Mexico scandal hurting Walmart at the local level

Posted on May 10, 2012 by jway

This post was written by Ben Waxman.

The top corporate leadership of Walmart has been under fire lately, thanks to a New York Times story that alleged widespread bribery by the company in Mexico and a cover up by top executives. The company is now under investigation by the U.S. Justice Department for violation of the Corrupt Foreign Practices Act, which could result in billions of dollars in fines. The scandal has contributed to the perception that there is a culture of lawless at the very top of the company.

If true, the allegations against Walmart’s top leadership show that the company has serious problems at the very top. It’s very difficult to trust the elite management. That’s why Walmart associates have called for both CEO Mike Duke and Walmart Board Chairman Rob Walton to resign.

Concern is growing about Walmart’s reported misdeeds, especially at the local level. Could bribery similar to what allegedly happened in Mexico be happening here?  That’s a question that some are asking in locations where Walmart is looking to build additional stores. For example, a member of a local Council in Silicon Valley recently delayed a vote on allowing Walmart to build a new grocery store until more information on the Mexican bribery scandal was available.

Council member Matt Sullivan, who requested a special hearing Monday to appeal the Planning Commission’s March approval of the plan, continued the hearing after nearly three hours. He asked for more time to research accusations that Walmart de Mexico was involved in bribery to gain market share in Mexico.

“Information has come to light that Walmart possibly violated the Foreign Corrupt Practices Act,” Sullivan said. “We need to know the potential impacts this could have under the circumstances.”

Walmart is seeking approval to open a Neighborhood Market grocery in the former Nob Hill location on Santa Rita Road.

In addition to his tough questions for Walmart, Sullivan wants to pass an ordinance that would limit the amount of business that the city could do with a corporation that has been found guilty of committing a crime. That would mean Walmart would be barred from doing business with the city if it was convicted on charges connected to Corrupt Foreign Practices Act.

One thing is clear: Walmart’s problems in Mexico and the United States seem to come from the same issue. The company is obsessed with growth at any cost. As a result, Walmart makes all kinds of promises that often turn out to be untrue. It also makes all kinds of political and charitable donations to gain influence. Obviously, this strategy can backfire.

How much more trouble will the Mexican bribery scandal cause for Walmart at the local level? Stay tuned.

Comments

  • Anonymous

    it it time to Change Walmart into United Food and Commercial Workers for all Walmart Cashier Workers and all Walmart Produce Workers and for all Walmart Deli Department Workers and for all Walmart Bakery Department Workers and for all Walmart Pharmacy Workers and for all Walmart Truck Drivers Workers, it is time to Change Walmart into Teamster Unionize Walmart Store for all Walmart and all Sam’s Club Truck Drivers Workers and for all Walmart Hardware Department Workers and for all Walmart Gardening Department Workers and for all Walmart Customer Service Desk Workers and for all Walmart Courtesy Association Workers and for all Walmart Maintenance Association Workers and for all Sam’s Club Forklift Drivers@Stock Person Workers and for all Sam’s Club Maintenance Workers and for all Sam’s Club Cashier Workers and for all Sam’s Club Produce Workers and for all Sam’s Club Cafe Workers and for all Sam’s Club Bakery Department Workers and for all Sam’s Club Pharmacy Workers and for all Membership Desk Workers and for all Sam’s Club Cart Attendant Workers, it is time to Change Walmart into Communication Workers of America Unionize Walmart Store for all Walmart and all Sam’s Club Pharmacy Workers, it is time to Change Walmart into United Auto Workers Unionize Walmart Store for all Walmart Tire@Lube Express Workers and for all Sam’s Club Tire@Vehicle Battery Installment Workers by make Walmart give all Walmart and all Sam’s Club Workers, a Living Wage With Affordable Health Care right of away please without close down all the Walmart Store and all Sam’s Wholesale Club Workers.

    Thank You Very Much United Food And Commercial Workers And Teamster Union And Employee Free Choice Act And Making Change At Walmart And OUR Walmart And Walmart Watch For Trying Make A Better Place To Work For All Walmart And All Sam’s Club Workers A Living Wage With Affordable Health Care,

                                       From Tom P Noonan

  • Robert Snodgrass

    excuse me, we aren’t stupid, Walmart is not in trouble because of the New York Times. Walmart is in trouble because of their own illegal, imoral, unethical massive international bribery, corruption and cover-up scheme that went on for years with full knowledge of top US top execs. And no this ain’t the way it’s done in Mexico. It’s the Walmart way. I have friends who have businesses in foriegn countries where bribery is common. My good friend with several succesful businesses in Thailand told me long before this walmart story came out, that the first most important thing to know is never get involved in bribery and payoffs. Not so much because its illegal,but because it is not proper business, it is a low life criminal way of doing business, it is unethical, very imoral, and just wrong. decent people don’t do it anywhere. And if it were the only way to do business somewhere. The obvious answer is, decnt people and businesses would not do business there.  Thats nothing compared to the evil that walmart has been doing all over this world for many years and will continue until they’re justly shut down. This company is completely void of integrity and moral conscience.