$14\mathrm{.}3$ Time for reflection Wal$-$Mart Wal$-$Mart is not only the leading retail chain in the US and the global retail industry, it is also the largest employer in the US private sector. In discussing corporate strategy, Datar and Rajan $($p $536)$ say, among others, "strategy describes how an organization can create value for its customers while differentiating itself from its competitors. For example, Wal$-$Mart, the retail giant, creates value for its customers by locating stores in suburban and rural areas and by offering low prices, a wide range of product categories, and few choices within each product category. Consistent with this strategy, WalMart has developed the capability to keep costs down by aggressively negotiating low prices with its suppliers in exchange for high volumes and by maintaining a no$-$frills, cost$-$conscious environment with minimal sales staff." Several research projects revealed the following: Low wages: research conducted on wage rate in the retail industry indicates that Wal$-$Mart pays the least wage rate. Compared to the national average wage rate for the same job categories in the retail industry, Wal$-$Mart$$s wage rate is less by between $26\%-37\%.$ The company$$s average wage rate per hour is $ $10\mathrm{.}84,$ which, according to the US federal government$$s definition of poverty, is not sufficient for a family of four in the US$.($Rao and Cynthia in ivypanda$)$ Gender discrimination: during the recruitment process, Wal$-$Mart gives first priority to male applicants. This means that the female applicants do not have a fair chance of being employed by the firm. Gender discrimination is also depicted in the firm$$s pay structure. The male employees are normally paid higher wages as compared to their female colleagues, even in cases where male and female employees have similar qualifications and do the same job. $($Rao and Cynthia in ivypanda$)$ Diversity: an analysis of Wal$-$Mart$$s diverse workforce reveals that African$-$Americans and Hispanics are the majority. Critics attribute this to Wal$-$Mart$$s commitment to paying low wages and the fact that African$-$Americans and Hispanics are likely to accept low wages due to their social economic status. $($Christopherson and Lillie in ivypanda$)$ Outsourcing practice: Garrison et al $($p $114)$ point to an article in The Wall Street Journal of $1$ July $1,2013$ which reported that $"$in Bangladesh the minimum wage is $$38$ per month. $...$ Companies such as Fakir Apparels, a T$-$shirt manufacturer in Bangladesh, can readily attract customers such as Wal$-$Mart, $...$ due to these low labor costs. $...$ while manufacturing cost for one of Fakir Apparels T$-$shirts $($can be as low as$)$ $$1\mathrm{.}60,$ the retail selling prices for these T$-$shirts are $$6\mathrm{.}00($at Wal$-$Mart$)."$ Nestl$$ Nestl$$ is the world's largest food company, with manufacturing facilities in many countries across the globe. For decades Nestl$$ has been mired in controversy over its marketing of infant formula in poor countries, its practices in the bottled water industry and accusations of child labour at cocoa farms connected to Nestl$.$ Do you think that the behaviour of Wal$-$Mart and Nestl$$ reflects ethical leadership and an ethical organisational culture? African$-$Americans and Hispanics are likely to accept low wages due to their social economic status. $($Christopherson and Lillie in ivypanda$)$ Outsourcing practice: Garrison et al $($p $114)$ point to an article in The Wall Street Journal of $1$ July $1,2013$ which reported that $"$in Bangladesh the minimum wage is $$38$ per month. $...$ Companies such as Fakir Apparels, a T$-$shirt manufacturer in Bangladesh, can readily attract customers such as Wal$-$Mart, $...$ due to these low labor costs. $...$ while manufacturing cost for one of Fakir Apparels T$-$shirts $($can be as low as$)$ $$1\mathrm{.}60,$ the retail selling prices for these T$-$shirts are $$6\mathrm{.}00($at Wal$-$Mart$)."$ Nestl$$ Nestl$$ is the world's largest food company, with manufacturing facilities in many countries across the globe. For decades Nestl$$ has been mired in controversy over its marketing of infant formula in poor countries, its practices in the bottled water industry and accusations of child labour at cocoa farms connected to Nestl$.$ Do you think that the behaviour of Wal$-$Mart and Nestl$$ reflects ethical leadership and an ethical organisational culture? $5\mathrm{.}3$ Paragraph $14\mathrm{.}3$ and instances of unethical corporate and government behaviour in South Africa. $14\mathrm{.