Case 1 Walmart: the Main Street Merchant of Doom

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Date Submitted: 03/11/2013 09:37 PM

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A. What are the major issues in this case?

The major issues in this case are related about seven aspects of Walmart’s development.

First, it introduced the Walmart founder Sam Walton.

Second, it introduced the Walmart culture that Sam created.

Third, it introduced the “Buy American” plan and “Environment Awareness” campaign.

Forth, it introduced the Walmart successful examples.

Fifth, it introduced the opposition to Walmart.

Sixth, it introduced global growth of Walmart.

Seventh, it introduced new challenges of Walmart.

According the four-part CSR model, they are economic responsibility, legal responsibility, ethical responsibility and philanthropic responsibility. For economic responsibility, Walmart provide low prices, high value and service to its customers. For legal responsibility, when its competitors hired consulting firms using illegal way to block it entry new market, it still abidance by law. For ethical responsibility, it failed because it used unethical way to push small merchants lost their benefits. For philanthropic responsibility, Walmart donated money to people who need help.

B. Is Walmart socially responsible while it has a devastating impact on small merchants?

Yes, Walmart socially responsible has a devastating impact on small merchants, because its low prices, high value and service. Small merchants have no power of competition to attract customers.

C. What about its impact on communities in terms of sprawl, traffic congestion, and impact on the appearance of the environment?

According the case, in Steamboat, Colorado, when Walmart built its stores on a nine-acre parcel along US Route 40, amongst upscale shops and condos, the community became concern of the image of the resort and Walmart’s low cost reputation. The slowing down of new Walmart stores, created traffic congestion which were disrupting the local communities. 

D. What responsibility, if any, does the company have to these...