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Sustainability Aspects

Discuss about the Report of Ethics for Managers on Unique Retailing Organization.

Wal-Mart is considered as the most unique retailing organization, which mainly offers all the major products required by the customers to fulfill their daily needs.  The Wal-Mart was first introduced in the year 1962 by Sam Walton (Loria, 2009). The company possessed its stores at almost 8000 locations and serves 200 million customers weekly. The famous mantra followed by the organization is “Sundown rule”, which mainly focuses on achieving something in the current and in an organized manner. The Wal-Mart believes in hard work and providing the best services to the customer by which they can able to manage their brand name in an appropriate manner. In the year 2002, the Wal-Mart is officially considered as the brand name and the second largest grocery shop in the world, topping the Fortune. The Fortune, also known as Wal-Mart is the most “admired company” in the world (Mkkasr, 2010).

The small town business to an international corporation market, Wal-Mart is the suitable team player in the field of the retailing business. The organization is also able to prove their suitable identity in the local as well as in the international market. Wal-Mart is also considered as the second largest public organization with the turnover of about $ 433 million per annum. But, as the competition is rising with the great speed and the alarming changes are being observed during the day to day life so for this, the management and planning of the sustainability aspects are essential to be defined in the suitable manner. Though, the organization is facing the continuous criticism in various manners, but despite of this, the organization is able to manage its appropriate identity in the world class market. According to the case study, the sustainability is being discussed in different categories. The categories are differentiated into three aspects which are named as the employees, society and the environment. The discussion of the sustainability will be done on the individual level (Thwink Team, 2016).

Yes, I personally believe that Wal-Mart is performing well in developing the suitable aspects related to the sustainability. Wal-Mart is planning and managing the various changes in present scenario, so that the future aspects related to the organization may also improve simultaneously. Though on the employee level, there are no such profits, which are satisfying the customers. But in the year 2006, due to some internal issues in the organization, the Wal-Mart planned to manage the employee benefits to manage the sustainability. The organization can able to managed the sustainability aspects through various ways, such as by providing the health facilities, offering the lower deductibles with suitable incentives along with facilitating part time job opportunities.

Ethical Issues

In reference to the society, the case study shows in depicting the suitable aspects related to the sustainability. The opening of the new stores or the outlets create both negative and the positive impact on the society. To manage the sustainability of the society, the sustainability index has been launched by the Wal-Mart. There are three parts in which the sustainability index is divided, these are the transparency in the supply chain, maintenance of the consortium and the consumers’ aspects for exchanging the views. These criteria would be helpful in promoting the society in the right manner. Other than this, there are various policies and rules that are defined for the society. Some of the examples are a launch of offers according to the season, special offers for the youth and students, etc. By this, the youth gets attracted towards the offers and the sustainability will be promoted on the wider level. To promote the society, the organization designed the plans for promotion.

On the environmental level, there are various aspects which are devised to promote the organization. The Wal-Mart promotes the usage of the paper bags and the recycled bags on the wider level. By this, the environment can become more protective and sustainable as well. The long lasting aspects related to the environment can be implemented so that the company can sustain in the market. In fact, this Wal-Mart also introduces the concept of the “Go-Green” and  “Being-Green”. The company also sells the toys by recycling them to the various resources which can lead to sustainability enhancement.

Sustainability Aspect

(Mann, 2009)

Wal-Mart is considered as the largest among the retail industry, which is helpful in managing the grocery products and fulfilling the daily needs of the customers. The wide range of the ethical issues has been discussed through the case study. Some of the common ethical issues are discrimination of the job profile between men and women, bribery, safety, misconducting the leadership and a few other aspects.  Instead of this, the organization can also be able to manage the ethical and the compliance program by showing the sustain or existence in the market for future as well.

There are various ethical issues faced by the organization, which relate to the different aspects. The organization tried to solve these issues in all possible manner. Due to ethical issues, sustainability aspects are not fulfilled in the suitable manner (Workplace Fairness, 2016). Some of the past ethical issues are defined below:

CSR Model of Wal-Mart

The working culture of the organization is not considered suitable for women and men. The discrimination among them is defined on the basis of the wages and the designation provided to them. The men and women are not considered on equality or the same position. Instead of this, if the issues related to the lower wage policies are improved and subsequently, the suitable benefits are provided to the employees. To manage the situation, the organization also tries to manage the situation and made appropriate rules and regulations for the employees working in the organization. Similarly, there are various health policies which should be designed for the welfare of the employees working in the organization (Chen, 2015).

 Few ethical issues were also identified on the basis of the food and the grocery kept in the store. The issue was identified in the year 2012, where the seafood processor is scandalized due to some aspects and consequently the customers’ health has also been affected by that. Rather than this, some issues have been faced by the customers in dairy products and the other essential products. To manage the situation, the organization tries to keep the packed food products for their customers so that the chances of issues can get reduced (Gogoi, 2007). The policies related to the stakeholders and the stockholders has not well defined as well. Due to these problems, the requirement of effective supply chain management was realized. The formation of the separate trade unions and the interference of the small business are the common one. To manage these aspects in the suitable manner, the appropriate guidelines were issued by the organization to get the success in the field of the retailing. Apart from these major issues, there are some other small ethical issues which were continuously affecting the organization. To solve these issues in the right frame was designed. The diagram for the ethical issues is shown below.


