Corporate Governance: When US Companies Commit Crime Abroad
The recent news of Wal-Mart Stores, Inc. (NYSE:WMT) paying
bribes in Mexico brings to focus how capitalism is fighting the
monsters created by need, greed and maybe capitalism itself.  If
ordinary citizens pay bribes to government officials for favors
or for speeding up approvals, why wouldn’t companies resort to
such practices to further their business interests?   In
countries where income levels are lower, corruption has
percolated to all levels of government. U.S. companies which
operate in such political environments, always face the
compulsion to pay bribes to secure government contracts or
obtain licenses/permits etc.  In case they do not fall in line
with these practices, they risk losing out or being left behind
in the race. This is because some other company, from some other
country, may pay the grease money and ultimately get the
business. Further, corporations, which are always under pressure
from stakeholders to perform, sometimes give