Case Study Assignment

Ques 1 –

Concerns have been raised about Wal-treatment Mart's of employees, suppliers, the
environment, and the company's overall economic impact on communities. Feminists, human
rights activists, anti-sprawl activists, and labour unions believe Wal-Mart has violated the law
in order to provide customers with low prices. Wal-Mart is estimated to save consumers
$100,000 billion per year. The entry of Wal-Mart into some markets reduces food prices by
25%, including savings from competitor price cuts. When competing supermarkets close,
union employees may lose their jobs. According to one study, total payroll wages per person
fell by nearly 5% in areas where Wal-Mart stores are located as a result of Wal-Mart driving
down wages. In 2005, Wal-Mart Watch obtained an internal document that revealed that 46
percent of Wal-Mart employees' children were on Medicaid or uninsured.

Wal-Mart prioritized its customers over its employees. It provides products at low prices,
increasing consumers' disposable income. It requires consignments from suppliers in a timely
and proper manner and is unconcerned about losses incurred by them. It never allowed the
formation of labor unions to be successful in terms of organization. It has squandered acres of
land by closing low-profit stores.

Ques 2 -

 Illegal Immigrants - Federal agents apprehended 250 illegal immigrants working on

cleaning crews at 61 Wal-Mart locations in 21 states. Even after agreeing to ensure
that no employees at Wal-Mart were illegal immigrants, federal, state, and local
authorities conducted another raid in November 2005, resulting in the arrest of 125
illegal immigrants.
 Poor Working Conditions and Low Benefits - Its own employees were not treated
humanely. They were not given food breaks, were not paid minimum wage, did not
have health insurance, and were beaten by supervisors.
 Ethical Leadership Issues - In January 2005, Thomas Caughlin, Vice-
Chairman, resigned as the company's second highest ranking executive – he was a
candidate for CEO. Caughlin pleaded guilty to charges of federal wire fraud and tax
evasion. Despite receiving millions of dollars in compensation, Caughlin secretly had
Wal-Mart pay for some of his personal expenses, such as hunting trips, a $2590 dog
enclosure at his home, and a $1359 pair of handmade alligator boots.
 Employees who are female or disabled - They pay women less than men and do not
give them leadership positions in the organization. Wal-Mart did not hire people with
disabilities.
 Suppliers - Wal-Mart is frequently in the news for its unethical and unfair treatment of
its various stakeholders. It requires its suppliers to consistently lower their prices by at
least 5% from one year to the next; if a supplier refuses or is unable to do so, Wal-
Mart will discontinue carrying the product or find another supplier for the product at
 the price they desire. Wal-Mart insisted on RFID tags on all products from all
suppliers, which proved to be costly for some.

Ques 3 –

Wal-Mart can take the following steps to improve its ethical culture –

 It should promote gender equality in all of its branches.

 Ethics and values should be instilled in all employees worldwide so that the
company's reputation is not jeopardized, as seen in the case of Thomas Caughlin.
 It should have an employee management and welfare committee that is well-
developed and monitored.
 It should prioritize its employees because they are in charge of running the store and
generating sales and revenue.
 It should be considerate of its suppliers and refrain from imposing its terms on them.
Only those who can meet the financial and quality requirements should apply.