Table of ContentsSummaryIntroductionDiscussionEmployee Restructuring and Customer SatisfactionGender DiscriminationEmployee CompensationConclusionRecommendationsSummaryGlobalization has presented both opportunities and challenges for businesses around the world . This has led to varying rules and standards across situations and locations, making ethics a crucial intuitive standard widely adopted by global businesses to evaluate the ethics of their business practices. This essay explores the area of ​​ethics in the context of Walmart's cost-cutting strategy, highlighting Walmart's ethical claims and recent unethical behaviors. Walmart is currently facing a lot of ethical criticism, many of which can be attributed to financial and cost-related reasons. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay This essay will explore three key aspects of this problem: running understaffed stores, instances of gender discrimination, and a pay structure below industry standards. . It will become clear that Walmart's cost-cutting strategy is short-sighted, because saving money in the short term leads to a series of long-term problems that are difficult to solve. Additionally, this approach tarnishes the company's overall image, leading to a loss of customer satisfaction and loyalty that outweighs any financial gain. In the final section, several recommendations will be offered to guide the company towards a renewed focus on ethical behavior and a long-term strategic direction.IntroductionThe process of globalization has propelled the requirement for ethical standards in manners and behaviors to the forefront plan, thus becoming a crucial factor for a company's survival in the globalized business landscape. This essay carefully examines the ethical claims made by Walmart Inc. and evaluates the extent to which the company adheres to these claims. In business, ethics can be defined as a set of moral principles used to evaluate the appropriateness of business conduct. and behavior. Walmart is a company that has come under scrutiny for alleged unethical behavior. Founded in 1962, Walmart Inc. is the world's largest company by revenue and ranks among the most expansive companies globally. As of July 31, 2019, Walmart was present in 27 countries with 11,389 stores and clubs. Various groups and individuals have raised ethical concerns, including allegations of gender discrimination, accusations of racial discrimination, disparities in employee pay and working conditions, among others. Walmart's status as one of the largest companies in the world can be attributed to its remarkable performance in both areas. business and financial sectors. Its business success mainly depends on its strict cost control measures. However, this success has been marred by a series of ethical issues closely linked to the company's current business strategy. Therefore, this essay centers around Walmart's cost-cutting strategy as a focal point for evaluating the company's ethical dilemmas, focusing specifically on issues related to understaffing in stores, discrimination based on gender and below average employee compensation compared to industry standards.DiscussionEmployee Restructuring and Customer SatisfactionWalmart operates a large network of physical stores around the world, managed primarily by its own employees. The company has made a commitment to the public, as well as its current and potential customers, that each store will have adequate manpower to ensure smooth operations and provide the best possible shopping experience. Employees play a central role in maintaining order and improving customer satisfaction, a well-known concept that is essential to the success of a business. Companies like Apple and Google leverage high customer satisfaction as a key factor to attract more consumers when launching products. In the retail industry, customers often need help making decisions between various options. Customer satisfaction in this industry generally depends on the quality of service provided by retail staff, who are familiar with the store, its products and have the experience of providing valuable advice. Since most Walmart stores are large, they require a large workforce to operate efficiently. In fact, Walmart employs approximately 1.3 million people in the United States alone. Employee compensation constitutes a significant portion of the company's overall expenses. As part of its cost-cutting strategy, Walmart has chosen to reduce headcount in physical stores, a strategy it describes as "employee restructuring." This approach involves downsizing the store and introducing updated technology or employing fewer people with advanced skills. The intention behind this move was to improve the overall customer experience while shopping at their stores. However, the results seem to contradict this objective. A recent survey conducted by Marketforce reveals that Walmart ranks last in the industry in 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 mainly be attributed to the lack of store staff. When there aren't enough workers available, customers unfamiliar with the new technology have no one to turn to for help. As a result, waiting times increase and customers find it difficult to seek help due to the size of the store and low staff density. This problem, although little recognized by the public, is on the rise. A comparison of business footprints between 2005 and 2015 reveals an increase of 45%, while the workforce grew by only 8%. This indirectly suggests that customers are spending more time in the store due to staff shortages. This is reminiscent of the founding of Walmart, when it revolutionized the retail industry by offering the lowest prices, thanks to its cost-effective logistics and warehousing. Over the years, as competition intensified, Walmart maintained its cost-driven strategy with few improvements to remain competitive. As a result, customer satisfaction declined and customer loyalty shifted from Walmart to its competitors. Gender Discrimination Another critical issue is instances of gender discrimination within Walmart. As the world's largest retailer by revenue, Walmart prioritizes profit in its business strategy, which often leads to instances of gender discrimination within the company. Some assumptions suggest that the company's business strategypromotes such unethical behavior. Gender discrimination encompasses actions that intentionally hinder the opportunities, preferences, or compensation of individuals or groups based on their gender. Walmart's ethical conduct is evaluated by the Equal Employment Opportunity Committee (EEOC), which has provided evidence that the company has engaged in gender-related unethical behavior. The EEOC disclosure states that Walmart routinely used "gender stereotypes" to fill certain positions, violating Title VII of the Civil Rights Act of 1964. Over the years, Walmart has paid $12 million dollars in back pay and damages related to discriminatory actions involving denied promotions. , hiring disparities, and unequal pay for female employees. The company's profit-centered strategy has made issues of gender discrimination more likely, especially when it comes to employee compensation. A 2003 study found evidence that female employees at all levels at Walmart earned less than their male counterparts. On average, there was a pay gap of $5,200 between female and male employees. Although Walmart's cost-driven strategy has undeniably led to consistent financial success, it has harmed its female employees, who experience unfair treatment within the organization. Intuitively, it is obvious that gender discrimination is detrimental to a business. The erosion of female employees' confidence significantly decreases their productivity and efficiency, which impacts the overall financial and operational performance of the company. As female employees take on increasingly critical roles within a company's workforce, the cumulative negative effects of gender discrimination become more pronounced over time. Employee Compensation The last aspect considered 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 compensation standards, ensuring that all employees, regardless of their position within the company, receive fair and reasonable compensation. However, the available data paint a mixed picture. Many Walmart employees not only receive inadequate compensation, but are also unfairly compensated. In the United States, this problem frequently affects part-time employees. Given Walmart's global reach, resolving compensation issues is a complex task, as local circumstances dictate varying compensation rules. Therefore, establishing uniform rules that satisfy everyone is a real challenge. In many developing countries where pay levels are lower than those in developed countries, compliance with pay standards is not strictly enforced. Walmart has a clear incentive to reduce operating costs by lowering employee pay levels, consistent with its cost-cutting strategy. Data from a 2006 study found that Walmart employees earned an average hourly wage of $10.11, less than employees at department stores, grocery stores and warehouse clubs. This pay disparity indicates that Walmart employees are underpaid. The call for higher pay has become increasingly urgent as the cost of living has outpaced income growth. Although. 2019]