The case of Walmart

The case of Walmart explores how it applies various CRS theories and framework to display sustainable business practices.

Historical analysis presents Walmart as low-cost and environmental friendly company. Besides, critically evaluation of the case under consideration shows that it has achieved great strides in socially involving the society in its daily activities. It can be observed that Walmart increased campaign for improved living standard and overall welfare of the society place it at an influential position. Such an approach has given Walmart a publicity head start and this constitutes strategic use of political theory of SCR.It can also be noted from the case study that Walmart recognize the interdependence between a corporate and the society. Continuity of its performance has been a function of social integration with the immediate communities in its various stores. As such, business decisions of Walmart are strongly grounded on integrative theory of CSR. Theory of ethical responsibility has consistently been applied by Walmart in its relentless effort to champion for environmental care (Callahan, 2010). Walmart embrace use of recycling packaging materials, green energy like Duraflame thereby achieving significant better consumer attention. Besides, Walmart has played key role through its philanthropic activities to improve the welfare of the society through its annual injection to the community and government as exhibited by 2009 fiscal year $378 million contribution. Such a philanthropic aspect of corporate social responsibility boosts its short term achievement and strengthens its long term survival (May & Roper, 2007).

Walmart seems to reconcile its economic objectives with ethical practices. Organizing and funding routine cleanup programs for the neighboring communities of Walmart constitute ethical responsibility. Such acts yield positive externality by improving the overall welfare of the surrounding community through participative environmental clean-up. It is evident that Walmart emphasize its objectives towards strategic decision making by exploring ethical and economic theory. Walmart continue to shine through its sustainable management practices characterized by legal adherence in line with corporate social responsibility.

Analysis of AWB case

The case of AWB constitutes unethical business practices. Considering the underlying factors that led to sanctions being put against Iraq, the actions of AWB to connive with Hussein regime and engage in corruption amounts to illegality and zero ethics. The decision of AWB management focusses more on the economic gain. Stakeholder profit maximization theory is the overriding decision making force for AWB (Graycar & Smith, 2011). The primary goal of setting Oil-For-Food exchange limit was to impose discipline in Iraq in respect of its inhuman military actions in Kuwait, locally and the entire regions. It is therefore obvious that AWB misconstrue economic theory of CSR to profit maximization goal as shown in its complicity to the unacceptable governance of Saddam Hussein hence insensitive to social welfare of the people. It is worth to note that the action of AWB was driven by Utilitarian theory which attaches more importance to good rather than the right. Besides, AWB’s arrangement with Iraq government gave them unfair advantage over other firms and this amount to bossiness malpractice (Knapp, 2011).

It is evident that the action of AWB led to withdrawal of its previously enjoyed monopoly, tainted its public image and translated to long term loss of market size. The general idea in this case is AWB’s conduct was wrong and considering corruption as cost to gain more in the short run brought long term consequences as presented in the case study. AWB ought to have stuck to business ethics and UN legal confines to retain its image and stand for the future.


  Comparative Analysis of Walmart and AWB

A critical evaluation of the case of Walmart versus AWB shows divergent views of the two firms and the consequences of their respective actions. Since Walmart pursue the CSR mainstream theories that include economic, political and ethical, its business practices and realized sustainable success, AWB short term scandal with Iraq government exhibited explicit breach of law. In that regard, the legal theory of corporate social responsibility was significantly adhered to by Walmart and disregarded by AWB. The outcome is evident and serves as a lesson to other firms. From the ethical perspective, the woes of AWB after the expose on corrupt deal with Iraq are consequences of Utilitarian perspective of ethical decision making (Ferrell, O. C., Fraedrich,et al.2010). In this case, the good which is higher profit gain was prioritized by AWB over the interest of the society.

On the other hand, Walmart believes in doing the right thing over what is good for mega profits. This is explained by its relentless support on ethical practices that oversee environmental care, philanthropy and consumer interest sensitivity (McCloskey, 2006).

A common theme in the two case studies shows centrality of CSR theories in making decision for the corporation. The two case studies explore how different circumstances influence ethical decision-making. AWB had a lucrative offer and were guided by profit goal at the expense of future image of the company. On the other hand Walmart face competition but still stand for sensitive societal issues like environmental care and poverty reduction endeavors.






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