Wal-Mart Stores. the world’s largest retail merchant. owns more than 4. 800 shops. including 1. 475 price reduction shops. 1. 750 Wal-Mart Supercenter combination price reduction and food market shops. and 540 Sam’s Club warehouse shops. It is the taking retail merchant in both Canada ( 236 shops ) and Mexico ( 633 ) owns about 40 per centum of SEIYU, a Nipponese Supermarket concatenation, and has shops in Argentina ( 11 ), Brazil ( 144 ), China ( 39 ), Germany ( 92 ), South Korea ( 15 ), Puerto Rico ( 54 ), and the United Kingdom ( 270 ).
At the terminal of financial twelvemonth. January 2004. Wal-Mart posted gross revenues of $ 256.3 billion and a net income of $ 9. 1 billion. The company had over 1. 500. 000 employees worldwide and planned to add another 800. 000 by the terminal of the decennary. The company is celebrated for its strong and typical corporate civilization. which it actively promotes. New employees get videos. categories. and literature on Wal-Mart’s civilization. such as the “Three Basic Beliefs” ( “Respect for the Individual. ” “Service to our Customers. ” and “Strive for Excellence” ).
Employees read laminitis Sam Walton’s personal life and learn how his personal values became the core beliefs of the company. Weekly preparation for company civilization is compulsory for directors and employees. Managers get-go only lessons on the company’s civilization and leave these lessons on the company’s civilization and leave these lessons to subsidiaries. Although, the staunchly antiunion company is known as a benevolent employer its repute has suffered late. Wal-Mart’s biggest employee concern. nevertheless. was a category action case ( Dukes et al. v. Wal-mart Stores. Inc. ) claiming the company discriminated female employees in publicities wage direction preparation and occupation assignments.
The case was launched in June 2001 when six female employees accused Wal-Mart of paying adult females less than workforces and go throwing them over for publicities. On June 22. 2004. U. S. District Court Judge Martin Jenkins ruled that the six adult females could act on behalf of all female employees of Wal-Mart who worked at its U. S. shops anytime since December 26. 1998. The adult females asked for back wage and compensation for all 1. 6 million female employees against whom Wal-Mart had discriminated. The category action suit dragged on for a decennary. with the contention go around the issue of category enfranchisement or merely whether it was legal for the six complainants to stand for
1. 6 million other Wal-Mart adult females employees in a category suit. While the circuit tribunals upheld the category enfranchisement. the US Supreme Court ruled in favor of Wal-Mart in June 2011. Justice Antonin Scalia. who wrote the bulk place. stated they can non allow employment favoritism cases to continue as immense category actions when pecuniary awards would be based on a wide calculation per complainant. without holding a single appraisal of how much each complainant had suffered. He said that it would be unjust to Walmart if it were to pay out amends without many of the complainants showing how much they were injured. However. the issue of whether there was so sex-discrimination was non to the full answered. Company Profile Wal-Mart is an American transnational retail merchant founded by Sam Walton in 1962 and was incorporated in 1967. Sam Walton launched the first Wal-Mart at Arkansas in 1962 with a streamer that reads “We Sell for Less” . which reflects one of the founder’s doctrines.
The company’s concern theoretical account is based on selling a broad assortment of general ware at “always low prices”. Founder Walton defined his concern by volume and non by single merchandise. The company is considered as the world’s 3rd largest public corporation in 2012 ( Fortune Global 500 ) and is beside the largest retail merchant in the universe. Wal-mart is beside the biggest private employer in the universe with around 2. 2 million associates worldwide. The company remains a family-owned concern managed by the Walton household. with 48 % portions. Walmart operates under 69 different streamers in 27 states. The company’s operations are organized into three divisions: Walmart Stores U. S. Sam’s Club. and Walmart International. The company does concern in nine different retail formats: supercenters nutrient and drugs. general ware shops, bodegas ( little markets ). hard currency and carry shops. rank warehouse nines. dress shops soft price reduction shops and eating houses. Mission Statement “We save people money so they can populate better. ”
Company Purpose
“If we work together we’ll lower the cost of living for everyone…we’ll give the universe a chance to see what it’s like to salvage and hold a better life. ” Company Values In order to carry through its mission. Wal-Mart has developed some unique. policies. rules. regulations. procedures and processes the sum of which form the Wal-Mart shops corporate civilization:
Open Door Policy – Managers’ doors are unfastened to employees at all degrees Sundown Rule – Answering employee client and supplier inquiries on the same twenty-four hours the inquiries are received.
