The Case Against Wal-Mart is a Sham
May 14th, 2007
Imagine this: a company arrives in town and offers the good people who live there jobs. No one is forced to take one. No one holds a gun to their head. The same company then has the temerity to say, “If you work hard and serve our customers well, we will promote you from within.” Horrors.
Now let’s look at the other side. A company arrives in town and offers the good people who live there just about anything they want for less money. The bastards actually save people money. Money they can use for nest eggs and college tuitions. Why doesn’t the National Guard march in and close down a company like this?
Hearing Wal-Mart’s detractors you would believe the company is a disgrace. Instead it is a national treasure. Sam Walton started with an idea, and with drive and determination he built a wonderful business. Isn’t this the essence of capitalism? Oh, but wait a minute, do the Wal-Mart whiners want capitalism?
Oh, I know the school of hatred that says Wal-Mart arrives in towns and crushes the local merchants. The ones who charge you more? Who lived off the fat of little or lazy competition at your expense? Here’s what I say to that: Wal-Mart is great for competition. I have competitors. I lose business to them. When? When they are smarter or cheaper than my company. And it makes me think:
- How can we raise the bar on our work?
- How can we be as efficient as possible?
- Do we do enough to promote from within?
Walk the streets around any Wal-Mart in the world. What will you find? A mass of small businesses that found a way to survive, to thrive, precisely because they understand business is a jungle and that they can’t rely on the whiners to protect them. If any of these small businesses become the next Starbucks, the whiners will want to punish them for their success in a heartbeat. Blame global warming on them. Toss them in the prison for the rich and throw away the key.
And by the way, on those same Wal-Mart streets you also find a Target, which became an exponentially better business competing with the house that Sam built.
If you don’t have a Wal-Mart on turf, pretend you do. Go to sleep concerned. Never settle for how your business currently performs. Declare war on every aspect. Leave no rocks to hide under.
And Wal-Mart stop wasting good shareholder dollars on PR to silence the whiners, because you can’t. This is their sex.
Mark Stevens
CEO
May 14th, 2007 at 5:49 pm
Mark: Great post. Personally, I abhor shopping at Wal-Mart and based on what (little) I know about selling TO them, I do believe I’ll take a pass. But everything you said rings true. Wal-Mart is a great business. They have raised the bar for everyone. And fundamentally, that’s a good thing.
May 15th, 2007 at 11:24 am
Mark,
You’re right on the money here. I’m in an ad agency that for some reason just oozes anti-capitalism (which could explain why Pittsburgh’s economy is in the tank), and most especially anti-Wal-Mart-ism. This should shut them up about Wal-Mart. It won’t, of course, but it should.
May 15th, 2007 at 11:26 am
I suggest they brand themselves with the tagline: People Against Profit.
Mark Stevens
CEO
May 15th, 2007 at 11:31 am
You took the words right out of my mouth. Some people make a living whining about Wal-Mart…Should they be penalized because of their success? Ayn Rand the famous author wrote a book on this subject called Atlas Shrugged.
Whiners are people too and deserve their own rights and classification!
May 15th, 2007 at 12:00 pm
Put them on the next flight to Cuba.
Mark Stevens
CEO
May 15th, 2007 at 12:34 pm
There will always be jealous people. There will always be complainers. There will always be the followers. So be it. Wal-Mart has a strong value proposition and because of that they lead in their segment of the market. As you stated Mark we should learn from them. If we work on ourselves and on our businesses in maximizing our value to the market place, we will and can be as successful as we want to be and the whiners will fall into place, behind us as they should be.
May 15th, 2007 at 12:36 pm
Dang that logic, it always makes so much sense.
I do find it interesting how it’s possible to be an admired business on day, and then the next day be considered “evil” (in the eyes of some) just because you’re now “too big.” Maybe I’m naive, but to me, there is no perfect, bullet-proof business. Every competitor of yours has a weakness. You just have to be creative and quit whining long enough to figure out what it is.
Good post.
May 15th, 2007 at 12:38 pm
Send them all to professional-whiners.com and let them read the communist manifesto.
Thanks.
Mark Stevens
CEO
May 15th, 2007 at 1:15 pm
i’m not afraid of competition, but i don’t want what may be government-aided competition.
first, i want to state that i have not fully investigated the claims i’ve read in the media, since i don’t trust them too much anymore. but what they claim makes some sense.
by paying low wages, wal-mart forces a segment of the population to turn to government food and medical care subsidies just to exist. if this is true, then we, the tax paying public, is subsidizing wal-mart. would you want to do that? i certainly wouldn’t.
May 15th, 2007 at 2:18 pm
It’s happening to google too. You know you’re the best when people generate hate towards you. It’s a fact.
We can’t fight it, we can’t change anybody’s mind on it either. All we can do is give thanks to the whiners and complainers who make it so empty and spacious at the top!
June 5th, 2007 at 4:06 pm
Mark,
I think you need to check out http://www.wakeupwalmart.com/facts/ . Even if only 25% of these facts are true (although I suspect, from researching various other sources, that most of them are indeed valid) then I’d say the “Case against Wal-Mart” is still very real and legitimate. I don’t think “jealousy,” “whining,” and “anti-capitalism” are valid arguments as to why people take issue with Wal-Mart, yet don’t with Target, Costco, Kohls, and other similar businesses.
