1.
Do the outsourcing issues facing Apple really concern consumers? Explain.
- Comment on the results disclosed in Apple’s supplier responsibility report. Should these be disconcerting to investors?
3. Since Steve Jobs’s death, it appears that Apple has become much more transparent in what officials publish about the company. Why do you think this has happened?
4 Should Apple have any responsibility for the events at Foxconn? Explain your position.
5 Can you find any other HR related ethical violations involving Apple? If so what would your solution be as described within the ethical cycle.
Stanwick, Understanding Business Ethics, 3e Instructor Resource Case 22: Wal-Mart: But We Do Give Them A 10 Percent Employee Discount Case Summary Wal-Mart stirs a lot of emotions from many people. People either love or hate the company. Its influence has significantly impacted global retailing. Wal-Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal-Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 million employees worldwide. Therefore, there are huge financial benefits for Wal-Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal-Mart, but could also be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you leave” may not have any cost impact, Wal-Mart appears at times to abuse the loyalty of its employees by asking them to work long after they have clocked out. Health benefits are another area where Wal-Mart has been able to minimize its cost structure for the employees. Placing hurdles for eligibility and having high level of deductibles allows Wal-Mart to block some of its employees from signing up for health coverage while others only accept minimum coverage. The issue of sexual discrimination has been a major stumbling block for Wal-Mart as it moves to being a global presence. It could be hypothesized that the “good old boy” culture established by Sam Wilton in rural Arkansas did not condemn managers who perceived that female employees should not be able to have a career at Wal-Mart. The recent legal class action lawsuits may have given Wal-Mart the impetus it needed to change its corporate culture. Again, based on its “good old boy culture”, Wal-Mart has never looked favorably on unions. It believes that only Wal-Mart knows what is best for its employees. Wal-Mart is still actively involved in stopping unions from being formed for its workers in the United States. Of course, the ironic twist is that when Wal-Mart started in China, the Chinese government made it a requirement that every employee be unionized. The net result is that Wal-Mart has always walked a fine line between ethical and unethical behavior when it examines the relationships between treatment of employees and reducing costs. Teaching Note You can start the discussion by asking how many students go to Wal-Mart on a regular basis, assuming you are near a Wal-Mart. If you are, ask them why they go. The universal answer will probably be because everything is cheaper at Wal-Mart. You can then ask should Wal-Mart do whatever it can to reduce its prices. Again they would say yes within the law. At this point you could ask why don’t the employees quit if they are not been treated properly. The likely response is that for many of these workers this could be the only job available and/or the highest paying job in the local community. The thread of the discussion is that the employees need Wal-Mart and Wal-Mart needs the employees. The only difference is that Wal-Mart has absolute bargaining power with its employees like it does with its suppliers. Every single supplier and employee needs Wal-Mart more than Wal-Mart needs the employee and the supplier. Of course, Wal-Mart knows this and, therefore, will always negotiate for a position of power. Wal-Mart makes it very clear when an associate is hired that the firm is committed to lower the cost of production. As a result, no employee should be surprised when Wal-Mart does whatever it can to reduce costs. Questions for Thought 1. Are the ethical issues Wal-Mart faces really any different from other large retailers? 2. Wal-Mart officials have stated that they don’t feel women are interested in management positions at the company. Do you agree or disagree? 3. Wal-Mart is continually criticized for its health-care policy. Is this really an ethical issue? Why or why not? 4. Should Wal-Mart be concerned about unionization of stores since allowing unionization of workers in China? Stanwick, Understanding Business Ethics , 3e Instructor Resource Case 22: Wal - Mart: But We Do Give Them A 10 Percent Employee Discount Case Summary Wal - Mart stirs a lot of emotions from many people. People either love or hate the company. I ts influence has significantly impacted global retailing. Wal - Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal - Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 millio n employees worldwide. Therefore, there are huge financial benefits for Wal - Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal - Mart, but could als o be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you le ave” may not have any cost impact, Wal - Mart appears at times to abuse the loyalty of its employees by asking them to work long after they have clocked out. Health benefits are another area where Wal - Mart has been able to minimize its cost structure for th e employees. Placing hurdles for eligibility and having high level of deductibles allows Wal - Mart to block some of its employees from signing up for health coverage while others only accept minimum coverage. The issue of sexual discrimination has been a major stumbling block for Wal - Mart as it moves to being a global presence. It could be hypothesized that the “good old boy” culture established by Sam Wilton in rural Arkansas did not condemn managers who perceived that female employees should not be able to have a career at Wal - Mart. The recent legal class action lawsuits may have given Wal - Mart the impetus it needed to change its corporate culture. Again, based on its “good old boy culture”, Wal - Mart has never looked favorably on unions. It believe s that only Wal - Mart knows what is best for its employees. Wal - Mart is still actively involved in stopping unions from being formed for its workers in the United States. Of course, the ironic twist is that when Wal - Mart started in China, the Chinese government m ade it a requirement that every employee be unionized. The net result is that Wal - Mart has always walked a fine line between ethical and unethical behavior when it examines the relationships between treatment of employees and reducing costs. Teaching Note You can start the discussion by asking how many students go to Wal - Mart on a regular basis, assuming you are near a Wal - Mart. If you are, ask them why they go. The universal answer will probably be because everything is cheaper at Wal - Mart. You can then a sk should Wal - Mart do whatever it can to reduce its prices. Again they would say yes within the law. At this point you could ask why don’t the employees quit if they are not been treated properly. The likely response Stanwick, Understanding Business Ethics, 3e Instructor Resource Case 22: Wal-Mart: But We Do Give Them A 10 Percent Employee Discount Case Summary Wal-Mart stirs a lot of emotions from many people. People either love or hate the company. Its influence has significantly impacted global retailing. Wal-Mart’s very simple strategy of Everyday Low Prices drives every single decision at Wal-Mart. As a result, payroll expenses are always monitored and evaluated, especially with close to 1.5 million employees worldwide. Therefore, there are huge financial benefits for Wal-Mart to cut every corner they can when it can reduce the cost structure of its business model. Examples such as “off the clock work” are not only present at Wal-Mart, but could also be considered an industry wide issue. In any setting in which a time clock records the number of hours worked by an employee, there is always the opportunity to abuse the system. While an innocent request such as “can you tidy up that shelf before you leave” may not have any cost impact, Wal-Mart appears at times to abuse the loyalty of its employees by asking them to work long after they have clocked out. Health benefits are another area where Wal-Mart has been able to minimize its cost structure for the employees. Placing hurdles for eligibility and having high level of deductibles allows Wal-Mart to block some of its employees from signing up for health coverage while others only accept minimum coverage. The issue of sexual discrimination has been a major stumbling block for Wal-Mart as it moves to being a global presence. It could be hypothesized that the “good old boy” culture established by Sam Wilton in rural Arkansas did not condemn managers who perceived that female employees should not be able to have a career at Wal-Mart. The recent legal class action lawsuits may have given Wal-Mart the impetus it needed to change its corporate culture. Again, based on its “good old boy culture”, Wal-Mart has never looked favorably on unions. It believes that only Wal-Mart knows what is best for its employees. Wal-Mart is still actively involved in stopping unions from being formed for its workers in the United States. Of course, the ironic twist is that when Wal-Mart started in China, the Chinese government made it a requirement that every employee be unionized. The net result is that Wal-Mart has always walked a fine line between ethical and unethical behavior when it examines the relationships between treatment of employees and reducing costs. Teaching Note You can start the discussion by asking how many students go to Wal-Mart on a regular basis, assuming you are near a Wal-Mart. If you are, ask them why they go. The universal answer will probably be because everything is cheaper at Wal-Mart. You can then ask should Wal-Mart do whatever it can to reduce its prices. Again they would say yes within the law. At this point