IndexAbstractIntroductionDiscussionEmployee Restructuring and Customer SatisfactionGender DiscriminationEmployee CompensationConclusionRecommendationsAbstractGlobalization has presented both opportunities and challenges for businesses around the world. It has led to different rules and standards in different situations and places, making ethics a crucial intuitive standard widely adopted by global companies to evaluate the ethicality of their business practices. This essay delves into the realm of ethics in the context of Walmart's cost-saving strategy, shedding light on Walmart's ethical claims and recent unethical behaviors. Walmart currently faces numerous ethical criticisms, many of which can be attributed to financial and cost-related motivations. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay This essay will explore three key aspects of this issue: running understaffed stores, instances of gender discrimination, and a compensation structure that is below industry standards. It will become apparent that Walmart's cost-saving strategy is short-sighted, as saving money in the short term leads to a host of long-term problems that are difficult to correct. Furthermore, this approach tarnishes the company's overall image, resulting in a loss of customer satisfaction and loyalty that outweighs any financial gain. In the final section, some recommendations will be offered to guide the company towards a renewed attention to ethical behavior and a long-term strategic orientation. IntroductionThe process of globalization has pushed the demand for ethical standards in manners and behavior to the fore, becoming a factor critical to the survival of a business in the globalized business landscape. This essay meticulously examines the ethical claims made by Walmart Inc. and evaluates the extent to which the company adheres to those claims. In business, ethics can be defined as a set of moral principles used to evaluate the appropriateness of a company's conduct. and behavior. One company that has come under scrutiny for alleged unethical behavior is Walmart. Founded in 1962, Walmart Inc. is the largest company in the world by revenue and ranks among the most expansive companies globally. As of July 31, 2019, Walmart boasted a presence in 27 countries with 11,389 stores and clubs. Various groups and individuals have raised ethical concerns, including allegations of gender discrimination, allegations of racial discrimination, pay disparities among employees, and working conditions, among others. Walmart's status as one of the largest companies in the world can be attributed to its notable performance in both industries. corporate and financial sectors. Its commercial success depends mainly on stringent cost control measures. However, this success has been marred by a number of ethical issues closely intertwined with the company's current business strategy. Therefore, this essay revolves around Walmart's cost-cutting strategy as a focal point for evaluating the company's ethical dilemmas, specifically focusing on issues related to understaffed stores, gender discrimination, and below-average employee pay compared to industry standards. DiscussionEmployee Restructuring and Customer SatisfactionWalmart operates a large network of physical stores around the world, operated primarily by its own employees. The company is committed to the public, as well as its customerscurrent and potential, to ensure that each store has an adequate workforce to ensure smooth operations and provide the best possible shopping experience. Employees play a vital role in maintaining order and improving customer satisfaction, a well-known concept essential to business success. Companies like Apple and Google use high customer satisfaction as a key factor in attracting more consumers during product launches. In the retail industry, customers often require assistance when making decisions between various options. Customer satisfaction in this industry typically depends on the quality of service provided by retail staff, who are familiar with the store, its products and are experienced in offering valuable guidance. Since most Walmart stores are large, they require a significant workforce to operate efficiently. In fact, Walmart employs approximately 1.3 million people in the United States alone. Employee compensation makes up a significant portion of the company's overall expenses. In pursuit of its cost-cutting strategy, Walmart has decided to reduce the number of staff in its physical stores, a strategy it calls "employee restructuring." This approach involves downsizing store staff and introducing updated technology or hiring fewer people with advanced skills. The intention behind this move was to improve the overall customer experience while shopping in their stores. However, the results appear to contradict this goal. A recent survey conducted by Marketforce reveals that Walmart ranks last in the industry in terms of customer satisfaction and checkout speed. According to the American Customer Satisfaction Index, Walmart receives a score of 68 out of 100, the lowest among all retailers. This problem can mostly be attributed to understaffed stores. When there are insufficient workers available, customers who are unfamiliar with the new technology have no one to turn to for assistance. As a result, waiting times increase and customers find it difficult to ask for help due to the size of the store and low staff density. This problem, while not widely recognized by the public, is on the rise. A comparison of the retail footprint between 2005 and 2015 reveals an increase of 45%, while the workforce grew by only 8%. This indirectly suggests that customers spend more time in the store due to staff shortages. It harks back to Walmart's early days, when it revolutionized the retail industry by offering the lowest prices through cost-effective logistics and warehousing. Over the years, as competition has intensified, Walmart has maintained its cost-focused strategy while making few improvements to remain competitive. As a result, customer satisfaction decreased and customer loyalty shifted from Walmart to its competitors. Gender Discrimination Another critical issue concerns cases of gender discrimination within Walmart. As the world's largest retailer by revenue, Walmart prioritizes profit in its business strategy, often resulting in instances of gender discrimination within the company. The hypotheses suggest that the company's business strategy encourages such unethical behavior. Gender discrimination includes actions that intentionally hinder opportunities, preferences, or rewards for individuals or groups based on their gender. Walmart's ethical conduct is evaluated by the Peer CommitteeEmployment Opportunities (EEOC), which provided evidence that the company engages in unethical gender-related behavior. The EEOC disclosure indicates that Walmart regularly used "gender stereotypes" when filling certain positions, thereby violating Title VII of the Civil Rights Act of 1964. Over the years, Walmart paid $12 million in back wages and related damages to discriminatory actions resulting in denied promotions. , disparities in hiring and disparities in wages for female workers. The company's profit-focused strategy has made gender discrimination issues more likely, particularly regarding employee pay. A 2003 study uncovered evidence indicating that female employees at all levels within Walmart earned less than their male colleagues. On average, there was a $5,200 pay gap between female and male employees. While Walmart's cost-focused strategy has undeniably led to continued financial success, it has negatively impacted its female employees, who suffer unfair treatment within the organization. Intuitively it is clear that gender discrimination is harmful to a company. The erosion of trust among female employees significantly reduces their productivity and efficiency, ultimately impacting the company's overall financial and operational performance. As female employees take on increasingly critical roles in a company's workforce, the cumulative negative effects of gender discrimination become more pronounced over time. Employee Compensation The last aspect under consideration is the overall compensation of Walmart employees. As the reigning leader in the retail industry, Walmart employs more than 2.2 million people worldwide. The company says it strictly adheres to required minimum wage standards, ensuring that all employees, regardless of their position within the company, receive fair and reasonable compensation. However, the available evidence paints a mixed picture. Many Walmart employees not only receive inadequate compensation, but are also unfairly compensated. In the United States, this problem often affects part-time employees. Given Walmart's global reach, addressing compensation issues is a complex task, as local circumstances dictate variable compensation rules. As a result, establishing uniform rules that satisfy everyone proves to be a challenge. In many developing countries, where compensation levels are lower than those in developed countries, compliance with standard compensation is not strictly enforced. Walmart has a clear incentive to reduce operating costs by lowering employee pay levels, in line with its cost-saving strategy. Data from a 2006 study revealed that Walmart workers earned an average hourly wage of $10.11, lower than workers at department stores, grocery stores and warehouse clubs. This pay disparity means that Walmart employees are underpaid. The demand for higher compensation has become increasingly urgent as the cost of living has outpaced income growth. Although Walmart's business ethics statement includes a commitment to fair and reasonable compensation for all employees, this goal appears to be falling short, as evidenced by the numerous problems it has caused, including a high turnover rate, which Walmart currently experiment. Employees often leave Walmart due to inadequate pay, resulting in customer complaints about difficulties in finding employees within. 2019]