Wal-Mart the Bully

All the discussion about Wal-Mart this week made me look to see if I could find any other issues.  Wal-Mart seems to have a never-ending list of economic and social pit falls.  These flaws range from unfair employee wages, the active institution of differential treatment between men and women, and, less commonly recognized, its use of coercion in its transactions with participating businesses.

                As a general rule, Wal-Mart has adopted a less than desirable business ethic when it comes to its relations with companies producing products they stock in their ever-growing chain.  In recent years, it has become more and more apparent that Wal-mart has created a monopoly in many areas of the country.  While this monopoly itself has proven detrimental to society in its ability to oust small business, it has also become a threat to bigger, more well-known corporations.

                Companies such as LoReal, and other big name brands have come forward in identifying Wal-mart in using scare tactics to elicit the low-prices that have granted them the aforementioned monopoly over small businesses.  Wal-Mart has continuously threatened to not stock companies’ products unless they can meet an unrealistically low wholesale price.  Thus, the primary companies must sell products at un-profitable rates or risk not being stocked in one of the country’s most prominent chains.  Either way the company will take a hit. Such business ethics have allowed Wal-Mart to dually exploit the economy, both on the consumer and business end.

This entry was posted in Business, Cases (Real World), Ethics, Society and tagged , , . Bookmark the permalink.

3 Responses to Wal-Mart the Bully

  1. Jordi says:


  2. Nate says:

    I agree with you that it seems that Wal-Mart is bullying these companies leaving them with no other option. It seems that Wal-Mart Is not holding true the fiduciary relationship they bare with their suppliers. I would be curious to find out their supplier’s stance on this issue. Do they really have no other option though? I personally can’t think of any.

  3. mcrawford says:

    I agree that Wal-Mart may be bullying these companies leaving them with little option, but if you were the CEO of Wal-Mart would you do any different. This idea links back to the stakeholder vs. stockholder argument between Freeman and Freidman, depending on what theory you agree on will most likely depict if you feel Wal-Mart is a bully and weather being a bully is necessary a bad thing.

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