Ethical Issues in Wal-mart Company: Case Study on Gender Discrimination

Introduction

Ethical issues raised involved women at Wal-Mart’s company discussed in the case study proved there is big discrimination at workplace. Common knowledge among all the workers, either employee or employers job discrimination technically is an unethical behavior. Discrimination means that that person being prejudice on one another about their personality or morally attitude. There are six women who had worked at Wal-Mart and already being sued by them regarding their paid and opportunity to get promoted very less chance than man that work at the same place. This is getting more unsatisfied, all those men that get promoted easily actually have not really good performance, qualification and experienced compare to woman.

For the first issue, we found that women in Wal-Mart get paid their compensation less than men. This can be approved based on research that complete by Richard Drogin. He is statistical expert who is coming from California State University. He said that, management Wal-Mart company, employees divided based on two groups, either salaried management nor hourly employees. Managers in salaried group actually earn $50,000 in but hourly employees just can earn $8,000 in a year in 2001. Example stated in case study, district manager actually earn for annual salary differently by gender which is for men, they can made $239,519 but women just made $177,149.

Actually women get less than $5000 compare to men found out after investigation happen. Second issue involved the chances given to women to get promoted less than men. By Richard Drogin, to there can be seen the gap between men getting promoted in 8.64 years compare to women, they need 10.12 years to get promoted. In addition, he found that actually woman get very impressive performance than men. In the performance rating that been given to the employee, on scale of 1-7, 1 is low performance and 7 is higher performance rate. In this case, men get 3.68 and women get 3.75. This approved in this case, men are giving less performance compare to women. Literally stated, relocate and one of policy’s company by staffing actually factors why women very hard to get promote. William T. Bielby who is sociology expert, e is professor of University of California. Stated that there were nothing written guidance for managers even though they have written guidance of criteria of promotions. This can be see directly that ‘glass ceiling’ actually affects the decisions to be promoted for women. To make easier for them, a store manager told his female assistant about retail is not fitting to women.

Third issue arises from the issue of compensation received from male and female employee very different. Drogin stated in the research in 1996, women were paid less $0.35 per hour compare to men. Pay gap between men and women continuous increase to $0.16 per hour in 2001. In the research that came by in the same year which is 1996, male sales associations get more $0.20 per hour than female sales associations. Any company actually need to execute norms and rules which is every employees need to be enjoyed all benefits and fairly being paid according to right qualifications. Last but not least, management of Wal-Mart, existence of women actually less than men literally. Marc Bendick who is labour economist, stated other company has 56.5% was female employees included management but Wal-Mart has only 34.5%. So, that’s means another 4000 female employees that Wal-Mart needed. Important reason why we need to be balance in create diversity of employees which is consists a lot of types of employees, because we need a lot of ideas from men and women but different and variety help a lot of company to grow bigger. All the data statistic that already been explained above approve that job discrimination happen in Wal-Mart workplace. However it is, early in 1990, Wal-Mart implement a written antidiscrimination but actually not very useful in company. From lawsuit, Wal-Mart need be prepare with $10 billion, have to increase 60% pay to employee to make all he case relieve. Civil Rights Act of 1964 helps the employee to prevent from discrimination and protect them based on hiring, compensation, religion, race and sex. What financial impact the lawsuit could potentially have on Wal-Mart?

Financial impact can be conclude as any situation that required the company to go through but in a bad situation such as disaster, failure of product or any other risk that involved. Workers who not even employed by Wal-Mart technically Wal-Mart forcing down wages also living the standard among them. Because of e case, the company need to face billions of dollars in order to fix all the damages and pay back. Women deserve to win this lawsuit because they also have rights as a workers or employees in this company. The thing that should be happen actually every working female need to be enjoys the same benefits or advantage that been given by company with male workers. Job discrimination among female workers is illegal. Because of workers are women, that do not means workers can be ignored the rights to be promoted, enjoys vacation leave and other benefits. The Equal Pay Act stated that all workers from male or female need to be paid equally. The Walmart’s Company face a problems occurs if from lawsuit which is they need to responsible all the workers’ damages and fined. From here we can see that Wal-Mart need to be responsible with all mistakes even though they need sacrifice their current money to make all the victims satisfied. Another consequence that might happen which is the company’s profit will decrease because of higher turnover among workers that unsatisfied with management. So, they need to pay all the workers so that the case will settled, but the profit decrease until production or employees get back work. Moral complaints of the females suing Wal-Mart

