Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis

of Workplace Ethics and Corporate Responsibility

Case Study 1

Walmart’s Values Come Under Scrutiny: A Critical Analysis of Workplace Ethics and Corporate
Responsibility

Louken Salvan Pluviose II

Keiser University

Introduction to Managerial/Organizational Behavior

Instructor: Dr. Tom Burgett

16 March 2025

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

Introduction

Founded by Sam Walton in 1962, Walmart has become the US's largest retailer, making over

$500 billion in revenue and employing over 2.2 million people. The corporation is known for its

slogan of "everyday low prices," which is one of the primary reasons behind Walmart's

international success. Nevertheless, the corporation has faced significant backlash regarding

employee treatment despite its market dominance and proclaimed commitment to values such as

respect for the individual and integrity. Walmart's labor practices have been scrutinized due to

allegations of employee mistreatment and unfair workplace policies (Colquitt, LePine, &

Wesson, 2021). Numerous lawsuits and allegations suggest that the firm focuses on profitability

at the expense of workers' rights, raising ethical issues regarding labor, discrimination, and job

satisfaction. The report elaborates on these issues, highlights the major ones, and provides

recommendations for a multi-step approach to problem-solving.

Problem Description and its Nature

The most important problem associated with Walmart is the disparity between its publicly

circulated corporate values and employee treatment. The company claims integrity, fairness, and

respect as its motto. Reports suggest that employees face challenges such as wage disparities,

discrimination, and job insecurity, which contradict Walmart's stated corporate values

(Greenhouse, 2008). However, it is proven that employees are subject to unethical labor

conditions, discrimination, and a lack of basic amenities at the workplace. This gap brings to

light an ethical and operational dilemma for the firm.

Across various employees, the problems take root in different forms. These include:

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

1. Discrimination and Abusive Treatment at the Work Environment: Employees have

alleged that they have been punished for taking legal leaves, they have not been provided

with required medical aids, and they have experienced discrimination due to pregnancy.

2. Damaging Labor Policies: Walmart's policies purportedly prevent some employees from

exercising their rights to take medical leave or even reasonable accommodation at work.

3. Insecure Employment and Low Wages: While Walmart has been said to increase the

minimum wage of its employees, it has also been accused of using wage increases

sponsored by public relations campaigns to disguise the growing number of layoffs.

4. Poor Satisfaction at Work and Customer Service: Employees have articulated their

dissatisfaction due to low wages and worse working conditions, which, in turn, affects the

quality of customer services and hurts the company's image.

These issues affect Walmart's corporate management, employees, labor unions, government

regulators, and customers. They have adverse consequences for the Walmart workforce and

primarily affect people's long-term perceptions of the company and its reputation.

Identifying Causes of the Problem

It may come as a surprise that numerous factors can be cited for the problems at Walmart. So,

these reasons can be categorized under organizational inputs and processes.

1. Profit-Centric Corporate Culture: The relentless focus of Walmart on cost-cutting and

profit maximization is an issue that can often come at the expense of workers. The

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

company tends to operate on a business model that pays low wages while offering scant

operational benefits. This approach is, in reality, contrary to the stated values on which

the company bases its operations, such as integrity and respect.

2. Inadequate Labor Policies and Enforcement: Walmart is reported to be systematically

transgressing basic labor policies, such as the Family Medical Leave Act (FMLA) and

even the Americans with Disabilities Act (ADA). Walmart's lack of enforcement of

ethical labor policies is single-handedly responsible for the problems.

3. Deficient Employee Support Services: The employees have claimed that receiving fair

treatment is exceptionally tedious, particularly for medical or personal emergencies. A

case in point is a worker who suffered a miscarriage and was later penalized for not

attending work – depicting a miscarriage of employee support.

4. Wage Inequality and Job Security Problems: Walmart has demonstrated wage policies

that lack consistency and compassion. Raising the minimum wage to eleven dollars per

hour and closing sixty-three Sam's Club outlets led to massive unemployment. This

appears more like a subterfuge than an intention to enhance employees' quality of life.

5. Decreased Employee Satisfaction and Ineffective Work Environment: A hostile

workplace can decrease morale and make it difficult to satisfy customers. From 2016 to

2017, Walmart's American Customer Satisfaction Index (ACSI) score plummeted,

presumably due to employee mistreatment and degrading service quality.

