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Walmart's compensation practices
Walmart's compensation practices
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Unethical Acts in Wal-Mart Corporation
Wal-Mart, founded by Sam Walton in 1962 is a leader in discount retailing and the largest private employer in the world with over two million employees. Unfortunately, the retail giant’s slogan “Save Money, Live Better” seems to come at the cost of its employees well-being. According to PBS, Wal-Mart employs more people than any other company in the United States outside of the Federal government, yet the majority of its employees with children live below the poverty line (2015). Low employee wages and unattainable health care plans have caused a significant amount of controversy regarding their unethical business practices.
Wages
To keep operating costs low, Wal-Mart keeps wages low and offers employees cost-inhibitive health care plans. The average full-time Wal-Mart worker makes between $18,240 and 20,120 per year. Because of these low wages, workers turn to government aid programs such as food stamps and Medicare to keep them from dire poverty (Picchi, 2015). Regardless of its business model, Wal-Mart has a moral responsibility to provide reasonable wages and affordable health care to its employees.
Health care
Even when employees manage to buy into Wal-Marts health care plan,
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Ultimately, it made very poor business sense. Consider that Wal-Mart spends over $3B on advertising each year. Wal-Mart won the lawsuit and as a result got back the $470K. That amount equals about .013% of its advertising budget – money spent each year to encourage customers to think well of the company and shop there. Meanwhile, the airwaves and internet were flooded with the story and its negative impacts. The story was covered by a variety of news sources including MSNBC, CNN, Anderson Cooper, and the L.A. Times to name a few. All this damaging press could have been avoided for a mere $470,000 (Hartung,
In Deenu Parmar's "Labouring the Wal Mart Way," the author discusses the business practices of Wal Mart, their impact on systemic poverty, and on existing work unions. Their business model forces competition to align with them, or close up shop. Wal Mart hires workers that would usually have a difficult time finding employment. That said, they pay them well below a living wage. Staff are also subject to abuses like overtime without pay. Wal Mart is resolute in their feelings towards unions. Their hiring process designed to cut out union sympathizers. This way, they can prevent any retaliation from staff seeking a better work environment. If anti-union efforts are unsuccessful, they close the store. It also forces existing unions to take pay
Mallaby admits Wal-Mart can treat their employees and other retailers unfairly, but as a result everyone can share in the 50 billion in savings that American shoppers consume annually. The pay that employees get is the price they must pay for low priced merchandise. Because of the minimal pay to employees, Wal-Mart strengthens its’ consumer buying power. Giving the American shoppers the savings they need, Wal-Mart’s has ultimately been them successful. Wal-Mart has potentially wiped out the middle class as an employer, but the employees can now work and ...
Within an excerpt from, “The United States of Wal-Mart,” John Dicker explains that Wal-Mart is a troubling corporation. Dicker begins his article by discussing why the store is so popular within the news in an age of global terrorism, coming to the conclusion that Wal-Mart has a huge scope in the United States and that it has more scandals, lawsuits, and stories than any other supercenter. Continually, he goes on to explain that Wal-Mart outsources jobs and their companies demands makes it hard for employees to have livable wages and good working conditions. Furthermore, Dicker addresses the claim that Wal-Mart provides good jobs, by destroying this perception with statistics showing how employees live in poverty and that their union scene
With Wal-Mart being so outrageously huge in this short of time, I believe that it has not yet settled into their customers why Wal-Mart is so cheap. Wal-Mart will replace higher wage jobs with lower wage jobs and require taxpayer assistance to keep Wal-Mart employees out of poverty. Numerous studies reveal that, contrary to the company's PR, Wal-Mart does not create new jobs when it comes to town. Wal-Mart simply replaces higher paying retail jobs with lower paying ones and, due to its adverse impact upon local businesses, may actually cause a net decrease in job numbers. The factories in China supply their employees with a whopping three dollar...
Wal-Mart represents the sickness of capitalism at its almost fully evolved state. As Jim Hightower said, "Why single out Wal-Mart? Because it's a hog. Despite the homespun image it cultivates in its ads, it operates with an arrogance and avarice that would make Enron blush and John D. Rockefeller envious. It's the world's biggest retail corporation and America's largest private employer; Sam Robson Walton, a member of the ruling family, is one of the richest people on earth. Wal-Mart and the Waltons got to the top the old-fashioned way: by roughing people up. Their low, low prices are the product of two ruthless commandments: Extract the last penny possible from human toil and squeeze the last dime from its thousands of suppliers, who are left with no profit margin unless they adopt the Wal-Mart model of using nonunion labor and shipping production to low-wage hellholes abroad." (The Nation, March 4th 2002 www.thenation.com/doc.mhtml?i=20020304&s=hightower).
