Labor development is the work gained from any individual through threatening and non voluntarily avidity of such individual. In the epoch of capitalist economy, the workers were treated merely like trade goods that used to bring forth things. In such capitalistic environment, the labours were exploited at work by non paying them the worth they are working and heightening their ain net income. But after the coming of globalisation, labours are now treated as the resources for the company who are the most outstanding plus for the organisation.

But still the labour faces development is the signifier of less paid, labour trafficking, workplace development, domination, kid labour, menaces, physical injury, limitation, debt bondage etc ( Fact sheet: Labour development, 2009 ) .

Company Background ( Wal-Mart ) :


Wal-Mart was founded by Sam Walton in 1962 with the gap of its first shop at Rogers, Arkansas as retail shop for all the consumer goods so as to do the consumer goods at individual shop ( Heritage ) . With the airy leading of Sam Walton, it got incorporated in 1969 and was able to merchandise in New York Stock Exchange by 1972.

Through the attempts of invention and leading, Wal-Mart has grown as the universe ‘s largest Discount Department shops and named as the World ‘s Largest Public Corporation by Revenue by the 2010 Forbes Global 2000. With the enlargement and strategic confederation scheme of the company, Wal-Mart successfully installed its China imported merchandises to all over the universe with highly successful in UK and South America though unsuccessful in South Korea and Germany. It is researching its image of the taking transnational company in the whole universe through its enlargement scheme to take the competitory advantage of the planetary market.

Get quality help now
Dr. Karlyna PhD

Proficient in: Business

4.7 (235)

“ Amazing writer! I am really satisfied with her work. An excellent price as well. ”

+84 relevant experts are online
Hire writer

In the procedure of such enlargement, company is be aftering to supply its merchandises and services to the consumers of Middle East specifically in UAE as it is considered as the best hub for trade all the universe ( Our Narrative ) .

Location & A ; Number of Employees:

Wal-Mart serves more than 200 million times client daily as per the demand of the client whether it is retail mercantile establishment or online or through nomadic and other pass oning devices. It operates its operation in 27 states under more than 69 streamers to supply its services to the planetary clients. The gross revenues for the financial twelvemonth of 2012 histories for $ 444 billion while it employs 2.2 million employees world-wide and now it is be aftering to beef up both the place of the company as a taking Multinational company and the Economic development of UAE ( Our Narrative ) .

Undertaking Aims:

Our undertaking aims at researching the construct of “ Exploitation of Workers ” with particular mention to the Wal-Mart Company. The “ Exploitation of the Workers ” has been explored by concentrating on the Business Perspective, Government Perspective and the Social Perspective associated with the construct. Furthermore the undertaking aims at acknowledging and researching the importance of Good Corporate Administration to the concern organisations like Wal-Mart in this concern sphere. Undertaking besides includes the account of put to deathing the corporate societal duties by the companies and the fiscal benefits gained by them due to the same. The function played by Government and Society which motivates the company to execute its corporate societal duty. At last the undertaking suggested the rules of Good Corporate Governance.

Part I

Business Position:

Point of View of Wal-Mart about Exploitation of Workers:

Wal-Mart is one of the most awful users of workers in world. Wal-Mart has extended its impact to parts of the development scenario where workers are in copiousness and constricts the life out of its human resource for the net income maximization. Wal-Mart has faced about 5000 civil suits yearly for the misdemeanor of human rights and workers development. Wal-Mart considers its workers as the factor of production and simply trade good which is responsible to heighten the organisational production and productiveness. The development of workers in the Wal-Mart can easy be seen systematically through following points:

Inadequate sum of rewards, wages and other human resource benefits to employees.

Overtime services from the workers without their willingness and off-the-clock labour.

Activities against the trade brotherhood.

Gender biasness at the workplace particularly against the adult females.

Using illegal human resource by the manner of third-party contractors ( Lane, 2010 ) .

Attitude of Wal-Mart towards Social Duty:

The Wal-Mart CSR scheme aims to salvage money and live better for the clients. In relation to CSR Wal-Mart follows every twenty-four hours low costing scheme so as to assist the clients save their money, stretching their payroll checks and supply the better living criterion for the households. The work of the organisation is non merely limited to the clients but it extends the benefits for the whole community around the universe. The organisation perceives itself as the responsible and the timeserving to convey out the differences that matter a batch for the social sustainable development. Issues such as environment saving, hunger battle, poorness, and Women authorization, healthy and low-cost nutrient are perceived as the duty by Wal-Mart. Wal-Mart follows its CSR by committed towards the undermentioned attempts:

Environmental Sustainability.

