Wal-Mart de Mexico
Wal-Mart, one of the worlds largest companies, has been reported to be pushing bribes on people to get into different parts of Mexico and expand their markets. About 24 million dollars was said to be utilized to bribe Mexican city officials to redraw zoning maps, so that Wal-Mart was able build their storage warehouses and super centers in areas of high populations and even in locations of historic importance. People like mayors, members of the zoning boards, and governors were all bribed into these plans of international expansion. In the Wal-Mart de Mexico case, CEO Lee Scott is faced with the three options of how to handle the bribery of building of record locations ...view middle of the document...
All evidence proves that this was illegal activity and should be addressed; so ignoring the situation will only cause more chaos in the future. Not to mention it is ethically and morally wrong in doing so because of the negative effects it had on so many people. Even though this theory may not have a problem with the moral misconduct of these individuals to increase growth and profit, it does comply with
the fact that all of this was done illegally.
Furthermore, the CEO Lee Scott is also, debating whether he should “quietly
neutralize the problem”.
In other words, brushing what they can under the rug, in hopes of becoming better at hiding this fraud in the future so that they are
not caught again. However, there is a decision-making model to prove the wrongness of that as a choice as well, which is applied in the following:
The theory of individualism applies here as well; Friedman’s theory shows that these bribes have damaged the image of Wal-Mart as one of the largest companies on Earth. For a company this grand, each and every move is watched and is a potential loss or gain in the reputation or money from the eye of the public. An individualist would state that pushing everything under the rug is a horrible way to fix this mess because they will now not only lose profit but respect as a company in the near future. In addition to, the individualism theory, the Utilitarian theory applies as well. The Utilitarian theory says that whole happiness for all parties or stakeholders involved in a given situation is the most important factor. For a business to be successful it is looked at in the long run perspective, with the customer satisfaction, growth and above all profit. It is hypothesized that Wal-Mart will lose substantial amounts of profit in the years to come because of this occurrence. “Quietly neutralizing the problem”, is going to come back and haunt the company...