Buddhism and Business Ethics (602), Wal-Mart case (2)
Question 1What financial impact do you think lawsuit could potentially have on Wal-Mart?
We all know, Wal-Mart is the biggest or largest retail store in the world. Naturally, their earningand employees are also more compared to other corporate. The lawsuit against the company wasnot the company needed when they were facing other legal issues such as the child labor andemployment of illegal immigrants. The lawsuit was filed by six women who say women weretreated lower than the male even if they acquired equal posts, qualification and experience.The news already reached every household, street and public place thus bringing the name of thecompany down. This could have a huge impact on the company’s earnings and here we are notsaying in terms of hundreds or thousands of dollars we mean millions and billions of dollars.Some of the impact could occur in the following forms:
The six women who filed the case against Wal-Mart are not only asking the company payfor the unfair deed but also asking them to pay back and compensate for all 1.6 femaleemployees against whom Wal-Mart discriminated. This would cost the company a fortunebecause these 1.6 female workers were entitled to promotions, salary increment, trainingsand other such things. To compensate or reimburse that much amount for that muchworkers would surely have a huge and major impact on the company’s financial position.
The other way how this lawsuit could affect the company’s financial position would bethrough the transaction or sales. Since major part of the shoppers constitutes women, after hearing what Wal-Mart has done and how women are treated at Wal-Mart they wouldcertainly feel insecure and ripped off. They would turn their backs and look for a better place to shop. This would lead to a fall in sales and increase in competition.
Other thing is the reputation and goodwill of the company. The lawsuit already hasbrought the name of the company down and on top of that if the company fails to win thecase, then the company would suffer a huge fall of share in the market. They would evenhave to close most of the stores and start all over again which would be impossiblelooking at the current market situation and all the competition worldwide.
Pema Zangmo (682),2011