}3$ Time for reflection Wal$-$Mart Wal$-$Mart is not only the leading retail chain in the US and the global retail industry, it is also the largest employer in the US private sector. In discussing corporate strategy, Datar and Rajan $($p $536)$ say, among others, "strategy describes how an organization can create value for its customers while differentiating itself from its competitors. For example, Wal$-$Mart, the retail giant, creates value for its customers by locating stores in suburban and rural areas and by offering low prices, a wide range of product categories, and few choices within each product category. Consistent with this strategy, WalMart has developed the capability to keep costs down by aggressively negotiating low prices with its suppliers in exchange for high volumes and by maintaining a no$-$frills, cost$-$conscious environment with minimal sales staff." Several research projects revealed the following: Low wages: research conducted on wage rate in the retail industry indicates that Wal$-$Mart pays the least wage rate. Compared to the national average wage rate for the same job categories in the retail industry, Wal$-$Marts wage rate is less by between $26\%-37\%.$ The companys average wage rate per hour is $ $10\mathrm{.}84,$ which, according to the US federal governments definition of poverty, is not sufficient for a family of four in the US$.($Rao and Cynthia in ivypanda$)$ Gender discrimination: during the recruitment process, Wal$-$Mart gives first priority to male applicants. This means that the female applicants do not have a fair chance of being employed by the firm. Gender discrimination is also depicted in the firms pay structure. The male employees are normally paid higher wages as compared to their female colleagues, even in cases where male and female employees have similar qualifications and do the same job. $($Rao and Cynthia in ivypanda$)$ Diversity: an analysis of Wal$-$Marts diverse workforce reveals that African$-$Americans and Hispanics are the majority. Critics attribute this to Wal$-$Marts commitment to paying low wages and the fact that African$-$Americans and Hispanics are likely to accept low wages due to their social economic status. $($Christopherson and Lillie in ivypanda$)$ Outsourcing practice: Garrison et al $($p $114)$ point to an article in The Wall Street Journal of $1$ July $1,2013$ which reported that $"$in Bangladesh the minimum wage is $$38$ per month. Companies such as Fakir Apparels, a T$-$shirt manufacturer in Bangladesh, can readily attract customers such as Wal$-$Mart, due to these low labor costs. while manufacturing cost for one of Fakir Apparels T$-$shirts $($can be as low as$)$ $$1\mathrm{.}60,$ the retail selling prices for these T$-$shirts are $$6\mathrm{.}00($at Wal$-$Mart$)."$ Nestl Nestl is the world's largest food company, with manufacturing facilities in many countries across the globe. For decades Nestl has been mired in controversy over its marketing of infant formula in poor countries, its practices in the bottled water industry and accusations of child labour at cocoa farms connected to Nestl. Do you think that the behaviour of Wal$-$Mart and Nestl reflects ethical leadership and an ethical organisational culture? African$-$Americans and Hispanics are likely to accept low wages due to their social economic status. $($Christopherson and Lillie in ivypanda$)$ Outsourcing practice: Garrison et al $($p $114)$ point to an article in The Wall Street Journal of $1$ July $1,2013$ which reported that $"$in Bangladesh the minimum wage is $$38$ per month. Companies such as Fakir Apparels, a T$-$shirt manufacturer in Bangladesh, can readily attract customers such as Wal$-$Mart, due to these low labor costs. while manufacturing cost for one of Fakir Apparels T$-$shirts $($can be as low as$)$ $$1\mathrm{.}60,$ the retail selling prices for these T$-$shirts are $$6\mathrm{.}00($at Wal$-$Mart$)."$ Nestl Nestl is the world's largest food company, with manufacturing facilities in many countries across the globe. For decades Nestl has been mired in controversy over its marketing of infant formula in poor countries, its practices in the bottled water industry and accusations of child labour at cocoa farms connected to Nestl. Do you think that the behaviour of Wal$-$Mart and Nestl reflects ethical leadership and an ethical organisational culture? $5\mathrm{.}3$ Paragraph $14\mathrm{.}3$ and instances of unethical corporate and government behaviour in South Africa.