Case Narrative
The beginning of the twenty-first century brought with it a batch of jobs for the world’s largest retail merchant Wal-Mart. The company found itself confronting one of the biggest cases of all time in the history of the US. In June 2001. a former Wal-Mart employee. Betty Dukes ( Dukes ) had filed an instance impeaching the company of ‘sex favoritism in publicities. preparation and wage. ’ Many more employees joined Dukes. and by May 2003. the instance had taken the form of a category action suit after the complainants asked a Federal Judge to let the instance to continue on behalf of more than 1. 5 million adult females. Wal-Mart had for long been accused of non-handling its female employees in a socially responsible mode.
A survey of Wal-Mart’s ain employee information and some employee’s sworn declarations ( conducted by some experts hired by the complainants ) revealed that adult females had been discriminated against in many cases. Even the company’s internal memos revealed that Wal-Mart was far behind its rivals in advancing adult females at the workplace. Important statistical information reported by adviser Richard Drogin of Drogin. Kakigi & A; Associates on behalf of the complainants. served as grounds that established the form of favoritism against adult females. The study includes forces and compensation information gathered from 1996-2002. Some findings include: Wal-Mart employed fewer adult females in a direction in 2001 than its rivals did in 1975. 65 % of the company’s hourly employees were adult females. but adult females merely made up tierce of the company’s direction ( salaried directors ). By the way. this form is repeated in all 41 of Wal-mart’s American parts.
In single shops, workforces hold 86 % of shop director places and shut to two-thirds of all shop direction places. Women on norm scored higher on public presentation ratings. but it took 4. 38 old ages for an adult female to be promoted to the assistant director while it took merely 2. 86 old ages for workforces. Female employees working hourly occupations on norm made $ 1. 100 less than their male opposite numbers. A female regional frailty president’s mean wage of $ 279. 772 was 46 % less than that of a mean male regional frailty president.
Apart from the sex favoritism instance. Wal-Mart was besides accused of interrupting Federal Torahs that protected the freedom of association of workers. The company was reportedly found guilty of revenging against and firing workers who were involved in brotherhood organizing. In add-on. Wal-Mart was alleged to hold failed to supply safe workplaces. to hold utilized child labor and to hold offered extremely unaffordable health care programs. Wal-Mart faced cases ( filed in more than 30 provinces in the US ) that accused it of interrupting many Federal overtime Torahs ( in some instances. company directors locked shops to forestall workers from go for thing the premises ).
Point of View
This instance analysis is performed from the point of position of Wal-Mart’s top direction.
Statement of the Problem What disciplinary steps should Wal-Mart take to halt favoritism against adult females?
Aims
- To find the lack of the company sing concern morals towards gender equality;
- To place how gender favoritism issues impact Wal-Mart’s repute over clip. and how it can take action to sing those issues;
- To supply strategic ways and recommendations on how the company could travel frontward.
Case Analysis
Area of Consideration: Ethical Issues- Business Ethics Perspective
In the 1990s. Wal-Mart had started a figure of plans to accomplish diverseness. The company had a written anti-discrimination policy posted everyplace. Directors got studies on the gender composing of their hourly and salaried places. However. after Walton’s decease. the plan was non widely used nor known. Harmonizing to the employees actioning the company. Wal-Mart’s civilization and environment were inhospitable to adult females. The company had reportedly held on to its traditions. including those that made adult females uncomfortable. The company organized one-year quail hunting ( a pattern introduced by Walton ) for merely a little group of top directors. Few adult females. who worked in the lower executive ranks. were besides invited. At one point in the clip. some adult females suggested that activity other than running would let more people take part. The thought was rejected on the evidence that it would interfere with the company’s tradition.
