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Running Head: WALMART’S COMPANY
1
Walmart’s Company Behavior Evaluated
Cieanna Hairston
Northcentral University
Running Head: WALMART’S COMPANY
2
Walmart’s Company Behavior Evaluated
Walmart is a business entity that is known all across the nation for the wide range of
products and low prices that it offers to the customers in which it serves. Increased revenue and
the number of individuals hired makes the retail company one of the largest noted in its industry.
The mission statement of Walmart is “to save people money so they can live better”
(
www.walmart.com
). This commitment is constantly validated through the ability of this high
ranking retailer to use the affordability of products and services to attract the attention of
consumers. “Roll-back” of prices, to ensure competitors are unable to gain the attention of
Walmart’s customers, is the price-reduction strategy that helps support the mission of saving
money for its customers. Minimizing the economic strain on individuals helps to maximize the
ability to live better; less focus is on the ability to afford life’s necessities.
The vision statement for Walmart, “Be the destination for customers to save money, no
matter how they want to shop” (
www.walmart.com
), strongly aligns with the mission statement
for the retailer. Emphasis is placed on ensuring the money spent by the customer is at the lowest
reasonable price. With the change in the way people shop, the vision statement suggests that
whether customers shop in the traditional manner, use the electronic app, or shop online, money
will be saved. Affordability and convenience of purchasing products or services are the theme of
this customer-centered directional goal. It is apparent that the preference of people, in regards to
shopping, is a priority for the company.
“Customer first, frontline focused, innovative and agile, listen, inclusive, high
performance, accountability, honesty, and fairness” (
www.walmart.com
) are the terms used in the
core values of the company. The transcending pattern noted with the words chosen by the
company link to the focus placed on customers being its priority. A positive professional
Running Head: WALMART’S COMPANY
3
relationship, which is built on trust, is an important element that is noted. Customer needs are
taken care of in an innovative and inclusive manner. Quality and high performance delivered in
an ethical manner appears to be the noted undertone of the core values.
Walmart Actions
Bribery
Walmart’s mission, vision, and core values silently suggest that those stakeholders closely
connected should expect that they are priority. However, recent actions leave some questioning
whether the ethical standards of the company truly exist. According to Barstow (2012, p.1), there
were allegations made in Mexico that Walmart used bribery to gain a competitive in areas in
which new stores were being built. Top leaders in the company were reportedly unaware of the
fact that government officials were being paid through financial gifts or by giving items such as
cars or computers. Employee reports of the illegal activities seemed to be overlooked, even
during a period of time when an internal investigation of the practice was conducted. In the end
the actions exhibited by Walmart were both illegal and unethical.
“The Foreign Corrupt Practice Act was designed to combat global corruption and
disincentive United States corporations and businesses from engaging in bribery and corruption
abroad” (Gordon, 2016, p. 125). These actions, later confirmed to be factual, violated this federal
regulatory guideline. Walmart took an illegal pathway to rapidly expanding its business in this
foreign country. There are extensive reports of illegal activities to expand in other foreign
countries, without seeking ways to ensure there was no corruption as the growth occurred. It is
alleged that “middlemen” were used in the transactions to pay the government officials without
bringing attention to what was occurring.
Discrimination
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One of the core values of Walmart indicates its plight to be inclusive of all individuals
and preferences. This has been questioned in recent reports of Walmart’s discrimination against
women. Betty Dukes and several other women filed a class action suit against Walmart alleging
that the ability to be promoted in the company and the pay received was unequal based on sex
(Shaughnessy, 2018, p.130). According to the suit that was filed against the company, the
managers of the local stores were able to make decisions related to promotions and pay.
Corporate policy does not dictate that women be treated unfairly; however, the argument exists
that the local managers are often men and have the ability to discriminate at their own discretion.
Treating individual differently based on race, sex, age, and etcetera definitely makes this
behavior an ethical concern for Walmart. The case is currently being evaluated in the courts,
leaving the question of whether anything illegal has occurred unanswered.
Mistreatment of Employees
Despite being noted as one of the largest and financially stable retail company in the
United States, Walmart appears to not do the right thing as it relates to how employees are
treated. The company is consistently the target of lawsuits, as employees report disrespectful and
harsh treatment at the hands of managers, low pay, and denial of unionization. There is
reportedly uncertainty in required shifts to work; often based more on the needs of the company
and/or customers than what benefits the employee. Because of the pressure that is placed on
managers to make sure sales are up, this pressure is often inflicted upon the employees in an
unprofessional manner (Tapia, 2019, p. 517). While there are laws that prevent employers from
forcing employees to work beyond a set number of hours in a day or from discriminating against
an individual, there is no illegal ramifications for managers “not being nice”. However, it is
unethical for the company to not do what is right by the employee.
