Wal-Mart had been criticized for its worst CSR practices which includes low wages for the employees (Karen, 2004). Immoral activity of paying low for more and the overtime works had been held (Karen, 2004).The quantitative records of designations in the company showed that Wal-Mart had sexual discrimination in its organization (The Economist, 2004). Lastly, severely opposing formation of the union formation within the organization which include aggressive policies for union avoidance.
Employee compensation issues (Wages)
Wal-Mart failed to follow the stakeholder theory, in which the firm should possess moral and ethical responsibility over its employees. The lower salary to the workers for their prolong work was never justify under the management action. Kantianism states that pushing the labourers to work beyond their time bound may affect their social and personal life, thus it is not ethical. The sexual discrimination was the most abhorrent practice persisted: in which the promotions and high remunerative were reduced to women. The moral firm’s action should mind the corporate social responsiveness over their primary Stakeholders i.e) employees but Wal-Mart did not maintain the CSR properly.
Work off-the-clock is the moral practice is being follow in modern world by the companies to raise their bottomline. Dominance model of the firm amorally force the workers to work without the valuable benefits. Wal-Mart accepted to pay $ 4.83 million to workers for their overtime work (Hines, 2012). It’s critical to justifying that employees need to work until work has been done. It is completely based on the management model of the company. In some firms appointees were given with minimal work and they asked to finish it on time whereas immoral-management ethics followers pressurize their workers to finish max-work in less duration.
Alleged Sexual Discrimination (Appendix B)
With the evidence, it was proved that the firm had systemic discrimination in the managerial operations. The class-level imbalance statistics in Wal-Mart had shown that income disparity between the genders (Cullen, 2004). On the other side of the spectrum, the women’s personal responsibilities may be the cause of results’ imbalance. Women tend to oppose increased work responsibilities due to family responsibilities. In addition, there were less managerial post applications from women as compared to men (The Economist, 2004). In conclusion it is subjective to determine whether Wal-mart is guilty of sexual discrimination unless women are able to proof it under individual or smaller level. In US, statistics imbalances could be used as evidences of sex discrimination of an organisation.
Wal-mart will be proven guilty unless proven that causes of the statistics imbalances are as a result of employee’s contribution (Edward, 1999). Even not proven guilty, some of Wal-mart’s practices are unethical to a large extend. Stakeholder theory encourages organizations to be ethical towards their stakeholders (employees). It includes providing fair working environment and career prospect for all employees (Edward, 1999). About that, Wal-Mart should not neglect employees whom have more personal responsibilities from being promoted because having more personal responsibilities doesn’t represent compromised work standard. In conclusion, Wal-Mart was not violating any labour laws despite statistics’ imbalances unless the known of the cause is determined. However, ethically, it’s their responsibilities to ensure that they strike a balance for both sexes to avoid future misunderstandings.
Excessive power over stakeholders
Wal-Mart destroys local business, downtown areas and the fabric of local communities (Andrea & Sobel, 2006). Consumer buy at Wal-Mart and that’s
what puts these small businesses to close down because Wal-Mart is offering a superior product, more choices with lower prices. The pre-conventional level of Wal-Mart in the Kohlberg’s level of moral development resulted in the best firm development and quite worst stakeholder’s improvement. Their excessive power over the employees and the communities made them to work hard for Wal-Mart or made them to quit. But excessive power over employee is serious because Wal-Mart follows market capitalism model where on the other-hand the working class has little power and so the Wal-Mart exploits them. (Ryan, 2012)
The Amoral management of Wal-Mart stood against the union formation in order to avoid stakeholder’s attribute of power against firm. The Working Families of Wal-Mart were formed only as a counteract for the actions of special interest groups. Sam Walton failed to follow the Principle of justice by prohibiting the unions: which stands for the labour’s welfare. There must be an opposition party which point out the blunders likewise in the company, that work has been performed by the labour’s union. They must be there to raise voice for their well being and suggestions. So the union opposition will make the firm dormant.
Wal-Mart: Past and new allegations
In the year 2001, the largest sexual discrimination class-action lawsuit surfaced in U.S. history, in which 1.6 million Wal-Mart women employees were involved. By 2011, Wal-mart eventually won the 10 year old case as Judge ruled in favour of Wal-mart, claiming that class-action law-suit of that size is difficult to prove that Wal-mart is guilty (Wal-Mart Stores, Inc. v. Dukes, 2011). In the year 2012: Betty Duke, the plaintiff from case: “Wal-Mart Stores, Inc. v. Dukes, 2012” had filed a new lawsuit to Wal-Mart. On the second time instead of 1.6 million class action suits, it had been reduced to 45,000 employees from California’s Wal-Mart were indulged (Dave, 2012).
After the successful launch of the health-care initiative in U.S by the president, Wal-Mart has supported its employees in the health insurance.12.57$ has been paid for the Wal-Mart employees per hour (Benson, 2012). And their work is reduced to the most and comparatively they having 28% lesser work than any other retailer workers (Benson, 2012). Now in Wal-Mart 64% of sales associates, 88% of cashiers, 76% of team leaders and 51% of Overnight stocker are women (Bernhardt 2005).
In the Stakeholder model the legitimacy of the employees is void in Wal-Mart, they could not apprise their views against board. Social contract as a part of Corporate Social Responsibility, between the labours and organization was no longer followed. Cost benefit approach of the company never minded the social life of appointees so that so many allegations were disclosed. Unethical practices like low-wages payment, sexual biasing, union avoidance program were unleashed finally and affected the reputations of the company. Conventional approach of issue management could not handle the internal issues successfully this lead to crisis and many firm to lose millions of dollar.
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