Skip to main content icon/video/no-internet

Founded in 1962 by Sam Walton, Wal-Mart has grown to become one of the largest corporations in the world. By 2006, Wal-Mart operated nearly 5,000 outlets in 15 countries with 1.3 million–plus direct employees. In the fiscal year ending January 31, 2006, Wal-Mart reported earnings of more than 312 billion U.S. dollars and a profit of more than $11 billion. In many ways, Wal-Mart seems a corporate success story, but in recent years, harsh criticism of Wal-Mart's practices has arisen on a variety of fronts.

Wal-Mart has been accused of a wide range of unethical, unfair, and even illegal business and employment practices. The company has been the subject of a class action suit over gender discrimination (the largest ever certified against a private employer) and has been accused of systemic racial discrimination; predatory pricing aimed at eliminating local competition in order to create effective monopolies; destroying local businesses and economies; encouraging exploitation and massive human rights violations in its dealings with foreign manufacturers (particularly in China); substantially lowering overall retail wage rates; failing to provide adequate and affordable health care benefits to employees; subsidizing its low wage and benefit rates through publicly funded programs like Medicaid and food stamps programs; actively and aggressively working to prevent unionization of its workforce, including intimidation and store closures; failing to pay employees for overtime hours worked; causing environmental damage in the construction and operation of its stores; contributing substantially to urban sprawl; failing to contribute to the communities in which it operates. This is not a complete list, but it does capture many of the primary issues around which the anti-Wal-Mart movement is generally focused.

Wal-Mart denies most of these accusations, citing their operations as engines of economic growth providing jobs both in North America and abroad. The company also argues that it contributes to communities not only by providing jobs but also by providing competitive pricing and access to relatively inexpensive goods that are a benefit to low-income and working families. Those involved in the anti-Wal-Mart movement generally acknowledge that Wal-Mart undoubtedly employs many people and provides access to cheap consumer products, but that these benefits are limited and do not outweigh the harms caused by Wal-Mart in the previously listed ways. Moreover, they argue that Wal-Mart reaps enormous profits via the causing of these harms and by exploiting the poorest segments of the population both domestically and in overseas manufacturing plants.

In contrast to many other movements, such as antiglobalization or environmentalism, for example, the anti-Wal-Mart movement is not necessarily focused on one specific set of issues but rather consists of a range of issue-oriented campaigns and groups coalescing around a single target. As a result, the anti-Wal-Mart movement has, in recent years, brought together perhaps unlikely partnerships. Anti-globalization activists, trade unionists, and environmentalists often work together with small business owners and free enterprise supporters to fight the expansion of Wal-Mart in various communities. Although the issues of concern to trade unionists or antiglobalization activists may be quite different from those of free enterprise supporters concerned with Wal-Mart's attempts to monopolize markets, or small business owners combating predatory pricing practices, these parties find common ground in opposition to Wal-Mart.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading