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Module Code 3BM150 Module Title Business Ethics
Level BA Module Tutor Peter Watt
Credit Value of
Module
20 Feedback Process
Type of Submission Electronic
upload to
Moodle
using Turnitin
Expected Feedback Date By 5PM, 26/1/17
Assessment Task A critical review essay
Weighting 75% Word Count 3733
Due Dates
(Published Deadlines)
Formal summative assessed essay
Deadline Thursday 5 January 2016, by 5pm
Assessment Regulations

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YORK ST JOHN UNIVERSITY 140059924
THE UGLY TRUTH: ETHICAL
BUSINESS IN WALMARTS IN
WALMART

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Contents
Introduction.................................................................................................................................1
Business Ethics- An Overview........................................................................................................1
Grey Area.................................................................................................................................2
Walmart Brief Overview................................................................................................................ 2
Stakeholder Analysis..................................................................................................................... 2
Employees................................................................................................................................ 3
Consumers................................................................................................................................ 3
Competitors.............................................................................................................................. 4
Ethical Challenges......................................................................................................................... 5
Employeesand Mistreatment....................................................................................................5
Consumers and Conservative Ways............................................................................................ 6
Competitors and Monopolizing..................................................................................................6
Recommendations........................................................................................................................ 7
Employee’s Recommendations...................................................................................................7
Consumers’ Recommendations..................................................................................................7
Competitor’s Recommendations ................................................................................................ 8
Conclusion ...................................................................................................................................8
References...................................................................................................................................9
I Eloise Shaw declare thatI am the sole authorof thisassignmentandthe workis a resultof my own
investigations,exceptwhere otherwise stated.All referenceshave beendulycited

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ASSESSMENTand gradingCRITERIA
Assessed
Components
A* A B C D F (fail) F (fail) 0
(100-85) (84 - 70) (69 - 60) (59 - 50) (49 - 40) (39 -20) (19 - 1) F (0)
Knowledge &
Understanding
Workofoutstandingperformance Excellent
understanding of a
w ide range of
ideas
Comprehensive
literature review
that makes a clear
attempt to cover as
much of the field as
possible w ithin the
constraints of
space
Excellent relevant,
correct and
comparative use of
a range of theories
w ith excellent
ability to develop &
support an
argument lining to
theory and
academic
discussions.
Very good
understanding
of a range of
ideas
Literature
review which
covers main
authorities and
includes up to
date sources
froma range of
authorities
including recent
journal articles.
Very good relevant
and correct use of a
range of theories w ith
very good ability to
develop and support
an argument lining to
theory and academic
discussions.
Good
understanding of
relevant ideas
Literature review
appears to cover
main authorities
but lacks depth
and not clearly
linked w ith present
study. Use of a
few journalarticles
Good relevant and
largely correct use
of a range of
theories and
models w ith good
ability to develop &
support an
argument lining to
theory and
academic
discussions.
Fair understanding
of a few relevant
ideas
Literature review
lacking in range and
scholarship. Limited
to text books and
w ebsites.
Adequate use of
theory/model but w ith
many errors in
understanding of the
key principles.
Subject
know ledge is
poorly
demonstrated
Literature
review is limited
and does not
link to the
assessment
brief
Limited use of
theory/model,
w ith
demonstration
of substantial
errors in
understanding
Non serious attempt
No or very poor
Literature review or
not related to study
Fails to identify ANY
relevant
theory/models and
principles to the
selected
organisations.
Workofnoorlittlevalueoorrleveancetotheassignmentbrief
Analysis &
Evaluation
Excellent ability to
analyse, evaluate,
compare and
construct values
Analyticaland
comparative w ith
substantive links to
research data and
Accurate analysis
and very good
evaluation
Predominantly
analyticalw ith good
links to research
data and
Good analysis and
sound evaluation
Predominantly
descriptive but some
evidence of analytical
thought, w ith good
know ledge base, and
good interpretation
Fair analysis
w ith some
evaluation
Complete but
w holly
descriptive, w ith
adequate
know ledge
Weak
analysis and
evaluation
Wholly
descriptive
and
incomplete.
