Wal-Mart has been featuring in the press for many wrong reasons including ethical issues such as gender discrimination, underpaying of employees, poor workplace conditions, health
WALMART MANAGES ETHICS AND COMPLIANCE CHALLENGES 4 insurance issues, union resistance, poor environmental maintenance, and use of labor from illegal immigrants. Thus, on many occasions, the company has been associated with different ethical issues in an attempt to increase the stockholders' wealth at the expense of its workers. For instance, Wal-Mart has been judged for violating labor laws in various states by firing workers on strike (Martino, 2015). In some instances, the company has been accused of punishing sick workers and even denying them sick leaves. Thus, Wal-Mart has subjected its employees to various economic and social issues while it maximizes on the profits to its shareholders. The company choose to keep the production cost low by lowering the salaries and benefits of its employees so that they can offer products to its customers at a lower price, as a strategy to attract more customers and also keep them coming back for more. Hence, Wal-Mart has been criticized by human rights groups and other social organizations for its low price strategy which exploits its employees (Hirsh & Cha, 2018). Also, the organization has been involved in different high profile court cases over the allegations of gender discrimination. Some female employees have been complaining about mistreatment in the company in comparison to male employees. Most of the women employees complain of low wages and lack of consideration in job promotions and management opportunities. Wal-Mart is said to employ more male manager than female leaders, and this creates the issue of gender imbalance and inequality. Thus, the female workers complain that the male counterparts are given more privileges than them (GALHERA, 2018). Additionally, Wal-Mart has been accused of poor working conditions such as lack of proper breaks whereby employees are not given sufficient time for lunch break. Wal-Mart is also facing legal and regulatory issues. This includes abuse of migrant workers. The company uses illegal immigrants as its workers and pays them lowly with the aim of minimizing its cost of production. Wal-Mart has also been associated with violation of
WALMART MANAGES ETHICS AND COMPLIANCE CHALLENGES 5 environmental rights. The company has been accused of violating the Clean Air Act, Clean Water Act, and other health safety regulations by unlawfully using and discharging of harmful materials. This was experienced in some of its retail stores across the United States. For instance, one of its stores in Kansas City confirmed to responsible for the violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) after it was reported for mishandling pesticides. Consequently, Wal-Mart has been subjected to penalties to compensate for the damage incurred by its employees and the environment. By violating human rights and
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- Fall '14
- Business, Supermarket, Sam Walton, Wal-Mart Stores, Discount store