There were besides cases where adult females executives were forced to travel to Hooter’s eating houses ( known for the titillating frock and behavior of their waitresses ) and strip nines in the class of concern events. Furthermore. female employees at Wal-Mart were reportedly given fewer publicities than male employees. After executing statistical trials. Richard Drogin. found that: o Women received 2. 891 fewer publicities into Support Manager ( the measure before Management trainee ) than would be expected from their representation in the feeder pools. o Women received 2. 952 fewer publicities into Management Trainee than would be expected from their representation in the feeder pools. o Women received 346 fewer publicities into Co-Manager than would be expected from their representation in the feeder pools. o Women received 155 fewer publicities into Store Manager than would be expected from their representation in the feeder pools.
Entire net incomes paid to adult females ranged between 5 % and 15 % less than entire net incomes paid to likewise situated workforces in each twelvemonth 1996-2001. even when accounting for factors such as senior status. position. and shop.
More than 100 female Wal-Mart employees provided pledged declarations detailing their intervention in the company. These experiences included: o A female helper director in Utah was told her shop director that retail is “tough” and “not appropriate” for adult females. o A director in Texas told a female employee that adult females have to be “bitches” to last Wal-Mart’s direction. o A Sam’s Club director in California told an adult female that to acquire promoted she should “doll up. ” frock a small better. and “blow the cobwebs off her makeup. ” o Male directors in several provinces repeatedly told legion adult females employees in virtually indistinguishable words that workforces “need to be paid more than adult females because they have households to back up. ”
A male director in South Carolina told a female employee that “God made Adam foremost. so adult females will ever be 2nd to workforces. ”
A female force director in Florida was told by her director that workforces were paid more than adult females because “men are here to do a calling and adult females aren’t. Retail is for homemakers who merely need to gain excess money. ” o A female corporate director in Arkansas was told by a Senior VP that it would be better if she “were at place raising a family” and that since she did non run. angle. or make other typically male activities. she would non progress any farther: “you aren’t a portion of the boy’s nine. and you should raise a household and stay in the kitchen.” A female direction trainee in Texas was told by her supervisor. “I don’t like college alumnus and I don’t like female managers” and was told by her following Director that she should “resign and happen a hubby to settle ain with and have kids. ”
Current Situation of the Case
The Lilly Ledbetter Fair Pay Act of 2009 or equal wage jurisprudence. was the first measure signed into jurisprudence by President Obama in January 2009. demoing his support for women’s rights. Under the Act. the 6-month legislative act of restrictions for registering an equal-pay case sing wage favoritism resets with each new discriminatory payroll check received by the employee. Before the act. adult females merely had six months after they received their first payroll check to register an equal-pay case. The Act empowers adult females who experience wage favoritism. and compels Wal-Mart and other companies to measure non merely their wage system and patterns but besides their possible blameworthiness under the jurisprudence. Wal-Mart’s current state of affairs makes it particularly vulnerable to legion wage favoritism cases. Wal-Mart said that they had set up a women’s council that focused on progressing adult females into direction functions. and because of that the per centum of entry and midlevel female directors has increased in the past five old ages ( 2006-2011 ) from 38. 8 to 41. 2 per centum.
If true. so the figure of favoritism cases would hold abated which is non go ongoing. One could therefore speculation this scheme is non accomplishing its coveted consequence in a systemic mode because an important figure of adult females still register favoritism instances against the company. Although the category action suit was struck down by the US Supreme Court. it is expected that Wal-Mart will maintain contending sex-discrimination instances on a regional degree. In 2010. Wal-Mart agreed to pay more than $ 11. 7 million in amends ensuing from a suit filed with the Equal Employment Opportunity Commission. a federal bureau that litigates on behalf of workers who have ailments against their employers. that accused the retail merchant of consistently rejecting female appliers to all Kentucky distribution centers from 1998 through February 2005. Wal-Mart’s adult females have non given up the battle.
