In 2005, a former executive at Wal-Mart in Mexico sent an e-mail to a senior Wal-Mart lawyer in the US indicating that bribery was undertaken in Mexico by Wal-Mart to obtain permits to build stores (Barstow, 2012). The former executive provided names, dates, and amount of bribes paid. An internal investigation of these claims found evidence of widespread bribery involving US$24 million. Wal-Mart executives in the US knew about the bribes and undertook steps to hide them. Wal-Mart executives in the US then apparently stopped the investigation. One might also now ask whether Wal-Mart acted similarly in other countries in which they recently entered and are growing (e.g., China). Wal-Mart lost US$10 billion on Monday, April 23 following the announcement of a bribery investigation into its Mexican operations (Burke, R. J., & Fox, S. (2016). If true, these bribery practices would violate the US Foreign Corrupt Practices Act and create lengthy problems for Wal-Mart. A short time later, Wal-Mart lawyers included Brazil, China, India and South Africa, in addition to Mexico, in their investigation of potential bribery by Wal-Mart (Burke, R. J., & Fox, S. (2016).
Please re-read the Management Focus on p. 51: Did Walmart Violate the Foreign Corrupt Practices Act?
What should Walmart do? What would you do? Do some research and tell us what Walmart did after November 2012. Do you agree with their actions? Why or why not?