Wall-Mart has been able to sell products at such low prices because the company outsource most of Its operations ND creates relationships with Its suppliers where they can control prices. Wall-Mart began to grow and eventually opened superstores across the country. Because the stores sell everything from toys, to clothing, to food, and electronics, Wall-Mart has become known as “the one stop shop. ” Though Wall-Mart has captured the hearts of so many consumers, the company still has much to do to convince others that Wall- Mart is beneficial to the world.
Wall-Mart has negatively changed the ways of businesses and the overall economy over the years, Wall-Mart Is harmful to the world, cause It hurts communities by taking Jobs away and pollutes the environment. Wall-Mart damages communities by hurting small businesses and In turn creates diminishing employment rates. When Wall-Mart opens a new store in an area some people may feel relief because they believe Wall-Mart will create more jobs for the area.
Although Wall-Mart creates jobs in communities, it also destroys them. Jobs are created briefly, but over time the job loss outweighs job creation. One economist, Meek Beaker, studied the Impact of Wall-Mart on Job creation. Beaker gathered data Including the locations of stores, opening dates of stores, and Information about communities economically before a Wall-Mart store came to a community and after. Beaker examined the information and added many equations to better ensure fewer errors in her calculations.
Beaker concluded that “in the first year Wall-Mart created a net increase of one hundred new jobs, but they were all Wall-Mart Jobs, and other retailers immediately fired people in the face of Wall-Mart’s arrival. ” (Fisherman, 2006, p. 144) Although the study shows that Wall-Mart creates Jobs in the short run, in the long run Wall-Mart destroys Jobs. Baker’s study also points out that Wall-Mart does have an impact on prices. Wall-Mart lowers prices which sounds good for consumers but is bad for other producers. Consumers go to Wall-Mart for the low prices and small businesses lose business.
Small businesses cannot compete and they shut down, and the people working at the small businesses are out of the job. Wall-Mart threatens the jobs in a community and does very little to replace the Jobs with new ones. When communities have a diminishing Job market, the communities begin to decay and poverty levels rise. Wall-Mart also negatively affects the environment by eluting. While Wall-Mart has been noted to reduce the use of unnecessary resources, the company still has yet to improve environmental practices internationally.
Wall-Mart outsource much of its production of goods to foreign countries with environmental standards less strict than the United States. With these lenient environmental standards, Wall-Mart has found ways to “save lots of money by not naval pollution controls” (Washman, 2006, p. EBB) Wall-Mart pollutes teen areas around its factories directly hurting other countries but also indirectly hurting the whole world’s environment. Wall-Mart needs to enforce stricter environmental standards to its factories.
Additionally, Wall-Mart “announced a while ago that they were greening their supply chain, but the Jury is in, they haven’t done it” (Snider, 2008, p. 262). Wall-Mart has maintained that it is committed to the environment, recently Joining an Aquaculture alliance to improve conditions in Thailand shrimp market. Such an alliance may seem like a great step to helping the environment but Wall-Mart will not pay the costs for the necessary upgrades. Therefore some shrimps would be forced out of business because they would be unable to pay the sots.
Also many environmental groups “criticize the alliance’s standards as too weak, alleging they will stop short of environmental safeguards to instead allow producers a lower hurdle for gaining compliance” (Hudson and Watchmakers, 2007, p. 253). Wall-Mart may say it is trying to improve practices that hurt the environment but, it has yet to take all the necessary steps to make real change. While Wall-Mart may cut waste by eliminating unnecessary resources in many of their products, abroad they are harming environmental communities simply by not adhering to proper environmental standards.