Walmart De Mexico Essay

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This investigation covers how the Wal-Mart de Mexico paid off all sorts of government officials throughout the years to receive special zoning privileges and much more as they sought strategic competitiveness against their industry environment. This made it easy for Wal-Mart de Mexico to bypass time constraints as well as hindrances in the political/legal segment that would normally affect them. This all came to light with the help of former executive for Wal-Mart de Mexico, Sergio Cicero Zapata. With the debriefings from lawyer Juan Francisco Torres-Landa, Cicero revealed how the company did whatever possible to expand stores in as little time as possible through bribery hidden as accounting. Controversially, he put the Chief Executive, Eduardo …show more content…

In fact, the rapid growth of Wal-Mart de Mexico can only be attributed to the payments made to lawyers in charge of sending monetary bribes to the government in exchange for a fast expansion and shortcut through legal processes. Attempting to buy the time of public officials through cash is considered a crime. This with the assistance of accounting adaptations is a manipulation of the overall financial view of Wal-Mart de Mexico and thus, those involved should have received a charge in unlawful pursuit. The camouflaging of these bribes as legal fees is a criminal offense. What Wal-Mart failed to consider when entering Mexico was the liability of foreignness which posed an unfamiliar operating environment in which the use of bribery was more common to see. A political risk analysis of Mexico would have avoided these conflicts. Perhaps with this analysis, the illegal donations via Wal-Mart de Mexico totaling at $16 million to the Mexican government could have been avoided. The fact that the real estate executive for the company knew that these “donations” were used as catalysts in the gaining of licenses should have immediately sparked a trial in court. In the closing of this case, the accusations that Mr. Rodriguezmacedo made against Mr. Cicero would be considered defamation of character as they were relayed without evidence. It was not proven that Mr. Cicero was receiving part of the money being paid illegally by Wal-Mart de Mexico or that he was fired when he actually resigned. These were false accusations that could have been brought to court if it weren’t for Mr. Rodriguezmacedo taking back his view of prosecuting Mr.

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