Walmart, number one on the Fortune 500 list of American companies, has net sales totaling $473.1 billion. With foodstuffs making up 55 percent of its sales, this corporation controls 25 percent of grocery sales in the U.S. Consequently, Walmart's actions and inactions reverberate through the food chain, making huge impacts on agricultural practices, treatment of workers, consumer health, the environment and outsourcing of jobs. In recognition of these impacts, Walmart has created an "Ethical Sourcing" standards manual for its suppliers. But our investigation of Walmart's practices shows that the thirst for extraordinary profits too often wins out over a code of ethics. Although the "Ethical Sourcing" manual requires that suppliers comply with existing laws, we found that both the corporation and its suppliers have a long history of violating labor standards. Walmart's demand for lower prices creates the incentive and the need for suppliers to cut wages and benefits, neglect safety and working conditions, and even ship jobs to overseas sweatshops. Exploitation and discrimination often go unchecked. In one instance, immigrant workers in Louisiana said they were being locked into a factory and compelled to work 16-24 hour shifts by a Walmart seafood supplier. Only after an advocacy group publicly pressed for improved working conditions did the retailer take action.
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Guinness World Records 2015
Walmart, number one on the Fortune 500 list of American companies, has net sales totaling $473.1 billion. With foodstuffs making up 55 percent of its sales, this corporation controls 25 percent of grocery sales in the U.S. Consequently, Walmart's actions and inactions reverberate through the food chain, making huge impacts on agricultural practices, treatment of workers, consumer health, the environment and outsourcing of jobs. In recognition of these impacts, Walmart has created an "Ethical Sourcing" standards manual for its suppliers. But our investigation of Walmart's practices shows that the thirst for extraordinary profits too often wins out over a code of ethics. Although the "Ethical Sourcing" manual requires that suppliers comply with existing laws, we found that both the corporation and its suppliers have a long history of violating labor standards. Walmart's demand for lower prices creates the incentive and the need for suppliers to cut wages and benefits, neglect safety and working conditions, and even ship jobs to overseas sweatshops. Exploitation and discrimination often go unchecked. In one instance, immigrant workers in Louisiana said they were being locked into a factory and compelled to work 16-24 hour shifts by a Walmart seafood supplier. Only after an advocacy group publicly pressed for improved working conditions did the retailer take action.