In October 2011. the original complainants in the Dukes et Al. v. Wal-Mart Stores. Inc. filed new category action suits in California and Texas tribunals. In January 2012. 500 adult females employees from Alabama. Arkansas. Georgia. Mississippi and North Carolina filed favoritism charges with the Equal Employment and Opportunity Commission ( EEOC ). It seems that this is a tactic that Wal-Mart’s adult females will prosecute because of the EEOC. it will non be necessary to turn out that the employees constitute a category. The EEOC represents the US Government and is mandated to guarantee just on the job conditions for citizens. and non for persons whose claims may hold to be consolidated.
In measuring the alternate class of action. the determination standard that will be used is the ethical models of Utilitarianism ( benefits and injuries ). Rights and Duties ( rights upheld or rights violated ). Justice and Fairness ( that ethical actions treat all human existences equally-or if unevenly. so reasonably based on some criterion that is defendable ). Ethical motives of Care ( common mutuality and emotional response. taking attention of those close to us ) . and Virtue Ethics (realization of the company’s vision and values). The Markkula model provides an usher in the designation and treatment of instance issues. as follows: Is at that place something incorrect personally, interpersonally, or socially?
Clearly. there is something incorrect with Wal-Mart’s system with respect to pay and personnel development and publicity. As mentioned. an analysis of the company’s records shows that adult female employees were having less wage than workforces. and that publicity to higher managerial places favored workforces. It can merely be inferred that Wal-Mart is moving in a prejudiced mode. The instance Dukes et Al. vs. Wal-Mart Stores. Inc. was fined in response to this alleged favoritism. The jurisprudence suit cites Wal-Mart in misdemeanor of Title VII of the 1964 Civil Rights Act. which protects workers from favoritism on the footing of sex. race. faith or national beginning. Is at that place conflict that could be damaging to people? to establishments? to society?
The struggle is between Wal-Mart and adult females employees who accuse the company of favoritism on the footing of gender. Discrimination is damaging as it treats adult females as 2nd category citizens. and does not give them their due with respect to wage and chance for professional promotion. Does the issue go deeper than legal or institutional concerns? What does it make to people as individuals who have self-respect? rights and hopes for a better life together? Gender favoritism goes deeper than legal or institutional concerns as it brings to the surface predominating issues of patriarchate and gender stereotypes that go against the rule of gender equality. It violates the rights of adult females to justness and equity in the workplace. and denies them the chance to develop their possible non merely for their benefit but for their households and communities every bit good.
What persons and groups have an of import interest in the result? What is the interest of each?
Women have an of import interest in the result of the current struggle as it involves their right to equal wage and publicity under the rule of equality under the jurisprudence. Not merely Wal-Mart’s adult females stand to profit from a positive result. but other adult females in the USA and in other states as well who still face favoritism at the workplace. Do some have a greater interest because they have a particular demand ( e. g. . those who are hapless or excluded ) or because there are particular duties to them? Women have a greater interest than workforces as they have been enduring the prevalent effects of gender stereotyping and patriarchate. The instance of wage and publicity favoritism is a manifestation of these effects. Wal-Mart, therefore, has a particular duty to turn to the issue of favoritism against adult females. as favoritism against adult females and their marginalization in society as a whole is a go the only job all over the universe which needs to be addressed here and now. Are at that place other of import stakeholders in add-on to those straight involved?
Other large concerns have closely watched the proceedings. If the complainants won. it would hold set precedence for large-scale category action suits that could earnestly impact the funds of corporations if they were to pay colony or amends. The undermentioned inquiries will be answered in the treatment of the ACA’s. What are the options for moving? Have all the relevant individuals and groups been consulted? Have identified originative options been identified? Which option will bring forth the most good and do the least injury? Which option respects the rights and self-respect of all stakeholders? Even if non-everyone gets all they want will everyone still be treated reasonably?
