The Ethical Sourcing Program Implemented by Wal-Mart - Example

An evaluation of the ethics program of Responsible care Contents Introduction 3 Discussion 3 Background of Wal-Mart 3 The Ethical Sourcing program implemented by Wal-Mart 3 Evaluation of the Ethical Sourcing program of Wal-Mart 6 Analysis of the achievements of the Ethical Sourcing program 7 Findings 8 Conclusion 9 Recommendations 9 References 11 Introduction In this age of competiveness, sustainability is the most essential aspect of any organization. In order to attain sustainability the most essential requirement is to maintain Ethics in and around the organization. Ethics helps to maintain uniformity and prosperity within the employees. As the employees are the prime pillar of an organization it is extremely essential to maintain ethical environment within the organization. Discussion Background of Wal-Mart Wal-Mart is one of the branded American multinational retail players that operate numerous departmental stores as well as warehouse stores offering high level of discounts in varied items. It came into existence in the year 1962 by Walten Brothers in Arkansas. However, it became the popular among the public from the year 1970. Since then, it has created an image of presenting valuable products at an effective price. So, it holds the second largest position, as per Fortune Global 500 companies. As a result Wal-Mart became successful in creating a worthy image of presenting the products at lowest price to live a better life. So, it is voted as one of the most admired company in the market among others. Being headquartered in Arkansas, it operates successfully in more than over 8970 locations as the largest grocery retailer. However, in different locations, it works with different names but their goal is common, i.e. ‘to save money and live a better life’. So, Wal-Mart includes a high level of brand image and reputation in the segment of hypermarket or supermarkets or departmental stores as compared to many other rivals. The Ethical Sourcing program implemented by Wal-Mart In order to enhance the total sale and reputation of the corporation, the management of Wal-Mart always aims to stick to its mission to help the individual to live a better life. Such mission not only holds true for its customers but also for the workers working within the organization. In order to do so, the management of Wal-Mart joined hands with various NGO’s, government leaders as well as other retailers. With the help of such co-operations, the management aims to enhance the working conditions as well as the living standards of the workers in a significant way. This helps in enhancing the power of excellence and motivation of the workers, entirely responsible for producing the products for which varied types of measures are implemented such as: Promoting safety and security within the supply chain functions - in order to improve the safety and security of the supply chain, varied types of policies are implemented like zero tolerance policy. Side by side, the management also tried to maintain transparency with its contractors and terminated all the unauthorised ones. Such type of decisions proved effective for the organization as well as its employees. Safety from fire - in order to reduce the risk of fire, barred windows and doors that mainly existed on the staircases were shifted so that the fire may not spread more vividly. Moreover, all the doors and buildings also comprise of a secondary exists, so that in case of emergency, the employees might exit immediately. Due to the presence of such type of facilities, the security of the employees from fire also enhanced to a certain extent. Fire safety related training programs - in order to improve the knowledge and inner skills of the employees over the security of fire, varied types of training programs are also implemented within the organization. This helps the employee to know varied types of ways to save him or herself from fire. Education and training programs - With the help of implementation of these programs, the devotion and motivation of the employees over the work gets enhanced. Along with this, the level of performance of the employees of Wal-Mart also gets increased resulting in amplification of its productivity. This is mainly due to the increment of the inner skills and talents of the employees of the organization of Wal-Mart. Moreover, with the help of these education programs, varied types of safety measures regarding the machines of the factories are also presented to the employees. Due to which, the working standard of the employees also gets enhanced. Moreover, with the help of such type training and development programs, the morality and behaviour of the employees towards work gets improved. Other than this, the attitude and psychology of the individual also gets improved due to the implementation of such types of training programs within the organization. Side by side, by gathering knowledge and information