Is Wal-Mart Too Big? The Pro's and Con's and Ethical Considerations
Wal-Mart is consistently targeted and highlighted in the news for critical reflection. Many criticisms are levied at the company for various causes including alleged employee abuse and inadequate support for employees. Others consider Wal-Mart a "mixed" blessing, suggesting that the company is a major employer providing ample jobs to thousands of people. Still others complain that Wal-Mart ultimately has led to the destruction of thousands of mom and pop shops that previously existed as the backbones of many communities. The aggressive pricing policies initiated by Wal-Mart are certainly cause for concern. Wal-Mart officials however would argue that their policies are simply a tool they use to conduct efficient business transactions. The company often argues it finds non-value added activity and work to pass savings on to consumers. Some even consider Wal-Mart "capitalism at its finest" funding a way to excel in unlikely places, as is the case with China, where Wal-Mart has been named the countries fifth largest trading partner. This paper will assess the pros and cons associated with Wal-Mart. Among the considerations will include ethical considerations. The aim and objective of the researcher includes evaluating whether Wal-
What all of this suggests or confirms is that Wal-Mart is indeed growing too large. Despite the reported benefits associated with Wal-Mart including a reduced inflation rate and assistance to the U.S. economy, overall the benefits of Wal-Mart's operations do not outweigh the wrongs associated with Wal-Mart's employment policies. Yes, Wal-Mart does supply thousands of jobs to thousands of people the world over. But at what cost? The statistics available reveal that Wal-Mart repeatedly violates basic human rights clauses. They have repeatedly violated laws put in place to protect workers from abuse. They fail to provide their employees livable wages, and a majority of employees go without health insurance or other benefits that traditionally all employees should enjoy. Recent news reports suggests that the company has also faced multiple wage and hour lawsuits, as many as 44 as reported by the companies 2005 Annual Report; still other studies suggest the company has violated the Fair Labor Standards Act as recently as July of 2000 (UFCWIU, 2005). Recent studies show that Wal-Mart is the world's biggest corporation, exceeding companies including Exxon Mobil hauling off more than $220 billion every year in revenues (Hightower, 2002). While many refer to the company as a "devouring beast" there is ample evidence supporting Wal-Mart's approach suggesting the company is if nothing else helping reduce inflation and support a dwindling economy. The company is able to remain profitable despite price slashing that to many seems excessive (Hightower, 2002). Worse, the company continues to overshadow staples in small communities, including mom and pop shops that are the foundation of this country. Is Wal-Mart a shining example of capitalism? Yes Wal-Mart has taken advantage of capitalism in many ways. However one can hardly support the idea that the company is a "shining" example of it. In fact if nothing else the company has consistently abused the benefits afforded companies in a capitalistic society. One cannot Wal-Mart given the evidence available suggesting the company's employment practices are at best, disgraceful. The company's continual growth merely serves to expand its opportunities for abuse and mistreatment of employees. Something must be done to curb the company's growth and inspire greater recognition of the wrongs associated with doing business with
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Approximate Word count = 1604
Approximate Pages = 6 (250 words per page double spaced)
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