These business practices have also people on a local scale. One Toledo company used to produce Crayola crayons. Its biggest customer was Wal-Mart; but when Wal-Mart refused to pay three extra cents per box, the company was ran out of business and many people lost their jobs. Wal-Mart took its business to Mexico
In 1994, Rubbermaid was one of the most admired company in the United States -- but five years later, its fortunes fell so hard that the company had to sell to a competitor. When the price of a key component of its products went up, Rubbermaid asked Wal-Mart for a modest price increase -- but Wal-Mart said no, and stopped sales of Rubbermaid products. At a Rubbermaid factory in Wooster, Ohio, that meant the loss of 1,000 jobs. [PBS Frontline, 11/23/04]
With Wal-Mart, there is no room for negotiation. They tell you what they will pay you for your product. If you don't like it, they will buy it elsewhere and most likely, you will be out of business.
Wal-Mart perpetuates the cycle of poverty. They drive other stores out of business because their prices are so low. Thriving downtown areas turn into ghost towns. Their prices are so low because of their unethical practices. But with the other stores gone, the wages driven down and nowhere else to shop the people are pretty much forced to shop there. If not forced, they are definitely not given an incentive to go elsewhere.
Something else that is very disturbing is the unethical means they use to produce their inexpensive items. Something that I read really struck a nerve with me. "Close your eyes. Think about the shirt you are wearing. Trace it back through the store, back past being packaged, past being shipped, and to the place it was stitched and sewn together. I’m terrified when I do that and I see a small child, dirty and weary from 18 hours a day of labor, looking into my eyes and awaiting an explanation. What will I say to that little girl? What does taking responsibility mean for me there?