BY: JASKEERAT SINGH

300863946

ETHICS AND
STAKEHOLDER
MANAGMENT
ASSIGNMENT 1 Wal-Mart: The Main Street Merchant of Doom

Answer 1) Wal-Mart is known and condemned for its assertive strategies which they use to
compete with its competitors in the locality. Competition is the thing that Wal-Mart is driven by,
and a dealer who specifically competes with Wal-Mart, loses. Is it dishonest for any company,
not only Wal-Mart, to clear its competitors?
Using the four-part CSR model, following is the assessment of Wal-Marts corporate social
responsibility:
Legal: Wal-Mart's adherence to the laws of the nation for the most part has been great, however
a blast of late claims by representatives and stakeholders is bringing a bad image to the
organization. As per Wal-Mart's yearly report of January 31, 2007, the organization has "various
cases containing class-action claims." The organization takes note of that if these cases are
"decided unfavorably to or settled by," it could bring about a material risk to the organization and
ultimately affect the organization's "operations, money related matters and liquidity." The Ninth
Circuit Court of Appeals, in February 2007, maintained the class-action status in Dukes v. WalMart Stores, Inc., a legal claim "which was brought on behalf of the female workers in the
majority of our retail locations and wholesale clubs located in the United States." The ensured
class incorporates roughly 1.6 million people.
Economic: Wal-Mart's monetary execution has been exceptional. As indicated by the content,
Wal-Mart was the biggest retailer on the planet with over $345 billion in sales in 2007. Its
objective of giving quality goods at affordable prices to its customers meets the necessity of
society with respect to Wal-Mart.
Ethical: Wal-Mart's policies have positively been over the spirit of the law. Some may raise
questions, like (1) how much it has considered its effect on other small stores and traders and to
local society, and (2) certain job related practices which have brought about huge number of
claims for the organization.
Discretionary: Wal-Mart's commitments to the local group, Buy American project, and the
reusing all address the positive parts of societal desires. Wal-Mart has a various corporate
citizenship activity, including, among others, fundraisers for The Children's Miracle Network
Telethon, grants to secondary school seniors and natural projects. Nonetheless, Wal-Mart is

frequently criticizing the assertive practices it utilizes against local dealers and its absence of
affectability to community and to society.
Wal-Mart additionally has been denounced for its effect on groups regarding sprawl, movement
blockage, and appearance of nature. The site, Wal-Mart Watch (http://walmartwatch.com), takes
note of that Wal-Mart's entrance into new groups brings about deserted retail space, expanded
movement blockage and dead and rotting regions in such groups.
As noted, inquiries might be raised about some of Wal-Mart's practices and impacts depicted for
the situation. Wal-Mart's obligation to group traders could reach out to the point that Wal-Mart
ought to show them how to finish with, not against them. Severe competition composed by office
administrators to improve store deals ought to be halted.

Answer 2) Since a residential area will experience amazing change when a Wal-Mart store enters
the locality, sensitivity to these progressions ought to be at the center of the entry strategy. The
position of concurrence with the local dealers where everybody benefits would ease community
strains. The case of Kinder, Louisiana opens the expense to a group when Wal-Mart enters,
eliminate the neighborhood trader, and after that shuts the store. Society anticipates that business
will bolster the community through employment creation as well as by raising and keeping the
standard of living in that area. This is how Wal-Mart lost the kinder case.

Answer 3) Sam motivated the partners by giving them the obligation and the credit for WalMart's prosperity. He gave them ownership in the organization through investment opportunities.
He posted the stock value every day and indicated it frequently. He held week by week video
conferences with every store with new ideas, advancements, and goods. He involved the partners
in the decision making process.
The J.C. Penny Idea is to serve the client, not to request all the benefit the market sector will
bear, to pack the client's dollar with worth, quality, and fulfillment, to keep on being prepared, to
reward people through investment in what the association creates, and to test each arrangement,
strategy, and act by "Does it square with what is correct and just?" Apparently Sam Walton used

this reasoning during his time working for J.C. Penny. He augmented some of these ideas and
thoughts into the idea of the "Wal-Mart Way," which focuses on client relations. Be that as it
may, it is not clear how this approach can be squared with Wal-Mart's practices of disposing of
all local competitors or of surrendering towns where they have, through these practices, turn into
the sole supplier of numerous goods. The effect on the group is certain, in fact so sure that the
downtown vendors are frequently seen as the high-cost, price-fixers. Wal-Mart turns into a little
store that is inside a huge store. Wal-Mart's picture is seen by the buyer as "being on their side"
against increasing expenses of living.
Nonetheless, now that Sam Walton is dead and Wal-Mart has transformed into a mega industrial
corporate, the way of life seemingly has changed. While the attention on consumer loyalty and
low costs was once seen as customer friendly, now everyone relates low costs with social and
monetary injustice. Further, administration's focus on corporate numbers has prompted worker
claims that could materially affect the organization over the long haul.