The Wal-Mart Corporation is a multi-billion dollar low-cost retail organization, consisting of 6400 stores and 1.8 million sales associates worldwide. Wal-Mart’s influence on the retail world and the enormity of their corporate size is unparalleled. Wal-Mart can easily report sales of $312.4 billion dollars per fiscal quarter and net profits of $3.8 billion dollars. Wal-Mart promises her customers "Always low prices. Always!" and upholds this motto by providing low prices to her customers and high return on investment to her stockholders. One way that Wal-Mart has managed to maintain a competitive edge over other low cost retail giants and provide low prices is by cutting wages and by not offering too many company benefits to their employees. Full-time employee working at Wal-Mart only make $8 an hour, while only 45% of the workers can afford to be covered by health insurance. Wal-Mart also increase part time employees from 20 percent to 40 percent so that they do not have to cover all of their employees for health insurance . Although Wal-Mart may not provide excellent benefits to her employees, it successfully performs as a legitimate business operating in a capitalistic society. Wal-Mart upholds the primary fiduciary duty to satisfy her stockholder and follows free the market libertarianism model, which states that a business should not interfering with the free market. In a free market Wal-Mart has a direct responsibility to her primary stockholders rather than the employees of a company.
Today Wal-mart has a higher GDP than the entire country of Switzerland, but don’t worry they’re pretty neutral about it. But there has also been news about how they treat there employees. In 2004 an article was released entitled Everyday Low Wages: The Hidden Price We All Pay for Wal-Mart, and soon after Washington got involved. The bad publicity took a toll on Wal-mart and in fact is still today, Maryland passed a law in January, 2006, that said larger employers, such as Wal-mart, must spend at least 8% of their payroll on health benefits for their employees, and now many other states have followed suit. The bad publicity also made it so 8% of customers shop elsewhere because of what they’ve heard, this has caused lower expected sales around the holidays during 2004, and 2005. Some things they’ve done is in 2006 they paid employees on average 9.36 dollars, while other major retailers like Target and Sears pay on average 11.08 dollars. While this can be easily denied by Wal-mart, another way they have gained bad publicity is from something called off-the-clock work. If they had not finished their job they had to clock out and then still finish their job, meaning they wouldn’t get paid for
The average wage of all U.S. cashiers was $11.22 an hour, according to the U.S. Census Bureau’s Current Population Survey. “Last week Wal-Mart surprised reporters by announcing a pay hike for its most poorly paid workers. The company declared it will raise its minimum base wage to $9.00 an hour starting in April and will boost the minimum hourly pay of all its current employees to no less than $10.00 an hour in February 2016.” While this is great news for Walmart employees affected by the pay raise, it is still only approximately a 15% pay raise. This will bump a couple of 2 just over the federal poverty line, while still keeping any couple with a child below the
Many employees claim low wages, no benefits, irregular schedules, and unreliable hours as some of the horrible working conditions they have to endure. Walmart employees put together different unions all the time to try and protest or strike about the wages, treatment and anything else that seems to come along with being an employee of Walmart. Walmart does not take well to these unions. Women of Walmart seem to have it the hardest though. As recently as 2013, despite the fact that women account for as much as 57 percent of Walmart’s U.S. workforce, women were paid $1.16 less per hour (Osterndorf). In an article about Walmart and how it treats employees wanting to take sick days, a woman in fear of losing her job at a North Huntingdon Walmart, went back to work even though she had doctors' notes and hospitalization recorded, which were both rejected by her supervisors, to excuse her from work due to a miscarriage. She was worried the she would get fired due to absences so she went back (Abrams). Walmart also does not give out good health care to its employees. There are many claims of Walmart cutting health care for employees or finding the cheapest possible solution for an employee's health care. In 2014, the company cut insurance benefits to its part-time employees (Osterndorf). In a New York Times article about health care called, Walmart to End Health Coverage for 30,000 Part-Time Workers, it stated
Walmart has had a long-standing presence in America society since the middle of the 20th century, seen as a place to get everything done, Walmart has become a fixation in our society. From grocery shopping, to changing your oil and even filing your annual tax returns, Walmart is always there, everyday. Started by Sam Walton in 1962, it began as a small operation catering to a small Arkansas community. It was started on principles very similar to small local businesses in small towns. Today Walmart has gotten a different, darker reputation. On the surface, Walmart may seem like the solution to everyday issues. Low-income families are attracted to the low prices, and people who work odd hours benefit greatly from the 24 hours a day that many Walmarts are open. Lately, Walmart has also managed to be publicly recognized as a store that sells many of today’s green products, including organic food, environmental conscious cleaning products, as well as, paper products made from recycled paper. However, underneath all this, Walmart has a different side. Exploitation of its workers is widespread amongst Walmarts who do not belong to a union, especially in the United States. Wal...
