Walmart ranks as the largest global retailer and an icon of American companies. The company has about 2.3 million employees across the globe and makes about $485 billion annually. Consequently, the company’s executive has several stakeholders that it must take care of and effectively manage their relationships. The company’s mission demonstrate its purpose in enabling people save money and live better fulfilled lives. Hence, the company uses low prices as its competitive advantage against its rival companies. The growth of the company demonstrates the capability of its management and organizational culture. However, the growth does not exempt the organization from facing ethical issues. Walmart faces both leadership ethical issues and bribery allegations, but its involvement in corporate social responsibility activities keeps the organization afloat in the market.
Walmart encountered different ethical issues but its effective response convinced stakeholders to keep their faith in the operations within the organization. The company has encountered both leadership issues and bribery claims, which questions ethic principles observed by the organization. Thomas Coughlin who was Walmart’s vice chair had to resign in 2005 because he stole $500,000 from the company that he used in bogus expenses such as paying for trips (Ferrell et al., 2019). He pleaded guilty of the charges leveled against him in 2006 for indulging in fraud activities and tax evasion. The company realized his evil schemes after a junior officer reported that the vice chair demanded approval of an extra $2,000 without issuing a receipt (Ferrell et al., 2019). Nevertheless, Walmart redeemed its image before its stakeholders through the leadership of Lee Scott as the CEO and they gained confidence in the organization. Another ethical issue associates Walmart with bribery allegations during its expansion where they acquired licenses using illegal means. The bribes helped to speed up the process of getting a license or changing zones such that the company build its store in a strategic location. The management managed to appease various stakeholders by taking disciplinary measures against involved parties that included compensation cuts. The ethical issues facing the company are significant, but the company managed to swing back to its operations by adapting measures that restored the trust of the stakeholders.
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Walmart has put measures that facilitates the involvement of the company in corporate sustainability practices aimed at improving the well-being of individual consumers and society at large. For instance, the company supports disaster management programs in several areas across the globe. The company runs a The Associates in Critical Need kit that offers help to individuals faced with natural disasters or even death of a spouse (Ferrell et al., 2019). Furthermore, the company also demonstrates its interest in economic programs that targets women empowerment by partnering with different companies aimed at providing women with training programs to equip them with specific skills (Goudreau, 2011). Other corporate social responsibility activities involves the partnership created between the organization and other companies in providing bottled water to communities living in Flint, Michigan, after a discovery members of society in the area consumed contaminated water. Subsequently, it is evident that Walmart has initiated programs and activities whose aim is to improve the lives of their people.
Evidently, Walmart encounters significant ethical issues in its operations that questions its ethics among its stakeholders. Nevertheless, the company has also put measures in place aimed at enhancing corporate social responsibilities. Walmart response to the various ethical issues has been key in facilitating the ability of the organization to swing back and progress with its operations after convincing stakeholders of its eligibility. On the other hand, the various empowerment programs helps the company to connect with consumers by engaging in activities of general good to participants.
References
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2019). Business ethics: ethical decision making and cases. (12th Ed.). Cengage Learning.
Goudreau, J. (2011). Wal-Mart to “Empower” Women? Forbes. https://www.forbes.com/sites/jennagoudreau/2011/09/14/wal-mart-to-empower-women/
