Walmart Scandal in Mexico

Topics: Business ethics, Ethics, Corporate social responsibility Pages: 2 (784 words) Published: April 1, 2014
Walmart is under investigation for the allegations of bribery carried out by executives in Mexico eager to boost the company’s growth in that Market. The New York Times was first to break the story describing the Mexican scandal as “a prolonged struggle within the company that pitted its much publicized commitment to the highest moral and ethical standards against its relentless pursuit of growth”. In Septemper 2005, a senior Wal-Mart lawyer received an email about how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance in its rush to build stores. The New York Time lays out a seven-year campaign of unethical behavior, totaling more than $24 million in “suspect payments” and corporate aggression that has made Walmart the largest private employer in Mexico with one of every five stores and over 200,000 employees. I found it interesting that during the alleged scandal the Los Angeles Times comments that a 42% increase from the $312 billion Wal-Mart said it earned in the 2005 fiscal year, when much of the Mexican bribery was said to be occurring. It seems to be a very fine line with Wal-Mart regarding public scrutiny over balancing profits and growth with sustainability and ethical business practices. Along with the allegations in Mexico some critics question if the same has happened in the US. According to Al Norman, author of the Case Against Wal-Mart; is known as the “the guru of the anti-Wal-Mart movement. Mr. Norman comments about some claims that include situations where citizens testifying at public hearings have accepted cash in exchange for making pro-Wal-Mart statements. In other cases, he claims, groups protesting Wal-Mart expansion have ceased to protest after accepting donations from the company or its partners. Mr. Norman cites an example that happened in 2004 in Tallahassee, FL where a group opposing Wal-Mart’s construction of a store said that a real estate broker representing the project offered them a...
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