Wednesday, May 21, 2008


Walmart fails to support the people upon whom they have the greatest impact on, their workers. Two of many allegations against them are listed below.

Walmart costs state and national government money. A congressional study discovered that for a 200-employee Wal-Mart store, the government is spending $108,000 a year for children's health care; $125,000 a year in tax credits and deductions for low-income families; and $42,000 a year in housing assistance. This typical Wal-Mart store costs federal taxpayers $420,000 a year, which averages out to $2,103 for each Wal-Mart employee. It all adds up to an annual welfare bill of $2.5 billion for Wal-Mart's 1.2 million U.S. employees. That's not counting the burden Wal-Mart places on state and local governments.

Vice president for benefits, Susan Chambers, recently released a memo to the board of directors saying "the cost of an associate with seven years of tenure is almost 55 percent more than the cost of an associate with one year of tenure, yet there is no difference in his or her productivity. Moreover, because we pay an associate more in salary and benefits as his or her tenure increases, we are pricing that associate out of the labor market, increasing the likelihood that he or she will stay with Wal-Mart." This can be seen as applying pressure to fire more senior members of the walmart staff, and eliminate any benefits they may receive.1

Wal-Mart Stores, Inc. is generous with gifts to charitable organizations, and donates an impressive percentage of profits to commendable causes. This company has acted with a disregard for the fact that their business has undermined the communities in which they operate. Wal-Mart Stores, Inc. has major instances of operating with disregard for the wellbeing of it's employees. There are major tensions between their organized workforce, and the company management that have yet to be addressed adequately. They have inadequate oversight of their supply chain, which enables the abuse of their subcontracted labor force. This company is accused of exploiting the rights of native peoples. Such actions can lead to making tribal lands unusable, and undermine traditional ways of life. This company's goods are a risk to the wellbeing of its customers, and this risk taking shows a certain disregard for the humanity of those they profess to serve. Wal-Mart Stores, Inc. tends to hide or at least fail to publicize their social and environmental standards. This means it is up to us to dig up their misbehaviors. Wal-Mart Stores, Inc. hide their political actions, and have a poor record of supporting progressive policies.


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