About Walmart
Walmart, Inc. is an American company, the world’s largest wholesale and retail chain. Today Walmart is a system that includes more than 10,000 stores in 27 countries. They include both hypermarkets and department stores selling food and manufactured goods. The company’s founder decided to create a system of delivery and management of goods, ensuring the possibility of timely inventory replenishment. Founded by Sam Walton, the company has grown into a vast international corporation with sales both in physical stores and online.
Today, Walmart’s stock has a steady and long-term growth. The innovative competitive strategy chosen by Walmart to adapt to the changing environment has made it one of the most profitable (Ferrell & Farrell, 2016). The company’s compelling vision in a time of pandemics, protests, and competent cooperation with manufacturers indicates that it has chosen the best way to work. The organization’s primary mission is to regularly provide consumers with the necessary goods at an affordable price. Now, the chain is focused on restoring its reputation through charity actions and continuing a flexible pricing policy.
Walmart as a Successful Example of Good Ethics and Social Responsibility Policy
The company’s ethics and social responsibility management are built through numerous initiatives. Walmart has organized a dedicated ethics group that is busy monitoring orders on the factory floor. In addition, the organization invests a significant amount of money in necessary processes and procedures, such as organizing training sessions for more than 20,000 employees (Shah et al., 2020). Walmart has developed a strategy that allows employees to increase wages if they succeed in one-third of their stores (Caraway, 2018). The company additionally invests in proper social security (e.g., a health benefits package). Such an action allows for the provision of drugs that are not in mass production, which will reduce hospital costs by $25 million (Shah et al., 2020). Focusing not on profit but on improving working conditions allows the company to raise the minimum wage regularly and improve the quality of training and apprenticeships.
Walmart has also been concerned about the environment by developing renewable energy sources. In addition, the organization cares about creating as little waste as possible and selling safe products for humans and nature (Caraway, 2018). Partnering with local growers allows them to send quality products for sale and improve the economy of the region where the stores are located. The organization also invests in projects that eliminate the effects of natural disasters (Micic et al., 2022). In line with current trends, Walmart does not ignore economic opportunities for women by introducing equal pay.
A remarkable achievement of the company is establishing a special fund, which provides grants for employees under challenging circumstances. The organization is in constant contact with 150 factories and 65,000 women engaged in training and development of necessary skills for work (Micic et al., 2022). The partnership with Michelle Obama has resulted in Walmart continuing to develop health care initiatives. This action significantly reduces the cost of fruits and vegetables and minimizes obesity-causing products.
Evaluation and Critique of the Ethical Problems Faced by Walmart
Walmart has faced many problems throughout its existence, including corruption, gender discrimination, and poor working conditions. Similar problems are faced by most large companies now in the face of trends and developments in the equal rights movement. Researchers would be more surprised if Walmart did not face such phenomena. The company was able to find a way out by creating an exceptional ethics department that promotes a culture in the work environment (Rarick et al., 2018). In addition, the organization has a separate team that monitors compliance with standards and local laws in supplier factories. Walmart pays special attention to the wear and tear of electrical equipment and the safety of suppliers’ manufacturing facilities (Caraway, 2018). Management has chosen a policy of zero tolerance for non-compliance with basic performance standards and has given itself the ability to terminate agreements with companies that violate ethical standards. The company has fully satisfied the public and potential stakeholders with its timely response. This fact demonstrates that Walmart, as a retailer and employer, has successfully focused on people as an essential resource for the organization’s development.
Walmart’s Contribution to Economic Stability and Community Well-Being
Walmart has made green efforts that have reduced plastic waste by 38% since 2007. These efforts have allowed the organization to leave 70-80% of its waste in landfills in the United States (Micic et al., 2022). It allows for economic stability in the face of growing production and raw materials. The company is successfully implementing a plan to reduce its carbon footprint and requires action from all of its suppliers (Rarick et al., 2018). Executives emphasized that the principal value now is nature and people on whom economic stability depends, and therefore try to ensure that both factors are maintained.
Thanks to the reforms of recent years, Walmart did not flinch when the pandemic hit. The spring of 2020, terrible for most retailers, was a success for the organization. During the lockout, most people could get the products they needed in a safe environment (Micic et al., 2022). However, the pandemic also incurred additional costs for personal protective equipment and online services. Thus, the company ensured that customer welfare remained high through price controls and safe production. The organization has shown maximum customer support, establishing itself as a customer-oriented retailer. The Marketplace, with an unattainable 38 percent market share in the U.S., was one of the primary beneficiaries of the pandemic (Micic et al., 2022). In the future, the company expects to enter the drug market and turn its site into an advertising platform capable of competing with Facebook and Google.
References
Caraway, B. (2018). Collective action frames and the developing role of discursive practice in worker organisation: The case of Walmart. Work Organisation, Labour and Globalisation, 12(1), 7-24, Web.
Ferrell, O. C., & Farrell, J. F. (2016). Business ethics: Ethical decision making & cases (11th ed.). Cengage Learning.
Micic, R., Staletovic, M., & Kojic, N. (2022). Social responsibility in modern trade companies with reference to the Walmart trade chain. Oditor, 37(3), 50-62, Web.
Rarick, C. A., Williams, H., Barczyk, C., & James, A. (2018). Walmart de Mexico and the foreign corrupt practices act: Stepping over the border and stepping over the line. Journal of Leadership, Accountability & Ethics, 15(1), 1-8, Web.
Shah, K. N., Fischman, E., Mathers, M., Miller, S., Sepulveres, A., & Zhao, Y. (2020). Investigating a potential relationship between corporate social responsibility and financial growth. UF Journal of Undergraduate Research, 22(2), 1-34, Web.