Introduction
The majority of enormous corporations that create products belonging to the low-cost segment manage to make a profit at the expense of their employees. This is particularly true for employees working in customer service at companies such as Walmart. In such corporations, workers are typically underpaid or paid a minimum wage while forced to work overtime.
The working conditions for this type of worker continue to worsen while the corporation keeps growing, meaning that more individuals will be forced to suffer from the lack of benefits. In 2024, Walmart is planning to open another center on Yonge Street. Whether the government should interfere and stop unethical businesses from developing new projects is controversial. From a utilitarian standpoint, the government should consider allowing the opening of a new Walmart because the business brings benefits to society, such as contributions to food security, job creation, and access to affordable goods.
Definition of Utilitarianism
Utilitarianism is an ethical theory that analyzes actions based on the negative or positive consequences that these actions have. The goal of utilitarianism is to maximize the well-being of as many individuals as possible despite possible adverse effects that can also take place (Hayry, 2021). Utilitarianism looks at the overall outcome and weighs and compares the advantages and disadvantages. The advantages must outweigh the disadvantages, and the morality of an action is determined by its ability to produce the most significant net utility (Hayry, 2021). This means that happiness should be greater than unhappiness for most people directly impacted by a specific action.
In the case of Walmart’s opening a new center, the government would need to consider whether the positive impact of another Walmart and Walmart’s business operation outweighs the negative impact on the employees. It would be necessary to evaluate how society benefits from Walmart’s hypermarkets and whether the failure to open a new supercenter would bring more harm than good. It is also essential to consider how unethical business practices affect society.
Food Security
One of the reasons why the government should allow the opening of a new Walmart is its contribution to food security nationwide. Walmart is a company that creates low-cost products available to all sections of the population, particularly the most vulnerable ones. There are several ways in which Walmart benefits society by ensuring food security. Courtemanche et al. (2019) state that “research has shown that Walmart Supercenters lower food prices and increase food availability” (p.177). The most essential food items, such as fruits, vegetables, grains, and proteins, are offered at competitive prices at Walmart. This helps many families who are in a disadvantaged position to ensure that their nutrition is not affected.
In addition to offering affordable food products, Walmart contributes to food security through availability and convenience. Walmart operates thousands of stores across the United States and other countries, such as Canada, and many in rural and remote areas with little to no other food sources (Courtemanche et al., 2019). Many individuals’ access to food depends directly on the presence of a Walmart supercenter in their vicinity. In this case, forbidding Walmart from opening a new hypermarket on Yonge Street may lead to the populations living in the surrounding area not having food products available. On the other hand, convenience is another important factor, as Walmart hypermarkets are typically open for extended hours, which is essential for individuals with busy schedules and limited transportation options.
Overall, the above advantages benefit most of the population, particularly those in the low-income category. The supercenters allow individuals struggling with affording food products, living in remote areas, and having occupied schedules to satisfy their basic nutritional needs. On the other hand, the segment of the population suffering from Walmart’s unethical practices is much smaller; therefore, it can be concluded that it is more beneficial to allow the opening of a new hypermarket.
Job Creation
Despite Walmart’s unethical working practices, it contributes to employment growth and creates thousands of jobs internationally. Whenever a new store is opened, many jobs are created, providing unemployed people in the area with a source of income (Neebe, 2020). These jobs include store associates, cashiers, greeters, stock clerks, department managers, and more. As a result, individuals of many professions can get hired, reducing the unemployment rates and contributing to the income growth of the population.
In the case of job creation, careful consideration must be given to its positive effects and the outcomes of poor employee conditions. On the one hand, a high percentage of the jobs offered by Walmart are part-time, which is done to avoid providing employees with benefits given to full-time employees. This means that people are forced to receive a lower salary.
On the other hand, many people had no other option, and working part-time ended up being a better option than not being able to work at all. Moreover, many job positions are created indirectly: positions in transportation and logistics such as truck drivers, warehouse workers, suppliers, maintenance and repair services, security services, etc. In the end, more people benefit from the opening of new Walmarts than those hurt by it.
Impact on Local Economy
Opening a new Walmart would also give an impetus to the local economic development. The labor market is not the only sector of the economy that benefits from Walmart’s operation. Walmart hypermarkets also stimulate consumer spending and, thus, economic activity within the community (Crowley & Stainback, 2019).
Opening a new supercenter also implies establishing supplier relationships with local businesses by providing them with a stable customer and a source of revenue. This, in turn, can lead to business growth and expansion. However, it must also be considered that opening a Walmart hypermarket can be detrimental to local small businesses. A more significant business with competitive prices inevitably leads to some small enterprises quitting. However, the overall positive impact on the community will eventually outweigh this negative consequence.
Conclusion
The ethics of Walmart’s employment practices raise many concerns and harm many workers. Allowing the opening of a new Walmart on Yonge Street must be decided through a utilitarian analysis. When analyzed in this way, it becomes apparent that Walmart’s positive impact on communities is more important than its negative one. Walmart supermarkets contribute to food security, job creation, and local economic growth; therefore, the government should allow this project.
References
Courtemanche, C., Carden, A., Zhou, X., & Ndirangu, M. (2019). Do Walmart supercenters improve food security? Applied Economic Perspectives and Policy, 41(2), 177-198. Web.
Crowley, M., & Stainback, K. (2019). Retail sector concentration, local economic structure, and community well-being. Annual Review of Sociology, 45, 321-343. Web.
Hayry, M. (2021). Just better utilitarianism. Cambridge Quarterly of Healthcare Ethics, 30(2), 343-367. Web.
Neebe, K. (2020). Sustainability at Walmart: Success over the long haul. Journal of Applied Corporate Finance, 32(2), 64-71. Web.