Lacking in
Non-serious attempt
No or very limited
analysis and
evaluation
Wholly descriptive
w ith MAJOR key
omissions, w ithout
any understanding of

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development of
coherent academic
discussions with
excellent
understanding and
detailed know ledge
base, and excellent
interpretation and
application of theory
to evaluate the
impacts and
benefits of business
ethics.
development of
coherent academic
discussions with
very good
know ledge base,
and very good
interpretation and
application of
theory to evaluate
the impacts and
benefits of business
ethics.
and application of
theory to evaluate the
impacts and benefits
of business ethics.
base, and
adequate
interpretation
and application
of theory to
evaluate the
impacts and
benefits of
business ethics.
understandin
g. Poor
know ledge
base. Poor
interpretation
and
application to
given issue.
the topic. No
evaluation or
evidence of critical
thinking.
Research&
Enquiry
Rigorous and
sustained
enquiry w ith
excellent
outcomes
Excellent range
of appropriate
sources
including journal
articles, books
and alternative
sources
Accurate and
consistent enquiry
using appropriate
methods
Very good range of
appropriate sources
including journal
articles, books and
alternative sources
Consistent
approach draw ing
on a range of
sources
Good range of
appropriate
sources including
journal articles,
books and
alternative
sources
Relevant methods of
enquiry w ith some
inconsistencies
Range of sources
used but over
reliance on w ebsites
and low er level
sources or few
sources used
Little evidence of
research or
understanding of
appropriate
approaches
Some sources used
but over reliance on
w ebsites and lower
level sources
Non serious attempt
Too few sourcesused
Presentation &
Referencing
Technically
excellent,
accurate
referencing and
presentation
Excellent
presentation and
structure following
guidance
provided
Excellent
application of
Harvard system
w ith no missed
citations and
Accurate and
consistent
referencing and
presentation
Very good
presentation and
structure following
guidance provided
Very good application
of Harvard system
w ith few missed
citations and
complete bibliography
/ reference list
Good referencing
and consistent
approach to
conventions
Good presentation
and structure
follow ing guidance
provided
Good application
of Harvard system
w ith some missed
citations and
limited
bibliography /
Fair
understanding
of conventions
Adequate
presentation and
structure following
guidance provided
Poor
application of
Harvard
systemw ith
errors
Poor referencing
and little
understanding of
conventions
Poor presentation
and structure not
follow ing guidance
provided
Failure to follow
Harvard
Non serious attempt
No attempt to
reference

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complete
bibliography /
reference list
reference list
errors
Communication
Excellent ability to
communicate ideas
clearly and
appropriately
Excellent and fluent
communication,
follow ing a logical
sequence of
thought, w ell
indexed and linking
sections to produce
a quality report.
Very good ability
to communicate
ideas clearly
Very good & fluent
communication,
follow ing a logical
sequence of
thought. Well-
indexed and linked
producing a very
good quality report.
Most Ideas
communicated
effectively
Good presented and
structured report
that follow ssome
sequence. Would
benefit frommore
definite links to
sections.
Ideas are
communicated
w ith some
success
Adequately presented
and structured report,
but w orklacks
creativity in
presentation and
seems semi
structured.
Ideas are not
communicated
effectively
Poorly presented
w orkwith few
evidence of any
logical though or
sequence.
Unstructured report
w ith no definitive
sections
Non serious attempt
Failure to meet the
key requirements of
the assignment
brief.

