Ethical Issues: Wal-Mart Stores, Essay Example

Wal-Mart Stores is a company that deals with different products and has about 1.3million employees all over America. The founder and owner of Wal-Mart Stores is Sam Walton who evaded tax while he was running the company. Mr. Thomas Coughlin is reported to be a protégé of Mr. Sam Walton. Coughlin was the vice chairman of Wal-Mart but later resigned due to fraud and embezzlement of Wal-Mart’s funds. The ground rules of the Wal-Mart are that, no matter how influential a person is in the company, no one has the right to follow orders given by these top executive people even when they know the orders are wrong, (Bandler & Zimmerman, para 53). Wal-Mart is against unionization of its employees and, every time a group of employees form a union the workforce ends up being fired. Coughlin used false invoices and also abused expense accounts for his personal benefits, (Bandler & Zimmerman, para 3). Coughlin used these invoices to get reimbursement for all the personal expenses he had incurred.

The moral ethical theory in this case were neglected by Coughlin, and also some of the top officials and also Mr. Bowen who created the fake invoices and made Wal-Mart pay for Coughlin’s expenses (Bandler & Zimmerman, para 4). Coughlin faked seminars, used Wal-Mart’s gift cards, faked winning competitions and also faked meals and mileage for top officials which were all paid. Coughlin went hunting more than once and also ordered custom made boots which cost $1,359.50. Coughlin also bought a dog pen house at $2,589.64. All these items were paid by Wal-Mart. Coughlin took the advantage of being a top official to get whatever he wanted and, Mr. Bowen held information about the fake invoices because he feared being fired. Coughlin misused the companies fund for a very long time without being caught, this made him misuse Wal-Mart’s expense account. When all the evidence of fraud was found, Coughlin’s lawyer defended his client by saying that, Coughlin had worked for Wal-Mart for 27years and he would not do such a thing and that his client was unfairly treated.

The deontological theory applies in Wal-Mart stores; the features which are contained in Coughlin’s actions themselves do determine whether the actions are right or wrong. The features do portray the extent to which the actions conform to identify moral duties. Examples of his immoral actions are, use of false invoices to abuse expenses accounts, reimbursement of fake expenses e.g. mileage. Mr.Coughlin’s also refusing to give other executives holding influential positions to give orders or point out mismanagement. This puts it clear that there is lapse of moral ethics while on duty.

Reference

Bandler & Zimmerman. (2005): A Wal-Mart Legend’s Trail of Deceit. Wall Street Journal. Retrieved April 08, 2005, from http://www.mindfully.org/Industry/2005/Wal-Mart-Coughlin8apr05.htm