Wal-Mart

In-Depth Introduction and Description of Problems:

Over the years Wal-Mart has been under heavy scrutiny for their treatment of employees. Poor work conditions, inadequate health plans and low wages are among the problems that many Wal-Mart employees face. Like every other company, Wal-Mart’s main goal is to make profit; however, they do so at the expense of their employees. This adds to the criticism, “Wal-Mart fails to pay its employees a living wage.”(Bauer)

One of the main issues that Wal-Mart faces is the low wages of their employees. Wal-Mart employees about 1.3 million workers in the United States and according to an article written by David Bauer, “Fewer than half of Wal-Mart's employees make over $25,000; the federal poverty line is set at those that make less than $23,500. Out of 1.3 million U.S. Wal-Mart employees, 825,000 are below the federal poverty line.”(Bauer). Most employees that are working for Wall- Mart receive some sort of aid. In Wisconsin, welfare assistance for employees has totaled $9,000,000 from the state.

Efficiency and Employment Discrimination

In 2010, the Ninth Circuit upheld the largest class certification ever granted for a sex-discrimination case, paving the way for over 1.5 million past and current female employees of Wal-Mart to collectively pursue claims against the retail giant. Before they can proceed as a class, however, they must wait for the Supreme Court, which recently granted certiorari on procedural questions relating to class certification.'" Though the litigation itself presents interesting procedural and substantive questions that have sparked scholarly debate elsewhere, will presume the existence of pervasive pay and promotion discrimination, in order to ask a c...

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...hat their practices, while profitable, are socially irresponsible and do not follow or respect cultural and humanistic behavior. If the population becomes aware of unfair business practices and if boycotts and government intervention were to occur, then the business would suffer in the long term. A revolution against the retailer could result in a downward spiral just as quickly as it rose to the top. This lesson learned recently by Paula Dean who lost her empire and is currently in seclusion. We can show compassion for the worker and still turn a profit. We will build a business model based on this premise. We encourage entrepreneurship and will prove our model to be more profitable with a workforce that is behind the process. Costco is a good example of this practice as they pay their workers relatively well and they even lobbied for a higher minimum wage.