Wal Mart: The Challenge Of Making Relationships With Stakeholders

1161 words - 5 pages

1. Evaluate how Wal-Mart has ranked and responded to various stakeholders.
2. Why do you think Wal-Mart has had a recent number of ethical issues that have been in the news almost constantly?
3. What do you think Wal-Mart could do to develop an improved ethical culture and respond more positively to its diverse stakeholders?
Question 1
Many groups have a stake in what Wal-Mart does. Stakeholders can be broken down into two diverse groups: market stakeholders (shareholders, employees, consumers, and suppliers and non-market stakeholders (labor unions and environmental stakeholders).
Market Stakeholders
With the shareholders, whose focus is to see profit, Wal-Mart ranks number one, 2008 per Fortune 500 magazine and listed as the 13th most profitable company with $11.3 billion dollars in earnings for 2006. Shareholders equity is over $64 million dollars. 1 (Fortune 500, 2008, CNNMoney.com)
Wal-Mart definitely makes their shareholders money. The fundamental question is whether the shareholders care about Wal-Mart’s scrutiny. Shareholders should have some concern on how the world views Wal-Mart and how long they will hold up under the scrutiny.
Employee stakeholders have another story. The discrimination lawsuits ranging from female employees not getting equal pay or equal positions, to disabled employees, class-action lawsuits stating that Wal-Mart doctors questionnaires to prevent disabled workers from applying, Wal-Mart does not rank very high with these employees. Lawsuits stemming from Wal-Mart’s failure to monitor labor conditions at oversea factories and hires illegal immigrants add to the rift in relations between the employees and the company. Wal-Mart continues to deny charges, yet settle cases.
The most disturbing is that Wal-Mart states as part of their company’s purpose “Saving people money so they can live better.” 2 (Walmartstores.com) has been accused of low benefits, working a minimum of 28 hours (full time) and allowing the tax payer to make up the difference, failing to provide health insurance to more than 60 percent of its employees, and part-time employees are excluded from Wal-Mart’s health plan. Those in the plan are underinsured. Some competitors must lower wages by 3.5 percent to operate in the same location and stay in business.
With Wal-Mart being sued for poor working conditions; denying pay, lunches and breaks it is no wonder why Wal-Mart, even with all of the money it makes, has not managed to make it on the 100 Best Places to work. 3 (Fortune 500, 2008, CNNMoney.com)
Wal-Mart has missed the mark on their purpose statement. How can you assist in helping people live better if you are not taking care of the people that work for you?
As stakeholders, consumers may complain about Wal-Mart but they still shop there. When push comes to shove, consumers put aside their morality for the sake of a cheaper price. Wal-Mart is shopped by 84 percent of American...

Find Another Essay On Wal-Mart: The Challenge of Making Relationships with Stakeholders

The Wal-Mart Effect Essay

1292 words - 5 pages about Wal-Mart is it has made it to the top of the list competing with Exxon Mobil on Fortune 500 companies it has made its place to number 1 by sales. The only reason Exxon Mobil was leading is due to the increase in oil and gas prices, yet Wal-Mart is the dominating leader here since prices are decreasing due to economic deflation. It is evident that Wal-Mart has gave jobs to factory workers all over the world by creating job opportunities for

Company of Wal-Mart Essay

1406 words - 6 pages for the last six years (David, 2012). In international markets also the Wal-Mart stores is having a fair share of difficulties. In India, Wal-Mart is struggling with establishing itself on the Indian market due to the restrictions on foreign companies. This has resulted in the Indian authorities rolling investigations into the recent actions of the stores of investing US$. 100 million into a consultancy farm. Also the Wal-Mat refused to

Control Mechanisms of Wal mart

1516 words - 6 pages on the effects of this goal. Organization is principal for this goal to be accomplished. Organizing employee's work schedules is one way management is able to provide low prices. Johnson (2002) states that Wal-Mart incorporates, "cross-training of employees for efficiency."Strong leaders in management build interactive relationships with their employees. Leaders encourage and motivate their employees on ways they can save Wal-Mart money. Some of

Wal-Mart and The Nine Principles of Sustainability

983 words - 4 pages information? Should core stakeholders have access to more information than fringe stakeholders? Wal-Mart is held to all the same transparency laws of any publicly held corporation. Unless there is a true dishonest effort to hide information, Wal-Mart should have no issues with transparency. Business relationships Business relations are an area that Wal-Mart has mastered cost with effectiveness and profitability. Obtaining the majority of their

