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Business Ethics at Wal-Mart Essay Example

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Business Ethics at Wal-Mart

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Business Ethics at Wal-Mart. The Amazon jungle is the biggest tropical rainforest in the world. Deforestation is a huge problem that is putting in danger the wildlife and plants of the region. The cattle industry and the soy crops are two of the major causes of deforestation in the region. In order to raise awareness Hector Nuñez created a summit for Wal-Mart suppliers to discuss sustainability practices. At the summit Wal-Mart announced significant goals and mandates to tackle a wide variety of environmental and social problems. Three mandates that Wal-Mart suppliers must now follow if they want to continue to do business with Wal-Mart are: zero employment of slave labor, no soybean sourced from illegal deforested areas, and no beef sourced from any newly cleared Amazon land (Winston, 2010).

Along with these mandates there were other environmental goals that the company established. Wal-Mart established two goals for its suppliers which were a 70% reduction in phosphates in detergents by 2013 and a 50% reduction in plastic bags by 2013 (Winston, 2010). After the summit the company was able to get an immediate commitment from 20 of its major suppliers. The LMX leadership theory could be applied to the relationship between Wal-Mart and its suppliers to improve the relationship between the parties.The article questions whether these initiatives by Wal-Mart which forced suppliers to change their behavior were a fad or a trend. If it became a trend it could lead to more pacts being signed between companies in order to improve the environment. The fact that Wal-Mart holds so much power made it possible for them to force other companies to change their behavior. The author of the article believed that these types of arrangements are something that can be accomplish easily. In business every company operates their companies independent of what other do. I believe that the author’s assumption that these types of environmental pacts can be easily achieved is erroneous. It would be very hard for the private industry to regulate the practices of other privately owned enterprises. If Wal-Mart wasn’t such a large player it would be hard for them to influence the behavior of others. Small companies cannot risk losing clients by imposing on them environmental rules and policies. The governments of developing nations are sometimes biased against nature and they seek short term benefits instead of emphasizing in long term environmental sustainability.I liked the. Business Ethics at Wal-Mart.

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References

Johnson, C. (2009). Meeting the Ethical Challenges of Leadership (3rd ed.). Thousands Oaks: Sage Publications.

Northouse, P. (2007). Leadership, Theory, and Practice (5th ed.). Thousands Oaks: Sage Publication.

Winston, A, (2010). Wal-Mart Brazil Thinks Green. BusinesWeek. Retrieved October 9, 2010 from http://www.businessweek.com/managing/content/jul2009/ca20090714_100756.htm

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