Running Head: WALMART’S COMPANY
5
Improving Corporate Culture and Leadership
Walmart has a corporate social responsibility to ensure accountability in regards to how it
treats and responds to others. Included in this would not only be the customers receiving
products or services, but to the employees that are working to deliver the products or services
Walmart offers.
This would begin with changing the culture that is currently leading to
decreased trust among its stakeholders, which includes the employees. Cultural shift must start
with the leadership, initially at the corporate level. Leadership development initiatives must be
considered in this early stage of culture transformation.
The mission, vision, and core values of Walmart have already been determined. In order
to improve the corporate culture of the company, leaders must initially determine and re-evaluate
what the company desires to achieve. It is evident that the primary focus for Walmart is the
satisfaction of services delivered to its customers. Frontline employees have a great impact on
the experience if the customer; this is often connected to their experience as an employee of the
company. Leaders must genuinely embrace the desired culture by first communicating and
modeling the desired behaviors. Employees should note the pattern of fairness, inclusiveness,
and connectivity demonstrated by the leadership. Consistency in exhibiting the desired behaviors
sends a positive message to the staff, who will then take on what has been witnessed.
After determining the shift needed in the culture of the environment, it is going to be
pivotal in evaluate the perceptions of the employees that will be impacted by the cultural shift.
This shift requires leadership to actually pause and listen to the concerns through the lens of the
employees to ensure each aspect is addressed. As shifts are made, it is important that past failures
be acknowledged and areas of opportunities be addressed. For example, with the ongoing legal
claims of discrimination, it will be important for Walmart executives be able to clearly articulate
Running Head: WALMART’S COMPANY
6
what is being done to ensure that there is fair and equal pay regardless of sex and other factors.
Of course, there also has to be action to support what has been voiced.
Empowerment and trust appears to be an area that has been lacking at Walmart. In an
effort to shift in the right direction there has to be a sincere message translated, through actions
and words, that the employee’s actions and concerns are supported by the company as long as it
aligns with company goals. Formal roundtables and/or group representations can also help to
build the trust that has been depleted within the company. Ensuring the employees understand
the “why” of increasing sales, but also collaboratively working to determine how to reach that
goal is important.
Given the level of investigations into illegal and unethical patterns within the company, it
is going to be important that allegations and claims be taken seriously and thoroughly
investigated. In the event of the bribery investigation, it was determined that leadership had been
informed by a less aggressive way of investigating occurred. Neutral approaches to claims,
which may include hiring an outside third party team to investigate, must be taken. Appropriately
addressing the bribery concerns in the beginning may have reduced the likelihood that further
international illegal activity would have occurred in countries, such as Brazil.
Conclusion
Walmart continues to grow as a leader in retail; however, there are identifiable legal and
ethical concerns that is negatively impacting the reputation of the company. Leaders must be
committed to creating and sustaining an environment that promotes ethical and legal standards.
The vision of the company is pivotal and can be reached when “doing the right thing the first
time” becomes a priority and the norm within a company. Leadership must have buy-in and lead
the journey, while encouraging the employees to be interactive partners throughout the process.
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Running Head: WALMART’S COMPANY
7
References
Barstow, D., Xanic, A., & McKinley Jr., J. C. (2012). Vast Mexico Bribery Case
Hushed Up by Wal-Mart After Top-Level Struggle.
New York Times
,
161
(55749), 1.
GORDON, S. M. (2016). The Foreign Corrupt Practices Act: Prosecute Corruption and End
Transnational Illegal Logging.
Boston College Environmental Affairs Law Review
,
43
(1),
111–144
Jankalova, M. (2016). Approaches to the evaluation of corporate social responsibility.
Procedia Economics and Finance, 39(3), 580-587.
Shaughnessy, E. (2018). Too Big to Be Sued?: Class Actions and the Commonality Requirement
After Wal-Mart V. Dukes.
University of Louisville Law Review
,
57
(1), 125–155.
Tapia, M. (2019). Working for Respect: Community and Conflict at Walmart.
ILR
Review
,
72
(2), 516–517. https://doi-org.proxy1.ncu.edu/10.1177/0019793918818179
www.walmart.com