In the News…
Wal-Mart vs. Compliance
Student of DeVry University
Compliance with laws and fairness are a major hurdle for most companies. There is a fine line between paying someone for their services and giving them money for an upper hand. Recently there have been allegations against Wal-Mart for some unethical behavior in foreign countries. This has created such uproar that investors are now suing top Wal-Mart executives. Several board members involved in the scandals are being asked to step down from their positions by some shareholders (D'innocenzio, 2012). Wal-Mart CEO Mike Duke has come forward to ...view middle of the document...
Wal-Mart shares dropped more than 7% to $57 per share after the allegation were reported but have bounced back to $65 due to strong sales recently (Press, 2012).
To the rescue, at the company’s lavished annual meeting comes CEO Mike Duke. He states, “"Let me be clear: Wal-Mart is committed to compliance and integrity everywhere we operate. I want to personally assure you, we're doing everything we can to get to the bottom of this matter" (D'innocenzio, 2012). In the wake of the scandal Wal-Mart has launched investigations which are going to be widened to other countries. They are also in the midst of re-vamping their compliance program. Duke and the other board member have a little hill to climb but with the companies past record this will all be a thing of the past. Wal-Mart has overhauled their image before and will use this as a learning experience.
Wal-Mart cannot project itself to its employees as a company that wants everything done right away. The presence of a quick, we can do anything we want attitude makes employees think that Wal-Mart wants results as fast as possible. This can lead to people believing they are doing the right thing when they are not. This is most likely the cause of the recent Wal-Mart scandal. The affects can be devastating but can be recovered from when the company is as big as Wal-Mart.
* This material shows how unethical behavior can affect all stake holders be it with shares dropping or board of director members being let go. It is a snowball effect. The actions of a few can damage the lives of many.
* Public image of Wal-Mart has now been damaged again. It takes time to recover from scandals like this, but hurts seeing how Wal-Mart is expanding.
* New global regions...