Crystal Miltimore
Justin Bost
Chris Nadeau
Background
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1945 - Newport, Arkansas, Sam Walton
founder of variety store
1962 - Rogers, Arkansas- First Walmart
Store
1969 - Walmart Stores was Incorporated
1970 – Trading as Publicly Held Company
Background
► 1972
– Listed on New York Stock Exchange
(NYSE)
► 1988 – First Walmart Supercenter
► 1994 – Went International (Canada)
► 1998 – Neighborhood Market concept
introduced
Background
► 2002
– Listed as America’s largest
corporation on Fortune 500
► 2005 – Energy efficiency moves
► 2007 – New slogan “Save Money Live
Better”
► 2008 – New company logo “Walmart*”
Background
► Operating
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Segments
Walmart Stores US
Walmart Discount Stores
Walmart Supercenters
Walmart Neighborhood Markets
Marketside
Sam’s Club
Walmart International
Background
► World’s
Largest Retailer/Employer
 Over $404 Billion in sales in 2009
 Approx. 8,159 Retail locations in 15 countries
 Approx. 2.1 Million Employees
► International
Locations
 Mexico, China, Brazil, Canada, India, Argentina,
Puerto Rico, Japan, United Kingdom
Background
► Governed
by a 15 member Board of
Directors (Hillary Clinton)
► Websites
 www.walmartstores.com
 www.walmart.com
 www.walmartfacts.com
► Competition
 Kmart, Target, Costco, BJ’s
Background
 Walmart Strategies
►Low price everyday
►Effective inventory control
►Bargaining power over suppliers
►Global expansion for new market
Ethical Issues
1.
2.
3.
4.
5.
Discrimination
Female Workers
Disabled Workers
Sweatshop Workers
Illegal Immigrants
Ethical Issues
6.
7.
8.
9.
10.
Low Benefits
Poor Working Conditions
Unions
Leadership Issues
Environmental Issues
Ethical Issues
► Statement
of Ethics - covers Associates,
Directors, suppliers, consultants, law firms,
public relations firms, contractors and other
service providers
 3 Basic Beliefs
►Respect
for Individual
►Service to Customers
►Strive for Excellence
Stakeholders & Obligations
► Employees
 Safe working conditions
 Benefits
► Environment
 Maintain safe environmental conditions
► Government
 Pay Taxes
 Financial Reporting
Stakeholders & Obligations
► Shareholders
 Greatest return possible
 Accurate reporting and Stock Prices
► Customers
 Low Prices
 Good quality products and services
► Suppliers
 Continuance
Quote of the Day
“There are really only two important points
when it comes to ethics. The first is a
standard to follow. The second is the will to
follow it.”
-John C. Maxwell, leadership expert
Core Ethical Values
► Commitment
to employees
► Fairness
 Discrimination
►Female
workers
►Disabled workers
►Sweatshop workers
Core Ethical Values (cont.)
► Commitment
to employees
► Fairness
 Low benefits
►Health
care, wages/ hours
 Poor working conditions
►Denied
rest breaks
►Reprimanded for claiming overtime
Core Ethical Values (cont.)
► Ethical
behavior/ integrity
 Poor working conditions
►Altered
timecards
 Illegal immigrants
►Suggested
“shell companies”
 Unions
►Thwart
any union movements
Core Ethical Values (cont.)
► Ethical
behavior/ integrity
 Thomas Coughlin
► Corporate
citizenship
 Environmental issues
►Tennessee,
Utah, California, etc.
Operational Issues
► Failure
to comply
 Settlements, penalties, fines
► Work
environment
 Could effect productivity
► Tone
at the top
 Failure to lead by example
Accounting Issues
► Bogus
Expenses
 Coughlin claims “anti-union expenses” for
personal use
 Understated expenses if overtime is being
hidden
► Monopoly
 Relationship with supplier allows manipulation
of supplier prices
Response
► Improve
Image
 www.walmartfacts.com
► CEO-
increase minimum wage
► Increase employee benefits
► Energy conservative measures
► Global Statement on Ethics
► Donations/Programs
Effects of Response
Effects of Response
Critique Response
Critique Response