regarding supplier development programs, the commitment to work proactively with the partners of the suppliers also gets improved (Tavani, 2011, p. 347). Apart from this, the level of communication within the employees and also with the management also gets improved. It is extremely essential to maintain a good relationship with all the members of the organization and the suppliers as well. Thus, the ethical sourcing program of Wal-Mart mainly aims to maintain a better understanding and good relationship with them. Evaluation of the Ethical Sourcing program of Wal-Mart The implementation of the Ethical Sourcing program of Wal-Mart helps in improvement of the quality of life of the employees as well as the customers in the entire globe. This might be possible only by implementation of varied types of training and development programs, which enhances the rate of respect and services present to the customers. Along with this, the quality of the products produced within the workshops of Wal-Mart also became enhanced resulting in amplification of the level of trust and loyalty of the customers. This is extremely essential for any organization to retain its portfolio or sustainability in the market among numerous other rivals (Wulf, 2012, p. 212). This type of ethical program also helped in reduction of fraudulent actions that enhanced the equity and transparency of the organization with its shareholders and stakeholders. Moreover, this also helped in improvement of the profit margin and revenues of the organization in the considerable extent. Other than this, the financial integrity of Wal-Mart also increased which proved highly effective in this competitive environment. This may be seen in the below graph: Consequently, such types of Ethical sourcing program adversely helped in enhancement of strategic alliances for the organization of Wal-Mart. Side by side, customer loyalty also increased that created a strong market presence among other competitors of the market. Moreover, it also improved the supply chain of the organization thereby enhancing its global standards. So, such types of training programs are highly significant for Wal-Mart. Analysis of the achievements of the Ethical Sourcing program The implementation of Ethical Sourcing program helped Wal-Mart in many ways as presented below: Wage and hour - The Ethical Sourcing program, helped in introduction of the process of presenting wages according to the hours of work of the employees. This helped in improving the inner strength and devotion of the employees towards their responsibilities and duties. Side by side, the ultimate goal of the organization also became fulfilled along with the inner wishes of the employees as well (Wal-Mart Stores, Inc. 2008). Reduction of conflicts - Ethical Sourcing program also helped in reducing the level of conflicts that generated uniformity and consistency among all. Moreover, it enhanced the level of cooperation among the members, which is extremely essential to attain the final objective of Wal-Mart (Richard, 2009, p. 256). Uniform Culture - Ethical Sourcing program also helped in maintaining a uniform culture within the employees of Wal-Mart. It is extremely essential for Wal-Mart to retain its image in the market in the coming years (Yukl, 1989, p. 324). Authority to work freely - Due to the improvement of the working standards of the employees, the ability to work freely within the organization enhanced. Moreover, the level of participation of the employee in any sort of decision making process also enhanced. This also helped in presenting varied types of ideas and information regarding any fact so as to analyse its pros and cons (Peter, 2009, p. 345). Health and safety - Due to the introduction of Ethical Sourcing program, numerous innovative machines and techniques came into limelight that enhanced the health and safety of the employees. It is extremely essential for the employees engaged with the supply chain of Wal-Mart (Labour rights, 2007, p. 345). Proper decision making power - This also helped in making proper decisions for himself that might enhance their working condition and ways of life. Varied types of innovative machines are introduced in the organization so as to increase the productivity and also to ease the work load of the employees (Wal-Mart Stores, Inc. 2013). This enhanced the level of inspiration and faith of the employees towards work and the organization (Lee, 2008, p. 235). Therefore, the Ethical Sourcing program proved extremely advantageous or effective for Wal-Mart. Findings Wal-Mart became able to present its own value-added products at a quite lowest price as compared to other competitors’ products. This enhanced its total sale and value within the minds of the customers. As a result, due to its lowest priced qualitative products, it became able in achieving competitiveness (Gilliland & et. al., 2007, p. 245). Wal-Mart became able to achieve an efficient supply chain thereby enhancing the