Corporate Accountability SP11

Economics -> American Capitalism and Social Justice Spring 11

When the choice is between people or profit, the answer should be an easy one. However, for multinational corporations whose ultimate goal is to maximize profit, it is not always so simple. Today, our society is under increasing threat from corporate abuses. This threat has prompted many scholars as well as organizations and campaigns to challenge the issue of Corporate Accountability.

Scholars

Yates

Why Unions Matter

In his book Why Unions Matter, Michael Yates uses simple terms to answer basic questions about the function and formation of unions, the process of collective bargaining, and the relationship between unions and American politics. He begins by explaining that unions provide solidarity and allow worker’s demands to be met as a group when they would have likely been ignored otherwise. This solidarity provides not only a wage advantage but also enhanced grievance procedures, benefits, and dignity for the American worker. <ref name="Yates"> Yates, Michael D. (2009). Why Unions Matter. New York, NY: Monthly Review Press. </ref>

Yates also addresses the allegation of the corrupt nature of unions by saying that although there have been cases of illegal activities, generally unions leaders are elected by their members and accountable to them. He argues that this model of democracy marks the vast contrast to the lack of democracy of corporations. <ref name="Yates" />

In the last chapter, Yates identifies that the core of the labor agenda are the right to employment, the democratic control of production, more leisure time, reduced income gap, and an end to discrimination in the workplace. <ref name="Yates" /> He also suggests that even though some of these elements are included in the Democratic agenda, the labor movement might need more sympathetic allies from the Labor Party, which is currently weak and has no chance of winning an election. <ref name="Yates" /> Yates’ idea of labor movement reform calls for significant support from a stronger political party to fight for the rights of American workers.

Challenging Walmart

Major Challengers

Walmart Watch

Walmart Watch (WW) was formed in the spring of 2005 as a joint project of Five Stones and the Center for Community and Corporate Ethics to criticize Walmart’s corporate accountability as the largest corporation in the United States. [1]

Since its establishment, WW has represented hundreds of thousands of Walmart employees countrywide. Through in-depth research and analysis, WW has been educating policy makers, community leaders, media, and the public about Walmart’s wages, benefits and impact on communities. In November 2005, WW kicked off a series of events called “Higher Expectations Week”. Supported by over 300 organizations, this nationwide campaign included more than 1000 local events and 7000 house parties to advocate for stronger efforts by federal, state, and local officials to hold Walmart to their standard of “high expectations.” .<ref name="walmartwatch">Higher Expectations Week, additional text.</ref>

WW has also performed a “Price Check” program to test Walmart’s low-price guarantee policy. There has been a lot of speculation about Walmart’s pricing strategy and how they usually cut prices upon moving into a new community only to raise them when free of nearby competition. For this nationwide project, WW chose 5 everyday household products for testers to purchase and compare prices across the country. [2] By shining a spotlight on some of Walmart’s shortcomings, WW hopes to challenge the giant corporation to become a more responsible corporate citizen and a positive force for change for millions of American workers.

References

<references/> Walmart Watch's Website