Capitalism is based on a system of rewards and efforts. It essentially means that for better results, the employer, or whoever it is that desires good results, must motivate the workers through various methods, the most popular one being financial incentive. As a matter of fact, well rewarded person will deliver desirable results at all times. On the contrary, a poorly motivated worker will become unproductive, weakening the financial or economic performance. It is because of capitalism that the business interests are clearly separated from personal and family interests. A good business is one that prioritizes the organizational goals over family and other personal interests.
Ethical issues
In point of fact, Wal-Mart is the single most famous family business on the international scene, having thrived as the retailer with unmatched market penetration and international presence. It, however, raises ethical concerns that the employees of the organization do not have much at the end of the day. Whilst a few top management office holders will pocket ethically questionable perks, the junior staff and shop floor operatives have little to save and afford an overly decent living at the same time. Ethically, when such a business as Wal-Mart performs exemplarily well, it is the employee that should take credit and feel contented because, according to the course literature, the employee is the second most important stakeholder after the customer. Perhaps the explanation behind the ethical concerns at Wal-Mart is the fact that free market economics does not allow the government to impose so many restrictions which in the case of Wal-Mart, could have proved useful to the former workers, as well as the existing ones, especially the ones on lower ranks.
The Economic Theory of Free market
The concept of the free market is the single most important explanation for the existence of stiff competition among all types of businesses, including retailers (the class where Wal-Mart belongs). Perhaps the reasons why the employees of such businesses feel oppressed and poorly rewarded, are that all competitors in the game seek to reduce costs, one among which is the cost of labor. In so doing, the employees are poorly rewarded. It widens the ridge between the people of higher social classes and those in the modest economic classes.