After Top-Level Struggle Confronted with evidence of widespread corruption in Mexico, top Wal-Mart executives focused more on damage control than on rooting out wrongdoing, an examination by The New York Times found.
The headlines are from Saturday’s New York Times. The news article details how Walmart de Mexico—that nation’s largest employer—regularly paid huge bribes to Mexican government officials to approve permits for new stores; how senior management of the Mexican subsidiary was party to the bribery; how Walmart headquarters in Arkansas investigated the allegations of bribery, and how, when the investigations turned up hard evidence, hq proceeded to bury it.
“It’s not the crime, it’s the cover-up.” So goes the conventional wisdom, but in this case it was both: the crime was committed by top management of the Mexico subsidiary, and the cover up was by top management of the parent company.
In my business ethics courses we use Walmart as a case study: Is the company ethical or unethical, and is it good or bad for America.
On the plus side Walmart gives employment to hundreds of thousands (more…)