(Andersen, 2016)

The activities related to the CSR are considered as the most appropriate activities, which can be helpful in company’s promotions and enhancing the social service aspect related to the company. With the help of the CSR activities, the organization can able to reflect their social ideas and the approaches to the society directly. For managing the CSR activities, there are various evidences and supporting aspects provided by the Freidman and Freeman.  According to both the philosophers, CSR activities can be proved helpful in providing the suitable support to manage its financial aspects in the international as well as the local market. The study and the evidences reveals that Wal-Mart is the second largest retailing shop across the world. Thus, it is very obvious to expect the social responsibility and the social welfare from the organization. In fact, the organization has to face the criticism too.  The four part model of the CSR is shown below which is helpful in explaining the critical review of the organization in contrast to the parts defined in the model.

CSR Model of Wal-Mart

(Safepc, 2015)

In the diagram shown above, the four sections were defined, which are helpful in defining the CSR activities in the suitable manner. For pursuing the CSR activities, the organization is planning various aspects.

For philanthropic contribution, the organization is providing various cash and donations to the needy people. The strategy for donation is quite different. The basic motto of the organization is to save money and help the needy people in all possible manner.  In fact, the organization has also developed their own foundation for the needy people. An organization has to face the long phase of criticism from other organization and the employees, but still the organization introduces the new concept of the diversity, charitable aspects, nutritional values and the sustainability in every aspect (Broader, 2012).

For managing the Legal responsibility, there are various policies and rules designed for the employees, stockholders, stakeholders and the customers. To manage the damage control, the organization has introduced the concept of the advertisements on the wider level. The use of the sustainability model and the identification of the consortium, for the sustainability are helpful in developing the suitable legal aspects.  On an individual level, different policies have been managed to identify the legal aspects of the organizations. Some of the common policies are related to the health management, managing employee’s provident fund and the policies related to male and female discrimination.

In order to follow the corporate social responsibility, the other responsibility has also been defined which relates to the economic responsibility. To fulfill the economic responsibility, the suppliers, employees, employers and the global corruption are trying to manage at the global level. Other than this, the improved internal audit mechanism and the monitoring aspects are also required to check he major aspects related to the economic issues. By handling all these aspects on an individual level, it is possible to manage the CSR activities easily.

For ethical responsibility, the organization is planning to reduce the urban sprawl in an appropriate manner. The company is planning various other aspects, such as the opening of the small stores with the 15,000 square feet in the urban and the rural area, known as the mini-marts. By opening these mini stores in various locations, the travelling time of the customers will be reduced and simultaneously the traffic congestion can be reduced. This will helpful in conserving the environment because of pollution. Apart from this, the preparation of the bags with recycled material and innovating the suitable dumping policies, the organization can able to compete its ethical responsibility.

The identification of the suitable stakeholder is considered as the most prominent aspect of the Walmart. The stakeholders are identified by using the Mtchell’s 1997 model. According to the writer, the Stakeholder’s common features are related to the power, legitimacy and urgency. The power is helpful in ruling the firm, managing the legitimacy of the firm and urgency is helpful in claiming the stakeholders. The rules are mainly related to the “ The Article of management Review in year 1997”. With the help of the theory, the suitable decisions can be considered on the wider level. By considering all these features, suitable decisions can accordingly be taken in the organization, (i.e. Walmart does). The organization who is not only adapting the current ideas from these elements, but helps in the rising development of the organization (Sieber, 2013). The individual description and the role of each element is defined below in the paragraph.

With the help of the power, the stakeholders can be able to take the suitable decision in an appropriate direction. Through this, the stakeholders would be able to take the decision in the coercive (physical), utilitarian (material) and normative (prestige, esteem and social), which are the aspects targeted to manage the major processes of the organization (Bruce, 2011).

 Other than this, the legitimacy is also considered as the most prominent aspect for the stakeholders, in which they are able to take the suitable decisions for the development of the organization. The legitimacy is considered as the aspect in which the generalized perception or the aspects are being identified for the socially constructed system. But in the urgency aspect, the immediate action should be taken on the definite issue. By this, the issues can be sorted out easily. On the managerial level, the selection of the stakeholders is mainly dependent upon all three variables (Schakett, 2012). Those stakeholders who possess all these elements are considered on priority level. When three variables are overlapped with one another, the seven new combinations are formed  which are defined below with the help of  the diagram. In fact, these seven combinations are categorized further into three separate groups, which are latent, expectant and definitive stakeholders. By these variables, the aspects related to the organization can be solved easily. The salience model has been defined for the process, which is also acting as the supportive feature.

