Wal-Mart and Bribery in Mexico; How Did it Come to This?
Young Sam Walton and the store that started it all
The New York Times, this morning, released the results of its investigation into Wal-Mart's business practices in Mexico. Entitled, "The Bribery Aisle, How Wal-Mart Got Its Way in Mexico," the article starts on page one and then runs for three full pages.
This is not a new story. Last Spring the paper reported that Wal-Mart senior management in Bentonville learned of the bribery from one of the perpetrators but closed down the company's internal review in 2006.
What is new is the results of the newspaper's own extensive investigation. The paper "...picked up where Wal-Mart's internal investigation was cut off, traveling to dozens of towns and cities in Mexico, gathering tens of thousands of documents related to Wal-Mart de Mexico permits, and interviewing scores of government officials and Wal-Mart employees, including 15 hours of interviews with the former lawyer, Sergio Cicero Zapata." (Mr. Zapata blew the whistle on the activities).
The article states:
"The Times' examination reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals. Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited. It used bribes to subvert democratic governance - public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals."
As I read about story, I thought about my visit to Sam Walton's original variety store in Bentonville, Arkansas. It's now a visitor center but the layout gives you a sense of the company's beginnings in 1950. I was struck by how in a few decades Wal-Mart was able to grow from that humble beginning to become a retailer that today spans the world. I was also struck by how far the company has traveled from those beginnings not just in power and societal impact but in hewing to its founding, small-town ethics.
Is The New York Times correct; probably enough to make this a very troubling piece of business. We are all, as businesspeople, citizens and consumers, stakeholders in the world's largest retailer. Don't you think we all have a right to expect more?
I wrote three articles on the bribery scandal last Spring. Here are links if you would like more background: ("Wal-Mart...What If?" Wal-Mart's Bribery Scandal; Why it Matters", and "Wal-Mart Board of Directors Gets Pressed from Top and Bottom; Employees Start a Petition.")
Martin commented:
"forced by practicality"How do you force a peosrn to buy merchandise? Aren't you overlooking all of the other stuff that Walmart sells...like Tropicana orange juice, or milk..which like majority of groceries sold at Wallmart are made/grown in the U.S.?If the products are soooooo bad, why do people shop at Walmart even...dare one suggest prefer shopping at Walmart? The evidence of millions of shoppers who have helped to make Walmart the world's most successful retailer seem to suggest that Walmart is getting something right. No one is forcing you to shop at Walmart so one must assume that you feel virtuous paying 20%-30% more for groceries. Enjoy!
Bang commented:
Interesting thought. Methinks the osoipitopn to Walmart by the banks is for that very reason. They know about getting the unpopular done in increments, hence their stance. I think it would happen, to some extent. There will always be loan sharks of one type or another, and, always someone to foolishly take their offered deal.
Berenice commented:
pCould you PLEASE take 1 minute to read this text down:/pp•? Im a? 18 year? old? fobaltol goalkeeper from Sweden/pp•I have just started making videos of? me playing fobaltol/pp• My dream is to become a famous goalkeeper/ppI know we all have dreams and my dream can come true with your help by going on my channel and watching Abraham Malki young amazing talent goalkeeper /pp''THUMBS UP'' button would help everyone to notice this message/ppTHANK YOU VERY MUCH. God bless? you!
Mench commented:
brother Michael,I've just read your paper well done, my dear brother in the risen Lord Jesus.I have come to see the Roman Church as a revrese Borg colony being assimilated by the cultural religions where ever it finds them. Baptizing, as you say, pagan practices so weak minded folks will think them Christian.Even if one looks at what people do buying mostly useless stuff to give one another with the full expectation of getting as well. How does have ANYTHING to do with celebrating Christ? I've been trying to convince my wife and kids to give money to the Bible League instead of buying me gifts. Somethnig along those lines at least puts the giving where it ought to be.Let the name and person of Jesus be praised and lifted up for all to see and know. For in Him and from Him come all grace. Let His people rejoice in His finished work and the promise of life eternal with our Savior.
Janet Winter commented:
In California, Wal-Mart is often named in mechanics liens for non-payment of work done while building their stores. This pattern of non-payment is more likely to occur if the contractor or sub-contractor is small. If the Wal-Mart store is closed or sold, the contractor will be paid under the terms of the lien, but not before then, and how many small businesses can afford to wait 20-30 years to be paid? It's a disgrace, but it's part and parcel of the way Wal-Mart has chosen to run its business and maximize its profits.
Francis commented:
This just goes along with the prevailing business practices that believe greed is good, too big to fail, no punishment for crimes against society(think big banks, politicians) . We seem to have forgotten the principle service above self. We have become a narcisstic society that cares about nothing but our bottom line. Why is anyone surprised with Wal-Mart.
