Question

In: Economics

Is Wal-Mart Good for America?” According to the film, what are some of the ethical considerations...

Is Wal-Mart Good for America?” According to the film, what are some of the ethical considerations surrounding Walmart's responsibilities to American customers, investors, American workers, and American society at large? Considering the information in the film and any outside research you may have done, how would you answer the program’s title? In your opinion, is Walmart good for America? Why or why not? Use specific examples in your answer.

Solutions

Expert Solution

There are two sides of coin. Wal Mart has both advantages and disadvantages for America

Advantages

  • It offers affordable and variety of products under single Store.
  • Online shopping makes it convenient for customers to buy products without visiting the store , thus saving time
  • Walmart is a source of employment for many Americans thus helping in reducing poverty and raising living standards.

Disadvantages

  • It is being criticized for unfair employer policies and discriminatory practises. Many employees have filed lawsuits against it.
  • Employees have also been dissatisfied with inadequate health coverage that compensates low prices. Healthcare policies affect workers with minimum wages the most, urging them to get on government-funded programs such as Medicaid.
  • It has adversely affected the profitability of small family businesses due to competition
  • It is criticized for being more profit oriented and less concerned about social welfare.
  • Wal-Mart likes to portray itself as a seller of U.S. manufactured goods but in reality the company has products on its shelves made in foreign countries and at questionable workshops. It would seem that Wal-Mart encourages made in the USA but it really encourages products made outside the USA. As a result, Wal-Mart has forced many manufacturers out of business.
  • It prohibits workers from talking to unions. The United Food and Commercial Workers Union filed a complaint with the National Labor Relations Board against Wal-Mart. The complaint, filed with the National Labor Relations Board, alleges that Wal-Mart violated federal labor law by “bribing” employees to report on co-workers who favored a union.
  • It is being criticized on the basis of sex discrimination. Women are ignored for training and high pay opportunities as compared to men.in June 2001 a group of six current and former female Wal-Mart employees filed a sex discrimination lawsuit against the company on the ground of inequality in providing employment opportunities to men and women.
  • Mostly men hold managerial positions in Walmart.
  • It is also being criticized for low wages being paid to employees. An average worker makes between $12,000 and 17,000 a year which is not much. As a result employees have to apply for public assistance and this public assistance comes from the tax dollars.
  • It had even faced lawsuits from employees for not paying for overtime.
  • It is accused of breaking immigration laws. Wal-Mart was under investigation for the use of illegal immigrants as workers. It has to face lawsuits in this regard.

To conclude we can say that Walmart has mixed responses from people. But from employees point it has a very bad reputation. It will be better for Walmart to improve its reputation and create a positive image before it becomes too late.


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