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Introduction
Ethical businesspractice isastandard societysetsforall businessestofollow. Ultimatelyhow
businessespreformethicallyisuptotheirown definition of ethics.Thisessayisgoingtocritically
lookat what businessethicsmeansandhow businesses preformunderit.Tobest examine atan
example of businessethicsthisessayisgoingtofocuson the US corporationof Walmart. Thisessay
will analyse Walmart’s businessethicswiththreeof itsstakeholders:competitors,employees,and
consumers. The ethical issuessurroundingWalmartwill be shownthroughexamplesof challenges
and issuesthatWalmarthas facedas a corporationinrecentyears.Aftercriticallylookingathow
Walmart hasperformedethically,recommendationswill be made inthe formas advice for company
inthe future.
Business Ethics- An Overview
Businessethicsare the principlesandstandardsthatdetermineacceptable conductinbusiness
organisations(Ferrelletal,2015). Businessethicshasbeenstatedasbeinganoxymoron.the
perceptionthatbusinessandethicsare contradictory isbasedonthe general acceptedviewof what
managersare supposedtodoand therefore how theyare supposedtoact(Collins,1994). Business
ethicsadaptsthe methodsandpurpose of normative ethicsto the specificrequirements of moral
issuesinbusiness(Pratley,1995) To determineethical limits, businesses nolongerrelyon theirown
moral values(De Cremer,2013). Businessesnow checkthe existinglawsandrulestosee whatisnot
legallyacceptable(De Cremer,2013).The advantage of thisapproachis that if the law doesnot
mentionthatitis notacceptable thenbydefinitionitshouldbe acceptable forbusinesses(De
Cremer,2013). Businessethicsisprimarilyconcernedwiththose issuesnotcoveredbythe law,or
where there isnodefinite consensuson somethingbeingrightorwrong(Crane andMatten, 2004).
Most executivesfromtime totime are almostcompelled,inthe interestsof theircompaniesor
themselves,topractice deceptionwhennegotiatingwithcustomers,dealers, labourunions,
governmentofficials,orevenotherdepartmentsof theircompanies (Carr,1968). By conscious
misstatements, hiddenfacts,orexaggeration,theseexecutives seektopersuade otherstoagree
withthem(Carr,1968). A “responsibility perspective”onanyfieldof ethicscombinesaclaimof
value withatendencytoevaluate the situations,policiesandpracticesthatfall withinthe fieldina
certainthe way (Newton,2005). If the majorityof these companiesare actingunethical andnot
takingresponsibility, whatisthe issue?Tocompaniesandemployers,actinglegallyandethically
meanssavingbillionsof dollarseachyearinlawsuits,settlementandtheft(Weiss,2014).
One way of businessesbeingethical isthroughcorporate social responsibility. Corporate social
responsibilityreferstothe capacityof a corporationto respondto social pressuresethically (Crane
and Matten,2004). Carroll (1979) defined the fourcategoriesof CSRincorporate social
performance,depictingthemasorderedlayerswhichhe labelledeconomic,legal,ethical and
discretionaryresponsibilities(Visser,2005). However,MiltonFriedmanarguesthatabusinessisnot
responsible forbeingethical. The responsibilityof businesses istoconductthe businessin
accordance withtheirdesires,whichgenerallywill be tomake as muchmoneyas possible while
conformingtothe basic social rulesof the society,boththose embodiedinlaw andthose embodied
inethical custom (Freidman,1970).The doctrine of social responsibilityisfrequentlyacloakfor
actionsthat are justifiedonothergroundsratherthana reasonfor those actual actions (Freidman,
1970). All businessorganisationsface the challengeof meetingthe higheststandardsof ethicswhile
also,remainingcompetitive andprovidingthe productsand servicesthe publicdemands(Boatright,
2014).

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Grey Area
BusinessEthicsissaidto begin where the law ends(Crane andMatten,2016). Businessethicsis
primarilyconcernedwiththose issuesnotcoveredbythe law or where there isnodefinite
consensusonwhethersomethingisrightawrong- a grey area as showninFigure 1 (Crane and
Matten,2016). There are managementpracticesthatalsoappearto benefitmanagersatthe
expense of stockholdersand occasionally othercorporate stakeholders(BowieandWerhane, 2005).