Hunger and Nutrition.

Women Economic Empowerment.

Diversity and Inclusion.

Ethical Sourcing.

Veterans and Military Families ( Global Responsibility ) .

Fiscal Benefits of a Corporate Social Responsibility for Wal-Mart:

The fiscal benefits of put to deathing the corporate societal duty to Wal-Mart include assorted benefits including the good corporate and market image and enhanced workers trueness. The fiscal benefits are as follows:

Effective executing of Corporate Social Responsibility helps in increasing the production and productiveness of the Wal-Mart which finally leads to increase in gross revenues and net income of the company.

Corporate Social Responsibility public presentation helps Wal-Mart in heightening its retail merchandise and services distinction which can carry through the demands of clients with augmented quality and full value for illustration: trade carnival, macrobiotic goods etc.

By executing its corporate societal duty, Wal-Mart can diminish its cost of runing the concern operations. For illustration: Wal-Mart can acquire the goods and services from the providers at lowest cost as most possible extent, and through enhanced employees ‘ trueness it has to incur low cost in the procedure of enlisting and keeping of employees and decreased the cost of employee turnover.

Corporate Social Responsibility will be helpful in the successful execution of the concern undertakings and the enlargement of concern units at maximal locations, globally. For Example: The instance of Wal-Mart vs. Target in which Wal-Mart often faces difficult legal challenges when seeking to turn up new retail shops and has been incapable to come in some market finishs, despite expensive and comprehensive legal struggle, where Target has achieved entry, like Manhattan, New York.

Corporate societal Responsibility will enable Wal-Mart to hold enhanced entree to the good-humored relationships with all the stakeholders including spouses, clients, providers, and sellers, employees which finally helps in diminishing the hazard associated with legal and regulative mulcts.

The benefits of put to deathing Corporate Social Responsibility includes good market and trade name image and healthy dealingss with the stakeholders which finally helps in carry throughing the organisational aims of net income and wealth maximization, along with assorted ends, mission and vision achievement ( concern instance for corporate societal duty ) .

Pressure on the Business Organization ( Wal-Mart ) from Society and Government:

Wal-Mart and other companies of US are being enforced to follow the CSR by the authorities and society within the organisation so as to hold sustainable development in environment and the economic system. US authorities has adopted CSR under US Corporate Dialogue in 1984. In 2006, the expressed political determination was taken by committee to forbear the binding statute law on CSR rules. Assorted multi stakeholders ‘ forum and social association enforced the organisations to follow CSR for the sustainable development of the state. But still the CSR ever remains as the voluntary scheme of the company. The US authorities and society ever tries to adhere the company with the CSR ordinances so that the misleading of the clients and other stakeholders can be avoided. Rigorous ordinances have been passed by the statute law for maintain the CSR specifically related to societal jurisprudence, labour jurisprudence and the environmental jurisprudence ( Mickels, 2009 ) .

Government Perspective:

Point of View of Government sing Exploitation of Workers:

Exploitation of workers was being practiced by the communistic types of authorities but under the democratic authorities, Exploitation of workers is against the labour Torahs and the human rights as per US authorities norms. The workers should be treated as the worlds and non the trade goods. Government has obligated assorted rigorous legal duty and even punishments for such illegal and social abusing patterns ( Mickels, 2009 ) .

How it regulates Business and Society to see Social Duty:

The US authorities has enforced CSR norms within the companies through US Dialogue Code 1984 and amendment in the rules in 2006 through which it makes the organisation accountable to describe the human rights and environmental maltreatments within the company and guaranting to describe every bit minimal as they can do. The companies are bounded to follow the rigorous human rights and environmental norms and failure to such norms leads to punishments for such companies ( Mickels, 2009 ) .

Influence on Governments from the Business Organization and Society:

However the authorities constabularies have bounded the US companies to purely follow the CSR and the human rights against the development of labour but still following CSR is yet kept as the voluntary action in the custodies of the companies and hence most of the companies avoid to follow such duty towards environment. However Wal-Mart and other planetary MNC ‘s follow the CSR on the precedence footing to guarantee the sustainable development of the environment and the state ( Mickels, 2009 ) .

