Walmart's Ethical Failures and the Best CSR Model

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Walmart Ethical Failures and the Best CSR Model (888 words)
The Walmart company is one of the largest firms globally dealing with retail and wholesale. It is mainly well-known in the United States for having risen from being a single store in 1962 opened by Sam Walton to the largest retailer company in the world (Meyersohn). Most of the activities incorporated in Walmart are retail and wholesale selling, which assists small business owners in buying goods in bulk at lower prices. Most of Walmart’s products and services include retail goods such as electronics, pharmacy, photo, and financial services. The company has also embraced wireless phone services by collaborating with network companies to offer unlimited texts and calls to the people of the United States.
Ethics in business are critical for running a company sustainably and realizing maximum profits. Despite all the glory in Walmart company, it breached the Foreign Corrupt Practices Act (FCPA). Its subsidiaries in China, Brazil, India, and Mexico operated without ensuring that an oversight group responsible for anti-corruption activities in business was on the ground (Meyersohn). These subsidiaries went ahead and allowed a third party to transact payments for foreign officials without keenly investigating whether it was legit or bribe. The act clearly shows the insufficiency of keenness from the oversight officials responsible for anti-corruption. Due to this mistake, the company has to pay a fine amounting to millions of dollars to the FCPA.
The particular ethical failure arose from the inability of the company to address the red flags. When it occurred to Wal-Mar that it had been charged with bribery, the company failed to take time and mitigate the issue (Meyersohn). Another reason for ethical failure is the delay in executing the internal controls accounting systems in the subsidiary companies. One of the functions of this system in a business is to prevent financial risks. Therefore, ignoring to implement this system, the whole enterprise chain is at risk of fraud, ethical failures, and economic issues.
Amongst all the Corporate Social Responsibility (CSR) models, the Integrative CSR model focuses on the missions and values. The critical task for every business is to satisfy its customers’ demands. In this process, it has to employ values of the highest level for it to present itself as ethical. This CSR model helps businesses achieve their values and missions by ensuring sustainability (Hartman et al. 178). Sustainability is the professional placing of a company in economic reality, social and economic problems, threats, and environmental prospects.
The Walmart company needs to focus on some of its stakeholders towards the new direction of an Integrative CSR model. The customers are essential stakeholders because a firm gains no reward without satisfying their expectations. Moreover, employees and shareholders are also vital. When an institution avails an enabling environment and good employee benefits, the company runs smoothly. The shareholders provide capital to ...