Other factors that will be considered in the instance analysis are:
- Scalability- structuring a concern for growing to increase net incomes.
- Ease of execution –how the company will present the thought or construct after it is approved by top direction.
- Sustainability – besides known as the capacity to digest any concern planning conceptualized which will be feasible in the long tally.
Wal-Mart does non do any alterations to its wage and employee publicities system ( Status quo ) Ethical Consideration Utilitarianism Implications of ACA 1 This action will non supply the most good to all the people involved in the instance. The employees. most particularly the adult females will greatly be affected. Because of this case. customers’ trueness to Wal-Mart will be tested. Therefore. the company’s net income and service will besides be at interest. Since no alterations will be made. women’s right to just wage. and intervention will non be exercised. Gender favoritism will still be practiced in Wal-Mart. Women will still be paid less than workforces for equal work. and adult females will be promoted less although they are more worth it. Gender favoritism is a signifier of unfairness because sex is nonrelevant to normal work state of affairs. This action merely shows that the involvement of adult females in the company is non taken into consideration. One of the 3 basic beliefs taught in Wal-Mart is “Respect for the Individual”. But. if the company will non make anything to work out the job. this lone proves that the company. itself. doesn’t unrecorded with the values they teach.
After reexamining its concern nucleus scheme to find oversights or disagreements in people’s direction. Wal-Mart implements stairs to guarantee gender equality in wages and publicities to hourly and salaried direction employees. Ethical Consideration Utilitarianism Implications of ACA 2 Wal-Mart Company will bring forth the greatest good and does the least injury for all who are affected- employees.
Rights and Duties
Justice and Fairness Ethics of Care
Virtue Ethics stockholders. and the community. Wal-Mart will resuscitate the Diversity commission and undertaking force created in the 1990s. to guarantee the development of adult females and minorities to direction potency. This action will present just the intervention and meaningful engagement of all employees. The direction and the employees will be dependent on each other in accomplishing their involvement. The direction considers the exposure and degree of affectedness of the employees. With this action. the direction will be able to conform to the company’s three basic beliefs: Respect for the Individual. Service to our Customers and Endeavoring for Excellence. If the direction respects its employees’ rights. the employees will give quality service to their clients. and in consequence. the company will stand out amongst other stakeholders in the industry.
Wal-Mart settles gender favoritism cases out of tribunal. affect all employees in deciding the issue of gender favoritism. and implement solutions arrived at in a participatory model. Ethical Consideration Utilitarianism Implications of ACA 2 This ACA will right Acts of the Apostless of favoritism that Wal-Mart has done and will profit many adult females. However. it will besides necessitate Wal-Mart to pay for colonies which will impact its fiscal exposure and may take down stockholder value. But in the long tally. Wal-Mart may avoid the cost of future judicial proceedings. It will besides oblige Wal-Mart to publically admit that favoritism has taken topographic point throughout all its shops.
Wal-Mart will non needfully lose face but will in fact show that it has earnestly considered the job and is committed to setting a terminal to favoritism against adult females. This action will exert the right of the adult female employees to talk up for what they are contending for. Deciding the issue provides justness to adult females who were discriminated against in wage and publicity. The workforce will be involved in the duologue and it may be just to state that they were besides unwitting participants in favoritism because they were socialized to act in a manner that propagates gender stereotypes and outlooks. Because Wal-Mart and its employees have come to the tabular array to turn to favoritism. they would hold demonstrated
Rights and Duties Justice and Fairness
Ethical motives of Care attention for each other’s wellbeing. It is of import that workforces take part in acknowledging gender prejudices and stereotypes and the ground behind these constructs. and in crafting sustainable solutions that will stop gender favoritism. Wal-Mart will demo its attention for the female employees when they are implementing the solutions arrived at. The female employees who were affected by the gender favoritism in the company will be able to measure. evaluate and possibly appreciate the alterations that Wal-Mart is willing to transport out. The value of committedness will be showcased through this ACA. After calculated dialogues. Wal-Mart should strongly continue its one of the three basic company values. which is “Respect for the individual” and should demo committedness to whatever promise and solutions they have consensually agreed upon. It will bring forth positive outwardness such as regard and trust from all stakeholders and the populace. including clients who will appreciate that Wal-Mart’s concern for employees extends beyond legalities to an echt committedness to their wellbeing.
