Wal-Mart is one of the most popular and largest top competitors of retailers in the world. Although Wal-Mart is well-known for the most successful retailers it is also well known for unethical business practice. For many, Wal-Mart has risen and fallen over the past several years.
Wal-Mart was founded by Sam Walton in small town of Arkansas in 1962. In the 1960s consumers shopped at department and chain stores (Friedricks, 1995). With much success over the years with the first store opening Walton began opening numerous Wal-Mart stores from then on out. Wal-Mart then became very successful retail company best known for a low-cost and customer satisfaction strategy to win against other competitors. Wal-Mart had made it to overnight success becoming the top largest retail company in the world.
Over time Wal-Mart has grown tremendously in success and also made several major mistakes along the way. Many of the allegations against Wal-Mart made the public and communities outrage. Major controversy strikes against Wal-Mart over number allegations that employees claimed. Lawsuits have been filed anywhere from working employees overtime and denying pay and healthcare benefits (Basker, 2007). Troubles began when workers are worked seven days a week straight for a month with no day off, denying pay for overtime hours, underpaid wages, and denying healthcare benefits.
According to article, recently a total of 269 stores are closing and 154 is in U.S. closing over revenue lose but Wal-Mart still stands to gain profit (24/7 wall st.: In walmart store closings, texas loses out far worse than california 2016). Many as thousands of workers stand to lose their jobs that are going to affect families and the communities. The public is outrage over the fact of the unfair and unjust of unethical practice that Wal-Mart has treated workers.
Coming up with the strategy of the best low cost has given advantage towards Wal-Mart success to outnumber all other competitors in retail. Although Wal-Mart made it successful of being the top retailers worldwide it still doesn’t make the company the best in business. Enforcing good ethical standards and procedures are important for companies to follow to set an example of fairness and righteous behavior towards workers to behave the same. All business should have a good reputation to show workers and consumers they are not just in it for a profit but doing business in an ethical manner. Most successful business stays in business when running a business in an ethical manner.
Rebuilding and Improving
Wal-Mart has really a long ways to go when it comes to rebuilding and improving their reputation. Just recently, Wal-Mart working on improving their reputation by giving back to communities and helping families by donating millions of dollars. Far as wages and benefits still needs improving. Also, Wal-Mart is working to improved ethical standards of doing business towards workers and consumers. Wal-Mart has been faced with a lot of bad rep on how unethical practice that potentially can destroy the business. Wal-Mart should mainly focus on the business working hard to showing that the business is socially responsible for conducting business in an ethical manner.
The many concerns of denying employees healthcare benefits raised questions about how Wal-Mart conducts business. Wal-Mart has a social responsibility to ensure employees get healthcare benefits for the well-being of their employees. Not having benefits pose a major impact on families. Even though the cost of healthcare benefits has increased Wal-Mart should still find a better way for employees can afford healthcare benefits. The fact that Wal-Mart is one of the world’s largest retailers that bring in billions of dollars a year off of employees help run the business still should be able to handle to give all employees benefits.
Wal-Mart has developed a bad reputation for unethical business practice and has numerous lawsuit filed by employees. One of the most important key factors for good business ethical practice is building a good reputation. Wal-Mart has a social responsibility to the workers, families, and the communities to improve and rebuild their reputation by practicing good ethical behavior. The standard practice of ethics proves to have morals, values, and a belief of doing what is right has a positive effect on business and for employees. Most importantly, Wal-Mart still has much improvement and still needs to understand the importance of business ethics when conducting business.