What are some of the main ethical and/or CSR issues involved in this case or dilemma?
| There are 4 main ethical/ CRS issues in the case of Walmart: - The growth and expansion of the company threatens the existence of small retailers. Moreover, Walmart exerts their power of a giant retailer over other small retailers and wipes them out of business. As well, the tactics that Walmart uses to compete with other merchants are unjust.
- Walmart purchases an enourmous amount of goods from China, that results in the closing down of many American suppliers.
- Also, Walmart changes the lifestyles and cultures of the far area where they open new stores, enhances the aggressive consuming trend in the US.
- Walmart also has bad reputation due to treating their employees poorly and exploiting them.
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Who are the main stakeholders and what are each of their primary interests?
| The main stakeholders of the firm and their interests: - Owners (shareholders): profit, fame and image of the company, sharing opinion and contributing in controlling the company.
- Consumers: value for good money, products availability, good customer service, convenient and comfortable feeling.
- Employees: income (wages), working experience, job security and safety, opportunity for their career and development, ideal working environment, motivation.
- Suppliers: long term contract, good price.
- Community: jobs, contribute in tax, provides the community good products and service at cheap price, raises fund and does charity.
- The Government: tax from Walmart’s revenue, operate legally.
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What theoretical frameworks or models that you are aware of so far in this course might apply to this situation?
| Some theorical frameworks and models can be applied to this situation: - Carroll’s 4 part model of CRS: economic responsibility (the activities of the business should create profits for the shareholders, employees and local community); legal responsibility (business should be run under the laws and they should not do what the laws do not allow them to do); ethical responsibility (follows the ethical value and preference, social expectations, business ought to do anything fair, just and right); philanthropic responsibility (contribute the resources to the society, improve the quality of life).
- As well in order to be ethical and make good business sense, Walmart should apply pro-action approach in CSR. They should not only follow the rules but also do more than what the society expects them to do.
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What actions or decisions would be likely to yield the most ethical and socially responsible outcome(s)?
| There can be some solution for Walmart: - Firstly, Walmart should continue doing the charity and other activities that benefit the society and contribute in raising Walmart’s good reputation. Furthermore, Walmart should expand more and more in charity and public work.
- Secondly, Walmart should enhace buying goods from American suppliers. It did not succeed with this project before. However, a slow process and starting with buying the products that America has more competitive advantages than other countries may help. Also Walmart can look for new suppliers with desirable capacity and invest in improving its suppliers in order to have good goods at cheap price for long term.
- Thirdly, compete fairly wth local and small business. Walmart can even co-orperate with small and local business to operate a new type of merged business in which Walmart has the advantage of a huge retailer in dealing with suppliers and laws, while small businesses understand the local customers and tradition.
- Finally, offer its employees a better wages and benefits, at least enough for them to fulfil their basic needs in life.
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Any additional comments or thoughts on this case or dilemma? e.g. - do these issues/dilemmas relate in any way to your daily life?
- do they relate to in any way to someone you know? (and/or a similar situation that you may be aware of?)
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The case of Walmart is quite similar to the situations of many businesses in the world. Any business can get stuck with CRS and ethical issues such as unjust competition, purchasing too much from oversea countries, polluting the environment and exploiting their employees. However, it is hard to blame all on them because it is never easy to satisfy all the people and institutions in the society as well as operating a business without harming anyone or anything’s benefits. A similar situation can be mentioned here is the two giant retailers in Australia, Woolworths and Coles. They have been criticised of outsourcing and purchasing cheap goods from oversea countries, especially China, which result in the closing down of local business. Additionally, the Milk War that was started by Coles in 2011 showed clearly how Coles squeezed their suppliers for more benefits and winning the customers back to their stores in the war with Woolworths. That war wiped a lot of milk farmers out of their business and affected badly on some small retailers that could not catch up with that price. |
