Monday, April 23, 2012

Wal-Mart Working On Another Top 10 Most Crisis Prone Business Ranking

Wal-Mart de Mexico, the largest international division of Wal-Mart, has been accused of bribery to speed the growth of the company in Mexico, and then a cover-up by top American executives.

The New York Times published the allegations and now legal scholars and former Securities and Exchange Commission officials are predicting the retail giant could be hit with $1-billion in fines and settlements and legal fees if the Times report turns out to be true.

The Institute for Crisis Management's 2011/2012 Annual Crisis Report is due to be published in two weeks and it will reveal that Wal-Mart dropped off the top-ten most crisis prone companies' list in 2011, after making the top-ten list six times since 2003.

Wal-Mart was #5 in 2003, #2 in 2004, #8 in 2005, #4 in 2006 and 2007 and #9 in 2010.

Experts who have weighed in since the initial Times story, predict that, if true, the bribery and cover-up will haunt Wal-Mart for years and likely result in whopping financial penalties by U.S. regulators and the ultimate downfall of top company executives.

Wal-Mart made the ICM Top Ten list repeatedly since 2003, while also being named one of the "best" companies in the U.S. at the same time.  Wal-Mart made the ICM list mostly because it is one of the biggest companies in America and by its very size, generates tons of good and bad news every year.

However, it's one thing to deal with a job discrimination lawsuit, and another to face federal bribery charges and the prospect that more than one senior executive could end up in a federal penitentiary for a few years.

And to add insult to injury, critics of Wal-Mart will use the allegations to hammer the company every time they have a chance.


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