Tuesday, April 24, 2012
Remember Wal-Mart's Mexican bribes?
According to the law
If Wal-Mart is found to have violated the Foreign Corrupt Practices Act, which forbids paying bribes to foreign officials, the company could face fines of hundreds of millions of dollars. Top Wal-Mart executives could lose their jobs – or worse, go to jail. And the retailer could suffer a public relations nightmare if a lengthy investigation ensues.Well today we learn that the Dept of Justice has been investigating this since December. If the New York Times could publish a detailed chronology of what happened you might figure that the DoJ could put together a case by now. But all you lovers of cheap Chinese crap need not fear, your beloved behemoth will not suffer any major damage.
Despite public embarrassment and blistering headlines, Walmart will likely escape criminal charges over allegations the retailer bribed officials in Mexico, according to an examination of similar cases prosecuted by the U.S. government. If recent history holds true, the Department of Justice will settle the matter without formally prosecuting the retailer under the government's anti-bribery statute...A nice cozy settlement, an easily affordable settlement and nobody did anything wrong and we promise not to do it again. Corporate justice in America.
In recent years, the Justice Department has increased the number and scale of its actions. The Justice Department has collected more than $3 billion in fines from multinational corporations since 2008, including the huge defense contractor BAE Systems, the automaker Daimler AG, and the health care product manufacturer Johnson & Johnson.
But most of these companies were never formally prosecuted, even in cases the Justice Department describes as egregious. Since 2010, 29 of 32 cases brought by the Justice Department were resolved either with a non-prosecution agreement, or a deferred-prosecution agreement -- methods for resolving cases without actually filing charges.
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When I took a "Intro to Business" class we had to interview people who had been involved in business in other countries. I learned a new word, but not a new concept for me since I grew up on the border. The word was "mordida" and it's just part of doing business in much of S America, and in fact, most of the world.
I don't like it, but I know it is there.
I don't like it, but I know it is there.
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