perceptions of gender equality in corporate america
TRANSCRIPT
Perceptions of Gender Equality in Corporate America
Wal-Mart Case Study
Study Group 1
Perceptions of Gender Inequality
• Women comprise 15.7% of Fortune 500 corporate officers**
• Earnings gap – 76 cents to the dollar – less for minority women*
• CA lawsuit against Wal-Mart – America’s largest employer - one of many suits
*Source: Brunner, Borgna. The Wage Gap: A History of Pay Inequity and the Equal Pay Act** Source: Baue,William. Women Sit in Less Than a Seventh of Fortune 500 Board of Director Seats. December 11, 2003. www.socialfunds.com.
EEO-1*
• EEOC requires reporting data for companies with over 100 employees
• Information is useful in tracking hiring, promotion and retention of minority and female employees
• Most companies do not disclose this information to the public
• Wal-Mart has joined only 6 other corporations in the S&P100 to make their information publicly available
*Source – Baue, Bill. Wal-Mart Discloses Equal Employment Opportunity Data. April 26, 2006. www.socialfunds.com.
Providing transparency through public disclosure of EEOC data*
*Source: www.walmartstores.com, September 22, 2006
Video Clips
• http://www.pbs.org/newshour/bb/business/july-dec04/walmart_7-5.html#
• http://www.walmartfacts.com/articles/4369.aspx
Important questions the EVP needs to ask are:
• Should Wal-Mart make its managers be immediately available to relocate?
• Is it really necessary for management trainees to relocate or to promise to relocate?
• Does this relocation rule create EEO violations?
Impact to the management trainees.
• The majority of workers seeking managerial positions:
– Enjoy where they live.
– Have established community ties.
– Have established families in the community.
Impact on New Trainees.
• One can see why men and especially women would not want to commit to this agreement.
• Can you imagine accepting a job only if you agree to be relocated every two years!
Has Wal-Mart created an equal employment opportunity issue?
• No, they have not.
• There are many plausible reasons for this policy.
Pro’s of relocation
• One reason is to keep fresh ideas ranging throughout the company;
• Wal-Mart may hire managers to fill existing company needs nation- or world-wide.
• By making the relocation stipulation, Wal-Mart precludes regional managerial shortages and keeps new ideas flowing.
• Having the leaders move from store to store helps make these managers more:
– aware of differences,
– possibly learning new techniques in the process.
Pro’s of relocation
• They learn to deal with all types of people
• Can be motivated to run Wal-Mart the ‘Wal-Mart Way.’
• One effective way for a person to get experience is for that person to move every few years to a new location.
Pro’s of relocation
Con’s of relocation
• Employees with families are often not able to move as readily and may not want to commit to the management track.
Con’s of relocation
• Women can be affected more adversely than men because single mothers would experience a greater impact than other applicants;
• This would preclude their advancement to these managerial positions as well.
The result of the relocation rule
• If this rule of relocation has created a situation where only men, or specifically white men, are allowed or are willing to take on management positions,
• Then this will ultimately belie a situation that does not follow the EEO rules.
The relocation idea has merit.
• However the federal government will coerce Wal-Mart to create a top end structure
• This structure must meet what is called the four-fifths rule.
Where Wal-Mart’s plan failed;
• Wal-Mart inadvertently created a white male majority in upper management.
• Now Wal-Mart needs to bring talent from other Wal-Mart locations around the world into the upper management positions.
• This will help create a diverse upper management team.
The EVP needs to:
• Ensure that each store is working towards maintaining equal opportunities for everyone employed,
• Ensure that there are opportunities for people to come up the ranks without having to relocate.
A significant approach that the EVP can take is to:
• Employ more HR managers
• This will ensure a more balanced allocation of the protected classes.
FINANCIAL PERFORMANCE
•6100+ STORES INTERNATIONALLY
•1.8 MILLION ASSOCIATES
•STEADY INCREASE IN SALES AND NET INCOME
•>20% RETURN LAST FIVE YEARS ON SHAREHOLDER EQUITY
ORGANIZATION CULTURE
• INSTINCTIVELY FRUGAL
• CORE VALUE – “EVERYDAY LOW PRICES”
• DIRECT OVERSIGHT OF PAYROLL AND SALES COSTS BY HEADQUARTERS
• EXECUTIVES AND MANAGERS – EXTREMELY HARD WORKING
EXECUTIVE AWARENESS
• ALL EXECUTIVES, MANAGERS AND ASSOCIATES ARE TRAINED ON COMPANY CULTURE, VALUES AND POLICIES
• WEEKLY MANAGEMENT MEETINGS ARE HELD REGARDING CORPORATE CULTURE
• SOME MANAGERS ACT UNETHICALLY OR UNLAWFULLY TO MEET EXPECTATIONS OF HEADQUARTERS
LEGAL TROUBLES
• CLASS ACTION LAW SUIT ON BEHALF OF 1.6 MILLION CURRENT AND FORMER FEMALE ASSOCIATES FOR SEX DISCRIMINATION
• FEDERAL INVESTIGATION FOR USE OF ILLEGAL ALIENS TO CLEAN THE STORES
• SEVERAL OTHER LAWSUITS FOR UNFAIR LABOR PRACTICES, “MOST SUED COMPANY”
#3 Management Practices that Exacerbate EEO Problems
• No Policy (straddle the fence)
• Weak Policy (in name only)
• Double Standard Policy
• Bare Minimum Policy
Wal-Mart the Organization & Policy Creation
• Top Down/Not from the Bottom Up
• Local Sensitivity
• Management Input Only
Wal-Mart the Organization & Policy Creation
• Financial Performance/Process Efficiency Focused
• Great Latitude
• Favors Management
Wal-mart the Organization & Information Dissemination
• Local Autonomy
• Training
• Management Network
• Store Meetings
• Internal Website (Mgmt Only)
Wal-Mart the Organization & Goals
• Maintain Low Cost Strategy
• Provide Consistently Great Service
• Good Neighbor/Corporate Citizen
• Strengthen Supplier Relationships
• Workplace Diversity
• Environmental Sustainability
Wal-Mart the Organization & Commitment to Various Issues
• History of Supporting Local Charities• Latest Issue – The Environment• “Support America First”• Employee Volunteerism• Managing its Image • Fighting Labor Unions – Working Families
for Wal-Mart
Sources
Baue,William, Women Sit in Less Than a Seventh of Fortune 500 Board of Director Seats. December 11, 2003. www.socialfunds.com.
Baue, Bill. Wal-Mart Discloses Equal Employment Opportunity Data. April 26, 2006. www.socialfunds.com.
Brunner, Borgna, The Wage Gap: A History of Pay Inequity and the Equal Pay Act. September 23, 2006. www.infoplease.com
• www.walmartstores.com