Wal-Mart Scandal Essay

981 Words Jun 1st, 2013 4 Pages
New York Times reporter David Barstow uncovered a shocking story against retail giant, Wal-Mart. His investigation started after Wal-Mart shut down its internal investigation over the possible bribery of Mexican officials. Wal-Mart used these bribes to accelerate growth in their Mexican zoning areas. These allegations surfaced when a Hispanic lawyer contacted Wal-Mart headquarters in Bentonville Arkansas. This lawyer had inside information on Wal-Mart’s bribes, as he represented them in their acts. He was used as a middle man for Wal-Mart’s payoffs to these officials.
Wal-Mart took action in defending its image. In 2005 the company launched an internal investigation that dug into the operations of Wal-Mart de Mexico. The reports put
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Cicero said that he had done these deals for years while working for Wal-Mart. Along with the information they received from Mr. Cicero, the times also found government documents with evidence of payoffs. These documents showed that within days of the money being given to the lawyers the permits were granted.
The Times have published new stories exposing the company further with deeper information that they have gained through their investigation. Some of the information includes:
* Wal-Mart pays $341,000 to officials in Mexico City to build a Sam’s club. The building was put in a densely populated area, and was done without a construction license, or an environmental permit or and urban impact assessment, or a traffic permit.
* Wal-Mart bribes officials to build “a vast refrigerated distribution center in an environmentally fragile flood basin north of Mexico City in an area where electricity is so scarce that many smaller developers turned away.” The bribe for this case was $765,000.
* A zoning situation in Teotihuacan caused Wal-Mart to make a payment of $52,000 to enable them to build a store near a famous pyramid site. The citizens were enraged by the location of the store but the protests were ignored and the Wal-Mart was built. The mayor of Teotihuacan spent $77,000 buying and renovating a ranch the next year. Unexpected on a $47,000 yearly salary.
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