Final answer:
Walmart has encountered ethical issues in its labor practices, including being found guilty of penalizing and firing protesting workers, paying damages for sex-based job denials, and facing a lawsuit for discriminatory hiring practices. A consent decree required them to stop physical ability testing and pay into a settlement fund for affected applicants.
Step-by-step explanation:
Walmart has faced multiple ethical issues related to labor practices, which can be outlined as follows:
- In 2013, the National Labor Relations Board found Walmart guilty of illegally penalizing and firing workers who took part in labor protests and strikes.
- Walmart had to pay $11.7 million in back wages and compensatory damages to women in Kentucky who were denied jobs due to their sex.
- The U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit in 2020 alleging a physical ability test used by Walmart disproportionately excluded female applicants for grocery order filler positions.
- As a result, Walmart agreed to a consent decree in September 2020, which requires stopping the physical ability testing for hiring grocery distribution center order fillers and creating a $20 million settlement fund for affected women.
A functionalist perspective on Walmart's business model regarding low prices could be interpreted as a means to serve core nation consumers through cost-efficiency but may be critiqued for potential exploitation of vendors and labor.