Wal-Marts Chinese Suppliers Business ethics are the accepted principles of right or wrong governing the conduct of businesspeople. Wal-Mart corporation had discovered ethical issues when dealing with companies in other nations.
Wal-Mart has high ethical values and a strict code of conduct. Wal-Mart is only willing to do business with international businesses that value their ethics and follow good principles. We need to understand that working conditions in factories in China compared to the U. S. are completely different, because of the their economic differences.Wal-Mart understands that in order to keep its low prices they must source goods from cheaper countries like China. In order to make sure that factories are making the products under ethical principles, Wal-mart has hired third-party firms to undergo unannounced audits to find any violations that break their ethical standards. Wal-Mart discovered that most of these factories were violating their ethical code of conduct.
The factories are faced with ethical dilemmas because they know that accepting child labor is bad, but they also realize that child workers are the sole providers for their families.They also know that employees in these factories work the extra hours, without overtime pay, because this is there only way to survive. Unrealistic expectations may sometime blind these companies to overlook the unethical practices because they only see their own goals. Wal-Marts main interest is to be productive and sell cheap in order to be dominate against other competitors.
Wal-Mart continues to aggressively audit these factories, some of them have no choice but to falsify paperwork in order to pass the audits.The decisions that factories have to make are crucial because if they followed all of Wal-Marts ethical values they would not make money of their own. This makes it hard to believe that countries like China are practicing Wal-Mart ethics when their own economy has become one of the richest countries in the world. Wal-Mart’s ethical dilemma is that in order for them to sell cheap to the people in the U. S. they must source goods from cheaper countries like China.
It is unrealistic to think that surprise audits will prevent bad labor conditions.This is because it would not be in Wal-Mart best interest for these audits to go wrong. The bottom line is that corporations like Wal-Mart are here to make money and these means that sometimes that have to look the other way. If Wal-Mart would follow its ethics code strictly then they would not be able to buy goods cheaply from other countries and those countries would not have the business from Wal-Mart and make money. Businesses in order to stay competitive in the global market must sometimes put aside ethics and values.If all companies would follow their business ethics then the global business today would not be anyway near what it is. Wal-Mart is spending money auditing to shows that it cares about ethical values.
The truth is that if Wal-Mart really followed their ethics they would not even take a chance on doing business with companies known to practice child labor and paying workers less then minimum wage. Wal-Mart is known to dislike unionization, its pays employers low wages, and provides inadequate health insurance, which all question there ethical values.Wal-Mart should be worried about their employees here in the U. S first and then about the factories abroad. Wal-Mart knows that they must keep their international business going in order for them to grow.
They can try to reinforce their business ethics and moral principles but they know some of their ethics will be overlooked by factories in order for them to keep their business. Business ethics is a catch-22 because someone is always on the shorter end of the stick. The truth is that Wal-Marts everyday low prices come at a cost.