Wal-Mart's Inability to Satisfy its Employee Stakeholders Wal-Mart is a good example of a multinational company which has not given a lot of thought to its social contract with its employees. For many years, the company has been known for its inability to satisfy its employee stakeholders. The reason for this claim is that Wal-Mart has been sued by many different groups of employees because of its policies regarding pay, hours of work and benefits. The most significant complaint is that the company does not allow unions to participate in its stores, and that the company has deliberately decreased the hours worked by employees so that they do not qualify for benefits. This means that Wal-Mart is less focused on its employees than its other...The end:
.....t mandates like the Sarbanes Oxley Act have demonstrated to shareholders the importance of understanding a firm’s commercial motives, decision-making procedures and organizational structure. Shareholders are now demanding that companies like Wal-Mart design and implement environmental policies. As a result of shareholder demands and activity, Wal-Mart has worked towards more ethical standards so that they are able to meet shareholder needs. This has helped the company’s public relations, and has allowed Wal-Mart to create new ways of working with all stakeholders in a more effective way.Reference Karakowsky, L., Carroll, A. and Buchholtz, A. (2005). The Responsibilities of Business: Managing Stakeholders and Ethics. Toronto: Thomson Nelson.