This document discusses perceptions of gender inequality and a lawsuit against Walmart for gender discrimination. It provides statistics showing that women comprise only 15.7% of Fortune 500 corporate officers and earn 76 cents for every dollar earned by men. The document also summarizes Walmart's policies regarding relocation requirements for management positions and discloses their equal employment opportunity data. It analyzes whether Walmart's relocation policy has created equal employment issues by potentially excluding women and families from management roles.

1. Perceptions of Gender
Equality in Corporate America
Wal-Mart Case Study
Study Group 1

2. Perceptions of Gender Inequality
• Women comprise 15.7% of Fortune 500
corporate officers**
• Earnings gap – 76 cents to the dollar –
less for minority women*
• CA lawsuit against Wal-Mart – America’s
largest employer - one of many suits
*Source: Brunner, Borgna. The Wage Gap: A History of Pay Inequity and the Equal Pay Act
** Source: Baue,William. Women Sit in Less Than a Seventh of Fortune 500 Board of Director Seats. December 11, 2003. www.socialfunds.com.

3. EEO-1*
• EEOC requires reporting data for companies
with over 100 employees
• Information is useful in tracking hiring, promotion
and retention of minority and female employees
• Most companies do not disclose this information
to the public
• Wal-Mart has joined only 6 other corporations in
the S&P100 to make their information publicly
available
*Source – Baue, Bill. Wal-Mart Discloses Equal Employment Opportunity Data. April 26, 2006. www.socialfunds.com.

4. Providing transparency through
public disclosure of EEOC data*
*Source: www.walmartstores.com, September 22, 2006

5. EEOC definitions*
Source: www.walmartstores.com. September 22, 2006.

6. EEOC definitions*
Source: www.walmartstores.com. September 22, 2006.

7. Video Clips
• http://www.pbs.org/newshour/bb/business/july-
• http://www.walmartfacts.com/articles/4369.asp

8. Important questions the EVP needs to
ask are:
• Should Wal-Mart make its managers be
immediately available to relocate?
• Is it really necessary for management
trainees to relocate or to promise to
relocate?
• Does this relocation rule create EEO
violations?

9. Impact to the management trainees.
• The majority of workers seeking
managerial positions:
– Enjoy where they live.
– Have established community ties.
– Have established families in the community.

10. Impact on New Trainees.
• One can see why men and especially
women would not want to commit to this
agreement.
• Can you imagine accepting a job only if
you agree to be relocated every two years!

11. Has Wal-Mart created an equal
employment opportunity issue?
• No, they have not.
• There are many plausible reasons for this
policy.

12. Pro’s of relocation
• One reason is to keep fresh ideas ranging
throughout the company;
• Wal-Mart may hire managers to fill existing
company needs nation- or world-wide.
• By making the relocation stipulation, Wal-
Mart precludes regional managerial
shortages and keeps new ideas flowing.

13. • Having the leaders move from store to
store helps make these managers more:
– aware of differences,
– possibly learning new techniques in the
process.
Pro’s of relocation

14. • They learn to deal with all types of people
• Can be motivated to run Wal-Mart the
‘Wal-Mart Way.’
• One effective way for a person to get
experience is for that person to move
every few years to a new location.
Pro’s of relocation

15. Con’s of relocation
• Employees with families are often not able
to move as readily and may not want to
commit to the management track.

16. Con’s of relocation
• Women can be affected more adversely
than men because single mothers would
experience a greater impact than other
applicants;
• This would preclude their advancement to
these managerial positions as well.

17. The result of the relocation rule
• If this rule of relocation has created a
situation where only men, or specifically
white men, are allowed or are willing to
take on management positions,
• Then this will ultimately belie a situation
that does not follow the EEO rules.

18. The relocation idea has merit.
• However the federal government will
coerce Wal-Mart to create a top end
structure
• This structure must meet what is called
the four-fifths rule.

19. Where Wal-Mart’s plan failed;
• Wal-Mart inadvertently created a white
male majority in upper management.
• Now Wal-Mart needs to bring talent from
other Wal-Mart locations around the world
into the upper management positions.
• This will help create a diverse upper
management team.

20. The EVP needs to:
• Ensure that each store is working towards
maintaining equal opportunities for
everyone employed,
• Ensure that there are opportunities for
people to come up the ranks without
having to relocate.

21. A significant approach that the EVP
can take is to:
• Employ more HR managers
• This will ensure a more balanced
allocation of the protected classes.

22. FINANCIAL PERFORMANCE
•6100+ STORES INTERNATIONALLY
•1.8 MILLION ASSOCIATES
•STEADY INCREASE IN SALES AND
NET INCOME
•>20% RETURN LAST FIVE YEARS
ON SHAREHOLDER EQUITY

23. ORGANIZATION CULTURE
• INSTINCTIVELY FRUGAL
• CORE VALUE – “EVERYDAY LOW PRICES”
• DIRECT OVERSIGHT OF PAYROLL AND
SALES COSTS BY HEADQUARTERS
• EXECUTIVES AND MANAGERS –
EXTREMELY HARD WORKING

24. EXECUTIVE AWARENESS
• ALL EXECUTIVES, MANAGERS AND
ASSOCIATES ARE TRAINED ON COMPANY
CULTURE, VALUES AND POLICIES
• WEEKLY MANAGEMENT MEETINGS ARE
HELD REGARDING CORPORATE CULTURE
• SOME MANAGERS ACT UNETHICALLY OR
UNLAWFULLY TO MEET EXPECTATIONS OF
HEADQUARTERS

25. LEGAL TROUBLES
• CLASS ACTION LAW SUIT ON BEHALF OF 1.6
MILLION CURRENT AND FORMER FEMALE
ASSOCIATES FOR SEX DISCRIMINATION
• FEDERAL INVESTIGATION FOR USE OF
ILLEGAL ALIENS TO CLEAN THE STORES
• SEVERAL OTHER LAWSUITS FOR UNFAIR
LABOR PRACTICES, “MOST SUED
COMPANY”

26. #3 Management Practices that
Exacerbate EEO Problems
• No Policy (straddle the fence)
• Weak Policy (in name only)
• Double Standard Policy
• Bare Minimum Policy

27. Wal-Mart the Organization
& Policy Creation
• Top Down/Not from the Bottom Up
• Local Sensitivity
• Management Input Only

28. Wal-Mart the Organization
& Policy Creation
• Financial Performance/Process Efficiency
Focused
• Great Latitude
• Favors Management

29. Wal-mart the Organization
& Information Dissemination
• Local Autonomy
• Training
• Management Network
• Store Meetings
• Internal Website (Mgmt Only)

30. Wal-Mart the Organization
& Goals
• Maintain Low Cost Strategy
• Provide Consistently Great Service
• Good Neighbor/Corporate Citizen
• Strengthen Supplier Relationships
• Workplace Diversity
• Environmental Sustainability

31. Wal-Mart the Organization
& Commitment to Various Issues
• History of Supporting Local Charities
• Latest Issue – The Environment
• “Support America First”
• Employee Volunteerism
• Managing its Image
• Fighting Labor Unions – Working Families
for Wal-Mart

32. Sources
Baue,William, Women Sit in Less Than a Seventh of
Fortune 500 Board of Director Seats. December 11, 2003.
www.socialfunds.com.
Baue, Bill. Wal-Mart Discloses Equal Employment
Opportunity Data. April 26, 2006. www.socialfunds.com.
Brunner, Borgna, The Wage Gap: A History of Pay Inequity
and the Equal Pay Act. September 23, 2006.
www.infoplease.com
• www.walmartstores.com