Walmart Case

In: Business and Management

Submitted By seedgar77
Words 1191
Pages 5
A large corporation such as Wal-Mart has the ability to generate and demonstrate many unethical behaviors in their pursuit of profit and the scandal uncovered in 2005 displays that in several ways. Wal-Mart’s use of bribery in Mexico, and subsequent denial and “ignorance” of the allegations, presents many ethical issues such as; overconfidence bias, ethical fading, framing, and obedience to authority. In order to prevent these unethical behaviors corporations must have a set of core values and goals that align with legal business practice and they must set up checks along the way in order to prevent harm to the company and the communities that they serve. If companies can do this they can prevent losses both monetary and of public favor. To summarize the issue briefly, in the early 2000’s Wal-Mart was attempting to expand business into Mexico. In order to hurry along business and obtain the highest profits possible, it was discovered, that Wal-Mart had employees bribe many public officials in the Mexico City area. These bribed officials helped to rezone and pass legislation along that would give Wal-Mart the right to build on land that had previously been unavailable. This is known as a "dishonest graft" which is an act of self-enrichment, which in this case exposes the grafter to legal penalties since it is considered in the United States to be a form of bribery. In 2005 some parties involved in the corrupt practice sent an email to company’s higher up officials, which outlined the illegal activities which had been going on. Wal-Mart consequently starts an internal investigation of the issue, but in 2006 the investigation was shut down by leaders of the corporation, although oodles of evidence had been discovered, and after the shut down the issue was never reported to authorities. When officials were confronted about the issue in 2012 they denied involvement…...

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