WalMart’s supplier workplace allegations by third party activists and impact

An article in the New York Times (June 29, 2012) describes allegations by the National Guestworker Alliance against WalMart’s seafood and vegetable suppliers regarding worker wages and working hours. But WalMart and the suppliers allege that the data was aggregated from 1980 to 2012, with different incidents grouped together. WalMart also claims that the activists are against nonunion suppliers. Given WalMart’s low price focus, how much impact will allegations by activists have over the supply chain ? Should supplier qualifications be restricted to current practices or go back in history ? If US law punishes violations with fines, is it appropriate for WalMart to further punish the supplier with order cancellations ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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