Ethics
Grey
Area
Law
(Figure 1, authorown,adaptedfrom:Crane and Matten,2016)
Walmart Brief Overview
Today,nearly260 millioncustomersvisitmore than11,500 storesunder63 bannersin28 countries
and e-commerce sitesin11countrieseachweek (Walmart,2016). The Walmart U.S. segment
operatesretail storesinthe UnitedStates,includinginapproximately50states,WashingtonD.C.
and PuertoRico (Reuters,2016). Ninety percentof USresidentslivewithin15milesof a Walmart
(Fishman,2006). Walmart continuestobe the largestretailerinthe worldwithreportedrevenues
of approximately$469 billion forfiscal yearendingJanuary2013 (Morilloetal,2015). Despite its
publicrecognitionand prevalence throughoutthe U.S,Walmartisamongone of the least-admired
corporations inthe world(Ghillyer,2008). The reasonbehinditsunpopularitycanbe lookedat
throughthe stakeholderanalysis andbythe ethical challengesthiscompanymeets.
Stakeholder Analysis
Whenbusinesses actunethical,they riskstakeholder’sinterests.A stakeholderinabusinessisany
groupor individual whocanaffect,orisaffectedby,the achievementof the organization’s
objectives(CraneandMatten,2004). Three of Walmart’smost crucial stakeholdersare there
employees,customersandcompetitors. A highlysalientstakeholderpossessesall three attributes:
power,legitimacy,andurgency(Griseri andSeppala,2010). The attributesare dynamicinthe sense
that a stakeholdermaybecome more orlessimportantfora companyas a resultof a change inthe
extenttowhichtheyhave one or more of these attributes(Griseri andSeppala,2010).
POWER
LEGITIMACY URGENCY
(Figure 2,author own,adaptedfrom:Mitchell etal,1997)

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The model above isa representationof stakeholderimportance adaptedfromMitchell.
Powerconcernsthe normative means thata stakeholderhasat theirdisposal toexertinfluence on
management(Majochetal,2014). Legitimacyisgeneralizedassumptionthatthe actionsof anentity
are appropriate withinasociallyconstructedsystemof norms,values,beliefs,and definitions
(Mitchell etal,1997). Urgencyrefersto the degree towhichthe claimisperceivedbymanagement
as callingforimmediate attention(Majochetal,2014). The yellow circle representscustomers,the
blue circle representscompetitorsandthe greencircle representsemployees.Itwill be further
explainedwhyeach stakeholderisplacedinthese sections throughoutthe report.
Employees
Labour isnot simplyacommoditytobe boughtand sold,eventhough ithasbeen arguedthat wages
are defensiblydeterminedbythe market,inasystemwithproperandjustbackground institutions
(DeGeorge,1995). Labourderivesfromhumanbeings,andhumanbeingsholdrights,whichtheydo
not give upby becomingemployees(DeGeorge,1995). Walmart employs2.3millionassociates
worldwide –1.5 millioninthe U.S.alone,makingtheiremployee stakeholdera significantly large
groupof people (Walmart,2016). Over300,000 associateshave been employedby Walmartfor10
yearsor more (Walmart,2016). Two thirds of Walmart workers cannotaffordto participate inthe
companyhealthinsurance plan,whichcostsabout20 percent of a worker’spaycheck (Brownstein,
2004).
Walmart employeesare notallowedtobe a part of unions(Clark, 2007). Walmart’spolicyisto
oppose unionsand fighteffortsof unionization(Rosen,2006).To keepWalmartnon-union,when
employeesare hiredtheyare immediatelyshownananti-unionvideo(Rosen,2006). Thisis a factor
inwhy employeeshave suchalow wage (Crofoot,2013). The unionizedretailworkersinthe United
Statesthat do notwork at Walmarton average make 25 percentmore annuallythanthose
employeesthatworkthe same jobat Walmart (PBS,2010).
Consumers
In orderto trulydeveloptrustwiththeircustomers,companiesmust “walkthe walk”(Knauss,2010).
