Introduction
One of the major drivers in business ethics is external social pressure. Firms need to consider the social aspirations of the general community and the protection of the environment. Most organizations today are engaging in contributing to the society by forming and implementing corporate social responsibility programs. Companies need to consider welfare of the society other than operating for profits only (Lee, 2011). There are several informal manners in which ethical conduct can be encouraged by firms. However, organizations need to devise formal policies and programs to guide and create ethical standards.
Ethical principles and Walmart
The government is a strong agent which impacts business ethics by making policies and laws which may lead the firms to make their policies to be in sync with latest policies and laws formulated by the government. Organizations are forced to respond in particular manners to critical attention received from the media. This is one of the main reasons for firms to engage in developing formal ethical programs and ensure that they are followed.
Walmart has a corporate social responsibility policy and encourages personnel to engage in acts which lead to societal welfare. Despite this, reports have surfaced that the firm has received several reports of fraud and bribery (The New York Times, 2012). Companies are prone to be criticized by media groups for engaging in activities which does not lead to ethical failures. Criticism from media can strongly impact firms so as to resort to external social pressure. Immoral acts by firms may be under scrutiny by both media and government and can lead to the creation of a negative image. This image may have harmful consequences. In a bid to evade such negative publicity, firms formally create and adhere to ethical policies which help in practicing socially responsible acts.
This is one of the reasons as to why Walmart has engaged in formulating an ethical code of conduct (Walmart, 2014). Walmart has previously faced accusations of engaging in sexual discrimination with respect to the selection, promotion and transfer of female staff (Workplacefaireness, 2014). This had led to mass agitation, media and government attention. Several lawsuits had been filed against Walmart and the company is striving to adhere to a formal ethical code of conduct which supports diversity, adherence to compliance policies and engagement in corporate social responsibility acts. Such acts led to the creation of a negative image and has led the firm to be highly careful.
Another example is the collapse of the clothing factory in Bangladesh. This nation has a weak regulation system and most organizations engage in bribery which results in evasion of safety standards (Husock, 2013). In such a scenario, international bodies along with the media can provide pressure to firms to adhere to corporate social responsibility acts. Walmart, as a result of this has designed a safety procedure (Walmart, 2014).
Globalization has led companies to face higher ethical issues. Such problems may arise due to conflicts which takes place between personal and organizational decisions. In this case, Walmart has to ensure that its supervisors take decisions which are in alignment with the goals of the organization. Ethical conflict with respect to power distances, conflicts with reference to values and functions and conflict in making decisions can be easily resolved following the ethical code of conduct. Several organizations have compliance programs which is usually considered with ethics. Walmart has a compliance program which is highly essential as it lays down several guidelines which the organization needs to follow.
If appropriately designed, both ethics and compliance can complement each other as ethical programs emphasize on values and virtues whereas compliance programs concentrate on the enforcement and legal aspect to conduct business operations. External social influences can be mitigated considerably if a balance is drawn between ethics and companies strictly follow a compliance policy.
It is essential that an ethics policy is formulated which takes into consideration the values and customs based on a particular country in which the firm is operating. This is because, firms need to respect the culture and values of individuals to operate in harmony and evade conflicting loyalties. Individuals at the same time, should follow the code of ethics while engaging in business operations. Leading to the major examples of scams and frauds organizations need to have an increased awareness of business ethics. Following accusations of social discrimination has forced Walmart to adhere to its ethical code of conduct and encourage a diverse workforce. This is one of the reasons as to why Walmart has started hiring females to hold responsible positions in diverse managerial and supervisory levels.
Conclusion
Social influence is also changing the manner in which firms are conducting business. Employees as well as the general society expects the company to engage in corporate social responsibility acts. This is one of the reasons as to why organizations are increasingly engaging in conducting business responsibilities and also ensuring that societal welfare is attained. Ethical principles further helps companies to efficiently manage diverse workforce. A common code of conduct which attains respect for the values and customs of the workforce is essential to follow so that the organization can function effectively.
References
Husock, H. (2013). The Bangladesh disaster and corporate social responsibility. Forbes.com Retrieved October 31, 2014 from http://www.forbes.com/sites/howardhusock/2013/05/02/the-bangladesh-fire-and-corporate-social-responsibility/
Lee, M. (2011). Configuration of external influences: the combined effects of institutions and stakeholders on corporate social responsibility strategies. Journal of Business Ethics, 102, 281 – 298.
The New York Times. (2012). The bribery aisle: how Wal-Mart got its way in Mexico. Retrieved October 31, 2014 from http://www.nytimes.com/2012/12/18/business/walmart-bribes-teotihuacan.html?pagewanted=all&_r=0
Walmart (2014). Ethics & integrity. Retrieved October 31, 2014 from http://corporate.walmart.com/our-story/ethics-integrity
Walmart (2014). Promoting responsible sourcing in Bangladesh. Retrieved October 31, 2014 from http://corporate.walmart.com/global-responsibility/ethical-sourcing/promoting-responsible-sourcing-in-bangladesh
Workplacefaireness.org (2014). The Good, the Bad, and Wal-Mart. Retrieved October 31, 2014 from http://www.workplacefairness.org/reports/good-bad-wal-mart/wal-mart.php
