Ethics and Companys Customers and Stakeholders - Essay Example

The scandal prolonged the struggle within the company that pitted publicized commitment to the highest moral and ethical standards against its relentless pursuit of growth. The company lost customers due to the scandal and it is working hard to rev up growth in its U.S. business (DePree and Jude 21). For instance, it is tailoring merchandise to clusters of stores which can attract similar shoppers it had before. At the company’s Sam’s Club division which saw its small business members increasingly strapped, the company lowered its prices on key items to attract customers back (Brown and Mitchell 596). The company is also working hard overseas to increase profitability and sales in markets like Brazil and China.

            The impact of this ethical issue on other stakeholder groups like Fayetteville Ark who are the company’s executives is expected to make the case to improve the way the company does business overseas as well as outlining new growth opportunities at the world’s largest retailer (Dharmendra & Haikm 1). The company’s stakeholders have faced increased scrutiny from investors over how it has handled allegations of bribery in its Mexican operations which surfaced like a year ago (Heinman 13).  Activist shareholders of the company have been denied a chance to vote out the board members like the descendant of the company who is the founder and owns around 50% of the company’s shares (Anja 1). Despite this, the fact remains that the growing dissent has shown a loss of confidence with the board. The company’s customers and stakeholders no longer have the confidence they had for the company before it was involved in the scandal.