For example,anyactivity engagedinwithcustomerswill be fairanddefensible,noexceptions
(Knauss,2010).
Demographics of consumers at Walmart
A studyin2000 by AndrewFranklin,showedthatWal-Martoperatedprimarilyinpoorandworking-
classcommunities,finding,inthe bone-drylanguage of hisdiscipline,"asignificantnegative
relationshipbetweenmedianhouseholdincome andWal-Mart'spresence inthe market”
(Featherstone,2005). Accordingto the data, the average Wal-Mart shopperisa white,50-year-old
female withanannual householdincome of $53,125 (Peterson,2014).Only37% of Walmart
consumersownedapassportbut 54% owneda gun (Zogby,2015). 1 outof every5 Walmart
shoppersusesfoodstampsinorderto meettheirbasicneedsinsome way(Gaille,2014).

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Political Party of Walmart
Customers
Republican Democrat Independent
Race of Walmart Customers
White African American Hispanic
(Figure 3, authorown, adaptedfrom: Zogby, 2015) (Figure 4, authorown, adaptedfrom: Zogby,
2015)
ConsumerSatisfactionwith Walmart
In 2015, Walmart scoreditsworst customersatisfactionratingsince 2007, securingthe bottomspot
on AmericanCustomerSatisfaction Index’sretail customerservice ranking(Hill,2015).In 2011, 2012
and 2013, Walmart was the single lowest-scoringdepartmentanddiscountstore onthe list (Hill,
2015).
(Figure 5,source:Hill,2015)
Competitors
Walmart dominatesthe retail industryasitofferssome of the lowestpricesforproductsand
servicesothercompaniescannotaffordtooffer(Pyle,2014). PBS Frontline (2004) reportedthatSam
Walton’sformulawasbuycheap,sell lessthanthe otherguy,andmake yourprofitonhighvolume
and fastturnover. It doesmore businessthan competitorssuchas Target, Sears,Kmart,J.C.Penney,
Safeway,andKrogercombined (Fishman,2003). As a store,Walmartis notjust the largest;itno
longerhasany nearrivals. Walmartis as bigas Home Depot,Kroger,Target,Costco,Sears,and
Kmart combined (Fishman,2006).Target, whichisconsidered Wal-Mart’snearestdirectrival issmall
by comparison (Fishman,2006).Each year Walmartsellsmore bySaintPatrick’sDay,March 17, than
Target sellsall year(Fishman,2006).Inmany categoriesof productsthatit sells, Walmartisnow 30

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percentor more of the entire market(Fishman,2006). Walmart sellsmore than30 percentof the
skincare andhaircare products usedinthe UnitedStatesandmore than30 percentof small kitchen
appliances,housewares,andtoyssold inthe country(Fishman,2006).
Ethical Challenges
An ethical issue isanidentifiableproblem, situation,oropportunitythatrequiresapersontochoose
fromamong several actionsthatmaybe evaluatedasrightorwrong,ethical or unethical (Ferrellet
al,2015). Inbusiness,suchachoice ofteninvolvesweighingmonetaryprofitagainstwhataperson
considersappropriate conduct(Ferrell etal,2015). The bestway to judge the ethicsof a decisionis
to lookat a situationfroma customer’sorcompetitor’sviewpoint,asthisfollowingsectionwill
explain(Ferrelletal,2015).
Employees and Mistreatment
One ethical issue Walmartiscriticizedforisthe compensationtheypay workers.The average annual
salaryfor a Walmart salesassociate in2001 was US$13,861 and the average hourlywageswas
US$8.23 (Ghillyer,2008). The primaryreasons for Wal-Martlow wagesis because theywanttocut
operatingcostsand theywant to continue offeringlow prices(BusinessPractices,2015). Walmart
employeesare sopoorthat theyare skippinglunch,sharingitor,insome cases,stealingitfromtheir
co-workers,some of the company’sworkersclaimed(Kasperkevic,2015).
