Question: Walmart's code of conduct is based on four basic beliefs espoused by the founder, Sam Walton: Respect for the Individual Service to our Customers Striving

Walmart's code of conduct is based on four basic beliefs espoused by the founder, Sam Walton:

  • Respect for the Individual
  • Service to our Customers
  • Striving for Excellence
  • Acting with Integrity

Let's pick one of the values above and see how it is implemented in the company. 'Service to Customers' is defined as doing as much as possible to fulfill customers' basic needs at as low prices as possible so they may 'save money and live better'. This broad value may easily be applied across organizational functions. For example, a Walmart employee who is in charge of procuring electronics from suppliers may easily apply this value to their specific job. They may uphold the 'Service to Customers' value by:

  • Selecting suppliers on the basis of objective criteria like integrity, quality, price, delivery, adherence to schedules, product suitability, and maintenance of adequate sources of supply.
  • Not having social or other relationships with suppliers if the relationship would affect their objectivity and the prices paid for products.

Note that the employee above may also apply this value to unique situations that crop up in the organization to determine acceptable ways of doing things. Consider each situation below and think about ways to resolve the ethical issue in line with the company's value system.

  1. You are a senior buyer of electronics, and your significant other just accepted a position on the sales team at Samsungs office in Bentonville, AR
    • Why is this an ethical issue? This is an ethical issue because you now have a personal relationship with a supplier of electronics to Walmart - you may consciously or subconsciously provide favorable terms to the supplier in question, taking away from Walmart's service to their customers.
    • How might it be resolved to maintain Walmart's service to their customers? This can easily be resolved - you may notify your supervisors and request to be assigned to another department (say, groceries). That way, you will not have any personal conflicts of interest in procuring supplies on behalf of Walmart.
  2. During a day-long meeting at a US suppliers headquarters, they cater a five-course lunch consisting of lobsters flown in from Maine, prepared by a Michelin-starred chef who was flown in from France.
    • Why is this an ethical issue?
    • How might it be resolved to maintain Walmart's service to their customers?
  3. You are a senior buyer of electronics, and your investment advisor highly recommends purchasing stock in Apple.
    • Why is this an ethical issue?
    • How might it be resolved to maintain Walmart's service to their customers?
  4. You are a senior buyer of automobile supplies. You traveled to Japan to meet a major supplier of automobile tires. At a public reception ceremony in Kyoto, the CEO of the supplier company presents you an exquisite sensu (a decorative fan worth over $10,000), commemorating their relationship with Walmart. Remember that gift-giving is a central part of Japanese business etiquette, and is not considered bribery.
    • Is this an ethical issue? Why or why not?
    • How might it be resolved to maintain Walmart's service to their customers?

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