Walmart Fears Suit Could Cost The Chain Billions
A class action lawsuit representing more than 1 million women got the green light to proceed today against Walmart Stores Inc. WalMart claims the suit, which alleges the giant chain store discriminates against female employees, could cost it billions of dollars if it is upheld. The reputation of an iconic company is also on the line.
It is the largest class action suit in American history, and Walmart indicated today it may take the fight to the Supreme Court.
The 9th Circuit U.S. Court of Appeals in San Francisco ruled that the case against one of the country's largest private employers could go to trial, nine years after the suit was originally filed in 2001.
The suit, filed on behalf of six women who worked in 13 of Walmart's stores, alleges that the women employed by the company face systemic sexism -- that they're paid less than men in comparable positions, receive fewer promotions and wait longer for promotions -- according to the court documents released today.
Friedman, Emily. “Appeals Court Rules Wlamart Sex Discrimination Case Can Go to Trial.” Abc World News. Abc, 26 April 2010. Web. 27 April 2010.
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This source elucidates the negative impact that the news, press, or other forms of modern discourse can have on major corporations such as Walmart. The author, Emily Friedman, described this, "The reputation of an iconic company is... on the line."
ReplyDeleteHowever, it is probable that the Walmart Sex Discrimination Trial has affected the company even more than that. The reputation of Walmart has been tainted and scarred; even if Walmart were to win the trial, it's doubtable that the company would ever crawl back up to it's original status in society. It's more accurate to say that the reputation of Walmart has fallen and shattered.
This predilection to negative discourse is not contained to major corporations like Walmart and Cosco however. It's crippling affects can also be seen through celebrity slander, rumors, and gossip.
Even though the article is written about the negative impact that the case will have in the world of major retail stores, I saw the same general connection Mikaela did. If a well known group or person makes one simple mistake, the media blows up the issue so irreparable damage is done to the person or group's image. It seems that our society is so focused on being perfect that we aren't willing to allow one mistake to slide regardless of how important the issue surrounding it actually is. If a celebrity is seen walking around in a sweatshirt and jeans the media criticizes them for looking sloppy. If a financial scandal erupts, the companies and investors associated with it are suddenly unable to be trusted. It's never wrong to stay alert, but in some situations the slander is more appropriate than others. If a celebrity isn't dressed perfectly, people should be more than willing to let it slide because everyone has a bad day from time to time. However, in situations like the one Friedman describes in this article, people have the right to criticize Walmart. Women have been making gains in the realm of equal rights for years, and big businesses don't have the right to reverse this progress.
ReplyDeleteI agree on the point of the media blowing things up. That's been happening since the 1880's. However, I disagree that WalMart's "great name" has been slandered, as WalMart has been the butt of countless jokes over the years, and has been portrayed as a hickish, downtrodden place.
ReplyDeleteThat being said, I'm skeptical as to the legitimacy of the claims, as they were made by only those women. No studies were cited, nor were many accounts reported. Just the six women who are doing the lawsuit. Forgive me for the wording, but this just sounds like a case of "The Women who called Sexism."
I agree with Erica on this statement: If a well known group or person makes one simple mistake, the media blows up the issue so irreparable damage is done. I also believe, however, that this damage is done unfairly because it occurs too early. The media does not give WalMart a chance to resolve the issue through the court system. Instead, they must swoop down immediately and attack WalMart before the problem is solved. Like Erica said, this makes it impossible for WalMart to get its reputation back even if it does win the lawsuit. The media destroyed WalMart's reputation too early; if WalMart really had been discriminating, then it would've been okay to report on it, but to report on it before an outcome is determined is simply not fair to WalMart.
ReplyDeleteAgain, I have to agree with the previous comments regarding the media. However, I find it interesting that, when reviewing this article, the fact that it regards sexism seems to take the back seat in terms of the media's affects. It's true that what might end up costing one of America's strongest marketing chains over one billion dollars is incredibly severe, that doesn't mean we can just overlook what they're being sued for. Maybe it's just something I tend to gravitate towards, but I don't think that we should overlook the actions in favor of the consequences. I do believe that it's unfair to WalMart as the allegations haven't been proven, and the claims may still be false, but I still don't think this is anything that should just be passed over.
ReplyDelete