Globally, Walmart continues to adapt to meet the needs of the populace without compromising profitability. The multinational has not only managed to employ individuals in various communities, but it has done so while enjoying billions of dollars in revenue. However, although one could argue that the buyers should evaluate values, ethical business practices by entities matter to the people who are the sole consumers of what is offered. As such, Walmart's unethical issues include withholding personal mutual fund investments, mistreatment of employees, and failure of rationality on business conduct. Thus, it is unethical to purchase from the entity as a buyer, but the decision not to consume Walmart's products is not enough to stop the unethicality.
Indeed, Walmart is failing the ethical responsibility to its employees by offering low wages and mistreatment. The biggest losers in Walmart's ethicality are employees because their wages go hand in hand with prices. Still, as indicated, in Arkansas, employing immigrants means that the entity pays them how it wants because they do not have a right to protest as illegals. For instance, since the company focuses on economies of scale through low pricing, the increase in citizens' wages would perhaps mean an increase in prices or layoffs, which ultimately affects its business strategy. The entity has been on the receiving end of workers' lawsuits, including the $188 million class action in 2014(Reuters, 2014). Underpaying employees is illegal, but it is unethical not to care for workers' appropriate compensation given the time they put in.
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Although mutual funds assist in the growth of investment for individuals, it is unethical that the company uses the move to keep their buyers. Ghamdi and Dalain (2018) argue that there are 1050 mutual funds invested where the majority do not even know where their funds are invested, thus preventing investors from leaving due to criticality. Arguably, as an indirect shareholder, protesting the unethical acts would require withholding from the entity. Without providing adequate knowledge to shareholders, the entity lacks transparency in informing each shareholder about a possible investment.
Walmart underperforms on rationality by focusing on old strategies for their profit margin. The company holds on to revenue and profit by accepting slow growth. Their prices have undoubtedly slowed down inflation due to discounts, but they have also destroyed community small businesses that rely on locals for survival. Gereffi and Christian (2013) agree that Walmart underscores on sociology agenda by failing to change their business strategies from within. In pursuit of everyday prices, they cut costs for the wrong reasons including low compensations to keep up with the customer base.
Ultimately, shopping at Walmart is unethical, but boycotting the goods is not a sufficient cause of action. In the end, the company thrives on individualism with minimal attention to communities or employees. Despite their philanthropic work that promotes the notion that it is doing enough, the company centers attention on what would look admirable while, in reality, it is benefiting at the cost of workers and their localities. However, for consumers, the buying decision is motivated by personal benefits on whether one can afford products offered. As such, buyers cannot shift to other expensive chain stores only on the basis of ethics. Therefore, the quest for action should be on legislation to prevent low wages and protect local businesses from exploitation by multinationals. Indeed, Gereffi and Christian (2013) agree that without adequate laws, there is a risk that other competing stores will set standards that are too low, which is a threat to populations and the economy. After rendering the small businesses inactive, Walmart has a moral role in ensuring that the communities can thrive in its prime.
References
Gereffi, G., & Christian, M. (2013). The Impacts of Wal-Mart: The Rise and Consequences of the World's Dominant Retailer. Annual Review of Sociology .
Ghamdi, A., & Dalain, Dr. (2018). Ethical Trading in Corporate Social Responsibility: A Case of Walmart, Apple, and Canon. Asian Journal of Business Management . 10. 1-10.
Reuters (2014). Wal-Mart must pay $188 million in workers' class action. https://www.reuters.com/article/us-walmart-lawsuit-idUSKBN0JU1XJ20141216
