Wal-Mart: Everyday low ethics
February 1, 2006
Consumerism is one of the few ways American citizens have been able to enforce their moral and political beliefs these days, whether it be by purchasing solely organic products or buying only American-made items. Yet, when it comes to towns like DeKalb, which consist largely of college students who have little expendable income, moral spending often falters in the face of frugality.
That is why Wal-Mart, the nation’s biggest retailer and one of DeKalb’s most inexpensive supermarkets, has thrived. Not only are many of our community’s needs made available inexpensively and under one roof, but the retailer serves as a prime employer for the plethora of students seeking entry-level work.
On the surface Wal-Mart, seems to be a generally rewarding employer, but college students should take a second look at just what their thriftiness supports.
Charles Fishman, author of “The Wal-Mart Effect,” described the retailer as “a nation unto itself” that has been able to practically circumvent capitalism, offering prices cheaper than anyone, anywhere. Because of the girth of its sales, the corporation can afford to demand the lowest prices from its suppliers, putting its competitors out of business and cinching costs in every direction.
These “everyday low prices” are the result of the country’s richest employer suppressing its overhead to widely-ridiculed extremes. Many of Wal-Mart’s jobs are outsourced to China. Many of its employees cannot afford the company’s medical insurance. Legislation was passed recently in Maryland to force Wal-Mart and companies like it to pay more toward health care or make up the cost — of subsidies for employees using Medicaid — to the government.
Some economists fear that because Wal-Mart has become so enormous and powerful, but still so stringent, the economy will plunge.
Although Wal-Mart supporters argue the magnitude of sales the company produces should be considered a blessing to our country’s wealth, the effects of Wal-Mart’s strict bottom line with suppliers has revolutionized the way everyone does business. The standards of how well or ethically something is made have fallen out of focus.
These declining standards are not only problems in and of themselves: they mark the start of a slippery slope inevitable in any monopoly. What could happen when the company becomes bigger and more powerful?
At the moment, Wal-Mart is being sued in the largest class-action lawsuit in history for allegedly discriminating against women in hiring and promotions, and since they do not utilize labor unions, the potential for a case like this could happen again. If the day comes when it is too late to take our business elsewhere, what will we do then?
As for now, “We vote with our wallets,” Fishman said. “Wal-Mart does not create monopolies, we do.” Perhaps if we are able to let our spending be guided more by our conscience than our desire to save a buck, we can do our part in demanding change from Wal-Mart and re-establishing the rapidly diminishing free market.