rate of supply of the products. Moreover, the demands to attain varied types of innovative featured products also became fulfilled entirely. So, its customer became extremely happy and devoted to their brand of product lines. Therefore, in spite of varied other competitors’ product, Wal-Mart retained its position in the highest level in the market (Ferrell & et. al., 2011, p. 453). Wal-Mart became able to attain wide range of customers due to its mission to present qualitative product at lowest possible price. This helped in presenting a better and worthy life to its customers by saving a huge range of their revenues (Caffarella & et. al., 2013, p. 135). Wal-Mart became able in retain the position of a largest retailer in the market. This became possible due to the presenting of the products at actual time and place. Wal-Mart became able to increase its total sales by five times as compared to its largest retailer known as Costco and about 10 times from Amazon. This helped in improving its reputation in the market among others (Carroll & ‎Buchholtz, 2009, p. 78). Thus, due to the implementation of Ethical Sourcing program, varied types of achievements became possible for Wal-Mart. So, it is extremely effective for the organization (Hamil, 2012, p. 141). Conclusion Conclusively, it might be stated that the implementation of Ethical Sourcing program not only enhanced its culture and environment of the organization. Along with this, it also improved the mentality and working standard of the employees that presented a positive impact over the productivity of the organization in the coming years. Side by side, Wal-Mart also became able to present varied types of products according to the demands and requirements of the customers. As a result, its range of customers increased day by day thereby making the threat of new entrants extremely weak as compared to Wal-Mart (Brock, 2008, p. 237). Moreover, the existing rival player’s image also reduced as they found it difficult to match the prices of the products presented by Wal-Mart to its customers. So, they failed to retain their position in the market as compared to Wal-Mart. Other than this, the effectiveness of the substitute products also reduced significantly as compared to Wal-Mart, which is also extremely significant in this age. So, its rate of competition also reduced considerably in the market among other rivals. Recommendations In order to retain the image and effectiveness of Wal-Mart, it is extremely essential to implement varied types of ethical programs within the organization. This might improved the efficiency of the workers along with its output as well. Side by side, it might be at par with the requirements of Wal-Mart so as to cope up with varied challenges. Only then, it might remain the topmost players in retailer segment as compared to others contenders, operating successfully in the market. Moreover, varied types of skill development programs also need to be implemented so as to enhance the inner talents and skills. This might help in presenting varied types of innovative features within the products so as to attract more customers towards the brand. References Brock, J.D. 2008. Employee Perceptions of Organizational Ethics Programs. London: Proquest Information. Carroll, A, B. & ‎Buchholtz, A, K. 2009. Business and Society: Ethics and Stakeholder Management. Mason: Cengage Learning. Caffarella, R, S. & et. al. 2013. Planning Programs for Adult Learners: A Practical Guide. London: John Wiley & Sons. Ferrell, O, C. & et. al. 2011. Business Ethics, 9th ed.: Ethical Decision Making and Cases. Mason: Cengage Learning. Gilliland, S. & et. al. 2007. Managing Social and Ethical Issues in Organizations. New York: IAP. Hamil, T. 2012. Ethics in Audiology: Guidelines for Ethical Conduct. London: American Academy of Audiology. Lee, E. 2008. Ethical Revolution.Germany: Xlibris Corporation. Laborrights.org. 2007. Ethical Standards and Working Conditions in Wal-Mart’s Supply Chain. [Online] Available at: http://www.laborrights.org/sites/default/files/publications-and-resources/WM_Report_10%2022%2007.pdf [Accessed on 1st November, 2013]. Peter, S. 2009. Understanding Business Ethics. London: Pearson Education. Richard, M, A. 2009. Employee Assistance Programs: Wellness/Enhancement. Germany: Charles C Thomas Publisher. Tavani, H, T. 2011. Ethics and Technology: Controversies, Questions and Strategies for Ethical Computing. London: John Wiley & Sons. Yukl, G, A. 1989. Leadership in Organizations. London: Pearson Education. Wulf, K. 2012. Ethics and Compliance Programs in Multinational Organizations. London: Springer. Wal-Mart Stores, Inc. 2013. Ethical Sourcing. [Online] Available at: http://corporate.walmart.com/global-responsibility/ethical-sourcing/ [Accessed on 1st November, 2013]. Wal-Mart Stores, Inc. 2008. Wal-Mart statement of ethics. [Online] Available at: http://az301759.vo.msecnd.net/statementofethics/pdf/U.S_SOE.pdf [Accessed on 1st November, 2013]. Read More