While itseemsrespectable thatWalmartemploysmore thananyotherprivate employerinthe
UnitedStates,itisunfairthat 90% of the store’s managerpositions are heldbymen (Ghillyer,2008).
In the UnitedStates, since 2005, Walmarthas paidabout $1 billionindamagestoU.S.employeesin
six differentcasesrelatedtounpaidwork (Sethi,2013). In 2013, itwas notedthat eventhough
womenaccountfor 57% of Walmart’sworkforce inthe US theywere still gettingpaid$1.16 lessper
hour (Osterndorf,2015).Alsomultiplefemale workershave come forwardsayingtheywere
overworked,firedorputindangeroussituations byWalmartwhile beingpregnant(Osterndorf,
2015). These casespointtowardWalmart takingmore of the “Friedman”approachinthat itsmain
responsibilityistomake a profitnomatter the cost. Asof 2016, aftermanyprotests,Walmart
agreedto payemployees $10 an hour (Owens,2016).But a full-time employee working34 hoursa
weekfor$10 an hour still onlyearns$18,000 a year,below the national povertyline foranaverage
familyof four(Owens,2016).Howeverdue tothe company’sstronganti-unionstance itmakesit
harderfor employeestofightback(Kasperkevic,2015). Thisis whyemployeesfall underthe under
the urgentand legitimatepartof the salience model.The poorwage,lackof benefits,andsexism
reportsand legitimatecausesof concernwithanurgentneedtobe addressedbyWalmart.
Same Sex Couple VS WE
A case of discrimination occurredin2015 whena Walmart employee suedthe retailer,sayingits
previouspolicyof denyinghealthinsurance tothe spousesof gayemployeesviolatedgender
discriminationlaws(Reuters,2015). Employee,Jackie Cote,whohasworkedatWalmartstoressince
1999, saidinthe lawsuitthatherwife developedcancerin2012 and the denial of insurance ledto
more than $150,000 inmedical debt (Reuters,2015).Ms. Smithsonisnow inhospice care,Ms. Cote
said(Reuters,2015). A Walmartspokesmansaidthatthe company’sbenefitscoverage before the
2014 change was legal,howeverthisdoesnotmake itethical,thisputsitina greyarea. Walmart set
aside $7.5 million,tocompensate employeesaffectedbythe denial of spousal benefitsduringthe
three yearsbefore Jan.1, 2014, whenthe companychangeditspolicy(Schieber,2016). Walmart
expected “nomore thana fewthousand”people to be eligibleforthe settlement(CNN Wire,2016).

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Consumers and Conservative Ways
Today, 56 percentof citizenspolled believe that“Walmartisbad forAmerica”(Morilloetal,2015).
Residentsof statesthat votedMittRomneyinthe 2012 Presidential Electionwere more likelyto
patronize one-stopshopssuchasTargetand Walmart (Wells,2015). Due to Walmart’samountof
RepublicanandIndependant customersasshowninfigure 1 part of Walmart’ssalesstrategyisto
protectthe image of itsstoresas “familyorientated”(Brunn,2006). Alsoof all the donationsmade
by bothWalmart’sPACand the Waltonfamilysince the 2000 Presidential Election,nearly70percent
wentto Republicancandidatesandcommittees (Berman,2013). RecentlyWalmartstoppedthe
sellingof confederate flags,however theykeep sellingguns(Lee,2015).It isnotoriously knownfor
protectingconsumersfromproductsthatthe managementdeemsoffensive,astrategytokeepwith
the conservative campaignto“protectfamilyvalues”(Brunn,2006). A Christianorganisation, The
TimothyPlan,showedoutrage atwhatWalmart wasselling(Brunn,2006). The TimothyPlan
PresidentArthurAllydemandedWalmartremove copiesof the magazine Cosmopolitancallingit
“most blatantlyaggressive soft-core pornographicmagazine inAmerica”(Curry,2002). Allysaidhe
foundWalmart'spositiononCosmopolitanmagazine incongruouswithitsWebsite-statedpolicies
regardingitsrefusal tostockmusicwithparental guidance stickersanditsrestrictionof the sale of
"mature-rated"videogamestocustomers17 yearsof age and older(PRNewswire,2002). Walmart
has implementedpoliciesagainstliterature itdeemsoffensive,takingaway men’smagazineslike
Maximand Stuff fromthe storesracksalongwithgay publicationssuchas Out(Brunn,2006). With
magazinessuchas Glamour,MarieClaire andCosmopolitan theyare obscuredwithbinders(Brunn,
2006). By Walmart now coveringthese magazines,showsthe powerthatconsumershave overthe
companyand whytheyare placedinthe powersectionof the salience model.