Female workers from Wal-Mart suing the company with some major complaints covered issues of promotions position, paying system, management training and job assignments ;

1. Female employees received fewer chances and they need to wait longer than men employees to promote to get into higher position.
2. Even though female employees had higher performance than men, their compensation have big gap different based on gender.
3. Female workers in the Wal-Mart company having unequal management training.
4. Male workers get better job assignments that increase their ability and capability compare to female workers even though they have better experienced and qualification.

I strongly believe that these complaints are justified because it is clearly shown above that female employees are being treated unequally and been discriminated. Richard Drogin, who is statistical report found out that in Wal-Mart, all the employees divided by two groups which is ; hourly workers who occupied lower levels, and salaried manager who occupied with higher levels. Wal-Mart’s hierarchy job position can be define in a simple words such as the progress starting from being an upper hourly employee, to management trainee, to store manager or assistant manager and finally to district, regional or cooperate manager. Standard of job working employee their compensation are getting higher to one another. Statistic that been made from Drogin stated that salaried managers made about $50,000 a year while hourly employees made $18,000. He also discovered that 65% of hourly workers consists women, only 33% were salaried managers. At the both level which is hourly employees and salaried managers from women workers actually earned less than man.

Drogin stated that female worker stay at the workplace longer than men at Wal-Mart that made female workers have more on-the-job experience compare to men workers. However t is, female employees need to wait 4.38 years from their date of hired to get promoted compare to men workers which is only 2.86 years. Drogin note that two factors that might affect women’s chance to get promoted which is firstly, store managers believed that management positions required staff relocate geographically, they transfer this believed towars women. Secondly, while company can posting positions, they just doing word by word potential in order to choose the staff that they only want. Marc Bendick who is labour economist, noted that other retail company do not have any problem to promote women employee to the top management. But in Wal-Mart company they only consists of 34.5% women employee and 56.5% were salaried managers at 20 comparable chains. The other element that they sued on Wal-Mart is problem on hiring practices. Because of gender discrimination, most of hiring practices in company being stereotype on female workers, even though their personality and experienced very good, but reasons of being stereotypes make them examined female workers based on their individual opinion. All of these supporting statistical data approved that women are being discriminated badly. That is why six women that sued company come out along with concrete evidence in elements that important of this lawsuit. I do not agree that each woman in Wal-Mart is being considered individually, an individual determination should made regarding whether she specifically was discriminated against by Wal-Mart, because each woman’s situation is different.

According to Drogin, about $5,000 earned by female workers less than male employees overall in 2001 at Wal-Mart. Drogin also examined that in 1996 women hired as sales associates received $0.20 per hour less than men which is hired as sales associates. All of these evidence stated by Richard Drogin technically approved obviously Wal-Mart company discriminate female employee by not treat them fairly and equally.

What Factor might Account for the Discrepancies the Drogin Report Uncovered?

The issue that I feel may account for the discrepancies the Drogin report uncovered are wrong perception of higher level between men and girls worker, subjective analysis of performance (job experience), and wage and promotion discrepancies. Firstly, the issue of wrong perception of higher level between men and women workers. Drogin found that 65 percent of hourly employees were women, but only 33 percent of salaried managers were. The hourly employees such as store cashiers, associates, stock people, department heads, and support managers while salaried manager like store manager and assistant manager, above them are district manager, regional vice presidents, and senior vice president. Apart from that, based on the Drogin report said women worker maybe to raise children or for a few different reason and it causes women left their jobs more than men. Means that, most of the women employees were employed at the lower level compare to men worker. Secondly, the factors that i feel may account for the discrepancies the Drogin report uncovered relies on the subjective analysis of performance or job expertise. Based on the assumption Drogin report that women left their jobs mare than men, perhaps to raise children of for some other reason. This would offer women higher turnover rates and men greater expertise and seniority.

