Evaluation of a business code of ethics


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Evaluation of a business code of ethics

  1. 1. Wal-mart cooperation’s Statement of Ethics WAL-MART COOPERATION’S STATEMENT OF ETHICS Name: Grade Course: Tutor’s Name: (28, November, 2010)
  2. 2. Wal-mart Cooperation’s Statement of Ethics 2 Wal-mart cooperation’s Statement of Ethics Wal-mart started just as a single discount store in Northwest part of Arkansas, whichhas specialized in general merchandisers with discount stores. Its operations took less thanfive decades before it grew to being one of the largest retail stores. The store comprises ofthousands and thousands of clubs and stores as well as millions of associates. Its culture ofethics o top of the integrity has since from formation remained constant throughout itstransformation. From the start, the retail store has defined who the employees are to thecompany, and how every person starting from the management to the lowly paid workers,relate and treat each other, as well as how to treat its suppliers and clients. The slogan thatWal-mart uses in its advertisement is “wal-mart. Always love price. Always” (Murphy,2011). The mission statement and vision statements were written for clients and workers ofthe cooperation. The company has used it for the reflection of its main objective,identifying, valuing and principles aims of the business. The mission statement of Wal-Martis "Wal-Mart’s mission is to help people save money so they can live better." (Murphy,2011). The ethical statement used by Wal-mart store retail cooperation end-driven. This isan ethical theory that states that the right practice is one that looks at a certain objective orthe result. There exist different forms of theories that expound on end-driven ethical system.Amongst the well known theories include; Aristotle’s ethical theory, which states that,happiness is the end of human practices. It is said by the utilitarianism that the end is thecreation of the most happiness for many individuals. On the other hand, Kantian ethicsexplains that, the action that is perceived to be right, if bin it is right and of itself with noappeal to ends, in other words, it speaks of the end’s kingdom that most individuals try toachieve.
  3. 3. Wal-mart Cooperation’s Statement of Ethics 3 This ethical system is used because; it looks at why moral systems are needed aswell as prescribing norms that are necessary in meeting these ends. For instance,objectivism accepts its norm of being self-evident, that due to man’s specific nature ofbeing an animal that is rationale. This is because; wal-mart ought to do good things alwaysfor themselves consistent with their nature. According to the law of objectivism in end-driven system, Wal-mart has accepted that, it is a store that is sovereign retail store; it doeswhatever it wishes to do, provided that no one is harmed. The cooperation has stated that,by doing no harm to any one, they ought to do, but puts no norm in place for what thecooperation wants to do. The cooperation believes that, its survival is already determined bynature and is not open for it to make a decision. The only decision that the cooperationbelieves to have is to discover what it has to do to ensure that it gets to that predeterminedend, by choosing the right objectives and values. The management code of ethics applies to all employees that are involved in thepurchase processes within Wal-mart. All employees that are affected by this code need to behonest and ethical when caring out their duties. They need to maintain the principle ofconfidentiality of some privileged information that might have been acquired during theirdaily responsibility. Employees need to avoid circumstances that might lead to the conflictof interest. Employees need to avoid either apparent or actual conflicts of interestsconcerning individual and professional relations. They also need to comply withgovernment regulations and rules. This is applicable when undertaking obligations that arein accord with applicable laws, regulations and rules. During supplier selection, they oughtto follow the right procedure and be much fair. This will enhance confidentiality in thecooperation, (Philips, 2011). Board of directors’ code of ethics; these functions as a code of conduct for these aremembers of the board. Its violation by any member may lead to consequences provided by
  4. 4. Wal-mart Cooperation’s Statement of Ethics 4the review of board member conduct. In conducting business affairs, the board memberswill conduct them in good faith, honesty competence that is reasonable, due diligence aswell as integrity. When exercising judgment, they are supposed to exercise it with properauthority when judging association staff, cooperation suppliers, as well the public ingeneral. This will enhance respect and professionalism at the work place. Another use isdealing with conflicts of interests. The board members have to identify the conflict. As amatter of fact, they ought to remove themselves from all discussions and voting on theissue. The members in such a circumstance, they are not to receive any gift or any form ofbribes from any party, (Asaecenter, 2011). According to the manager code of ethics, managers are needed to comply withpresent practices and standards as established by the CAI topic to all governments and rulesthat are in effect where actions of managers apply. They are supposed to undertakeengagements that are much reasonable, all these aims at improving professional competencein Wal-mart. Wal-mart needs to modify their existing code of ethics after recognizing that someof the laws that are inexistence might be immoral or much inappropriate. As a result, theyhave to be changed for them to be in accordance with the current rules and regulations. Theviolations of such laws might be ethical, when the content of that rule conflicts with otherlaws that have been judged to be more significant. If some individuals decide to violate therule, as it is viewed being unethical, or for any other purpose, individuals need to accept theresponsibilities fully for their practices and for the impacts. The best way to modify the laws is by bringing together employees from differentdisciplines in all aspects of the company to form a team. For the implementation, workersneed to be trained about the meaning of the code and its application in the dilemmas that dohappen in the real life, especially encountered during work. Undertaking regular refresher
  5. 5. Wal-mart Cooperation’s Statement of Ethics 5causes will be much significant during implementation, as training in ethics is muchperishable, since is usually forgotten by individuals. The managers and employers are expected to react positively to the new code. Thisis because the former code was made long time ago, and since then, many things havechanged which have been affecting managers and employers. As an effect, they areexpected to welcome the new code. This will also happen because, they were involved thecode drafting procedure. Research has shown that culture has some impacts on code ofethics. The identification of cultural differences might lead to the misunderstanding ofbehaviors and policies that might be improper in an organization. The code will make the organization appeal as it will have a good ethical reputation,this in addition will make the organization stick to the ethical code that stands as per thattime. In addition, the code will add to the organization’s reputation. Lastly, the code will notlead the standards slip away, (Rance, 2010). In summary, Wal-mart is a specialized in general merchandisers with discountstores. The ethical statement used by Wal-mart store retail cooperation is end-driven. Themanagement code of ethics at Wal-mart applies to all employees that are involved in thepurchase processes. On the other hand, board of directors’ ethics is governed by Board ofdirectors’ code of ethics. On their side, managers are governed by manager code of ethics.There are circumstances under which the organization might wish to change its existingcode. The managers and employees view on the new code in mostly is positive, as theyview it as their own. The new code has positive effects to the organizations operations.
  6. 6. Wal-mart Cooperation’s Statement of Ethics 6 ReferencesAsaecenter. (2011). Model Board of Directors Code of Ethics. Retrieved on 23 January 2011from: http://www.asaecenter.org/Resources/EURelated.cfm? ItemNumber=11611Murphy, J. (2011). The Concepts of Vision & Mission Revisited. Retrieved on 23 January 2011from: http://www.calumcoburn.co.uk/articles/articles-vision-mission/Philips. (2011). Supply Management Code of Ethics. Retrieved on 23 January 2011from: http://www.philips.com/shared/assets/Investor_relations/pdf/businessprinciples/Su pplyManagementCodeofEthics.pdfRance, P. (2010). What Are the Effects of Having a Code of Ethics on Organizations? Retrieved on 23 January 2011from: http://www.ehow.com/list_7452930_effects- having-code-ethics-organizations_.html