Business & Society: Ethics, Sustainability & Stakeholder Management 11th Edition
By Archie Carroll, Jill Brown| Verified
From: [Bestmaxsolutions.stuvia
,All Cases For
Business & Society 11th Edition Archie B. Carroll, Jill Brown
Guidelines For Case Analysis
The Following Guidelines Are Designed To Assist In The Case Analysis Process. The
Guidelines Are Not Intended To Be A Rigid Format, However. Each Question Is
Intended To Surface Information That Will Be Helpful In Analyzing And Resolving The
Case. Each Case Is Different, And Some Parts Of These Guidelines May Not Apply In
Every Case.
Following Each Case Are Discussion Questions That Should Be Answered As Part Of
Any Complete Case Analysis. The Heart Of Any Case Analysis Is The
Recommendations Made Based On A Solid Logical Foundation. The Questions Dealing
With Problem And Issue Identification And Analysis And Evaluation Should Be Used To
Define And Then Defend Recommendations Made In The Final Recommendations Step.
Guidelines For Analyzing Cases
Problem And Issue Identification
1. What Are The Central Facts Of The Case? What Assumptions Are You Making About
These Facts?
2. What Is The Major Overriding Issue In The Case? What Major Question Or Issues
Does This Case Address That Merits Study At This Point In The Course?
3. What Sub-Issues Or Related Issues Are Present In The Case That Merit Consideration
Now?
Analysis And Evaluation
1. Who Are The Stakeholders In The Case, And What Are Their Stakes? What
Challenges, Threats, Or Opportunities Are Posed By These Stakeholders?
2. What Economic, Legal, Ethical, And Philanthropic Responsibilities Does The
Company Have, And What Is The Nature And Extent Of These Responsibilities?
,3. If The Case Involves Company Actions, Evaluate What The Company Did Or Did Not
Do In Handling The Issue Affecting It.
Recommendations
1. What Recommendations Do You Have For This Case? If A Company's Strategies Or
Actions Are Involved, Should The Company Have Acted As It Did? What Action Should
The Company Take Now? Why? Be As Specific As Possible. List Several Options As
Well As The Pros And Cons Of Each Alternative. Be Prepared To Discuss Why You
Eliminated Those Options You Discarded And Defend Your Chosen Alternative.
Mention And Discuss Any Important Implementation Considerations. This Last Step Is
Crucial Because Recommendations That Cannot Be Implemented Are Worthless.
Case 1: Walmart: The Main Street Merchant Of Doom
1. What Are The Major Issues In The Case? What Does Walmart’s Experience Tell
You About The Business And Society Relationship?
The Major Issues In The Case Center On Walmart‘S Expansion. The Case Focuses On
The Impact To The Communities To Which Walmart Moves, From Both Environmental
And Economic Perspectives. Walmart Has Been Criticized For The Aggressive And
Even Predatory Tactics That It Takes With Respect To Local Merchants. Competition Is
What Drives Walmart, And A Merchant Who Competes Directly With Them Will Lose.
Is It Unethical For Any Company, Not Just Walmart, To Drive Out All Competition? Is
Walmart Using Its Size And Ability To Undersell Small Local Merchants Until They Are
Driven Out In Order To Establish An Unfair Monopoly On Local Markets? Is This A
Violation Of The Spirit Of Anti-Monopoly Laws? The Walmart Experience Tells Us
That Business And Society Have A Symbiotic Relationship, That The Fabric Of A
Community Is Impacted Dramatically By The Entry Of A Company Like Walmart, And
That This Fabric Is Sacrificed To Poor Working Conditions, Low Wages, And Lower-
Priced Goods.
2. What Happened To The ―Penney Idea,‖ Sam’s Ten-Foot Rule, And The Buy America
Plan? Were These Discontinued Over Time, Or Did They Fade Away And Get Lost
When Sam Died?
,To Fulfill A Cost-Cutting Philosophy, Many Stores Eliminated Their Famed Greeters,
And This Opened The Door To Problems (Increased Crime) Because One Fewer
Deterrent Existed. Walmart Eventually Abandoned The Buy American Plan And Became
One Of The Largest Purchasers Of Products Made Overseas. In Fact, The Company In
Time Became The Country‘S Largest Purchaser Of Chinese Goods In Any Industry.
3. Assess Walmart’s Corporate Social Responsibility Using The Four-Part Csr Model. Is
Walmart Socially Responsible Even Though It Has Had A Devastating Impact On Many
Small Merchants And Various Stakeholder Groups, And Some Communities Do Not
Want It?
The Following Is An Assessment Of Walmart‘S Corporate Social Responsibility Using
The Four-Part Csr Model:
Economic: Walmart‘S Economic Performance Has Been Outstanding. According To The
Text, In The 2020 Fortune 500 Listing, Walmart Has Held On To Its #1 Position In
Terms Of Revenues: $524 Million. On A Global Scale, Walmart Has More Than 11,500
Stores, And During The Pandemic, Its
E-Commerce Went Up By 74 Percent. The Year 2020 Was A Big Year For Walmart As
It Continued To Provide Essential Products And Services For Millions Of Citizens. The
Company Grew Its Revenue By $35 Billion, And Its E-Commerce Business Grew By
Triple Digits. Its Goal Of Providing Quality Merchandise At A Low Cost To Consumers
Meets Society‘S Economic Expectations For The Company.