Identification of the stakeholders

The strong communication and the ethical approaches followed by any organization also plays a prominent role in managing the actual identity of the organization. For managing the renowned image of the organization, the organization has to manage the sound ethical approaches in all the  manner. If the organization follows suitable ethical approaches, then the dignity and the integrity of the company can be managed in a well-defined manner. There are various examples and the approaches which are defined in the case study, which is proved helpful in revealing the importance of the ethical issues being followed in the organization (Matthews, 2016). The organization considers the suitable values of its renowned image in the market. The services which are provided to the customers are outstanding and covers profit-targeted aspects. Though, the organization has to face the criticism because of the discrimination in the services provided to the males and females, but there are various evidences which are helpful in showing that the organization provides appropriate facilities to the females so that these can easily manage the operations of the organization. The communication and the ethical practices meant a lot for the organization, that’s why the organization is continuously making efforts for providing the best customer services. Other than this, tie ups with small organizations for selling the products also facilitates the best business opportunities for them and simultaneously by providing, the profitable aspects related to the customers, company, stakeholders and stockholders (Taylor, 2016).

The adoption of suitable ethics by the company is considered as the base for attaining the appropriate output. By following the ethical values, the company’s goodwill increases and the existing image of the company would also be improved. Some of the ethical recommendations for the future perspectives are defined below (Friedman, 2016).

Business Recommendation

According to the diagram shown above, if the organization follows these seven elements, then the successful aspects will be grown with rising rate. The recommendations are described below. The respect towards the competitors and the customers is considered as the first recommendation, which should be followed while doing the business in the international market. The feeling of gratitude and appreciation towards the customers, the contributors increases the ratio of ethical aspects. The public introduction and the promotion of other contributors will be helpful in improving the ethical approaches on the wider level. Integrity, Customer focus and the results oriented are some of the most common elements, by which the growth of the company can be confirmed. These elements are helpful in stabilizing  the organizational value in the market with the rising rate. Passion and management of the risk if included in the personal qualities can be generated by the long-term experience (McMillon, 2015). By this, suitable results can be generated and the improved ethical approaches in contrast to the organization can be identified.


There are various aspects described with the help of the paragraphs shown above. All these paragraphs are also helpful in defining the internal studies related to the topic. With  the help of the case study, the ethical issues of the organization (i.e. Walmart), their future perspectives related to the organization, CSR activities of the organization and three variable theory is being identified in the suitable level. By analyzing all these perspectives, Walmart’s current scenario is explained which reveals the past and the future perspectives of the organization as well. The future of retail market is also analyzed by these such topics. The main limitation of the study is the absence of the suitable figures and the three variable theory. Due to this, the appropriate study cannot be completed in the suitable manner.

Andersen, A., 2016. Famous Ethical Cases. Famous Ethical Cases, Available at:

Broader, S., 2012. Walmart Canada’s Corporate Social Responsibility Report: Walmart Canada, Available at:

Bruce, P., 2011. Stakeholder Engagement. Stakeholder engagement pays – a silver bullet?, 31 October.

Chen, M., 2015. Here Are All the Reasons Wal-Mart’s Business Is Not Sustainable. Here Are All the Reasons Wal-Mart’s Business Is Not Sustainable, 09 June.

Friedman, L., 2016. Inside look at Walmart’s store of the future. Inside look at Walmart’s store of the future, 03 June.

Gogoi, P., 2007. Wal-Mart's Latest Ethics Controversy. Wal-Mart's Latest Ethics Controversy, 14 June.

Loria, M., 2009. Walmart Introduction. Walmart Introduction, 05 February, Available at:

Mann, S., 2009. Visualising sustainability. Computing for sustainability, 15 March, Available at:

Matthews, J., 2016. Eight elements of an ethical organization. Eight elements of an ethical organization.

McMillon, D., 2015. Why Walmart is Positioned to Win the Future of Retail. Why Walmart is Positioned to Win the Future of Retail, 14 October.

Mkkasr, 2010. Introduction to Walmart. Introduction to Walmart, 11 November, pp. 1-4, Available at:

Safepc, Q., 2015. Carroll’s Global Corporate Social Responsibility Pyramid. Carroll’s Global Corporate Social Responsibility Pyramid, 30 May.

Schakett, S., 2012. Walmart Mission and Stakeholders. Walmart Mission and Stakeholders, 17 July, pp. 1-6.

Sieber, D., 2013. Walmart Stakeholder Analysis. Walmart Stakeholder Analysis, 20 November, Available at:

Taylor, K., 2016. Walmart plans to change the future of retail - and fix some of its biggest mistakes. Walmart plans to change the future of retail - and fix some of its biggest mistakes, 04 June.

Thwink Team, 2016. The Three Pillars of Sustainability. The Three Pillars of Sustainability.

Workplace Fairness, 2016. The good, the bad and Wal-Mart. The good, the bad and Wal-Mart.

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