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Walmart Stores, Inc.: A Corporation above the Law

Walmart Stores, Inc. is a multinational corporation specializing in consumer retail,
selling a large variety of goods ranging from clothing to groceries. The first Walmart
store was opened in 1962 in Rogers, Arkansas (The History of Walmart) but has
grown to operate stores in 27 countries as well as e-commerce websites in 11 countries
(Walmart Corporate: Out Business). Walmarts current assets total $207.899 Billion as
at Oct. 31, 2014 (United States). This is a corporation which has grown to incredible
heights, which somehow allows it to evade the law.
Wal-Mart Stores, Inc. has been the target of a large variety of crimes throughout
the world from North America to India, making it a repeat offender. It is impossible to
know precisely how many crimes the company has committed, however certain acts
have caught the attention of the media. One prime example is the Walmart de Mexico
Allegations from inside the company arose that Eduardo Castro-Wright, the former CEO
of Wal-Mart de Mexico, orchestrated $24 million worth of bribes in Mexico to secure
construction permits (Cummings). This was disclosed, along with other details produced
by an internal investigation, to the U.S. Justice Department and Securities and
Exchange Commission in November, 2011 (Voreacos and Dudley). There have,
however, been reports of some of the companys top executives possessing knowledge
of this issue since October, 2005. These allegations, should they be effective, could find
Walmart and certain executives (whose legal fees are taken care of, courtesy of WalMart Stores, Inc.) in violation of the Foreign Corrupt Practices Act of the United States.
According to Bloomberg, however, probes into these actions typically end in
settlements, with companies paying fines and admitting wrongdoing. It is somewhat

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ironic how the company, which gets in trouble for paying a government and its laws, is
getting out of trouble by merely paying off a government again.
The U.S. Department of Justice probe still continues, however over a decade
after the alleged acts would have been committed, no charges have been officially laid
(Viswantha). The company has also undertaken the legal fees of executives involved in
or who may have known about the alleged criminal acts since late 2005. The companys
cash and cash equivalents alone total $6.718 Billion as at Oct. 31, 2014; the millions
spent on legal fees and having its lawyers supervise a very limited preliminary inquiry
by in-house investigators are hardly an issue.
Walmart has an official Global Anti-Corruption Policy which states, It is the
policy of Walmart to comply with all relevant Anti-Corruption laws including, but not
limited to, the US Foreign Corrupt Practices Act and the UK Bribery Act. ( As part of its
anti-corruption initiatives, the corporation has spent approximately $439 Million dollars
in merely two years ("Walmart Global Anti-Corruption Policy). As it is a profitmaximising company, the reasons behind this expenditure are slightly questionable. Is
the company trying to be a good corporate citizen in helping the government or is it
preparing itself and its executives for a potentially painful legal battle? Walmarts
dedication to this, as well as government regulations seems to be clouded by its legal
obligation to maximize shareholder earnings.
Behind the faade that Walmart Corporate has put up lies a world of corporate
crime. Though the company seems to be compliant with government regulations in
countries such as Canada and the United States, investigations into overt criminal acts
conducted by the corporation are taking place all over the world in countries such as

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Mexico, India and Argentina. It is clear that Walmart has little regard for national and
international regulations in areas ranging from human rights to much more limited topics
including local laws.
One alarming observation is that the Walmarts compliance varies greatly
between countries, which seems to coincide with economic and political power. Walmart
is the largest private employer in Mexico and enjoys special privileges given to them by
Government officials on their payroll. Mexico is faced with the dilemma of enforcing its
own, sovereign laws and attacking an organization which possesses much political and
economic power. The criminal activities of the organization seem to be more prevalent
in more vulnerable, developing countries than in the First World.
Walmart de Mexico, as mentioned earlier, displayed Walmarts dedication to
maximize shareholder profits with little regard to the law. The executives of Walmart de
Mexico, with little regard to anti-corruption laws both in the United States and Mexico,
bribed Mexican officials to obtain construction permits, change zoning maps and get
around other red tape hindering their aggressive growth goals. In one particular case,
Walmart de Mexico had plans to build a store approximately a mile from the countrys
ancient pyramids; an act which would not have been allowed by the 2003 zoning map.
Walmart was able to circumvent this issue by paying a $52,000 bribe to an official to
change the map before it was published in a government newspaper, making it law
(Barstow). In this case, Walmart de Mexico was able to increase shareholder earnings
by getting around the law.
Walmart has established itself as a corporation which forces its way into markets
by bribery and possibly other criminal activity. While it is fulfilling its legal duties to

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maximize shareholder profit, it is also breaking laws such as the US Foreign Corrupt
Practices Act. Compliance with government regulations varies between countries, with
little to no compliance in poorer, developing countries where their economic and political
power is more overt and evident than in North America. The faade that Walmart
Corporate has put up as well as fact that millions around the world depend on the
company due to its economic power do not cover up the fact that this company can be
considered a prime example of the corporate criminal.

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Citations
Barstow, David. "How Wal-Mart Used Payoffs to Get Its Way in Mexico." The New York
Times. The New York Times, 17 Dec. 2012. Web. 3 Dec. 2014.
<http://www.nytimes.com/2012/12/18/business/walmart-bribes-teotihuacan.html?
pagewanted=all&_r=0>.
Cummings, Congressmen. "Wal-Mart Knew about Mexico Bribery in 2005, Say
Lawmakers." CNNMoney. Cable News Network, 10 Jan. 2013. Web. 3 Dec.
2014. <http://money.cnn.com/2013/01/10/news/companies/walmartinvestigation/>.
"The History of Walmart." The History of Walmart. Web. 3 Dec. 2014.
<http://corporate.walmart.com/our-story/history/>.
United States. U.S. Securities and Exchange Commission. Condensed Consolidated
Balance Sheets (Unaudited). Walmart Stores, Inc., 2014. Web.
<http://www.sec.gov/Archives/edgar/data/104169/000010416914000080/wmt103
11410-q.htm>.
Viswanatha, Aruna. "Wal-Mart Pays Lawyer Fees for Dozens of Executives in Bribery
Probe." Reuters. Thomson Reuters, 4 Dec. 2013. Web. 3 Dec. 2014.
<http://www.reuters.com/article/2013/12/04/us-walmart-bribery-lawyersidUSBRE9B305W20131204>.
Voreacos, David, and Renee Dudley. "Wal-Mart Says Bribe Probe Cost $439 Million in
Two Years." Bloomberg.com. Bloomberg, 26 Mar. 2014. Web. 3 Dec. 2014.
<http://www.bloomberg.com/news/2014-03-26/wal-mart-says-bribery-probe-cost439-million-in-past-two-years.html>.

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"Walmart Corporate: Our Business." Walmart Corporate: Our Business. Web. 3 Dec.
2014. <http://corporate.walmart.com/our-story/our-business/>.
"Walmart Global Anti-Corruption Policy." Walmart Global Anti-Corruption Policy. Web. 3
Dec. 2014. <http://corporate.walmart.com/global-anti-corruption-policy-cr-02>.