Essay on Ethical Case Study Wal Mart vs Petco

1248 Words May 14th, 2011 5 Pages
Maurice Hobson

Professor: Grant Wylie

PHI 3360, Business Ethics

12 April 2011

Ethical Case Study Wal-Mart vs. PETCO

Good business ethics is just one of many ingredients necessary for a successful business. You cannot have a successful business if you take advantage of stakeholders that support and have a vested interest in your business. History has shown time and again that, when the opportunity to grab quick profits presents itself, ethics can all too readily take a back seat to the entrepreneurial spirit. Incidents or abusive behavior, harassment, accounting fraud, conflicts of interest, defective products, and bribery and employee theft can happen at any business. Corporations have a social responsibility, an
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This bad press and criticism of Wal-Mart’s treatment of employees, suppliers, and economic impacts on communities, causes a decrease in Wal-Mart stock between 2000 and 2005. Action was taken in 2006 to improve relations with employee stakeholders, Wal-Mart pay tied pay tied to performance in about one-third of its stores.8 Two years later the company improved its health benefits package and made an announcement that 90 percent of employees are currently insured and they intend to increase this number in the future.8 However, Wal-Mart denied any allegations in regards to discrimination and unfair work conditions, and tried to justify why it failed to end ties with the contractor using illegal immigrants working in its stores.
To make matters worse, in March 2005, Coughlin the second highest-ranking Wal-Mart executive and a candidate for CEO was forced to resign from the board of directors for stealing over $500,000 from the company. The company was also targeted as a violator of safe environmental practices and was subpoena by a grand jury in Los Angeles, California, seeking documents and information relating possible environmental misconduct by the company. Wal-Mart has worked to improve its ethical reputation through new initiating, new leadership, involvement in the community and the creation of its ethics program. Wal-Mart spent millions to reestablish its’ reputation promoting the company’s

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