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This Case Study Is Based Upon The Case Article By Peter A. Stanwick And Sarah D. Stanwick Titled; ‘Wal Mart: But We Do Give Them A 10 Percent Employee Discount’, In Which Addresses The Ethical Issues Facing Wal Mart.

1472 words - 6 pages

Case Study: Wal-MartJune 12, 2012This case study is based upon the case article by Peter A. Stanwick and Sarah D. Stanwick titled; 'Wal-Mart: But We Do Give Them a 10 Percent Employee Discount', in which addresses the ethical issues facing Wal-Mart. According to Stanwick and Stanwick (2009, p. 409), the culture "has created a number of twenty-first-century problems for Wal-Mart."SummaryThe authors' viewpoint is that of the Wal-Mart employees are not all treated equally according to proper business ethics. Examples of labor law violations and consequent lawsuits were provided for the six areas in violation of the law that Wal-Mart was found guilty for repeatedly committing. The author's are suggesting Wal-Mart believes that by giving a 10% employee discount is sufficient for the employees. It is also suggested that rather than treating every employee fairly and equally, it is more cost effective to address any lawsuits on an individual basis.Problems Specified in the CaseThis case study addresses the ethical issues facing Wal-Mart; off-the-clock-work, sexual discrimination, health benefits, the role of unions, the use of undocumented workers as well as issues relating to child and labor laws.Off-the-clock-workThe first issue the authors discuss is that of "off-the-clock work," (Stanwick & Stanwick, 2009, p. 410). Often, this practice was encouraged by management and required by others to have some employees work additional hours without overtime pay. Many hourly workers were not compensated for working through their lunch breaks in some instances, while others had to continue working even after the end of their shift and clocked out. Wal-Mart's objective was to "keep labor costs at 8 percent of sales," (Stanwick & Stanwick, 2009, p. 411).The authors states that in 2007, Wal-Mart agreed to pay "$33.5 million in back wages and interest to settle a lawsuit," (Stanwick & Stanwick, 2009, p. 412).Sexual discriminationThe second issue the authors discuss is that of "sexual discrimination," (Stanwick & Stanwick, 2009, p. 412). In 2001, accused Wal-Mart of sexual discrimination in part to their pay rates. The lawsuit claimed that women working for Wal-Mart were paid "6.2 percent less on average than men" (p. 412) in similar positions. Women working for Wal-Mart between 1996 and 2001were 65% of the hourly employees but only 33% of them were managers. Wal-Mart's response to this was that women "did not have an interest in working in management-level jobs at Wal-Mart," (p. 412). In a deposition it was shown that one women was told by her manager; "the man was promoted instead of a qualified women because the man had to support his family," (p. 412).Health benefitsThe third issue the authors discuss is that of "health benefits" (Stanwick & Stanwick, 2009, p. 413). Wal-Mart used unethical tactics for lowering operational cost, such as making new employees wait before enrolling in the health benefits plan for up to six months. Additionally,...

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