Walmart Scandal in Mexico

784 WordsApr 1, 20144 Pages
Walmart is under investigation for the allegations of bribery carried out by executives in Mexico eager to boost the company’s growth in that Market. The New York Times was first to break the story describing the Mexican scandal as “a prolonged struggle within the company that pitted its much publicized commitment to the highest moral and ethical standards against its relentless pursuit of growth”. In Septemper 2005, a senior Wal-Mart lawyer received an email about how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance in its rush to build stores. The New York Time lays out a seven-year campaign of unethical behavior, totaling more than $24 million in “suspect payments” and corporate aggression that has…show more content…
According to Wagner, Lutz and Wietz, “the importance for firms to communicate their social responsibility not only has risen substantially over the last few years but also continues to increase dramatically as a result of current worldwide economic conditions and the resultant skepticism of how corporate practices affect the well-being of societies”. In addition, media and technology advances allow for immediate dissemination of both positive and negative messages about a company. When company actions are different than CSR statements, the company’s image and sales suffer. I believe as result of the improved CSR statements and the Wal-Mart bribe situation, American businesses working on foreign soil will improve. Furthermore, I believe U.S. companies operating on foreign soil will use the Wal-Mart example as company business lesson and ensure they have the above mentioned best business practices set up to avoid another repeat in history. Any further examples of this sort of unethical business behavior could be fatal to businesses from law suits and fines not excluding reputation. Also the consumer is much more aware and checking to make sure these companies are who they say they are! I know I will be following up a little more

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