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

The key recommendations to fix the issue:

Furthermore, Walmart's claims regarding employee satisfaction have been questioned, as

external analyses reveal a disconnect between the company's internal reports and workers' lived

experiences (Logan, 2012). For Walmart to address the underlying issues, it must undergo a

fundamental structural change that integrates its core values with actual corporate office and

store practices. These issues could be resolved by taking some of the following steps:

1. Wage policies and contraventions of laws appeal practices – Walmart needs to upgrade its

labor policies to guarantee that employment laws are complied with. Such policies should

involve:

 Tightening policies on medical and family accommodation along with attendance

policies.

 Constructing an anonymous discrimination complaints file cabinet for employees.

 Conducting "blind" audits of compliance with labor laws.

2. Enhancing Employee Support Services Along with Workplace Policies – Walmart needs

to improve employee welfare programs by increasing:

 Paid medical leave and maternity leave.

 Workplace accommodations like light duty assignments for pregnant workers.

 Flexibility in scheduling work hours.

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

3. Encouragement of minimal Racial Slavery, Economic violence in the Workplace, and job

loss: Walmart also needs to encourage and deepen the employees' loyalty and encourage

minimal job shock by:

 Applying a reasonable pay structure to the industry's average wage and the firms'

profits.

 Avoiding cutbacks on jobs or benefits that would offset pay increases.

 Introducing employee stock ownership plans or profit-sharing plans.

4. Cultivating a Healthy Corporate Culture: Walmart must adapt its corporate culture to

conform to its values. This consists of:

 Achieving ethical senior managerial conduct through management and leadership

training.

 Facilitating two-way information flow between employees and management.

 Appreciating and compensating employees for their input.

5. Improving customer service by motivating employees directly – Satisfied employees

equate to satisfied customers. Walmart can enhance the quality of services rendered by:

 Creating and funding employee training and development opportunities.

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

 Alleviating workload expectations and providing adequate rest periods.

 Obtaining feedback from employees through satisfaction surveys with the intent of

making change.

Conclusion

While integrity, respect, and ethical conduct are present within Walmart's value framework,

multiple reports suggest these values have little practical application in employment settings.

Discrimination, unfair labor treatment, poverty-stricken wages, and the scanty working

environment have led to employee lawsuits and negative publicity. Despite raising wages, the

company simultaneously closed stores, leading many to believe these changes were more about

public relations than genuine employee support (Colquitt et al., 2021). The consequences of

these problems may be traced back to Walmart's profit-oriented business culture, which is

characterized by inadequate regulatory labor policies and insufficient employee management.

Walmart must take tangible actions to improve working conditions and close the gap between its

values and practices. Better labor policies, adequate employee compensation, concern for

employee welfare, and an improved corporate climate will increase employee and customer

satisfaction. If these issues are not resolved, Walmart will suffer reputational harm, lose

employee confidence, and jeopardize sustained success over time.

Embracing ethical practices and genuine investments in the company's workforce allows

Walmart to transcend reputation issues and become an exemplary case of corporate responsibility

in retail.

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Running Head: Week 1 Assignment: Walmart’s Values Come Under Scrutiny: A Critical Analysis
of Workplace Ethics and Corporate Responsibility

References:

Colquitt, J. A., LePine, J. A., & Wesson, M. J. (2021). Organizational behavior: Improving

performance and commitment in the workplace (3rd ed.). McGraw-Hill Education.

Greenhouse, S. (2008, December 13). After 15 years, North Carolina plant unionizes. The

New York Times. Retrieved from

https://www.nytimes.com/2008/12/13/us/13smithfield.html

Logan, J. (2012, December 10). Walmart's fishy claim of 86 percent employee satisfaction. In

These Times. Retrieved from https://inthesetimes.com/article/discounting-lives-walmart-

impoverishes-workers-at-home-and-endangers-them-o

Walmart Inc. (n.d.). Human rights. Retrieved from

https://corporate.walmart.com/purpose/esgreport/social/human-rights

Kinicki, A. (2020). Organizational behavior: A practical, problem-solving approach (3rd ed.).

McGraw-Hill Education.