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Cheat sheet for a business e5hics test about how walmart can handles ethical delimas according to different ideologies
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Utilitarianism: Utilitarianism is founded on the idea of looking after the betterment of the greatest number of people. However, Walmart employs about 1.5 million workers in the US and 825,000 of those are paid below the poverty line. Despite the company’s world leading revenues, they focus more on satisfying the few major shareholders and executives. For example, in 2013, $6.6Bn of the $17Bn profit was used to reinstate capital into the company, whereas if that same sum were used on employee wages, hourly rates could increase by $5.13 and would also improve productivity. This would be immensely helpful for the workers who are trying to maintain a living for themselves and their families. This action shows that Walmart does not look after the greatest amount of people and instead, usurps their rights for the betterment of the few. Deontology Deontological focuses on the actions of the leader and his/her moral obligation and responsibilities to do the right thing. Walmart abandoned the “heritage culture program” that was instated to help the local farmers whose livelihoods the company had tremendously affected. Naturally, the morally right thing to do would be to help them find ways to maintain a living, after recognizing that your actions hurt others. However, Walmart failed to adhere to this deontological approach by abandoning the program and leaving the farmers to fend for themselves. There were layers of failures in obligations such as 1) aggressively expanding in their territories and taking them out of business and 2) giving them hope, only to eventually abandon them. Justice as fairness Justice as a fairness approach recognizes that each person has equal rights to fundamental liberties, and aims to provide the greatest benefit to the least-advantaged members of society. When Walmart officials were accused of bribing their way into Mexico via payments and unethical relationships with government representatives, this was not at all fair. Many under privileged hard-working Mexicans had established business, which were taken out by Walmart. Not only did these people not have the same connections and resources to exploit relationships in the government, but also, they were not provided an opportunity to fairly compete. This incident is antithetical to this approach, which cherishes the idea that all people – and all organizations should have the same rights and be given the same opportunities. Therefore Walmart does not adopt these fairness principles proliferated by John Rawls, which states that social and economic inequalities can exist only for the greatest benefit to the less advantaged.
Recommendations The first recommendation I would suggest Walmart implement immediately is to overhaul their human resources practices and hire a new chief of this department. By hiring a new leader in this position, they would ensure that this recommendation's implementation could be executed properly. Specifically, I am suggesting that Walmart overhaul its employee benefit and vacation package to ensure that every employee, no matter their seniority or position within the organizational structure, is afforded the same offerings. Considering that many leaders at Walmart were reportedly abusing their legitimate power within the company and were punishing employees for taking sick days, another rule would be implemented to combat this disgusting act. All employees would be forced to use all of their time off during the year in order to give every employee the necessary time off to recoup and get reenergized. This would help mitigate leaders at Walmart punishing employees for using their time off from work. The hiring of the new chief of human resources would also signal an evident change in direction and would help the leaders at Walmart realize that this change is being implemented rigorously and without respite. This recommendation clearly follows all of the three theories of utilitarianism, deontology, and justice as fairness. This recommendation would create the most good for the greatest number of people within the organization by improving their mental and physical health. Furthermore, it follows a rule- based morality of the deontological perspective by exercising the company's moral obligations. Lastly, it follows the two principles of justice as fairness by providing everyone in the organization equal rights and helping even the company's lowest members. The second recommendation I would suggest Walmart implement is to gradually suspend both their dividend and share buyback program. As I covered in my paper, $17Bn profit in 2013 was used to reinstate capital into the company. However, this could have been used to increase employee wages by $5.13. Even though a suspension of their share buyback and dividend program might seem like a dramatic shift and change for the company and would negatively harm shareholders, this would actually not only benefit employees at the organization but shareholders in the long run. If Walmart invested more capital into their employees, this could increase employee satisfaction and productivity, leading to increased sales and revenue. Thus, the greatest good for the greatest number of people would have been accomplished. Furthermore, this recommendation is plain and simple the right thing to do. This would allow Walmart and its leadership to follow the deontological perspective by following a duty- bound and rule-based morality. Lastly, this recommendation would fall perfectly in line with the justice as fairness principle as any rational individual operating under the veil of ignorance would complete this action to ensure every employee at the organization is compensated appropriately. Overall, I believe that this recommendation would fall in line with all the ethical theories and would provide Walmart great long-term value.