However, Drogin found that women stayed in the work force longer than men at Wal-Mart and so had more on-the-job experience on average than men did. Besides that, supported the Drogin report said the ladies worker is not appropriate going to Salaried managers because most of the salaried manager should be prepared with more challenging in their work like had to be willing to relocate geographically, and they communicated this belief to women. This causes many women are not willing to go out of their accommodation. Then, whereas company had a policy of posting on the market management positions, manager had the discretion to not post some positions and to communicate the availability of these positions by word of mouth to potential candidates they picked. Lastly, the issue that i feel may account for the discrepancies the Drogin report uncovered are about wage and promotion discrepancies. Drogin found that, on average, womenhad higher performance ratings than men. Drogin found that women hired with the same position as the men paid less than men. For example, he found that girls WHO were employed into hourly jobs in 1996 were paid $0.35 less per hour than men employed into hourly jobs that very same year. By 2001, the gap between the wagea of these same employees had increased to $1.16 per hour also, women hired as sales associates in 1996 received $0.20 per hour less than men hired as sales associates that year. By 2001, the difference had grown to $1.17 per hour. Finally, Drogin performed many statistical tests to see whether the discrepancies in promotions and pay might be the result or women not being available once promotion came out.

What Wal-Mart should do to Correct these Discrepancies?

Discrimination is happening within the company. In order for Wal-Mart to correct these discrepancies they should make opportunity for women employees to advance in the organization. The women workers are able to manage and develop a corporation to with success based on the abilities, knowledge, and talent found inside them. Women are able to hold a workplace as an integrity and also the best manager.These shouldn’t be a pay difference between males and females, and it shouldn’t take women longer to get promoted then men employees. The women staff are entitled to induce paid higher than male staff based out of their work and also the right to induce promotion sooner than men if women employees are a lot of capable and performance compared to male worker. Everyone needs to be trained on their legal rights. The employers and competent manager should abide by the laws set forth in the Employee Act and Trade Union Act to give proper rights to workers without looking down on women workers. I don’t suppose that the corporate should institute an “affirmative action” promotion program for feminine staff. Managers simply need to promote fairy supported potential and information. To institute an affirmative action program would be to show favoritism to girls. Men should begin to get discriminated against, and if the corporate starts to indicate favoritism towards girls, then the boys can complain.

Conclusion

Refer back to the case background, Wal-Mart stores are the world’s biggest retailer and had over 2100000 employees worldwide but there are six female of Wal-Mart employees had launched a law suit which claiming that the Wal-Mart company had discrimination against female about the promotions, pay, management training and also job assignment in June, 2001. By this, Wal-Mart could face billions of dollars in demand for back pay and punitive damages. This matter will let the shareholders of Wal-Mart doesn’t trust them anymore and maybe they will go away to find other company and wanted their money back. Besides that, according to our opinions, the six female workers should win the lawsuit and gain benefits to all 1.5 billion to 2 million of female employees in Wal-Mart. This is because each female should enjoy a similar employees’ rights that are given on a male colleague. It is illegal to discriminate against a feminine worker at any stage of employment. A qualified feminine individual can not be denied employment due to being ladies. She has equal right to promotion, vacation leave and different advantages provided by the leader.

The Equal Pay Act needs that each ladies and men be equal pay for equal add a similar organization. To prevent this lawsuit in future, Wal-Mart had a written antidiscrimination policy posted everywhere. In 1990s, Wal-Mart had started variety of programs to realize diversity. Managers were told that women’s illustration should “reflect the community”. By many efforts had been done by Wal-Mart to antidiscrimination, Wal-Mart was named in the “Top 40 Greatest Organizations for Women of Color to Work” in year 2008 by Women of Color magazine also jointly of the “ top 10 Best firms for women” by PINK magazine. On May 2007, Wal-Mart announced it was named one of the “ Top 50 Companies for Diversity” by Diversity-Inc magazine.