Consumers have been skeptical of Walmart’s low prices for years now. The companies policies and foreign product sourcing have been scrutinized for there unethical aspects. In 2004, The New York Times reported that Walmart used child labor and violated laws that require time for breaks and meals. They also ignore social responsibilities to their employees. Walmart spends 27% less on health care compared to the rest of the retail-industry. However, the biggest speculation of Walmarts unethical conduct is the assumption that they use sweatshops and prison labor in foreign countries. Since they never release their audits or factory names, customers are not fully aware of where their products are coming from.

Walmart is the largest retail industry in the world. Therefore, they should have a social responsibility to follow ethical standards. With all the scandals in Walmart’s history, it is no surprise that one of their executives, Tom Coughlin, was charged with embezzlement in 2005. When the executives in charge of running a company are morally irresponsible, you know the company is going to have some major problems.

For further reading on Walmart’s scandals! Check out these articles: http://blog.cleveland.com/business/2008/02/_a_federal_judge_in.html
http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008109_219930.htm
http://www.businessweek.com/magazine/content/06_07/b3971115.htm