Virtue Ethical Motives
Evaluation of Alternative Courses of Action based on Ethical Considerations
ACA 1: Wal-Mart does non do any alterations to its wage and employee publicities system ( Status quo ) Ethical Considerations
ACA 2: After reexamining its concern nucleus scheme to find oversights or disagreements in people’s direction. Wal-Mart implements stairs to guarantee gender equality in wages and publicities to higher managerial places.
ACA 3: Wal-Mart settees gender favoritism cases out of tribunal. affect all employees in deciding the issue of gender favoritism. and implement solutions arrived at in a participatory model.
Utilitarianism Rights and Duties Justice and Fairness Ethics of Care Virtue Ethical motives
Criteria Scalability Ease of Implementation Sustainability Total
ACA 1 Score WS 40 8 40 12 20 10 30
ACA 3 Score WS 40 8 20 6 40 20 34
Recommendation
Wal-Mart Management should settle the gender favoritism cases out of tribunal. affect all employees in deciding the issue of gender favoritism. and implement solutions arrived at in a participatory model.
Implementation
An organization that is willing to accept alteration and recover should foremost be willing to acknowledge what went incorrect. It is necessary that issues are identified first so the action is taken and changeless monitoring and re-evaluation of the executed action. Adopting the best solution ACA 3 wherein Wal-Mart settles the gender favoritism cases out of tribunal. affect all employees in deciding the issue of gender favoritism. and implement solutions arrived at in a participatory model. the following are the proposed action execution stairs:
- Management meeting will include the reappraisal of the publicity plan and the resurgence of the Diversity Committee.
- Company meeting which will explicate the transmutation of policies.
- Review of the alterations made
- De-briefing/Training for employees on improved policies and gender sensitiveness
- Team Building/Retreat – to advance teamwork and chumminess among employees
- Semi-Annual/Annual Employee study ( Pulse cheque ) – to on a regular basis look into the on the job status of the employees
Mentions
- Velasquez. Manuel G. ( 2005 ). Business Ethics. A Teaching and Learning Classroom Edition: Concepts and Cases. Prentice Hall. 6th edition.
- http://www.icmrindia.org/casestudies/catalogue/Business % 20Ethics/BECG024.htm
- http://www.awpagesociety.com/wp-content/uploads/2011/09/Wal-Mart_CaseStudy. pdf
- http://www.authorstream.com/Presentation/santosh1987-271089-wal-mart-case-studysantosh-business-finance-ppt-powerpoint/
- http://corporate.walmart.com/our-story/heritage
- http://en.wikipedia.org/wiki/Walmart
- http://en.wikipedia.org/wiki/Criticism_of_Walmart
- http://www.now.org/issues/wfw/wm-facts.hypertext markup language
- http://abcnews.travel.com/Politics/walmart-discrimination-court-decide-millions-femaleemployees-sue/story? id=13237106
- http://finance.yokel.com/blogs/daily-ticker/women-vs-walmart-supreme-court-hearsargument-sexual-20110329-042243-410
- http://www.christianitytoday.com/ct/2005/aprilweb-only/52.0b
- http://archive.newsmax.com/archives/articles/2002/6/25/63654.shtml
- http://womensphilanthropy.typepad.com/stephaniedoty/2011/03/take-action-supportthe-women-of-wal-mart
