solving the problems that are most likely to occur (Liu, Macgill, & Vora, 2016). Discrimination majorly occurs in the hiring and placement segments. Therefore, the management should ensure that all stores have a transparent hiring process to ensure that all the interested parties are given an equal opportunity in getting a slot in the company (Liu, Macgill, & Vora, 2016).
To prevent all the lawsuits because of the promotional strategies, Walmart should focus on recruiting and promoting from within before seeking new individuals when no one can fill the slot (Green, 2018). Promotion should not be based on gender but merit and experience. This means that both men and women will have equal opportunities to be promoted. Promotional initiatives should be implemented in a transparent manner that is understood by all the employees.
The third action relates to training managers on how to comply with Title VII requirements. Issues to do with sexual harassment and job assignments are some of the issues that managers have to face when it comes to the management of employees in the company (Green, 2015). The training of managers and making them understand the importance of ensuring compliance with Title VII is the first step towards ensuring there are reduced lawsuits against the company (Lewis, 2018). The training program should be regular to ensure improvement in areas where the company is lagging. Research conducted by Liu, Macgill, & Vora (2016) shows that some of the discrimination stems from diversity issues in the workplace. Managers should be trained on change management initiatives where they are to foster change in the organization by passing the knowledge gained from training to the employees or the subordinates.
Lastly, the company should foster an organizational culture that promotes diversity at all times and ensures that all the employees are treated with dignity. The management should empower the HR department to deal with some of the issues that pertain to discrimination. Of importance, is to ensure that all the employees working in the organization understand the need to promote diversity at all times. The culture should be enhanced from the management to the subordinates.
Overall, workplace discrimination is a common problem in many organizations. Sometimes, organizational managers may know or may not be aware of their occurrences incidences because of the poor policies related to workplace diversity. Walmart is one of the leading American firms that have previously been embroiled with cases related to Title VII that prohibits the discrimination of persons in workplaces because of their uniqueness. The case study, however, shows the company’s commitment to managing the situation as seen from its improved hiring and placement policies. Some of the recommendations include training the managers and emphasizing the company’s commitment to eradicating the problem in all its stores.
References
Green, T. K. (2018). Wal-Mart v. Dukes Rewritten. Ann C. McGinley & Nicole B. Porter, eds., feminist judgments: Employment discrimination opinions rewritten (Cambridge Univ. Press, 2019, Forthcoming) .
Green, T. K. (2015). On employment discrimination and police misconduct: Title VII and the Mirage of the Monell Analogue. BUL Rev. , 95 , 1077.
Hirsh, E., & Cha, Y. (2018). For law and markets: Employment discrimination lawsuits, market performance, and managerial diversity. American Journal of Sociology , 123 (4), 1117-1160.
Lamm, K. E. (2015). Work in Progress: Civil Rights Class Actions after Wal-Mart v. Dukes. Harv. CR-CLL Rev. , 50 , 153.
Lewis, J. (2018). Class action trends report Spring 2018. Labor Law Journal , 69 (2), 85.
Liu, C., Macgill, E., & Vora, A. (2016). Sex Discrimination Claims under Title VII of the Civil Rights Act of 1964. Geo. J. Gender & L. , 17 , 411.
Muñoz, C. B., Kenny, B., & Stecher, A. (Eds.). (2018). Walmart in the global south: Workplace culture, labor politics, and supply chains . University of Texas Press.
Reich, A., & Bearman, P. (2018). Working for respect: community and conflict at Walmart . Columbia University Press.
