LOD: Wal-Mart Way of Business

Wal-Mart is in the middle of a scandal involving allegations of massive bribery in Mexico – and the company is depending on the goodwill built through its generous donations to Congressional leaders of both parties to weather the storm; in other words, it’s using another form of bribery that has become standard practice for major businesses, especially as they undergo more scrutiny for abusing their power. Wal-Mart has been the target of numerous complaints over the years as it has enriched the heirs of founder Sam Walton – several are now among the 10 richest individuals in the United States. Earlier this week, the company agreed to pay nearly $5 million in back pay and damages to thousands of workers it had cheated out of overtime pay. That amount pales next to the more than $600 million Wal-Mart agreed to pay to settle dozens of labor-related cases in 2008. Apparently it learned the wrong lesson from that experience, i.e., cheating is cheaper than doing the right thing. Would its owners be so recalcitrant if they couldn’t use protection money to bribe the system in their favor? They are already spending big-time in the 2012 election so they never have to find out.