Wal-Mart's Recovery from the Bribery Scandal Essay

Wal-Mart's Recovery from the Bribery Scandal - Essay Example They covered evidence from the previous investigation, and the accused were never punished. This was against the moral and ethical standards upheld by the company as it pursued growth in Mexico (pp.2). Giving bribes and promoting the accused employees did not display any morals or business ethics. This was an example of impunity by a leading world retail market. Investors believed the significant growth experienced by Wal-mart de Mexico was a model for future growth and the most successful investment business. Corruption allegations and evidence that was unearthed by investigators was a substantial setback to investors. The top executive was supposed to prevent any misconduct by the company, but they orchestrated the bribes. This was against what investors expected from them, and a break of their trust. According to Cicero (pp.3) he had dispatched lawyers to deliver large amounts of cash to government officials who dealt with issuing of permits. This enabled the company open several branches within a short time. The company had hired gestores to conduct the bribes, who would in turn receive 6 percent of the bribe money. These were additional expenses by the company. This was an enormous misuse of investor money and an apology from the CEO would be one way of regaining their trust. ... It was discovered a few days later that a top lawyer planned to ship files of internal investigators to Mexico (pp.2). The company executives had failed to cooperate with FCPA, which was against corporate conduct. After the first allegations in 2005, a group of executives began working secretly to conceal those claims and prevent deep investigations (pp.3). Investigators also received resistance from powerful executives implicated in the scandal in order to impede and conceal the evidence (pp. 3). The company had hired an external law firm to conduct investigations, but their approach was rejected by the company leaders. They were replaced by internal investigators who conducted a preliminary inquiry (pp. 8). Investigators found that gestores had received millions of shillings and the top executive was aware of the payment. They had used codes that different from other billing records, which could only be understood by specific workers. These payments were to speed up expansion plans by the company instead of following legal procedures to acquire those permits. The management worked hard to end the investigations and hide any inquiry until it was reported again in 2012. This was a sign of poor leadership and corporate citizenship. The company had acquired market dominance through fraud, and corporate accountability is necessary for rebuilding its reputation. This would open the company to scrutiny by shareholders and the public regarding its business activities. A corporate website would help accountability and the public scrutiny process. With the current development in internet technology, a public website would provide accurate information to the public and other interested parties. The company can make crisis information available on the