Stakeholders and Corporate Responsibility Case Study

Choose one of the following three case studies and use the questions to guide your
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Stakeholders and Corporate Responsibility Case Study

Stakeholders and Corporate Responsibility Case Study

Case Study 15: Wal-Mart: Challenges with Gender Discrimination

Walmart, which is the largest retailer in the world, has over the years faced various sexual discrimination lawsuits, one being the largest gender discrimination case that has ever been brought against a company. In 2001, a gender discrimination case was filed against the company, a case that received class certification to represent more than a million current and former female employees of the company (Weiss, 2014). The plaintiffs in the case included the current Walmart employees and others who had left the company in the previous years. This became the largest employment class-action lawsuit in the country’s history. The Supreme Court ruling made a decision that was not based on the merit of the claims made by the plaintiffs, but rather by the fact that the lawsuit was too large to constitute a class action lawsuit. The plaintiffs from the case resulted in filing individual regional lawsuits against the company.

In the case, Betty Dukes, the lead plaintiff, and five other plaintiffs representing the class charged that the company “discriminated against female employees by advancing male employees more quickly than female employees, by denying female employees equal job assignments, promotions, training, and compensation, and by retaliating against those who oppose its unlawful practices” (Weiss, 2014). They further claimed that Wal-Mart’s organizational culture and policies were a great contributor to the gender-based discrimination that the plaintiffs in the case encountered. The plaintiffs also sought to bring to an end the company’s discriminatory practices, to secure punitive damages, and to receive relief for the class action lawsuit. Based on the human resource philosophy of the company, it is likely that the company was discriminating against female employees. Coleman Peterson, the head of HR for the company, stated that any company of large size would have people alleging discrimination, characterizing it as “a bump in the night” (Weiss, 2014). The company, however, made various changes in its labor practices after the class action lawsuit, clearly showing that the issue was not as “small” as the HR head alleged.

To counter the allegations of the plaintiffs, Wal-Mart should explain that it was not intentional to assign certain job roles to female employees. The company should also start employing more women to prove that the allegations made against it are wrong. Salaries of female employees should also be increased to match those of their male counterparts. The company may also develop and introduce a uniform policy to use when awarding promotions to employees (Bradford, 2004). By ensuring that each store selects the best-qualified employee for promotions and jobs, the company can avoid future lawsuits on gender-based discrimination. Wal-Mart could, for instance, appoint managers and supervisors using a scoring system that ranks employees based on their performance, selecting the best performer for a promotion or managerial appointment. This way, any gender-based discrimination accusations would be avoided since the company would prove that their choice is based on a fair system that determines the best applicant or the best-performing employee as opposed to depending on a manager’s decision and judgment.

The class-action lawsuit against Wal-Mart was justified since the allegations made by the plaintiffs seem to have had merit, judging by the numerous labor policy changes that the company has introduced over the years after the lawsuit. The company’s female employees were paid less than their male counterparts and were offered fewer job promotions. The plaintiffs explained that female employees were routinely steered away from promotions into jobs such as cashiers where there were little chances of promotion. Wal-Mart is the world’s largest retail company and the largest private employer in the United States. The only way employees could sue such an organization is through a class action lawsuit. Class action lawsuits make it easier for groups of plaintiffs to sue large, well-heeled companies.

In conclusion, Dukes v. Wal- Mart Stores, Inc. has relevance to date since many gender discrimination lawsuits have occurred in the country over the last decade. Class-action lawsuits such as the one against Wal-Mart have led to large payouts by oil, food, and tobacco companies. Wal-Mart’s lawsuit was the largest civil rights class-action suit in the history of the United States. The plaintiffs claimed that they were denied training needed to advance to higher salaried positions and promotions. The plaintiffs represented more than a million women who were working or had previously worked for the company. In June 2004, the federal district judge, Martin Jenkins, ruled in favor of class certification, which prompted the company to appeal the decision. Companies need to develop non-biased systems and policies to ensure that no discrimination occurs during the hiring and promotion of employees (Bradford, 2004). Gender-based discrimination is unacceptable and should be discouraged in all workplaces. Women and men should be hired and promoted based on their qualifications and performance at work and not on their personal characteristics.

References

Bradford, W. D. (2004). Discrimination, legal costs, and reputational costs. Legal Costs and Reputational Costs (November 30, 2004).

Weiss, J. W. (2014). Business ethics: A stakeholder and issues management approach. Berrett-Koehler Publishers.