After bribery report, Walmart defends integrity

[Judi Lynn]

Source: Los Angeles Times

Published Tuesday April 24, 2012
After bribery report, Walmart defends integrity
The Los Angeles Times

LOS ANGELES — Walmart Stores Inc. said it’s a stickler for integrity, issuing a lengthy response to a report that the massive retailer shut down an investigation into alleged bribery in its Mexico operations.

“In a large global enterprise such as Walmart, sometimes issues arise despite our best efforts and intentions,” the company said.

The “issues” in question: The chain’s possible violation of the Foreign Corrupt Practices Act, based on what one informant claimed was rampant bribery from Walmart executives attempting to boost the company’s growth in Mexico.

The huge retailer has been emphasizing in recent years its transformation into a conscientious global citizen, touting its eco-friendly efforts and commitment to healthful, justifiably sourced products.

Read more: http://www.omaha.com/article/20120424/MONEY/704249936

[IndyJones]

1. How about a 100% tax/penalty for the same amount paid in bribes?

[Sherman A1]

2. How about yanking their corporate charter

I think that would be much, much more effective.

[IndyJones]

3. That sounds good, too. I have no love for Walmart. Never shop there or Sam's Club.

[quakerboy]

4. That wouldn't even sting.

Its small change to Walmart.

How about a new law that any company who breaks the law loses all tax benefit otherwise available from the from the US government for the year. And that they face fines of at least 10 times the benefit of any wrong doing. As well as having to directly reimburse any injured private parties at least 10 times the damage they caused. And that CEO's who can be shown to sign off on illegal activities can be personally prosecuted.

That might leave a mark. At the least, they would get a lot more circumspect about hiding the wrongs they do.

[IndyJones]

5. I like your idea better.

[hobbit709]

6. Integrity and Walmart in the same sentence?

[FailureToCommunicate]

7. My first reaction also!

[A wise Man]

8. Not surprised

WALMART Still funds "ALEC"

[melm00se]

9. WalMart isn't the problem

here (but they do create plenty of problems). Greasing palms is the traditional way of getting things done south of the border.

Mexicans spent a whopping US$2.58 billion in bribes in 2007, some 42% more than they doled out just two years ago, according to a poll released Wednesday.

The survey, conducted by the non-profit group Transparency Mexico, showed that 197 million bribes were paid nationwide in 2007 — compared to 115 million in 2005.

USA Today 4/16/2008

"LA MORDIDA", translation "the bite" is the term used for a bribe in this country. It is the traditional and customary way of getting things done. The bureaucrat who does your bidding takes a bite out of the cost of completing your objective. Mexican reformers are trying to change this condition with little success. It is so institutionalized that it could take decades before the situation changes appreciably. Bribing a cop, a judge or a permit agent is not the exclusive domain of Mexico. News stories about bribery scandals in the United States are not uncommon but in Mexico it is a way of life instead of an aberration in the system. Source

It happens from top to bottom in Mexico and is, unfortunately, accepted there.

I know that most companies that do business in Mexico (and other countries where bribery/(large) gift giving is par for the course) have extremely specific policies on dealing with this. I know that mine does.

[closeupready]

10. US law trumps that.

Just the way it goes.

[bayareaboy]

11. Yes but don't blame the Mexicans ...

Here in America, Wall-Mart does it slightly different. They go to civic agencies and talk smack and then get anything they want.