Let me start off with the first reason why Wal-Mart is bad for America, “Walmart workers average just $8.81 hour. This translates to annual pay of $15,576, based on Walmart’s definition of full-time. This is less than two-thirds of the poverty line for a family of four, and well below what most families actually need to get by.” (walmart1percent.org) $8.81 per hour is not a livable wage. These workers have families to look out for; some have kids to look out for. Out of these workers with kids some of them are single parents. This means there is only one income coming in so they have no choice but to apply for government aid in the form of welfare or food stamps, according to Forbes.com “Walmart’s low-wage workers cost U.S. taxpayers an estimated $6.2 billion in public assistance including food stamps, Medicaid and subsidized housing.” (Forbes.com). 6.2 billion dollars is a substantial amount of money that our government doesn’t have. In 2005 Wal-Mart had 2,700 employees just in Arizona on a state funded healthcare plan that was paid by the tax payers. And the best part of Wal-Mart abusing the tax payers is that they received a 1.2 billion dollar tax break in 2007. Also the Walton family uses tax loopholes to avoid billions in taxes. If Wal-Mart claims to be a good thing for America how could they put such a great burden on the tax payers of America? It’s not just the workers who are suffering from Wal-Marts low pay, the tax payers are
There are three articles that will be referenced during this analysis. The first article is taken from the mainstream media publication USA Today. “Wal-Mart takes hits on worker treatment: Lawsuits, unions slam megaretailer”(Armour, 2003) argues that Wal-Mart is coming under attack from critics who argue workers are underpaid, women are discriminate against, and illegal tactics are being deployed to kill unionization efforts. Armour (2003) states, “company officials say they don’t know why the attacks are coming now, and they also say the allegations are unfounded.” The next statement made during the article states that Wal-Mart employees agree with the statement. The author continues reporting on the issues at stake, but focuses mostly on how unions may be less relevant in today’s world. The article makes mention of both sides of the argument, but the rhetoric and terminology used leans towards the portrayal of Wal-Mart as a victim of biased attacks to further union interests in the market.
Wal-Mart, it’s one of the most easily identifiable transnational companies out there. Since its humble establishment in Rogers, Arkansas, United States, by Sam Walton, the store has grown to be one of the richest companies in the world. Why? Simply because Wal-Mart offers a variety of projects from pharmaceuticals to bicycles all while following the stores policy of offering more for less. Although this company provides a relatively affordable way for low income families to purchase the essentials one needs for life, in several cases we have heard of towns and cities petitioning to not allow this company into their communities? The reason that these communities would not like to have this financial giant in their town is because of the proven negative influence that Wal-Mart has on communities, the families of the employees, and the poor employee relations this company has with its associates. So the question is does the bargain that Wal-Mart offers outweigh the atrocious effects that Wal-Mart brings to the table when it comes to a community? According to several people the answer is, and always will be, no.
Walmart is the biggest retail store in the world. With over 1.3 million employees, their practices affect us all in one way or another. Walmart recorded a financial income of over eleven billion dollars last year. With all this money one would think they are able to keep all employees happy and taken care of.
Mid-Term Paper Lucas T. Jones Southwestern Christian University Business Ethics 10/10/17 When living in a world today with many different religions and believes it is hard for one to understand how these could go hand in hand with business. All of these play an effect on business. For example, how will a situation be handled in a business environment when dealing with various religious people? When trying to communicate in the business world it is important to have the same universal concept of communication in all civilizations throughout each community. Everyone is different and each have an own unique philosophy of life and religion.