Wal-Mart provides sub-standard pay, benefits, and practices (check out the class action Sex Discrimination lawsuit — which negates your claim of “If you work hard we will promote you from within”) to its workers and relies on American tax dollars to subsidize its neglect. If you think this is “fair market” capitalism, then your logic is skewed. Sam Walton had a dream that died when he did. The new Wal-Mart regime is the classic example of greed at all costs. The notion of Wal-Mart providing “the lowest cost to consumers” is also a fallacy; in many cases, other stores, such as Target, provide the same products at equal or lower cost. So who is really “winning” here? The workers, the American people, or the select few making millions at their expense?
Capitalism without responsibility IS NOT capitalism. Even within capitalism there are rules to be followed. Not everyone in a capitalist society can become rich — that’s an absolute impossibility. However, everyone who works hard should at least be able to support their basic needs without resorting to government assistance. As one blogger noted, Wal-Mart is an example of how you can work hard and STILL have nothing to show for it.
I’m truly amazed that someone who makes $500 a half-hour to wax philosophic can label those who sweat for $8 bucks an hour (and crappy or no benefits) “whiners.” Do you really think anyone WANTS to work at Wal-Mart? True, there’s no gun to their heads — but if your choice was Wal-Mart or complete destitution, what would you pick? People work at Wal-Mart because their options are limited (by any number of circumstances) and they really don’t have much of a choice.
Wal-mart’s undoing is the result of its bad business and humanitarian policies — not the fanatical ravings of so-called “anti-capitalists.” Maybe now it will learn that human beings are an essential ingredient to a successful business endeavor and start treating its employees ethically.
June 12th, 2007 at 10:37 am
kool aid alert!
Jill “of all trades” I guess one of your trades is not driving a point home very well. You begin your entire argument citing some website that you proceed to admit is false information, in fact you wouldn’t even be shocked if 75% of it were false, even by your own account. It doesn’t sound like you know which of it is true or which of it is not, it only sounds like you know that much of it is false. That I agree with; however, I don’t see how false information benefits you at all. In fact it proves Mark’s point that people gang up on wal mart and the case in fact IS a sham, and you even admit these sites publish false info about wal mart (again up to 75% by your own account). So right off the bat within a few sentences you’ve managed to bring one of Mark’s key points to light.
One of my friends from my school years has a horrible condition known as Spinabifida. He is mentally and physically challenged, but he also surprisingly has a very high IQ, full of energy and the desire to work and make a life out of himself. While hundreds of so called “great companies” that treat their employees OH SO WELL (sarcasm?) would make up their mind about this kid even before he opened his mouth, just by LOOKING AT HIM, rejecting him based entirely on appearances and NEVER giving him a fair shot….well while most companies are doing this kind of nonsense, wal-mart has hired him and given him a path to success. This now allows him to pay enough bills to finish college, pay the rent and build his entire future. WOW, what a life changing experience! I’m happy I get to see it first hand.
So I ask you, and my friend asks you, how could a company so evil fill a void that companies so “nice and proper” fail at so miserably at? This ‘greed’ you speak of, is it present when wal mart hires a challenged individual or when thousands of ‘responsible companies’ reject these individuals SITE UNSEEN! Who is greedier there? Which one better fits your ‘greed at all costs’ motto? hmmmmm seems pretty clear to me.
Also you say people have a choice destitude or wal mart??? That’s the biggest load of BS and woe is me thinking. Why does wal mart have to be responsible for someone having way too many kids at way too young of an age and not planning ahead for that? Oh so now that’s all wal mart’s fault for not supporting their probably out-of-wed-lock and ill-planned family. This type of mentality REALLY angers me. It’s the same exact mentality that leads people to NEVER take accountability and go through life suing doctors or whoever they can for money.
Since the wal mart model can’t support these people who go off and have unprotected sex from a young age and crank out 5 kids by 25, wal mart is evil. Never mind the fact people all over the country or 2 or even 3 jobs to support their lives. Never mind that people who are responsible and plan ahead for the future, like my challenged friend, are using wal mart as a very big stepping stone to professional life. FORGET ALL OF IT, the kool aid has arrived!
And i won’t even touch your claims that target and these other stores have lower prices than wal mart…
June 12th, 2007 at 6:47 pm
I couldn’t agree more with Jill. Gaston, you site one and only one example of a person who has possibly benefitted from Wal-Mart, but you fail to validate all of those who have been abused by the Wal-Mart system as well. You may not have to choose between buying Medicine or Food, but there are many who do because of the insurance that Wal-Mart offers them. And even if one does not shop at Wal-Mart, one still pays for it from Wal-Mart’s encouragement of its employees to use Medicade.
It’s not a debate about profits and those who make it such ignore the ethics of business. How easy it is for people to say others are whining when you aren’t even in their shoes. There are plenty of people looking for a hand out but you cannot make those blanket generalizations especially of those who are in the lower income brackets which majority of Wal-Mart employees are.
