It was the kind of pro-Wal-Mart comment the giant retailer might write itself. And, in fact, it did. Several sentences in Mr. Under assault as never before, Wal-Mart is increasingly looking beyond the mainstream media and working directly with bloggers, feeding them exclusive nuggets of news, suggesting topics for postings and even inviting them to visit its corporate headquarters.
Is Walmart good for society? Would society be better off with or without Walmart?
The debate on whether Walmart has done more good or bad for society has been a longstanding one. Opponents argue that the retail behemoth has led to the transfer of millions of jobs to less-developed countries like China, the exit of many small-to-medium businesses, and also infringement of employee rights.
From an economic standpoint, society refers to, collectively, the common person; the consumer. Consumers would benefit from low prices and an increase in quantity of goods consumed. Due to its enormous economies of scale, notably its bargaining power with suppliers and the establishment of its own distribution centers, Walmart has managed to offer very competitive low prices to its consumers due to the low costs.
Walmart has only resulted in immense job creation for millions of Americans; this is beneficial for those in depressed cities and towns who would otherwise not have jobs.
In the laissez-faire environment, Walmart represents good resource allocation. Most recently, the launch of the Sustainability effort by Walmart depicts how Walmart will continue to improve its business practices for the better — in terms of environmental and social impact.
Suppliers that still want to be in business with Walmart now have to produce through environmentally sustainable means; other retailers will have to start moving towards green methods too if consumers now choose Walmart due to its green image besides the low prices.
The low wages it offers have also drawn the ire of many employee rights groups.
However, from an economic standpoint, Walmart has just managed to expand and outdo its competitors through innovative business strategies like integrating its distribution systems.
Ideally, competitors should be forced to innovate to create more business strategies and their own competitive advantage. Ideally, this should result in lower prices for consumers, which has been the case.
Some argue that this has been at the expense of the relatively low wages its employees receive. But from a utilitarian standpoint, it is now able to offer a great variety of products at a very low price to millions of everyday consumers.
This is especially relevant to the millions of low-to-middle income families it traditionally targets. This increases the overall utility of society. One of the main aims of businesses is to maximize returns to its shareholders; Walmart has managed to do this and thereafter give back to the community.
It donates huge amounts of money to support children, women, and the underprivileged.
It has also been active in terms of emergency relief. It is only because the company reaps such huge profits that it is able to give back to the community on such a large scale. I believe from a societal and economic standpoint, Walmart has been beneficial.Case Study: Wal-Mart and Its Public Opponents In the early s, Wal-Mart targeted California for its latest expansion project, announcing plans to build 40 new supercenters—enormous stores that sell groceries In the early s, Wal-Mart targeted California for its latest expansion project, announcing plans to build 40 new supercenters.
Apr 03, · Led by Wal-Mart's longtime opponents in organized labor, a new coalition of about 50 groups -- including environmentalists, community organizations, state lawmakers and academics -- .
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Disney got decades of deals from Anaheim. Now the city is pushing back. By Daniel Miller. Sept. 26, It is indeed a little questionable that Walmart launched its Sustainability initiative after a slew of public relations debacles that involved human rights, environmental sustainability, and .