Competitors and Monopolizing
That kindof dominance Walmarthas at bothendsof the spectrum— dominance acrossahuge range
of merchandise anddominanceof geographicconsumermarkets—meansthatmarketcapitalismis
being“strangledwiththe kindof slowinexorabilityof aboa constrictor”(Fishman,2006). Although
Walmart providesjobsformore than1 millionpeople inthe UnitedStates,ithashelped putlocal
drugstoresandgrocers onthe brinkof bankruptcy (Frick,2006). While ina lot of ways,people see
Walmart as an oligopoly,the way theydrive outcompetitionismonopolistic(Basker,2007).
Walmart implementsastrategicpredatorypricingtacticinthattheydrop pricestoolow and drive
away competition,thusgainingamonopoly(Starvos,2014).Many local communities criticize
Walmart as a majorfactor in the dissolution of local businesses(Ghillyer,2008). WhenWalmart
starts sellinggroceriesinanewarea, it brings lowerpricestoitsownshoppersand through
competition,drivesdownthe pricesof establishedgrocerystores(Fishman,2006). Itisclear that
Walmart can run smaller,family-runretail storesinthe areaout of business(Crofoot,2013). The so-
called"Walmarteffect"iswhenWalmart,orany similarbig-boxretailer,movesintotown,reshapes
shoppinghabits,anddrainsthe viabilityof traditional local shoppingareasor"mom-and-pop"shops
(Fishman,2006). The average difference inWalmart’spricesverses competitor’s pricesvaryfrom8-
27% (Basker,2007). However,if someone securesajobwithWalmart,onaverage the individual will
be are paid18 percentlessthanhe or she wouldbe at a family-runretailstore (Crofoot,2013). This
wouldrepresenta“greyarea” forWalmart.This isalsowhy competitorsare placedinthe legitimate
sectionof the salience model.Whiletheydonothave muchpower,andare not verypowerful,they
have legitimatereasonstobe upsetwiththe wayWalmartis performingethically.

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Recommendations
Whenlookingatthe short term,ethical behaviourmayprove costlytoa company’s bottomline
(Stark,1993). But accordingto the advocatesof corporate social responsibility,ultimatelythe
marketwill rewardsuch behaviour,suchaswitha goodreputation(Stark,1993).
Employee’s Recommendations
As of now, Walmart hasmade in its effortstoofferbetterwagesandbenefitstoitsworkers (The
AssociatedPress,2016). All of the evidencesuggeststhatWalmartcaneasilyaffordthisastheir
minimumwage (Owens,2016).A $15 minimumwage wouldbe goodbusinessforWal-Mart(Owens,
2016). ResearchersatThe WhartonSchool findthat foreveryadditional dollarspentonpayroll ata
givenstore,salescanincrease anywherefrom$4 to $28 (Owens,2016).This increase wouldalso
helptaxpayersaswell asemployees(Owens,2016).Whenworkerscannot affordtomeettheirbasic
needsdespiteworkingfull time,theyare forcedtoturn topublicassistance (Owens,2016). This
meansthat companiesrelyontaxpayerdollarstosubsidize rock-bottomwages(Owens,2016).
