Walmart Group Report

WAL-MART

Group Report

Submitted To:

Jian Guan

MGT802

Ryerson University

April 2, 2008

Submitted By:

Lalit Kalra

Miri Kwun

Galant Lee

Muruhendran Mahendran

Jani Theiventhiran

TABLE OF CONTENTS

Introduction 3

Wal-Mart and Wages 4 - 7

- Basic Facts

- Ethical Issues

- Alternatives

- Recommendations

Wal-Mart and Gender Discrimination 7 - 10

- Basic Facts

- Ethical Issues

- Alternatives

- Recommendations

Wal-Mart and Sweatshops 11 - 14

- Basic Facts

- Ethical Issues

- Alternatives

- Recommendations

Wal-Mart and Community Impact 14 - 18

- Basic Facts

- Ethical Issues

- Alternatives

- Recommendations

Lawsuits 18 - 21

Impact on Stakeholders 22

References 23

INTRODUCTION

The first Wal-Mart store was opened in Rogers Arkansas in the Year 1962. From Wal-Mart’s company website a common misconception people have in regards to discount retailing is put to rest. That being this was the year it all started, When Kmart, Target, and Wal-Mart first opened. In actuality however, the chain of variety stores Sam Walton owned during the 1950’s faced stiff competition for many regional discount stores. In 1972, Wal-Mart stock was offered for the first time on the New York Stock Exchange. With this infusion of capital, the company grew to 276 stores in 11 states by the end of the decade. Also from the company’s official website, it is important to note that in 1983 the first Sam’s Club members-warehouse store opened. The first Supercenter opened in 1988, featuring a complete grocery, and 36 departments of general merchandise. By 1989, there were 1,402 Wal-Mart stores and 123 Sam’s Club locations. Employment had increased tenfold. Sales had grown from $1 billion in 1980, to $26 billion. Wal-Mart’s company website states that Today, 7,262 stores and club locations in 14 markets employ more than 1.9 million associates, serving more than 176 million customers a year.

With all the success that Wal-Mart has endured throughout its history, a significant aspect of the business that is not represented on its company website is all the daily ethical dilemma’s faced by the organization. The following report hopes to bring light many of these ethical issues, proving that there is a shadow of darkness creeping deep within this financially successful monster known as Wal-Mart. Some of the issues which will be discussed in great depth in this paper is the unethical practices of wages as it pertains to Wal-Mart. The report will also shed light on gender discrimination and perhaps the most controversial and taboo of most unethical practices, sweatshops and child labour. The report will also discuss how all these unethical practices lead to lawsuits and litigations and its impact on stakeholders.

WAL-MART & EMPLOYEE WAGES

Throughout the years that Wal-Mart has been in business for has been