South-Western - Management  
Kudos to Wal-Mart?!
Topic Ethics and Social Responsibility
Key Words Ethical standards
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News Story

The author of this article was not originally a Wal-Mart supporter. The crowded stores, long lines, and lack of service are things that made him never want to shop in one of the stores. And, in spite of its great success, Wal-Mart had always given him the impression that its management cared only about growth and profits and not about anything else.

With his opinions, it came as a big surprise to the author to recently find himself rooting for Wal-Mart’s CEO Lee Scott.

Lee Scott gave his annual address to about 7,000 annual Wal-Mart employees and suppliers in Kansas City last month. The most unusual thing about this speech was that he let the press in to hear it.

The New York Times called Scott’s speech a manifesto, and Jeremy Smerd reported on Workforce.com that in the speech, Scott said that the company would make efforts to reduce costs in health care, make environmentally-friendly technologies affordable to customers and businesses and put greater pressure on its supply chain to meet higher ethical standards in the way it produces goods.

This speech represents a dramatic change to Wal-Mart’s traditional approach. It shows that Scott and his leadership team have been listening to what people have been saying about how Wal-Mart has a responsibility to use its size and scope to leverage its relationships for the common good, just as it has been able to leverage these relationships to drive lower costs.

Some are skeptical that Wal-Mart can come through with these promises. The author of this article, however, thinks Scott should be applauded for stepping forward with a plan for the positive things that Wal-Mart can do. It remains to be seen if Wal-Mart will carry through on these ambitious initiatives.

Questions
1.

What are the areas in which Wal-Mart critics say the company needs to do better? (If you need help, review Wal-Martwatch.com). Choose one of these areas, and using what you have read about the ethical responsibilities of corporations; argue whether or not Wal-Mart has a responsibility to improve in this area. Be prepared to discuss your thoughts in class.

2.

Using research from your textbook or online, name a company that is an ethical leader in one of the areas in which Wal-Mart is seeking to improve. What lesson can Wal-Mart learn from this company?

3.

Look into the future 10 or 25 years from now; do you think Wal-Mart will be held up as a model of ethical success in business?

Source “Kudos to Wal-Mart?!,” Workforce Management, Feb. 4, 2008 v87 i2 p34.
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