Business Ethics: Wal-Mart and the environment
September 16th, 2010 • Uncategorized
When do business ethical issues happen? And why are they happening? Well, when the company puts profit before its employees, customers or the environment, the result may be a dilemma. Here is an example: In March 2010, Wal-Mart agreed to pay $20 millions dollars in order to settle the accusations and prosecutions against them for irresponsibly dumping waste in California, thus violating various environmental laws of the state. The company was also accused of using pesticides, fertilizers and other chemicals in an improper way. All businesses are responsible to prevent the pollution of the environment, meaning Wal-Mart violated not only laws, but ethical expectations towards the planet. (http://www.msnbc.msn.com/id/36918854/ns/us_news-environment/)
Milton Friedman states in his article The Social Responsibility of Business is to Increase its Profits, that the “social responsibility of business is to use its resources and engage in activities designed to increase its profits so long as (… it engages in open and free competition without deception or fraud.” (http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html)
Wal-Mart’s “social responsibility” is not only towards its clients and employees but also our planet. Therefore it is reasonable to interpret the violation of the environmental laws by Wal-Mart as an ethical fraud.