Legal: Walmart‘S Adherence To The Laws Of The Country Generally Has Been Good,
But An Explosion Of Lawsuits By Employees And Other Stakeholders Is Tarnishing The
Company‘S Image In This Area. As The World‘S Largest Employer And The Largest
Nongovernmental Employer, Walmart Gets Sued 20 Times A Day, Close To 5,000
Times Every Year. Many Of These Lawsuits Are Filed By Its Employees Over
Employment Discrimination Issues Or Wage And Hour Claims, Often Regarding
Overtime. The Most Serious Employee Issues Walmart Has Faced In The Past Decades
Have Been Accusations Of Gender Discrimination Against Women. More Often Than
Not, These Lawsuits Are Settled Out Of Court. According To Walmart‘S Annual Report
For The Year Ending January 31, 2010,
,The Company Is A Defendant In ―Various Cases Containing Class-Action Allegations.‖
The Company Notes That If These Cases Are ―Decided Adversely To [The Company]
Or Settled By [The Company],‖ It Could Result In A Material Liability To The Company
And Adversely Impact The Company‘S ―Financial Condition Or Results Of
Operations.‖ In April 2010, The Ninth Circuit Court Of Appeals, Sitting En Banc, Upheld
The Class-Action Status In Dukes V. Wal-Mart Stores, Inc., A Class-Action Lawsuit
―Brought On Behalf Of All Past And Present Female Employees In All Of Our Retail
Stores And Warehouse Clubs In The United States.‖ The Certified Class Includes
Approximately 1.6 Million Individuals. In 2020, A New Issue Arose Regarding
Walmart‘S Policies And Practices On Filling Opioid Prescriptions At Its Pharmacies. The
U.S. Justice Department Did Accuse Walmart Of
Helping To Fuel The Country‘S Opioid Crisis By Insufficiently Screening Questionable
Prescriptions.
Ethical: Walmart‘S Internal Policies Have Certainly Been Above The Spirit Of The Law.
Questions May Be Raised, However, About (1) The Degree To Which It Has Considered
Its Impact On Other Small Stores And Merchants And On Town Culture, And (2) Certain
Employment-Related Practices That Have Resulted In Mammoth Lawsuits For The
Company.
Discretionary: Walmart‘S Contributions To The Local Community, Its Buy American
Program, And Its Recycling Centers All Speak To The Positive Aspects Of Societal
Expectations. At The Time Of This Writing, Walmart Has Several Corporate Citizenship
Initiatives, Including, Among Others,
Scholarships To High School Seniors, Fundraisers For The Children‘S Miracle Network
Telethon, And Environmental Programs. In Its 2020 Environmental, Social And
Governance (Esg) Report, Walmart Featured And Summarized Some Of Its Recent Goals
And Achievements: Walmart States That It Prioritizes Esg Issues That Offer The Greatest
Potential To Create Shared Value. The Company Focuses On Issues That Are Highly
Relevant To Their Business And Stakeholders. However, Walmart Is Often Criticized
For The Predatory Practices It Uses Against Local Merchants, Its Lack Of Sensitivity To
Community Needs When A Store Is Closed, And To Community Culture.
, 4. What About Walmart’s Impact On Communities In Terms Of Sprawl, Traffic
Congestion, And Impact On The Appearance Of The Environment? What Responsibility,
If Any, Does The Company Have To The Communities It Enters?
Walmart Has Been Condemned For Its Impact On Communities In Terms Of Sprawl,
Traffic Congestion, And Appearance Of The Environment. The Website Wal-Mart
Watch (Http://Walmartwatch.Com) Notes That Walmart‘S Entry Into New Communities
Results In Abandoned Retail Space, Increased Traffic Congestion, And Dead And
Decaying Areas In Such Communities.
As Noted, Questions May Be Raised About Some Of Walmart‘S Practices And Effects
Described In The Case. Walmart‘S Responsibility To Community Merchants Could
Extend To The Point That Walmart Should Teach Them How To Complete With, Not
Against Them. Predatory Competition Designed By Department Managers To Increase
Store Sales Should Be Stopped And Punished If Necessary.
5. Sam Walton Has Been Called A Motivational Genius. After Reading This Case,
And With What You Have Observed At Your Local Walmart Store, Do You Think His
Motivational Genius Is Still Felt By Associates? What Is The ―Walmart Way‖? How
Would You Characterize The Store’s Culture Now That Sam Is No Longer Around?
Sam Motivated The Associates By Giving Them The Responsibility And The Credit For
Walmart‘S Success. He Gave Them Ownership In The Company Through Stock Options.
He Posted The Stock
Price Daily And Pointed To It Often. He Held Weekly Videoconferences With All The
Stores Explaining New Ideas, Promotions, And Products. He Included The Associates In
The Decision- Making Process.
However, Now That Sam Walton Has Died And Walmart Has Morphed Into A Mega-
Industrial Giant, The Culture Arguably Has Changed. While The Focus On Customer
Satisfaction And Low Prices Was Once Perceived As Consumer (And Perhaps
Community) Friendly, Now Many Associate Low Prices With Social And Economic
Injustice (The Opposite Of Sam‘S Original Intentions). Further,
Management‘S Emphasis On Corporate Numbers Has Led To Employee Lawsuits That
Could Have A Material Impact On The Company In The Long Run. When One Visits A