Question: DQ # 3 Based on Did Walmart Violate the Foreign Corrupt Practice Act? Case Summary This feature explores corruption at Walmarts Mexico division where managers

DQ # 3

Based on Did Walmart Violate the Foreign Corrupt Practice Act?

Case Summary

This feature explores corruption at Walmarts Mexico division where managers allegedly bribed Mexican government officials to obtain permission to build the San Juan Teotihuacan store in the early 2000s. After leaders at Walmarts headquarters were alerted of the situation, Walmart launched an internal investigation. However, the investigation was turned over to Walmart Mexico to complete and only after a 2012 New York Times article again raised questions about the situation did Walmart reopen the investigation. Today, the company has spent more than $300 million on lawyers looking into the issue and Walmart is also facing scrutiny by the SEC and the U.S. Department of Justice.

3-a) Did Walmart violate the Foreign Corrupt Practices Act? What is your opinion? If you think it did, what do you think the consequences will be for Walmart?

3-b) Do you agree with people who say that bribery may be justified to grease the wheels so that business can be done in some countries ?

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