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Running head: SOCIAL, ETHICAL, AND LEGAL IMPLICATIONS

Social, Ethical, and Legal Implications and Executive Summary
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SOCIAL, ETHICAL, AND LEGAL IMPLICATIONS
Part 1
Ethical issues affecting Whole Foods Company
The first ethical matters that are facing whole foods in the United States and the
international market is critical because of the high cost of its products (World’s Most
Ethical Companies’ list, 2017). According to some customers who seem to have been
very sensitive on matters of price, whole foods is selling its prices at a very high cost
compared to its competitors. According to them, this was very unethical for the company
to make money without considering them. On the other hand, according to whole foods
market, they do not compete based on the prices but the quality of the products
(Galbreath, 2009). The company insists on focusing on providing organic foods, meeting
customer's satisfaction through quality products and sustainability. However, with the
prices being high than its competitors, some customers have raised ethical concerns about
this, and the company has lost some customers in the united states especially the lower
class who do not care much about healthy living.
The other ethical concern facing whole foods is the antitrust investigation. With
the expansion of Amazon Company and to plan to acquire whole foods market has raised
an ethical question in the United States. Many people in the United States called for the
hearing over the deals so that it can be found out the effects of the deal on the workers
and the customers (Michael, 2017). Many were concerned whether the deal was
overpriced and whether the investors considered the impact of such a move especially the
risk which may be involved as a result of the potential government regulation. The move
also raised important ethical questions especially regarding the competition policy on
how the transaction will affect the future of the grocery stores and whether the move will

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hinder innovation in the market. Many people saw the move as the effort of whole foods to use
restrictive practices to eliminate new entrant s in the market which is in itself an unethical
competition practice. Other ethical issues on the move were seen as the lack of consideration for
the consumer and worker's needs.
There are ethical concerns on how the company treats its workers. The CEO of the
company has been accused of some unethical practice especially regarding making of the
decisions affecting the workers in the company (Michael, 2017). There have been accusations in
the United States by the trade union that the company is engaged in unethical practices in dealing
with the employees. For instance, the company has been discussed on infringing on the
paternalism of the employees by making decisions on what is good for the employees rather than
letting them make t5he decisions on their own. The company has also been accused of paying the
employees poorly and overworking them. This has brought to question the ethical practices of
the company. The company has also been criticized for contributing to the pollution of the
environment in its operations.
Legal Issues
One of the key legal issues facing whole foods markets America is the legal challenge to
the company's acquisition by Amazon on the grounds of violating the competition policy and the
antitrust laws. In this regard, one of the key legal question in this deal was whether Amazon had
developed to a level of discouraging innovation from its competitors (Galbreath, 2009). Due to
the competition policy and the antitrust laws, whole food cannot just be acquired by any other
company freely.
The other legal issue affecting the operation of whole foods market in the United States
and the global market is labor laws implementation. The company has been accused severally of

SOCIAL, ETHICAL, AND LEGAL IMPLICATIONS
violating the labor laws in the way it is dealing with its employees. For example, whole
food sometimes uses the outsourcing of the employees which is a practice not permitted
under the labor laws in some of the states (Michael, 2017). It has also been accused of
engaging employees in work overtime without paying them. The labor laws in different
states have a great impact on the operations of whole foods company in those states.
There have also been concerns about the environmental impacts of the whole food
products. Some people have accused whole food of engaging in practices that are likely
to bring about environmental degradation although the company has constantly denied.
However, it is good to note the environmental laws in the United States and in other
countries where the company operates continues to affect its operations. This is because
its products must comply with the environmental laws of these countries.
Social Issues
There are several social issues which affect the operations of whole food in the
United States and the global world. The first issues are the different classes of living in
which people have placed themselves. Because whole foods company has placed the
prices of its products higher than its competitors, most of the people who are in the lower
class do not buy from the company (Michael, 2017). This is because the lower class
mostly like buying from the cheapest companies and therefore according to them whole
foods does not take their needs into the account when pricing its product. This affects the
operations of whole foods because especially when opening stores it cannot do so in areas
dominated by the lower class. The other social issue affecting the products and services
of whole foods market is the emergence of the social media as a means of communication
(World’s Most Ethical Companies’ list, 2017). The company has resulted in building

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customers relationship through the social media platforms. For instance, whole foods maintain
Facebook and twitter accounts through which the company utilizes to post any information
concerning their sales, interacting with customers, educating the consumers about the benefits of
healthy eating and posting information about the food experts (Galbreath, 2009). Basically with
the development of the social media. Whole foods market has changed the way the company
offers its services and products to the customers. Now the company can interact easily with the
customers and even respond to their questions through the social media platform.