Answer 4) The Buy American system not just advances the acquiring of products made in
America, the publicizing of such a project brings the awareness among a huge number of WalMart customers. The utilization of Wal-Mart's huge buying power likewise increases awareness
among the marketing and manufacturing divisions that there is demand for American-made
products. The Environmental Awareness program works similarly.
These projects may have been both a case of corporate social duty and scheme to lure consumers
into the store. By alluring individuals into the stores by managing intense subject matters, for
example, purchasing American made items, the picture of CSR gets back home to the customer.
Numerous may see the Buy American system as a scheme, instead of CSR, as Wal-Mart has
surrendered this stress and now is one of the biggest buyers of foreign items.
While corporate citizenship programs that emphasis on specific parts of the community are a
critical part of an organization's corporate social responsibility, it does not bear anything but the
corporate social duty includes an organization's legal, ethical, philanthropic and economic duties.
While accomplishment in one region ought to be celebrated, it ought not to come to the

detriment of another region. Organizations, as Wal-Mart, must concentrate on all of their duties
to be successful.

Answer 5) Taking a look at the CSR model of Wal-Mart, the legal and economic duties would
give less responsibility to Wal-Mart with respect to its partners, customers and community. The
moral duty would require Wal-Mart to be away from even the presence of a faulty reaction and to
work over the expectations of the law. At the initial level, the group would require help during
the change. This assistance could be cash, a quest for new small retailers, or the development and
establishment of fund for the startup of new business and other ventures. Concerning the lost
social fabric, it can't be recuperated. Maybe a customer appreciation day, a parking garage, or
different attractions paid for by Wal-Mart. The representatives could be repaid with severance
pay.

Answer 6) Wal-Mart's basic focus is on the stakeholder. Be that as it may, it is its associations
with different partners, particularly the government, global and local communities, its workers
and the environment that effect its capacity to venture into new territories. Rivals of Wal-Mart
expect that while the organization gives low-value goods and service options to customers, it
likewise can drive out local rivalry. This kills the purchaser's right to pick (i.e., the privilege to
guarantee that competition is working adequately), a privilege recognized by the Consumer's
Magna Carta. Consequently, competitors are worried that Wal-Mart's development and
expansion may have the impact of really restricting purchaser decision over the long haul, and
also an inconvenient effect on residential society. In particular, as stores in downtown closes and
Wal-Mart becomes one of the main hotspots for specific products, the way of life of the people
changes definitely. Further, chances of employment changes, and Wal-Mart as of now faces a
crucial measure of examination for certain practices of employment. While it might be said that a
few rivals attempt the Wal-Mart reason for financial increase or for optimistic reasons, there are
other people who champion this cause taking into account the variables recorded previously.
Further, as noted for the situation, the media has distributed a few articles which question WalMart's impact and power.

As Wal-Mart keeps on expanding improving its image as socially capable organization, it must
address the worries that it faces with respect to its effect on communities and representative
stakeholders. As one of the country's pioneers in sales, Wal-Mart can not just effect a country's
and maybe even the worldwide economy, it can shape our legal and social framework.
Appropriately, it must consider the effect of its work practices and development techniques on
the group and the people who live there and the organization's duties to these stakeholders.

Answer 7) As Wal-Mart keeps on growing in the global field, it might confront resistance not
just for a portion of the same reactions it faces in America, however it additionally may battle
with social contrasts. There are social communities whose society run as opposed to the thoughts
of the "Wal-Mart Way." In Japan, for instance, it is not socially satisfactory to approach the client
before the client requests help. Not just will this be troublesome for the Wal-Mart partner to
grasp, yet the Japanese customers may think it as unpardonable.
Wal-Mart was unsuccessful in Germany because of differences between U.S. and German laws
and society. In particular, German laws with respect to control over prices, work practices, and
zoning limitations made it troublesome for Wal-Mart to succeed. Further, German partners and
consumers encountered a society conflict with Wal-Mart practices. Wal-Mart came to know as an
ugly business in Germany. While Wal-Mart was unsuccessful in Germany, it could succeed in
different nations where replication of its U.S. model does not struggle with the nation's laws and
traditions.
In the event that Wal-Mart plans to succeed in each business sector that it enters, it must perceive
that it can't adopt a "one size fits all" attitude in each country. While the ethical and legal duties
of the organization might be seen diversely by natives of various nations, Wal-Mart would be
very much served to consider local traditions and laws in the event that they want to make
financial progress in every single worldwide business sector. the organization must adjust to the
way of life of the group in the area that it would like to succeed.