Current Ethical Issues in Business
Introduction
There are several factors that account for the changes in the way business is conducted today. Factors such as increased global competition, economic conditions, technology, electronic commerce, workforce diversity, and ethics have all play a significant role in how business is conducted. How a company conducts itself as a business and a corporate citizen is critical to its success. Wal-Mart is the largest retailer in the world; however they are not exempt to acting ethically. In December 2008, Wal-Mart settled 63 laws suits that spans over several years across 42 states accuses Wal-Mart of cheating workers on pay. The settlement cost Wal-Mart $352 million. Based on comments …show more content…

The allegations included forcing employees to work unpaid off the clock, erasing hours from time cards, and preventing workers from taking lunch and other breaks that were promised by the company or guaranteed by state laws (Greenhouse & Rosenbloom, 2008). Wal-Mart leadership definitely dropped the ball when attempting to manage within the wage compliance and standardized state laws. Management had the obligation to maintain compliance with all employment and fairness laws and they failed tremendously. If Wal-Mart’s management had responded to these allegations prior to the lawsuits, they could have definitely saved the company millions and their reputation as cheaters. It was their duty to know how the daily operations of each store were being performed and managed. All companies have defined standard operating procedures and a code of ethics and in these cases it was evident that neither was enforced. Their failure of standardized consistency in policies and procedures and lack of management skills were the two major obstacles that caused the company to be plagued with a bad reputation among employees and the public. Management recognized and accepted the responsibility for their mistakes in judgment, and unethical behavior but, as a result of lawsuits. Lessons learned, not so sure, regardless their unethical acts drew major consequences. With the continued embarrassment over these allegations and lawsuits Wal-Mart made the most ethical decision to