1.5.

7
It is important for the firms such as Walmart to be aware of the legal environment.
Compliance with labor laws will not only enable Wal Mart to avoid fines, but also enable them to
attract and retain good quality employees. In the case of walmart, forcing employees to work
during their rest breaks without pay not only directly influence the producitivity of the workforce.
If the labor law is observed, employees will be more motivated and loyal, leading to high
productivity, as they have sufficient break time. Meanwhile it is easier for the company to recruit
high-quality employees, because many people are more willing to linked to the company with
social responsibility.
On the other hand, adhering to equal opportunities legislation like paying is also men and women
the same rate of pay for equal worl is also important. WalMart's behavior make the company can
not attract female employees. If a position is more suitable for women, WalMart will lose a better
candidate. Meanwhile, employees' protests also damaged their reputation and business image,
which makes it difficult to attract customers and retain existing one.
Although unethical behavior can save the cost, in long term it will have detrimental impact on the
business which means the firms such as Walmart should be aware of the legal environment.