Walmart is a US-based international retailer that has raised many controversies. You might wonder: is Walmart unethical? This business ethics case study answers this question based on research. From this paper, you’ll learn about the Walmart business practices that can be considered immoral. The essay covers problems and ethical issues with employees, bad organizational culture, and unfair pay practices.
Walmart Unethical Business Practices: Introduction
Wal-Mart is one of the biggest retailers in the United States. It sells its products all over the world and is considered to be a kind of a role model for the vendors nationwide and worldwide. Regardless of Wal-Mart’s popularity, its image among the clients is not that optimistic. It is even worse if one asks a Wal-Mart employee about how they are being treated (Wal-Mart Unethical Business Practices, n.d.). This company is a controversial topic for its numerous unethical business practices. Despite the advantage of the lowest prices in the market, it may seem like Wal-Mart is not able to offer anything else.
Walmart Unethical Practices: Case Study
For some reason, Wal-Mart does not let its employees join labor unions. Also, their salary is not as big as opposed to the employees working in unionized companies. Wal-Mart has also been found paying its employees who set up their colleagues that favored a union (Wal-Mart Unethical Business Practices, n.d.). It should be reasonable for Wal-Mart to treat its workers properly and encourage them instead of imposing on them a totalitarian type of management.
Another problem that is recurrently encountered by Wal-Mart’s employees is gender discrimination. Numerous lawsuits were filed stating that women were not allowed to take on the manager’s position simply because Wal-Mart is used to promoting men (Wal-Mart Unethical Business Practices, n.d.). There is a critical need to evade gender bias and let women hold more managerial positions than they do now.
Another way in which Wal-Mart discriminates its employees is salary. The workers are usually underpaid, and the trading giant justifies it by the fact that they are trying to cut costs to offer attractive prices to its customers (Wal-Mart Unethical Business Practices, n.d.). At the same time, Wal-Mart’s health insurance costs so much that the employees do not even have the funds to pay for it. Another issue that is regularly encountered by Wal-Mart workers is the company’s denial to pay for the overtime hours worked.
There were even occasions when employees were forced to work overtime without being paid for it. This might be the most vivid example of Wal-Mart’s unethical business practice. The company’s rules proclaim that the workers should be paid for every minute that they stay at work, but a vast number of complaints connected to the salaries might hint at the point that there is something wrong with Wal-Mart and its wages (Wal-Mart Unethical Business Practices, n.d.). Unarguably, the company should step up and realize the issues of gender and wage discrimination. This is the sector where most work requires to be done.
On numerous occasions, Wal-Mart was blamed for using illegal immigrants as workers. The vendor was accused of breaking several immigration laws (Wal-Mart Unethical Business Practices, n.d.). Despite the allegations, the company declared that it was the fault of the contractor. Both Wal-Mart and its contractor did not do enough background research and dishonestly employed people who were not allowed to work on the territory of the United States. It may be reasonable for Wal-Mart to check their applicants’ identification documents, previous work experience, and references (if available) before they become Wal-Mart employees (Wal-Mart Unethical Business Practices, n.d.).
Walmart Ethical Issues: Conclusion
To conclude, the company should treat its employees with respect. Wal-Mart might try minimizing the number of events that involve prejudice and unfair treatment. It is essential to empower the workers instead of discouraging them.