Case Study 3
1.Do you think Walmart is doing enough to become more sustainable? Yes I think Walmart is doing a lot to become more sustainable. According to (Ferrell, Fraedrich, & Ferrell, 2015, p.416, 417) Walmart has implemented the “global Responsive Sourcing Initiative” which has the policies and requirements for their suppliers which are: Manufacturers facilities must certify compliance with laws and regulations where they operate, as well as rigorous social and environmental standards set by government agencies, by 2012, suppliers must work with Walmart to make 20% improvement in the energy efficiency inside the top 200 factories in China that Walmart directly sources from, and currently 119 of these factories have improved their energy efficiency by 5% or higher.
2. What are the ethical issues Walmart has faced? According to the book (Ferrell, Fraedrich, & Ferrell, 2015, p. 412) the company has had many scandals. In march 2001, board vice chair Thomas Coughlin was forced to resign after he stole $500,000 form Walmart in the form bogus expenses, reimbursements, and the unauthorized use of gift cards. In January Coughlin agreed to plead guilty to wire-fraud and tax- invasion charges. He took home millions of dollars, he secretly used Walmart funds to pay for personal expenses.
3. How is Walmart attempting to answer concerns regarding misconduct?
According to (Ferrell, Fraedrich, & Ferrell, 2015, p.419), although Walmart has faced controversy regarding competition, suppliers, employees, and global corruption, it has also demonstrated concern for sustainability initiatives and social responsibility. Walmart’s creation of ethic and compliance program shows it has come along way since it beginning, when formal ethics programs were deemed unnecessary. Overseas bribery scandals and employee discontent has tarnished walmart’s reputation. As a result, the company is working to improve internal control mechanisms and supplier auditing.
Ferrell, O.C., Fraedrich, J., & Ferrell, L. (2015). Business ethics: Ethical decision making
and cases. (10th ed.). Stamford, CT: Cengage Learning.