Business Ethics 3 Wal-Mart (Updated)

8/6/2019 Business Ethics 3 Wal-Mart (Updated)

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Corporate Social ResponsibilityCorporate Social ResponsibilityCase : Wal-Mart

Group 3 - MMB 20

Prasetiya Mulya Business School


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CSR DefinitionCSR Definition

y Corporate social responsibility is the duty

a corporation has to create wealth by

using means that avoid harm to, protect

or enhance societal assets

y Corporate social responsibility involves

an organizations duty and obligation to

respond to its stakeholders andstockholders economic, legal, ethical and

philanthropic concerns and issues


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Classical Debate : Ethics vs ProfitClassical Debate : Ethics vs Profit

y Performance vs doing the right thing

y Social contract : dead or desperately

needed ?

The success of business publics confidence

Reinforce public confidence ethical manner

Social contract for ethical manner, does

everyone satisfied ?


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CSR ConceptCSR Concept

y Business commitment to contribute sustainableeconomic development, working with employees,their families, the local community, and society atlarge to improve their quality of life

y CSR is a commitment to improve community wellbeing through discretionary business practicesand contributions of corporate resources


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Social Issues in EmploymentSocial Issues in Employment

y Child labor

y Discrimination : gender, disability, etc

y

Social lifey Health & safety at work

y Labor union

y

Wages below minimum standardy etc


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Case Study : WalCase Study : Wal--MartMart

y Wal-Mart is the worlds biggest retailer :

4800 stores

1,500,000 employees world wide

y Company is famous for its strong and

distinctive corporate culture :

Employees get lesson on companys culture

Weekly training for staff and managers


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Unethical Issues in WalUnethical Issues in Wal--MartMart

y Gender discrimination

y Wages below standard

y

Cheap health carey Illegal immigrants employment

y Child labor

y

etc


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Gender Discrimination in WalGender Discrimination in Wal--MartMart

y Women employees get lower wages than

their male counterparts

y Women employees have less opportunity

to be promoted for strategic positions

y Harassments and unethical treatments


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(contd)(contd)Richard Drogin, statistical expert :y Why women got paid less ?

Women have less working hour than men ?

Men performed better than women ?

y Why women rarely got promoted ?

Fewer promotions

Instilling belief that management position hadto be willing to relocate geographically

Posting available positions through word ofmouth


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(contd)(contd)WilliamT. Bielby, sociology expert :y No guided criteria for promotions

Promotion based on stereotypes

y Wal-Mart prohibited discrimination ?

100 female Wal-Mart employees provide

sworn statements


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ConclusionConclusion

y Women get less in Wal-Mart The total earnings paid to men is about $5000 more

than earnings paid to women

y Women have more years employed at Wal-Martthan men overall Women have been working at Wal-Mart longer than

men in the same job, for 97% of jobs

y Women have higher performance ratings inhourly jobs than men The average performance rating is higher for women

than men in the same job, for 75% of hourly jobs


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WalWal--Mart Improvement in GenderMart Improvement in Gender

DiscriminationDiscrimination


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RecommendationRecommendation

y Anti discrimination policy :

Evaluation based on KPI

Equality in diversity


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Back to social contract Back to social contract

y Social contract for ethical manner, need to

make sure everyone satisfied

y Does anyone satisfied ?


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Questions ?Questions ?


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Thank you..Thank you..

y Ardhi Malik

yJerry

y Nitya Saraswati

y Rendy Adrian

Documents

Business Ethics 3 Wal-Mart (Updated)