The article outlines how Walmart very popular Mexican division was caught up in

a scandal during its period of rapid growth, due to unethical business practices that
included bribery, tax evasion and breaking of labour laws. this spurred a
controversy when the us government launched an investigation to look into
allegations that Walmart had been making shady business deals south of the
border. After months of attempting to cover up the story. Walmart finally relented
and admitted their mistakes. this created public mistrust of the company and
internally caused some to question the leadership of the company.

1. The ethical transgressions that took place in this case included bribery of officials,
tax evasions, and breaking of local labor laws to facilitate low costs that would allow
the company to be more profitable. Wal-Mart a multi-billion dollar corporation
resorted to these tactics because the Mexican legal and economic system is easily
corruptible and they sought to take advantage of that.

2.
Walmart would have refused requests for information from US authorities
because the US legal system would have had to power to investigate and punish the
company for its wrong doings. As well the case would have garnered large amounts
of negative publicity, which could have caused a backlash from customers resulting
in a loss of business.

3.
I would suggest that its a Walmart corporate problem because the practices of
the Mexican side of the business are a reflection of the company as a whole and
therefore and wrong doing or shady business deals have the potential to spill over
and affect the company internationally.

4.
Yes I believe the FCPA has failed in this case. When the FCPA was formed in
1977 it was designed to prevent businesses from using relaxed international laws to
boost the companys performance through bribery and political corruption. Not only
was Walmart caught spending over $24 million in bribes, but the company must
have realized the lack of resources the FCPA actually had and chose not to comply.
Congressman wrote a letter to Walmart executives as they accused the company
of failing to provide any information on the bribery allegations (Ghillyer, p. 136).
Considering the bribery allegedly dates back to 2005 and the responsible parties
have since been promoted and re-elected into the board of directors, the FCPA has
to have failed in some degree.

5.
Walmart has always claimed to operate in the best interests of their
shareholders, and although over 50 percent of the company is controlled by the
Walton family, shareholders can make a difference in the businesss operations.
With continued showings of disappointment, at some point the governing parties
will need to change their business conduct. Considering how the NFL, one of
Americas strongest leagues and businesses, is taking such a toll from poor ethical
decisions, Walmart will see the similarities and that consumers can decide to take
their business elsewhere.
6.
The first step Walmart needs to take to restore investor confidence is
discipline Eduardo Castro-Wright, who was identified as the driving force behind
years of bribery, [who] was promoted to vice chairman in 2008 (Ghillyer, p. 136137). By clearly demonstrating that Walmart is holding the guilty as such, it will
show where the companys true values lie and which direction Walmart will take in
future business conduct.