Walmart Unethical Practice

Charles Escobar

Instructor Matthew Gowans

Rel/Mgt 228

May 31, 2013

Wal-Mart’s Unethical Practice

In many developing countries, bribery is an effective means for a new market entry to gain advantageous results from local government or primary officials to obtain their goals. Although bribery is generally prohibited globally, many international organizations engage in bribing local authorities where they operate. This has the drawback of suffering financial and reputation damage. This paper will provide an overview of this ethical issue violated by one of the world’s top five companies. Wal-Mart is the world’s third largest public corporation. It is an American retail corporation that runs large discount department stores (Wiki).

It is the largest retailer in the world and the biggest private employer in the world. With a company of this magnitude, there is sure to accompany the watchful eye and scrutiny of the public and even government.

The issue at hand is that Wal-Mart has been allegedly making illegal payments totaling in the millions to help expedite the opening of stores in Mexico. Bribery is not only unethical in all business practices but also illegal in the eyes of the law. There are people though that would argue that in some cases, such as when the result is the greater good for the greater amount, bribery would be acceptable. For this reason, it has actually become controversial and a topic of debate.

It is alleged that bribes were paid to win permission to open new stores quickly in Mexico. It could be as many as nineteen. These bribes may have totaled more than 24 million dollars. Investigators are looking into these dealings in Mexico. It is said that some of Wal-Mart’s senior management appear to be entangled. The Times alleges that Wal-Mart paid bribes of over $300,000 to build a Sam’s Club in one of the most densely populated neighborhoods in Mexico City. It is also alleged that bribes of more than $700,000 were facilitated to build a...