Part 2
Executive Summary
Strategic objectives: Whole Foods Market Company is an American supermarket chain which
exclusively features foods without artificial preservatives, sweeteners, flavors, and colors. Whole
foods main strategic objective is to open up new stores in United Arabs Emirates (UAE) in order
to meet the needs of the customers. These new stores are to be opened in the major towns of
UAE in order to reach the target customers who are mainly the working class. This strategic
objective is aimed at increasing its market. In this case, the company's main commitment is
towards selling the highest quality natural and organic products to the consumers. It focuses on
ensuring that the customers in UAE are happy because they believe through their satisfaction
they will be able to create more wealth for the shareholders. The other pillars to support this
objective is promoting the health of the stakeholders through the provision of health education,
creating a good partnership with the suppliers and caring about the community and the
environment. To achieve the strategic objectives, whole food has modeled its operations around
its key stakeholders.

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Products and services: Whole Foods Company is planning to introduce natural meat in the
market. This meat is going to be free from any artificial additives. The meat will not be from
genetically modified animals but will be pure natural. To ensure the product get in the market the
company will differentiates itself from the rivals not based on the prices but the quality of
products and services. The company will first focus on sensitizing the consumers on the benefits
of healthy eating and these consumers forms the main customer of the organic foods. The
company has focused on ensuring the quality of its products through having well paid best
producers and motivated workers. Among the standard things it has guaranteed in its products is
the elimination of the genetically modified products from its stores. It has also focused on the
provision of products which are free from artificial preservatives, colors, flavors, sweeteners and
hydrogenated fats. This has boosted its trust in the market. The whole food Market has modeled
its operations around its key stakeholders as it brings in new services. The company is
introducing restaurant services and has modeled its stores to have an inviting look with good
eateries and tables for the customers. The customers are also allowed free samples to test the
products. The company has also distinguished itself from its competitors through informing its
customers about the presence of artificial products. With the social media engagement and the
way the company attends to the needs of the customers, most of them tend to trust the company.
The company is also the commitment to the preservation of the environment through the
provision of environmentally friendly products. Other services include education of the
customers on the benefits of healthy eating, and this has helped to revolutionize the company. It
is also good to note that the company has some social commitment through which it can give
back to the community. It has a foundation through which it does the economic partnership with
the developing communities to develop them. It also has a foundation aimed at improving the

SOCIAL, ETHICAL, AND LEGAL IMPLICATIONS
nutrition of the children. These social initiatives are changing the way the people see the
company from a profit making entity to an entity which is service oriented.

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References
Galbreath, J. (2009). Building corporate social responsibility into strategy. European business
review, 21(2), 109-127.
Griffin, R. W., & Moorhead, G. (2011). Organizational behavior. Cengage Learning.
Michael. (2017). Whole Foods Market: What's wrong with Whole Foods?. Michaelbluejay.com.
Retrieved 8 August 2017, from http://michaelbluejay.com/misc/wholefoods.html
World’s Most Ethical Companies‘list. (2017). Whole Foods Market® named to ’World’s Most
Ethical Companies‘list - Whole Foods Market Newsroom. Media.wholefoodsmarket.com.
Retrieved 8 August 2017, from http://media.wholefoodsmarket.com/news/whole-foodsmarket-named-to-worlds-most-ethical-companies-list
http://businessethicscases.blogspot.co.ke/2013/04/whole-foods-markets-not-so-natural.html

Attached.

Running head: MARKETING PLAN: WHOLE FOODS MARKET INC.

Marketing Plan: Whole Foods Market Inc.
Student’s Name
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MARKETING PLAN: WHOLE FOODS MARKET INC.

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Executive Summary
Strategic objectives: Whole Foods Market Company is an American supermarket chain which
exclusively features foods without artificial preservatives, sweeteners, flavors, and colors. Whole
foods main ...