Walmart istrying, to incorporate physical exercise intoeveryemployee'sjobdescription,nottohelp
the overweightgetinshape,buttostopthemapplyingforjobsinthe firstplace - intheirown
words,"to dissuade unhealthypeople fromcomingtoworkat Wal-Mart",whichwouldsave them
an estimated$1bna year inbenefits (Dowling,2005). Therefore, agoodwayof incorporatinghealth
intoan employeesworklifeisbyrewardingthem, ultimately savingWalmartmoneyinthe longrun
by nothavingto pay as muchfor healthcare (Dowling,2005). One companyWalmartcouldreallydo
withmodellingitself afterisHallmark.Hallmarkisa$3.7 billionbusiness withmore than 40,000
retail storesacrossthe U.S. (Hallmark,2016). One ethical tactic Hallmarkdoes ishave an employee
rewardsystem.Makingitpossible foremployeestoearnan additional $400 a year bythe Hallmark
HealthRewardsProgram(Hallmark,2016). Employeesearnpointsformaintaininghealthyweight,
bloodpressure andcholesterollevels(Hallmark,2016).
Consumers’ Recommendations
While alarge segmentof consumersof Walmartare republican,Walmartshouldappeal more toits
liberal crowd.Withthe example of the organisation“The TimothyPlan”,itwouldbe more vital to
expandtoa liberal crowdbyignoringthe cries of Christiangroupsandthe conservative consumers.
LiberalsputWalmartas the No.1 companyonthe Fortune 500 that isthe worst forAmerica
(Matthews,2016). Theyalso rankeditas firston a listof companiesinthe Fortune 500 theywould
like shutdownInsteadtoadd more of a liberal crowd,theyshouldappeal tothese consumersand
add more storesinmore liberal states (Matthews,2016).However,the amountof liberal democrats
that shopat Walmart has risenanimpressive 18percent,makingthemanew targetto appeal to.
One majorplace to appeal to is San Franciscois the mostliberal cityinAmerica(Forbes, n.d).There
isalso noWalmart locatedinSan Francisco(Ausick,2014). The closestWalmartto the liberal cityis
half an hour awayinSan Leandro(TripAdvisor,2005). Alsoto appeal more to liberal customers, and
to fitinwiththeirviews,itwouldbe recommendedtostopthe sellingof guns.Asa part of
Walmart's goal of sellingfirearmsprimarilyforthe purposesof huntingandsports,itdoesnotsell
handguns,a policy thatdatesback to 1993 (Lee,2015). However,anysellingof goalsdoesnotfit
intothe liberal agenda.Inorderto getconsumersof all demographics,andnotjustconservative
onesitis recommendedthatWalmartopensstoresinmore liberal placesandstopsthe sellingof
huntingguns.

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Competitor’s Recommendations
Whena Walmart comesto town, the local economicframework thrownintoturmoil (Wolf-Mann,
2016). Many small and regional businessesgettrampledbythe low pricesmade possiblebythe
massive economiesof scale of the giantretailer (Wolf-Mann,2016).It’snearlyimpossible forthese
small businessestocompete (Wolf-Mann,2016).However,whateveryarticle thatmentions
Walmart monopolizingtalksaboutin“small towns”.WhichiswhyarecommendationforWalmart
wouldbe to stopgoingintosmall townsandmonopolizing,butinsteadmove tobiggercitieswhere
there isalreadya highcompetition anyway. Thisrecommendationwouldalsofitintoexpandinginto
more liberal cities,suchasSanFrancisco.
Conclusion
Despite Walmart’ssuccessitisevidentfromthisreportthatithas takena lotof unethical
approacheswhile beinganestablishedbusiness. While itisupto eachbusinesshow theyperform
ethically,itisclearthatWalmart’sperformance ismostlybasedonunethical practices.These
unethical practiceswere showninthisreportthroughalook at stakeholdersandethical challenges.
ThisreportconcludedwithrecommendationsthatWalmartcouldfeasiblymake if theychose amore
ethical approachto theirfuture success.

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