Now the world’s largest retailer now apparently can add
massive bribery to its litany of sins, bribery on a scale that puts it in
league with other huge U.S. corporations that have wreaked havoc beyond
American shores, companies like Chiquita, or as it was formerly known, the
United Fruit Company.
(To the right is a 1916 advertisement for the United Fruit Company)
Walmart is under fire as a result of an in-depth
investigation by the New York Times that
exposed a widespread pattern of bribes totaling upwards of $24 million in
Wal-Mart de Mexico, its largest and hottest foreign subsidiary. The scandal
reaches all the way to the inside of Walmart’s top corporate boardroom,
tainting former chief executive H. Lee Scott Jr., who “rebuked internal
investigators for being overly aggressive” in their own investigation of bribes
in Mexico, the New York Times
reported. Apparently Walmart’s current top executive, Michael T. Duke, was also
aware of the problems in Mexico.
However, it was only after learning of the New York Times investigation that Walmart officials notified the
U.S. Justice Department that violations of the Foreign Corrupt Practices Act
may have occurred.
Until these revelations, Mexico had been a land of golden
opportunity for Walmart, becoming the home to a fifth of all Walmart stores in
the world and the worksite for more than 200,000 “associates”. Wal-Mart de
Mexico’s chief executive, Eduardo Castro-Wright, had become company
vice-chairman and was seen as a potential candidate for Walmart’s top job.
The Times reported
that former Walmart executive Sergio Cicero Zapata admitted in interviews that
he “helped organize years of payoffs,” targeting “mayors and city council
members, obscure urban planners, low-level bureaucrats who issued permits—anyone
with the power to thwart Wal-Mart’s growth.”
Walmart should be used to scandal by now but not perhaps a
scandal of this scale. Seven years ago, former No. 2 Walmart executive and Sam
Walton protege Thomas Coughlin was found guilty of stealing up to a
half-million dollars from the company.
Coughlin’s defense was that the money was used to fund union
spies at the notoriously anti-union company.
Walmart’s bad behavior doesn’t necessarily have to involve
breaking the law, however. A Business Week
investigation in 2006 exposed how Wal-Mart (it changed its name to Walmart in
2008) and Nike bullied their way into the Chinese economy by squeezing
suppliers for the lowest possible prices on goods and, in essence, encouraging
behind-the-scenes sweatshop conditions at the same time they were assuring
their critics back home that they were discouraging such conditions.
That particularly report came a decade after revelations
that television star Kathie Lee Gifford’s line of clothing sold at Wal-Mart was
made in sweatshops in Central America and New York City.
(To the left is an 1890 sweatshop)
Bad behavior is nothing new for mega-U.S. corporations
abroad. One only has to look to the sordid legacy of the United Fruit Company,
now called Chiquita Brands International. As far back as the turn of the last
century, United Fruit stood front and center in Latin American politics,
helping to overthrow unfriendly regimes, calling on friends in the U.S.
military to help, and inspiring rage in future revolutionaries like Che Guevara
and writers like Gabriel García-Marquez.
More recently, Chiquita officials admitted to making
payments to a terrorist paramilitary group in Colombia known to operate death
squads and attack union organizers and dissident workers. The company reached
an agreement with the Justice Department to pay a $25 million fine. It claimed,
however, the payments were to protect its workers and plants.
Guess who was once a top attorney for Chiquita. None other than U.S. Attorney General Eric Holder.
Chiquita, the Dole Food Company, and other U.S.-based
companies continued to use the cancer-causing pesticide Nemagon in Latin
America and the Philippines long after it was banned in the United States,
exposing workers to a host of deadly physical ailments.
Want a bit of irony? Dole’s top executive, David Murdock,
notorious in Kannapolis, N.C., for taking off with millions of dollars in
workers’ pensions when he sold his Cannon Mills textile operation there,
returned to Kannapolis years later with a promise to build a “biopolis” of
research laboratories to study nutition and healthy foods and eating practices.
At the same time, the hypocrite was fighting efforts in Nicaragua to hold his
company accountable for its use of nemagon and the resulting health-care
disaster to its workers.
Modern-day superstar corporations like Apple aren’t all that
different in this dark tradition within U.S. corporate culture and behavior.
A long-awaited report from the Washington-based Fair Labor
Association recently eliminated any doubt about the poor working conditions of
the Chinese workers who help produce iPads and iPhones. Those conditions
include 60-to-70-hour work weeks at minimal pay, conditions the Apple
corporation and its partner in China, Foxconn, say they’re going to try and
fix. Foxconn has a 1.2 million workforce.
If Apple is indeed serious about righting the wrongs of such corporate behavior abroad, it
would certainly a break from the dark tradition of its corporate brothers.
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