The paper “ Corporate Governance at Walmart” is an excellent variant of the case study on management. Corporate Governance has over the years received a lot of attention among large organizations in both developing and developed organizations (Cremers and Nair, 2005). It is argued that good governance tends to bring about investor goodwill as well as confidence. Research has confirmed that good corporate governance in an organization increases both profits and company valuations. Well governed organizations also enjoy lower capital expenditure, better performance, favorable treatment of the stakeholders, and higher sale growth.
Weak corporate governance may result in poor performance and productivity, risky financing patterns, and makes organizations susceptible to economic recessions. Ragothaman and Gollakota (2009) have identified several reasons for the growing prominence of corporate governance. These reasons may include the pension fund report, deregulation of the capital markets, the evolution of the private savings, and series of corporate scandals. Corporate governance has subjugated policy agenda for more than a decade (Cremers and Nair, 2005). In order to satisfy the expectations of the stakeholders, most countries have developed national regulations defining the “ best practices” in corporate governance (Cremers and Nair, 2005).
Walmart has been criticized for its business performance and operations for many years now. Its governance practices have been thought to be weak thus affecting the overall performance of the company. This paper will focus on Walmart Stores Inc. And will discuss its governance protocols and practices in relation to the responsibilities of directors, independence of directors, qualifications of directors, and length of tenure of its directors amongst other issues. In addition, the paper will outline the criteria suitable for the review of Walmart's corporate governance and will list some recommendations for the improvement of the company’ s governance practices.
Cremers, KJ and Nair, VB. 2005, Governance mechanisms and equity prices, Journal of Finance, 60(6), 2859-2894.
GNDI Principles 2014, Guiding Principles of Good Governance – Australian Institute of Company Directors.
Lichtenstein, N 2009, The Retail Revolution: How Wal-Mart Created a Brave New World of Business, New York, Metropolitan Books.
Ragothaman, S and Gollakota, K 2009, The effect of firm characteristics on corporate governance: An Investment Analysts Journal – No. 72 2010 11 empirical study in the United States, Internal Journal of Management, 26(2), 309-319.
Subramanian, G 2015, Corporate Governance 2.0: Managing Organizations, Harvard Business Review.
Walmart Store Inc. 2014, Walmart Store Inc.: Corporate Governance Guidelines, Retrived 15th March from, http://cdn.corporate.walmart.com/b4/aa/d83bfa1649d5a1e03946ba700e6b/corporate-governance-guidelines.pdf