Case Analysis Wal-Mart Rosemead Essay - 971 Words

Case Analysis: Wal-Mart Rosemead When Wal-Mart tried to establish one of its Superstores in Rosemead, CA, its Corporate social responsibilities are questioned when the company is met with heavy opposition. With the opening of the new Wal-Mart in Rosemead there are groups of people that will gain and groups of people that will lose. This paper will analyze, using John Stuart Mill’s Utilitarian reasoning of â€Å"the greatest good for the greatest number† and theory of social responsibility by Milton Friedman, whether providing low cost merchandise to the masses outweigh consequences of the expansion of Wal-Mart into the residential city of Rosemead. The groups that stand to lose the most with the introduction of the Wal-Mart store in†¦show more content†¦State Assemblywoman Judy Chu said† Local businesses will watch helplessly as customers disappear to Wal-Mart. Why would any resident shop at a local store if they can buy pickles at a Wal-Mart for a dollar cheaper? My own reports say that local retailers will lose about $8 million annual in sales.† This implies that even though the local businesses will lose from customers moving to Wal-Mart, customers will gain having competition in the market that will allow for cheaper priced items. Rosemead was specifically targeted by Wal-Mart for its demographic, a city that has 22.8% of its residents living below the poverty line, lower prices will definitely benefit this demographic. Cheaper priced merchandise come at a price, job benefit though touted as a benefit to the community by Wal-Mart is often seen negatively by analysts. Peter Cannels, a community Affairs Manager of Wal-Mart replied to a hiring question that â€Å"our associates are directly from the community and reside within the community† furthermore â€Å"initial hiring process would be about 300 associates† up to 550 depending on customer mass. Opponents countered that the average pay of Wal-Mart employees were lower than workers employed in large retail. Another complaint against Wal-Mart was that any job creation gains were offset by the taxpayers cost of providing health and welfare services to Wal-Mart employees. But here, according to