Seven levels of ethics of an organization define the stage of growth and development of the organization. This model can be applied to all type of organization like government, institution, Municipal Corporation and also the non government organization. The seven levels of ethics are service, making a difference, internal cohesion, transformation, self-esteem, relationship, survival (Garriga & Melé, 2013). The company that has been chosen in this study for showing the seven levels of ethics is ‘Wal-Mart’ in USA. Wal-Mart is a multinational retail corporation in USA that operates chain of discount department, Hypermarket and grocery shop. The company was founded by Sam Walton in 1962. It is the largest company in the world by its revenue. The products that this company sold are Home furniture, electronics, footwear, jewelry, pet, grocery and craft (Walmart.com, 2016). This study introduces the corporate citizenship of Wal-Mart and also relates that things to the seven levels of ethics.
As per the survey of 2014, the revenue of Wal-Mart is US$485.651 billion. It shows that the profit earning of the company is very high. The company serves worldwide customers. Most of the people consume their home furniture and jewelry from this company. The jewelry that this company sold is targeted toward the young generation because the jewelry is made in modern pattern. In January 2011, Wal-Mart announced a program that it will increase the nutritious value of the food that it supplies (Walmart.com, 2016). It has been seen that with making profit the company is also focused on the making corporate citizenship. In the beginning of 2005, Wal-Mart started to address the global impact adopting the sustainability program that revamped everything of the company. The Company is mainly famous for providing low cost product. Wal-Mart has implemented some of the initiatives toward the corporate citizenship which are explained below:
Social responsibility: The Company has promoted economic empowerment of the women. It also gives more American access to the healthy food and relieves the hunger of the people.
Local responsibility: The Company makes microloans and implement nutritious school program. The local responsibility of the company can also be viewed as it assists in disaster relief and local farming (Wang et al. 2013). Wal-Mart has contributed $1billion for the improvement of the society.
Environmental responsibility: The Company started to reduce plastic uses in the business. It has also eliminated landfill waste and maintained stricter guideline in corporate responsibility.
Company responsibility: Wal-Mart has increased the stakeholder engagement. It has been seen that 28% of the female are the corporate officer of the company.
From the above point it can be said that Wal-Mart runs its business in between the profit making strategy as well as corporate citizenship.
Service: The activity of Wal-Mart can be related to the service stage of the seven levels. This Company is working with Stylr Company for providing a mobile app that would help the customers to access the local store in their locality.
Make a difference: Strategic alliance with the Stylr Company is mutually beneficial for the company (Carroll & Buchholtz, 2015). The company hired a lot of women employees after the alliance with Stylr Company. It increases the internal communication of the organization.
Internal cohesion: The Company provides high salary to its employees and most of the women employees are the corporate officer of the company. The vision of the company is being the top retailer in the mind and heart of the customers. This vision motivates the employees toward the goal and it also increases the internal cohesion of the organization.
Transformation: Wal-Mart allows their employees to participate in the decision making process. The company also provides continuous learning to their employees. Wal-Mart has a special training program for the development of their employees.
Self-Esteem: The organization creates the pride of the employees by setting appropriate policies and procedures that enhance the capability of the employees (Bhanji & Oxley, 2013). The focus of the organization is to reduce the bureaucracy in the organizational hierarchy.
Relationship: The organization reduces the use of plastic bag in their business. It builds strong relation with the community as it does not harm any person. Through providing low priced product the organization increases the customer loyalty.
Survival: For the survival of the business, the organization focuses on the health and safety of the customers (Pavez & Beveridge, 2013). The organization started to provide low fat and healthy food to their customers.
From the above discussion it can be said that Wal-Mart is operating at the relationship stage where it is trying to build a strong relationship with the community by reducing the use of plastic bag and hiring women candidate for the vacant position.
While Wal-Mart started to produce low fat food, it had faced challenges in getting good supplier for food material. At the time of packaging it has selected tin container rather than plastic containers. As a result the price of the food products has increased. On the other hand, it has been found that US citizen is too much educated regarding health and safety. Thus, such customers have never compromised in buying higher priced product (Dahan et al. 2013). The organization has hired 28% of corporate officers to be women but such candidates are lacking practical knowledge of management, which is a challenge for Wal-Mart. On the other hand, these women officials are always engaged in developing creative ideas in the field of marketing, which is an opportunity.
While concluding the study, it can be said that Wal-Mart is the highest revenue generated retail organization in united state. However, the organization not only runs its business on only profit basis, it also maintains a high level of corporate citizenship. Organization reduces the use of plastic packets for reducing the pollution of the environment. It has been found that the corporate citizenship of the organization can be related with the seven levels of ethics.
Bhanji, Z., & Oxley, J. E. (2013). Overcoming the dual liability of foreignness and privateness in international corporate citizenship partnerships. Journal of International Business Studies, 44(4), 290-311.
Carroll, A. B., & Buchholtz, A. K. (2015). Corporate Citizenship: Social Responsibility, Responsiveness, and Performance. Classics of Organization Theory, 439.
Dahan, N. M., Hadani, M., & Schuler, D. A. (2013). The governance challenges of corporate political activity. Business & Society, 0007650313491470.
Garriga, E., & Melé, D. (2013). Corporate social responsibility theories: Mapping the territory. In Citation Classics from the Journal of Business Ethics (pp. 69-96). Springer Netherlands.
Pavez, I., & Beveridge, A. J. (2013, January). Corporate social responsibility, corporate citizenship and corporate sustainability: A critical review. In 73rd Annual Meeting of the Academy of Management, Orlando, USA.
Walmart.com,. (2016). Store Finder - Walmart.com. Retrieved 22 January 2016, from https://www.walmart.com/store/finder
Wang, Y. J., Tsai, Y. H., & Lin, C. P. (2013). Modeling the relationship between perceived corporate citizenship and organizational commitment considering organizational trust as a moderator. Business Ethics: A European Review, 22(2), 218-233.
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