CASE STUDY – MEXICO WALMART SCANDAL DOCX

Title	CASE STUDY – MEXICO WALMART SCANDAL
Author	Christina Black
Pages	4
File Size	27.7 KB
File Type	DOCX
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Summary

Christina R. Black Week 6: Case Study Professor Pidgeon CASE STUDY – MEXICO WALMART SCANDAL In 2005 a whistleblower, Sergio Cicero Zapata, sent an email to a Wal-Mart lawyer stating that Wal-Mart de Mexico had partaken in bribery to win market dominance with Eduardo Castro-Wright, chief executive of...

Description

Christina R. Blackn Ween 6: Case Study Professor Pidgeon CASE STUDY – MEXICO WALMART SCANDAL In 2005 a whistleblower, Sergio Cicero Zapata, sent an email to a Wal-Mart lawyer stating that Wal-Mart de Mexico had partaken in bribery to win market dominance with Eduardo Castro-Wright, chief executive of Wal-Mart de Mexico, as the ring leader. The former executive was a lawyer, responsible for obtaining construction permits for the Mexico area, and was able to provide date, names, and amounts. Zapata primarily partook in the organizing and payment of the bribes that bought zoning approvals, reductions in fees, and the allegiance of leaders under the direction of Eduardo Castro-Wright. Later, investigators found a paper trail that confirmed over $24 million dollars were paid in bribes. [ CITATION Bar12 \l 1033 ] The obstacle that Wal-Mart de Mexico faced was the new leader's established and approved a new zoning map that restricted the commercial development near the pyramids and the main entrance to the town due to congestion. Knowing the zoning map had yet be publicized, the executives at Wal-Mart de Mexico made an executive decision to avoid this deterrence by ofering bribes to government ofcials responsible for the zoning map. [ CITATION Ada12 \l 1033 ] Rodriguezmacedo Rivera, also general counsel at Wal-Mart de Mexico, implemented a plan that used "gestores", but called them external service providers to avoid red fags. Gestores are used in Mexico's public corruption scandals. [ CITATION Bar12 \l 1033 ]...