Walmart Scandal : The World 's Largest Retailer Essay

720 Words Nov 17th, 2016 3 Pages
Walmart Bribery Scandal Walmart became the world’s largest retailer by proposing “everyday low prices” around the world. Apparently, though, Walmart was proposing something else too. They had been embarked into a major scandal investigation that publicized that Walmart’s Mexico branch paid $24 million in bribes to local officials to bypass guidelines and acquire a construction permit for new stores. Walmart finally gave in an admitted their mistake. This caused the public to question their trust and its leadership of the company. There are five things to know about this case. The amount of bribes that was given to Mexican officials, the people who knew of the bribes and how they tried to conceal them from the United States, how Walmart stopped the investigation because it might harm their growth, how they aggressively reassigned the evidence to Mexico, with the Mexican counsel, and how they could have been hit with large fines. The ethical transgressions that took place were the bribery of officials, tax evasions, and breaking the local labor law. All these allowed the company to keep down cost which resulted in a large profit margin for the company. With this came a bad reputation which had a bad reaction from their consumers that could have resulted in losing a huge customer base. Walmart being a profitable company resorted to these tactics because the Mexican and the legal system is easily corrupted, so they took advantage. Walmart could have rejected the request…

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