discussion
Lower Prices at Sweatshop Conditions
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Walmart
Introduction
Walmart is a retail giant based in the United States.
The retail giant has been on the spotlight for ignoring the poor working conditions in their sweatshops.
Concerns have been raised by international employees from Indonesia, Bangladesh and Nicaragua.
The model adopted by Wal-Mart entails sourcing cheap foreign non-unionized labor.
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Concerns Raised Against Walmart
The objective of the company to always maintain their low pricing model force company manager break some of the compensation laws and regulations.
Eminent bias against female workers when it comes to promotions, training, or compensation.
Brutal working conditions accompanied by low wages rendering workers unable to achieve uncomfortable lives.
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Discoveries from the Studies Analyzing Wal-Mart’s Model
Wal-Mart underpays its workers.
Despite the retailer boasting of higher inspection rates as compared to other retailers, the workplace conditions are still not desirable.
Workers are subjected to work under brutal conditions to support Wal-Mart’s lower process.
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TIMELINE
2002
Imports from China had increased to $12 billion between 1997 and 2002.
2003
Wal-Mart setup an international facility in Shenzhen with the main aim of getting closer to some of the cheapest producers.
2004
Imports clicked $18 billion after over 6000 suppliers were reached in Chine
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Tracker of the major events that transformed Wal-Mart’s operations.
SUMMARY
The sweatshop approach is not only prevalent in China, but is depicted across most Asian factories.
The United States has been putting in more efforts to improve labor working conditions.
Even though most US sectors have come up with strategies to counter inhuman working conditions, little is being done by American businesses.
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Consequences
Wal-Mart continues to attract immense court cases surrounding workplace brutality.
There are chances Wal-Mart may have challenges sustaining its low prices in the next few years.
Wal-Mart may will continue to experience negative reputation surrounding how it treats its employees.
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Recommendations
Wal-Mart should look into how to revise its model and adopt one which will take into account the needs of its employees.
Even though Wal-Mart is always looking to expand, it should have provisions to address different legislation in different jurisdictions.
Wal-Mart should re-evaluate its strategy of maintaining its low-prices.
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Conclusion
Wal-Mart may be one of the leading retailers today, but if the brand is associated with vices that should not be prevalent in today’s business sector, its position may slowly be replaced.
Wal-Mart should prioritize on revamping its brand by working on its reputation and the addressing the needs of its workforce.
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References
Johnson, T (2016, May 31) Wal-Mart slammed for ‘sweatshop conditions’ in new report. Retrieved from https://www.businesspundit.com/walmart-slammed-for-sweatshop-conditions-in-new-report-05-2016/
Hernandez, J (2016, November 16) Across China, Wal-Mart faces labor unrest as authorities stand aside, The New York Times, Asia Pacific
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