A critical look at Wal-Mart’s business model in the modern era with a focus on labor practices.

In 1962 Sam Walton opened a store that has changed the face of American business forever. Wal-Mart, a super giant retailing chain, is the largest company in the world. The corporation started with a single location but now has grown to over 5,200 stores worldwide. Wal-Mart has become a force to be reckoned with. It is so large that Wal-Mart’s rank in the Chinese export market is fifth, ahead of Germany, the U.K. and Russia (Cox). The retail chain is known for its large selection of discounted items and its efficient business model. Unfortunately, on its road to success, Wal-Mart has become known for less positive things. Wal-Mart has had to deal with various accusations of gender discrimination, poor worker compensation, and overworking. Wal-Mart should be forced to change its practices because its business model thrives on the devaluing of workers.

One of the major reasons for Wal-Mart’s labor revision is its lack of gender equality. Throughout the past decade, Wal-Mart has sexually discriminated against women working in its stores everywhere. This sex-bias has only recently been acted against in what could become a very costly case for the corporation. In 2004 a gender discrimination lawsuit was filed against Wal-Mart in what is the largest private civil rights case ever (Armour A1). The 1.6 million women filing the case worked at Wal-Mart between 1998 and 2004 and claim that they were paid between five and fifteen percent less than men in similar positions. They also claimed that they received fewer promotions than men even when they were more deserving and qualified (Armour A1). A June 23 article in USA Today listed several statistics relating to the matter. In the U.S., approximately 65% of Wal-Mart’s employees are women yet only 14% of the managers are women (Armour A1). These statistics show a clear gender bias that should not exist. Although sex-bias suits similar to this one have been filed regularly throughout the nation, this particular case means more than most. Wal-Mart is estimated to employ 1/123 of all the workers in the nation. Punishing sexual-discrimination in this case could send out the message that it will no longer be tolerated in our nation. As Jocelyn Larkin, a women’s rights spokesman puts it, “They are the largest employer in America, and everyone is watching this” (qtd. in Amour A1). Wal-Mart has a decision to make, it can either choose to respect women’s labor rights, or it can be sued into submission.