Wal-Mart is the Enemy

1514 words - 6 pages themselves with making such low wages."With its low price focus, Wal-Mart may appear to help the U.S. economy. But, the reality is that with its poor wages and benefits, massive China sourcing and tax avoidance, Wal-Mart makes its workers and the communities where it operates poorer."-David Nassar. Wal-Mart including around 3,400 stores has made some job opportunities but think of all the jobs lost because of putting out small local owned businesses

Swot Analysis of Wal-Mart

3324 words - 13 pages Walton was first established in Bentonville, Arkansas in 1962. Now Wal-mart has over 3,300 stores nationwide and they are the leading retail store in the country. With Wal-mart competing with Target and K-mart hold over 85 percent of the discount store market share. Although Sam Walton has passed on Wal-Mart has continued to stay successful and maintain at the top of the retail market. A new CEO took over and he has continued to maintain as the

Historical Bckground of Wal-Mart

2127 words - 9 pages lives of employees with their employer as the sole beneficiary. These policies are usually taken out without the employee’s knowledge or consent and kept out of the public lie through clever labelling such as “Janitor Insurance” on the company’s budget. The fact that the employer is the sole beneficiary means that they will gain profit from the deaths of their employees, and because these policies are usually kept after the employee quits, Wal-Mart

Strategic Audit of Wal-Mart

2685 words - 11 pages United States making it the largest retailer in America. In addition the international segment of the corporation expanded to now include retail operations in eight countries and Puerto Rico, with minority interests in Japan.In 1995 Fortune magazine began to include service companies in its Fortune 500 list and by doing so Wal-Mart entered in at a ranking of fourth. Since then the company has remained on the list, climbing the ranks until it

Wal-Mart: The Real Identity

1305 words - 5 pages its worst-ever sales period. Many people today proclaim that Wal-Mart has just lost sight on the main goal, making money. While trying to attract more upscale shoppers, the retailer effectively turned its back on its blue-collar customers. Apparently, Wal-Mart does not care, and is attempting to deceive their usual, everyday customers by incorporating more upscale and pricy items into the inventory of the store (Duke 426). Wal-Mart’s everyday

The Retail King Wal-Mart

1170 words - 5 pages showed that Wal-Mart offered prices 14% percent less than their competition on average, which is the main reason that nearly 13,000 American supermarkets closed between 1992 and 2003. Economists have predicted that for every supercenter Wal-Mart opens, two supermarkets will close. This leaves thousands of people out of a job, with no other opportunities other than working at Wal-Mart. Then they are faced with making the average of $13,861 a year

Wal-Mart Documentary: The High Cost of Low Price

1596 words - 7 pages Ever heard that cliché stating money is the route to all evil? What if the subject of Wal-Mart was brought into the mix of this cliché? Wal-Mart is known as the highest money making supply chain store in America. When at the top of the food chain everything might not seem as it appears. After watching The Wal-Mart Documentary: The High Cost of Low Price, I am strongly against Wal-Mart in America because of several reason but will narrow it down

Similar Essays

Using Forecasting, Regression And Decision Making Analysis For Wal Mart Opening New Department In St. Catharines, Canada

3216 words - 13 pages based on number of customers visiting Wal-Mart (refer to our decision analysis made further), since Wal-Mart will try to enter market of farm fresh with its EDLP strategy.As with the p-value, the lower the significance F value, the greater the chance that the relationships in the model are real. There are 70% chances that relationship of variables is real.However, if we examine the p-value for the intercept, we see that it is not significant at

Globalization Of The Wal Mart Essay

1030 words - 4 pages the time, and customer will flock to you". This policy gave Wal-mart enormous success around the country. With this policy they have attracted lots of customers and from one store started in Rogers, Arkansas they grew into nine super centers till 1990 and then to 888 super centers in 2000. It had opened an average of 7 new super centers each month continuously for 120 months. It was an outstanding achievement. After this achievement Wal-mart was

The Ethics Of Shopping At Wal Mart

1009 words - 4 pages to local nonprofit organizations in its philanthropic work. In addition, to being named to the Fortune list, Wal-Mart has been presented with the Ron Brown Award for Corporate Leadership that recognizes companies with outstanding achievement in employee and community relations. These awards obviously fly in the face of the evil Wal-Mart. In 2002, Forbes magazine recognized Wal-Mart as being one of the most philanthropic companies in America. In

Analysis Of Wal Mart

2707 words - 11 pages all retailers in its category. Wal Mart has the best price because of its strategy and its relationships with all the production chain that I’ll describe later. Another important feature is the differentiation in the different types of stores. For example Sam’s club can provide prices 10-15% below the standard prices to serve small businesses and to them who have paid the member fee. Another example can be the possibility