'Is Wal-Mart Good for America? Essay\r'

'This rent quote from Wal-Mart founder Sam Walton, was move at the top of their website to nform its consumers of their general worry philosophy. It is meant to instill a feeling of babys dummy that such an enormous multinational retailer still manages to hold on to its low-t unmatchabled t witness founder’s values. put up plenty with the worst doable prices on point in times that they need, whatever the cost. This slogan of always providing the lowest prices has do Wal-Mart the largest retailer on the planet and they generate billions of dollars in profit annu every last(predicate)(a)y.\r\n exclusively is Wal-Mart undecomposed for America? On the coat it would seem that providing a customer with an item at the lowest possible revailing question, one must more c withdrawly poke into the mechanisms by which Wal- Mart is able to give up merchandise at such passel basement prices. Providing people the lowest possible prices, whatever the cost. In this case, thes e low prices argon being provided at the cost of the environment, Wal-Mart v removeors, Wal-Mart employees, and nevertheless the American valuate generateer.\r\nAs the â€Å"Wal-Martization” of America is forcing occupationes to source their Jobs oversees Just to stay solvent, it creates a riddle here back home of people not being able to pay off their bills and maintain adequate keep standards. Is Wal-Mart creating the superlative good for the greatest number? Or atomic number 18 they Just creating the greatest good for their executives and investors? This reflection paper will flak to analyze and answer these questions as we launch deep into the culture of Wal-Mart and its effect on society domestically, as well as globally.\r\nThe two dominant points of purview employ to analyze jackpots and their overall purpose could be summarized by the foothold â€Å"stockholder” and â€Å"stakeholder” management. The origin was championed by the well-kno wn economist Milton Friedman. He reckond that â€Å"a corporation’s primordial and perhaps ole purpose is to maximize dough for stockholders… ” (Arnold, Beauchamp ; Bowie, 2013) Friedman would view Wal-Mart as a corporation that acts solely in the trump out chase of their stockholders.\r\nWal-Mart is notorious for not paying their employees in truth high wages and not oblation very much to their employees in terms of privacy welfares and health care coverage. At least when compared to other(a) successful competitors such as Costco, Wal-Mart clearly comes up short in this department. The latter point of view mentioned was made popular by Edward freewoman in his essay, â€Å"Managing for Stakeholders. In it he argues that â€Å"the primary righteousness of the executive is to create as much value for stakeholders as possible, and that no stakeholder divert is viable in isolation of the other stakeholders. (Freeman, 2007) When we speak of stakeholders, we are referring to the five underlying groups that stand to gain or lose from corporations. These groups are customers, suppliers, employees, the local participation and the stockholders. Freeman argues that no one stakeholder’s raise should be taken at the depreciate of the others and that all must be considered by a corporation when it comes to making the best decision.\r\nWhile the â€Å"Friedmanite” view has been seen as the authoritative dominant view on corporations and their purpose, the stakeholder view on management has been gaining speed over the last thirty years and cannot be underestimated or undervalued these days as companies postulate to stay competitive in a massive global economy. In terms of all stakeholders involved, both Friedman and Freeman would affiliate that Wal-Mart is acting in the best fire of their stockholders primarily.\r\nThis benefit to the shareholders is at the expense of all the other stakeholders. The customers will suffer out-of-pocket to the lack of uality of items purchased. Wal-Mart sources a great get away of their production to China to save on labor and production costs. As a result, the common saying â€Å"you get what you pay for” holds true. These items that Wal-Mart sells in their stores tend to be of humble quality, and that â€Å"quality’ is passed on to the consumer. The employees suffer because they are not able to earn a decent wage to live on.\r\n match to an article written by Wayne Cascio, Decency sum More Than â€Å"Always Low Prices”: A Comparison of Costco to Wal-Mart’s Sam’s Club, he indicates that â€Å"The age is hardly comme il faut to live on these days with shooter prices where they are and the average cost of living going up. I know I couldn’t live on 10 dollars per hour. These low wages actually end up costing the American tax payer in the forms government aid programs such as Medicaid and food stamps. In a study conduc ted by the impart for Labor and Employment at the University of California, Berkeley, â€Å"taxpayers subsidised $20. million for medical care for Wal-Mart employees in that state alone. ” (Cascio, 2006) Suppliers suffer because they are labored to accept the ontracts that Wal-Mart offers them to provide their products in their stores that fundamentally eat up their profits. The local community suffers because when a new Wal-Mart is built, smaller stores peel to stay competitive due to the feature they cant keep up with the prices that Wal-Mart charges for their product. They do not have the ability to outsource production and so they eventually go out of business organization.\r\nWhile Friedman and Freeman would believe that Wal-Mart is primarily serving the interests of their stockholders while ignore all other stakeholders, John Boatright would ffer an utility(a) hypothesis on the issue. In his article, what’s wrong-and what’s right-with stakeholder m anagement, he argues that â€Å"… a business organization in which managers act in the interest of the shareholders can also be one that, at the same time, benefits all stakeholder groups. ” (Boatright, 2013) He goes on to provide his interpretation of what a firm is and what their purpose should be. Boatright defines a firm â€Å"… s a link of contracts between a legal entity called a firm and its various constituencies, which include employees, customers, suppliers, investors, and other roups. ” (Boatright, 2013) It is believed that by each group providing their own services in a occasion effort with a firm, that the greatest pecuniary return will be achieved. From Boatright’s point of view, he would view the business philosophy of Wal-Mart as one that does benefit all the stakeholders. Customers benefit by having more purchasing power. They can walk into a Wal-Mart and purchase more items than they could at any other retailer.\r\n'