A business is like a country and its legacy should be evaluated in its entirety, not simply by its profits.
June 12th, 2007 at 7:20 pm
First off Gaston, check your reading comprehension. What I said was:
My point being, that even 25% truth would be MORE THAN ENOUGH to convict Wal-Mart of unethical behavior. In fact, I HAVE researched this topic extensively and found alternative sources to back up the majority of claims made on the site that is referenced. Hence, the case against Wal-Mart is OVERWHELMING valid (beyond any reasonable doubt) — and not “jealous hype” like Mark claims.
And while you challenge my argument, I find yours just as baffling. You seem to applaud Wal-Mart FOR SIMPLY FOLLOWING THE LAW!! It is illegal to discriminate for disability, and if your friend feels he has been subjected to such discrimination by other companies then he should sue them. Period. I do not condone unethical, illegal practices by any corporation. And I know they’ve all got their shady dealings; it’s just that Wal-Mart’s misconduct stands out more in comparison.
I’m glad that Wal-Mart acted ethically in your friend’s case. However, this fact does not negate the 1.6 million instances (in gender discrimitation alone) where the company did not. If you think there’s nothing wrong with Wal Mart’s practices — that’s your prerogative. I think they’re appalling. And, either you are exaggerating the truth or your friend is in the enviable Wal-Mart minority: If he can truly finish school AND pay the rent on a Wal-Mart salary without any outside financial assistance, he has accomplished quite a remarkable feat.
Wow, that’s a pretty big leap from what I said. Wal-Mart shouldn’t have to be responsible for the above scenario (and neither should you or I for that matter). But’s that’s only one of many possible scenarios. And kids or no kids, associate-level salaries at Wal-Mart don’t break the poverty level — so the money’s got to come from somewhere. Hence, you and I and the rest of America are subsidizing these employees with our tax dollars, when the company itself has more than enough revenue and resources to take care of its own.
I agree with you wholeheartedly Gaston. The difference between you and me is that you don’t seem the slightest bit angry about this fact. Why not? I don’t like what’s happening in this country and it makes me angry. We used to be a proud nation full of integrity — where it mattered more how you played the game then if you won or lost. Now, it seems as though anything — no matter how unethical — is fair game as long as it “wins” for someone. “Faster and cheaper” have trumped “quality and responsibility” on almost every metric. I can’t speak for the world but I can certainly speak for myself when I say that I’m working much harder for exponentially less as each year passes. And while I’m lucky in that I don’t have to choose between destitution and Wal-Mart, I do have to choose between quality of work and quality of life. To do my job well — given the constraints of this economy — would require an 80hr+ commitment every week. To someone with integrity who takes a lot of pride in her work, this is a very unfortunate tradeoff. To keep my sanity, I’ve scaled back to around 60+ hours a week (still well above what I really should be working on my salary) knowing that I’m still not putting out the best product that I can. Unlike you, I don’t believe that good, honest, hardworking people should have to work to the breaking point in order to just get by — especially while those with questionable ethics are rewarded with financial gain.
The irony here is that we’ve got the same gripe: Both of us want people to take responsibility for their actions. However, while you prefer to start at the bottom of the chain, I’d rather start at the top. Your approach however, ignores one very basic truth — you can still do everything right and have nothing to show for it (not every struggling Wal-Mart employee is an unwed teenage mother — many, like the women who were discriminated against, are hard-working and educated); conversely, you can do everything wrong and be among the world’s most wealthy (just look at Paris Hilton!). Just as you want irresponsible people to own up to their bad behavior, I want irresponsible corporations to do the same.
PS — My best friend’s sister was born with Spinabifida. She works for a health insurance company.
December 7th, 2007 at 10:43 am
i hate walmart
i has everything that no one needs and it makes the world feel poor. i was shocked to read about the 1.6 million cases of racial discrimination.
i want to start a petition to shut down wal-mart! WHOS WITH ME!
March 24th, 2008 at 3:47 am
I happen to oppose both capitalism and wal mart.
Is this whining: we, the workers of Wal Mart, perform the labor which creates Wal Mart profits. Now, instead of having our labor fully exploited we ask that it be a little less exploited… when management takes the wealth we create, just give us a little bit back so we can, you know, pay health care bills and things
Send all the exploiters somewhere else. Let workers manage their own wealth.
May 1st, 2008 at 9:10 am
You make it sound like people have different opportunities than to work at wal-mart but sometimes they dont. It’s hard to find a job when theres so many other people are looking for a job. I understand that you think they treat their employees bad but thats also there choice to stay there. Also, if they want to pay there people minimum wage then they can. Thats why its a law they dont have to pay them anything but that. Theres another thing wrong with the world…you all want to sue if something bad happens just so you can get a little cash. It’s rediculous, i dont think you understand how it is to not have money whenever you want. My mom works two jobs to try and raised four kids and put one of them thru college twice is putting me thru now. She didnt get herself pregnant at a young age either. My mom is in her fortys and she had the kids with her husband who she is now seperated with. So it’s rediculous when you try and make Wal-Mart sound like a horrible place. To some it’s not a horrible place. I’v been to Target and K-mart i don’t believe there stuff is cheaper.