Society Perspective:

Point of View of Society about the Exploitation of Workers:

Society believe that the development of workers as the communistic activity which is used to rule the labour against their human rights. They are threatened to make the work without effectual wages, torment at the workplace and fondness which is wholly non accepted by the society. Through such evil patterns, hapless become poorer and rich become richer which brought down the instability in the society and the economic system. Child labour, sexual torment, human trafficking are the parts of development of labour which are considered as the expletive on the society ( Mickels, 2009 ) .

Criticism of Society towards the Business Organization ( Wal-Mart ) and the Exploitation of Workers in general:

The social norms purely consider the development as the strong discourtesy against the human rights and the social norms. Assorted Social signifiers and associations have adopted sustainable corporate constabularies though a theoretical account in 1994 known as the three P ‘s theoretical account stands for Peoples ( Human Rights ) , Profit ( Efficiency ) , Planet ( Environment ) . This ternary bottom line concern theoretical account helps to keep the transparent and just concern patterns within the society ( Mickels, 2009 ) .

The Influence of the Business Organization ( Wal-Mart ) and Government to the Attitude of Society:

Under the influence of the social norms and the governmental duties, the Wal-Mart is following the CSR efficaciously sing the CSR as its ain planetary duty. The attempts of Wal-Mart for CSR comprises of following subparts:

Environmental Sustainability.

Hunger and Nutrition.

Women Economic Empowerment.

Diversity and Inclusion.

Ethical Sourcing.

Veterans and Military Families ( Global Responsibility )

Part II

The Impact of external forces on the organisation ( Wal-Mart ) :


Technology plays a really outstanding function in the successful executing of concern operations of the Wal-Mart ; the recognition of success of Wal-Mart is decidedly goes to the proper use of engineering. Technology is an of import external factor which poses both positive and riotous impact on the employee ‘s behaviour and organisational development. Technology systematically helps in streamlining the concern procedures and makes the work easier and comfy, qualitative for employees but the procedure of larning refering to the use of new and latest engineering while keeping the productiveness may be hard and nerve-racking for Wal-Mart. Technology helps the Wal-Mart in beef uping its retail concatenation and holding competitory advantage over others. The elements in the rapid debut of new engineerings leads to make assorted jobs to the Wal-Mart viz. changeless demand for new preparation and development plans, betterment in the concern operational procedure and records care. Technologies like unfastened sourcing, nanotechnology, and collaborative computer science have a important influence on the concern operations of Wal-Mart, New Technologies have unpredicted effects for the society when they are utilised into extended usage for commercial net income, Wal-Mart should carefully and efficaciously analyze merely the impact of engineerings on its theoretical account of concern strategically, along with the jeopardies imposed by engineering on people including all the stakeholders ( Basker, April 2007 ) .


Wal-Mart faces tough competition with all the parallel retail trade names non merely in the UAE but besides globally. It faces competition in footings of merchandise and services distinction, market cleavage, market placement, aiming the clients, pricing schemes, promotional schemes like price reduction, free offers and strategies, advertisement, gross revenues publicity, famous person indorsement in the publicity of the merchandise and services etc. But the toughest signifier of all the competition is the pricing competition, Wal-Mart is one of the most prima retail trade names globally and it charges really high cost for the merchandises and services and therefore faces competition with the lower cost trade names ( Donald, 2009 )

The Organization ( Wal-Mart ‘s ) Management:


The twelvemonth 2006 noticed the most of import retrenchment for the Wal-Mart since it carried out its planetary enlargement in the early 1990s, in an effort to resuscitate the growing of gross revenues and net income. Wal-Mart, the planetary largest retail merchant, acknowledges licking in its long term venerable operations to perforate efficaciously the retail market of Germany. On July 30, 2006, the Wal-Mart declared that it was manus over its operations in Germany to the Metro AG, a German retail merchant trade name. Wal-Mart had been trying to make its German shops more good commercially for eight old ages. Wal-Mart provinces a pretax loss pertaining to the gross revenues amounting $ 1 billion. Wal-Mart had ab initio declared in May 2006 that it would sell its 16 retail shops in the South Korea ( Donald, 2009 ) . As a portion of its retrenchment scheme ; Wal-Mart besides applied the cost film editing and salvaging policies to the human resource of the organisation. In a amalgamation with Massmart, one of the taking retail trade name concatenation, Wal-Mart retrenched 503 employees in the twelvemonth 2010 ( June 2010 ) .

