Hey Lainey, another reason to love walmart
#1
Thread Starter
Hey Lainey, another reason to love walmart
MEXICO CITY — In September 2005, a senior Wal-Mart lawyer received an alarming e-mail from a former executive at the company’s largest foreign subsidiary, Wal-Mart de Mexico. In the e-mail and follow-up conversations, the former executive described how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance. In its rush to build stores, he said, the company had paid bribes to obtain permits in virtually every corner of the country.
The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico.
Wal-Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. They found a paper trail of hundreds of suspect payments totaling more than $24 million. They also found documents showing that Wal-Mart de Mexico’s top executives not only knew about the payments, but had taken steps to conceal them from Wal-Mart’s headquarters in Bentonville, Ark. In a confidential report to his superiors, Wal-Mart’s lead investigator, a former F.B.I. special agent, summed up their initial findings this way: “There is reasonable suspicion to believe that Mexican and USA laws have been violated.”
The lead investigator recommended that Wal-Mart expand the investigation.
Instead, an examination by The New York Times found, Wal-Mart’s leaders shut it down.
Neither American nor Mexican law enforcement officials were notified. None of Wal-Mart de Mexico’s leaders were disciplined. Indeed, its chief executive, Eduardo Castro-Wright, identified by the former executive as the driving force behind years of bribery, was promoted to vice chairman of Wal-Mart in 2008. Until this article, the allegations and Wal-Mart’s investigation had never been publicly disclosed.
The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico.
Wal-Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. They found a paper trail of hundreds of suspect payments totaling more than $24 million. They also found documents showing that Wal-Mart de Mexico’s top executives not only knew about the payments, but had taken steps to conceal them from Wal-Mart’s headquarters in Bentonville, Ark. In a confidential report to his superiors, Wal-Mart’s lead investigator, a former F.B.I. special agent, summed up their initial findings this way: “There is reasonable suspicion to believe that Mexican and USA laws have been violated.”
The lead investigator recommended that Wal-Mart expand the investigation.
Instead, an examination by The New York Times found, Wal-Mart’s leaders shut it down.
Neither American nor Mexican law enforcement officials were notified. None of Wal-Mart de Mexico’s leaders were disciplined. Indeed, its chief executive, Eduardo Castro-Wright, identified by the former executive as the driving force behind years of bribery, was promoted to vice chairman of Wal-Mart in 2008. Until this article, the allegations and Wal-Mart’s investigation had never been publicly disclosed.
#3
I heard about this, Jerry. I guess it's just Wal-Mart being Wal-Mart.
#4
If you get a chance read "Life and Death in Shanghai" by Nien Cheng. Its an eye opener. The book is now about 20 years old, but still relevant.
That the Wal-Mart executives bribed the Mexican officials is bad enough, but what I think is worse is that the Wal-mart executives in America shut down the investigation and covered up the wrong doing.
#5
Is it that we failed to ingrain the next generation with the long-term benefit of ethical behavior, integrity and honor? Or is it that we've started to believe that winning justifies everything? I think its the later.
#6
Seriously, I always thought 'bribes' was business as normal in Mexico.
#7
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#8
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#9
I tasted the corporate world a long time ago. It didn't take long (3years) to realize I wouldn't play the game. I've been my own boss ever since. My integrity and ethics are fully intact and i employ them every day. I couldn't exist it the business world I'm in without them.
Best decision I ever made was kissing Motorola goodbye.
fltsfshr
Best decision I ever made was kissing Motorola goodbye.
fltsfshr
#10
I'm sorry, but how else could you secure the necessary permits in Mexico? By applying for them and waiting patiently? Please.
I suspect if we looked at how JC Penney, Sears, Home Depot, AutoZone, or plenty of other US retailers do business in Mexico we would find exactly the same thing.
I suspect if we looked at how JC Penney, Sears, Home Depot, AutoZone, or plenty of other US retailers do business in Mexico we would find exactly the same thing.