Wal-Mart is the world's largest company and is continually growing. In 1962 Sam Walton founded Wal-Mart, he urged employees to be economical in their job and friendly to customers. He gave bonuses to employees in stores where stealing and other losses were kept below 2 percent of sales, assisted with college scholarships and cared about the community.
From the time of the death of Sam Walton in 1992, Wal-Mart has pointlessly hurt the image and success Sam Walton built, through its stakeholders. Sam Walton knew that the stakeholders hold the key to the environment in which an organization operates and to its operating performance. Wal-Mart has lost sight of that innovation as their reputation has downturned because they mistreat their employees.
Walmart pays its employees below poverty level. Over one third are part-time which means they do not qualify for benefits. The full-time employees that do qualify for benefits can't afford them because the health package Wal-Mart offers costs employees thirty five percent of their salary. Walmart was built on great values, yet; their employees are being ignored.
Walmart's unethical business practice has affected communities and the people that live in them. Wal mart does offer the communities low prices and convenience, but to what extent?
When a Wal-Mart is built in a community it takes over its economic base, whereas running other local businesses in the community out of business. Surrounding communities have paid the price because of Walmart's lack of ethics, Walmart pressures suppliers to lower their prices, and once they match the same price demands as Walmart they either go out of business or bankrupt. Nationwide these damaging effects are one of the largest issues in causing unemployment. With the employees paid at poverty level, they've had to trust on government assistance. Walmart can have lower prices because, production of goods and wages paid in third world countries are cheaper. This has a direct impact on the U.S. economy because massive amounts of jobs are sent overseas
I have a few friends that work for Walmart and I was aware of how they treated their employees, and somewhat new that they drove small businesses under. Yet, there was a story in the case study that I found compelling. It read how you can purchase a lightbulb for 10 cents cheaper at Walmart than you can at John Hichborn's hardware store. But, did people know that John Hichborn is a major contributor to the local handicapped school by finding jobs for the handicapped. If Hichborn goes out of business because people want a cheaper light bulb, a lot more is lost than just the tax revenues that business generated. I firmly support family and small shops in my area. I network as much as I can to the appropriate people. I see the scenario very devastating because the community really is at a loss and the sad part is it is all for profit. Walmart may be a multi-billion-dollar company. But the way they perform business practice in unethical.
In conclusion, The Walmart company should show their stakeholders that they value them. By giving their employees am small increase in wages and reasonable health benefits. As lower prices are important to Walmart, what is more important is the negative impact they cause on our nation's general economy. It is hard to understand why such a successful American company would make unethical choices that only enrich their financial gain. A profit is important to a business, but not at the stakeholders' expense.
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