Employment Discrimination:

Equally per as the values and beliefs of Wal-Mart are concern, they are govern by the positions of Sam Walton on which the foundation of the company is based i.e. “ the regard for every person ” . It aims at put to deathing concern operations with non favoritism in the procedure of employment. Wal-Mart purposes at making a corporate civilization of common trust and respects which encourage an optimistic work environment. It means that it aims at handling all the stakeholders with the courtesy and equity in all the concern minutess and communicating. Wal-Mart is committed at prolonging a diverse work force and comprehensive work environment. Harmonizing to the values of the company, Wal-Mart will non bear any favoritism associated with the employment and determinations of employment or in the concern minutess on the footing of age, gender, colour, race, caste, credo, faith, lineage, disablement, nationality, relationship position, ethnicity or any other lawfully secured position. It does non know apart with its associates, human resource, clients, providers and other stakeholders. But on the contrary there are assorted facts and figure which revels the information sing the favoritism in the employment conditions by Wal-Mart. The first and first issue associated with the employment favoritism is the gender biasness. Almost 2,000 adult females in 48 provinces files civil suits against Wal-Mart, kicking about the employment favoritism associated with the wage and publicities in comparing to male employees ( Non-Discrimination ) .

The Principles of Corporate Administration:

The importance of Good Corporate Administration in the success of the organisation can barely be overemphasized. It plays a really important function in keeping reciprocally affable dealingss between f the direction and all the stakeholders. The Principles of Corporate Governance are as follows:

Principle 1: Fit house foundations for Management and Supervision: In order to hold a Good Corporate Governance, concern organisations should explicate and pass on the accompaniment functions and duties of board of managers and direction.

Principle 2: Form the board in order to added value: Organizations should set up a board with effectual size, composing, and trueness to efficaciously dispatch its responsibilities, functions and duties.

Principle 3: Endorse Ethical and Accountable procedure of Decision Making: Ethical and accountable determination doing leads to smooth operation of concern operations and guarantee Good Corporate Governance.

Principle 4: Maintain Reliability in Financial Reporting of the Company: Honesty in presenting true fiscal facts and figures helps in constructing common trust with all the stakeholders which is a gateway to Good Corporate Governance.

Principle 5: Communicating all the needed Information Timely and Impartially: Companies must concentrate on unwraping all the information concern with its operations to all the stakeholders.

Principle 6: Value the Shareholders ‘ Rights: Companies must value and esteem the stockholder ‘s rights and ease them by supplying entree to the rights.

Principle 7: Effective Identification and Management of Risk associated with the Business: Companies must make a sound hazard direction system of hazard in order to hold effectual supervising and pull offing internal control.

Principle 8: Compensate reasonably and faithfully: Business Organizations should determine that the degree and foundation of wage is equal and rational and that its association with public presentation is clear and effectual.

Principle 9: Promote the Human Resource ‘s enhanced Performance: Companies should place, promote and acknowledge the outstanding and expected public presentation of the employees, board of managers and direction in the organisation.

Principle 10: Identify and acknowledge the legal benefits of Stakeholders: Business organisations should acknowledge all the legal duties of all the valid stakeholders and put to death them consequently ( Principles of Good Corporate Governance and Best Practice Recommendations, March 2003 ) .


The Exploitation of workers in the concern organisations is the most rising issue of the today ‘s cut pharynx competition, in order to last and accomplish the net income maximization aim in this tough competition companies exploits their work force blindly. Exploitation of Workers leads to interrupt the common trust and trueness between human resource and the organisation which finally affects the production, productiveness, profitableness and long term growing and sustainability of the concern. If the concern organisation ‘s production gets affected it will finally impact the market and clients and society ‘s demand for merchandises and services. If the society is non satisfied with the trade and commercialism activities so it will finally impact the stableness of authorities and the economic development of the state. So in order to forestall the aforesaid issues and ensures the sustainable development concern organisations should implements the rules of Good Corporate Governance and executes their Corporate Social Responsibilities.

Cite this page

Corporate Social Responsibility And Corporate Governance Management Essay. (2017, Sep 23). Retrieved from

Let’s chat?  We're online 24/7