Ethics

Wal-mart is the undoubted king of the retail world. Started in 1962 by Sam Walton, Wal-mart opened its first shop in Arkansas, marking the birth of what would expand to become the most dominant retail chain not only in the United States, but in other countries as well. Walton set out to create an establishment which would sell goods at the lowest prices possible. According to Fishman (11), Wal-Mart employs 1.8 million people worldwide and runs 3889 stores in the USA alone. Wal-mart dwarfs other retailers in Canada, Mexico and England. To customers, Wal-mart is where they purchase commodities at the lowest prices. Few consumers would knowingly buy a commodity at a higher price if they could buy the same at a lower price elsewhere. As such, Wal-marts low prices have endeared the retail chain to the customers of other retailers, forcing many rivals to form mergers or fold up. However, Wal-marts business practices have come under sharp criticisms from workers and business experts. These have raised allegations of among others, poor pay for workers, mistreatment of staff, and use of threats to force suppliers to lower prices.

Grievances from suppliers
Wal-mart keeps a well-guarded tradition of keeping information of its relationship with its suppliers secret. Neither suppliers nor Wal-mart openly discusses the supplier-retailer relationship, included prices at which Wal-mart buys commodities from the suppliers. However, Wal-mart has for long been accused of exerting much pressure on suppliers to sell commodities at Wal-mart dictated prices. In some instances, the retailing giant dictates prices which are not a true reflection of the suppliers production and operation costs, or the prevailing demand-supply trends. Wal-marts dominance and its capacity to buy commodities in very large scale drive many suppliers to accept Wal-marts demands, if only to retain the retailer. Wal-mart often threatens to seek alternatives for suppliers who cannot supply at the prices fixed by Wal-mart (Fishman, 11).

Exploitation of workers
Although they have been key to Wal-marts irrefutable success, workers at Wal-mart have not shared in that success. Wal-mart hourly pay-rates are much lower that its smaller rivals and has come under more fire for not paying its workers. Wal-mart has been to court for failing to pay workers and for gross discrimination in pay, training, transfers and health-insurance (Cascio, 26). Possibly in its attempt to lower its operations even further (and therefore keep commodity prices at their lowest), Wal-mart has employed hundreds of illegal immigrants who work overnight and are dismissed at daybreak (Fishman, 12). Illegal immigrants can be paid at even lower rates and are unlikely to move to court if not paid or if abused or discriminated against at work.

Although Wal-marts prices are unrivalled wherever it has branches, its business practices are unacceptable morally. To achieve its success, Wal-mart sacrifices the well-being of its suppliers and workers.  Driving suppliers to supply at prices dictated without regard for market forces can destroy suppliers yet Wal-mart will simply switch to another supplier once one collapses. Underpaying, overworking and mistreating workers are also destructive to their persons.