Cuyos, Charlene Dela Cruz, Jethro Magpantay, Christian Uy Suzzaine Case Study

Prof. Mary Rose Blancaflor June 17 2011

1. What financial impact do you think the lawsuit could potentially have on WalMart? The women filed a complaint against Wal-Mart because of discrimination. They found out by the help of a statistical expert, Richard Drogin and expert in sociology, William Bielby that females who are working in Wal-Mart are receiving fewer promotions and less salary compared to men. If the women win their lawsuit, it will greatly affect the financial and will have an impact in the company because they will be obliged to pay back 1.6 million female employees. 2. What are the major complaints of the females suing Wal-Mart? Do you believe these moral complaints are justified? Why? The major complaints of the females: - Less salary compared to male workers (they see male workers as more appropriate to be managers, others view females not capable of male activities) - Fewer promotions (male workers have a higher chance to be promoted even though there are women who have more experience). Yes, these moral complaints are justified because Wal-Mart conducted a number of programs that will allow women to enter salaried management jobs. 3. What factors do you think might account for the discrepancies the Drogin report uncovered? Discrepancies in promotions and pay could be the result of women not being available (not in the feeder pools) when promotions came up or of some other factors. He found, instead, that Women received 2, 891 fewer promotions into Support Manager [ the step before Management Trainee] than would be expected from their representation in the feeder pools

Women received 2,952 fewer promotions into Management Trainee than would be expected from their representation in the feeder pools. Women received 346 fewer promotions into Co-Manager than would be expected from their representation in the feeder pools Women received 155 fewer promotions into Store Manager than would be expected from their representation in the feeder pools. Total earning paid to women ranged between 5% and 15% less than total earnings paid to similarly situated men in each year 1996-2001, even when accounting for factors such as seniority, status, and store.

4. What, if anything, do you think Wal-Mart should do to correct these discrepancies? Should the company institute an affirmative action promotion program for female employees? If so, what should this program be like? Affirmative action refers to policies that take factors including "race, color, religion, gender, or national origin" into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination. The focus of such policies ranges from employment and education to public contracting and health programs. The company must institute an affirmative action because it promotes equality, fairness and justice between workers. A program that will allow women to enter salaried management jobs will be very helpful. 5. Do you think the women deserve to win the lawsuit? Yes, because discrimination will not be stopped if cases like these wont win. The women deserve to win the lawsuit because it is their right, fairness and justice which are being violated.