1. Madeline McTigue Crisis Communication Presentation Walmart Bribery Scandal in Mexico

2. Facts about the Scandal Who: Walmart’s International Sector and executives What: $24 million in bribes Where: Walmart De Mexico, San Juan Why: Dominate market by expanding quickly How: Negotiations with Mexican officials Bribery Scandal Video NY Times

3. Facts about the Scandal NY Times investigation, email chain found Former executive gave names, dates, amounts 2005: Internal investigation “There is reasonable suspicion to believe that Mexican and USA laws have been violated.” – former FBI agent, lead investigator No law enforcement notified, investigation cease

4. CEO Walmart DE Mexico, Eduardo Castro-Wright “Personally approved the bribes” - Henry Blot, Business Insider Praised for astonishing success in Mexico

5. Walmart’s Response David Tovar, VP Corporate Communications of Walmart VP Response December 2012 Compliance effort: $439 million, two years 2,000 more compliance Foreign corruption violations reported to executives Departure of some foreign executives involved

6. Walmart’s Response Working closely with Federal Government “The mandate that we’ve received is, Let’s try to move this company to the front of compliance and really lead, and that takes an additional investment.” - Jay Jorgenson, Global Chief Compliance Officer Regain public trust

7. Evaluation of Response Good VP’s video aired CNBC and online Efforts toward compliance Bad 2005 response to email and investigation Walmart’s website, non transparent VP’s video does not take blame

8. Takeaways 1. Should have taken action in 2005 2. Integrity of company was diminished - Executives covering tracks 2. Compliance efforts of $439 million - Gives government and public confidence to trust

9. Works Cited Barstow, David. "How Wal-Mart Used Payoffs to Get Its Way in Mexico." The New York Times. The New York Times, 17 Dec. 2012. Web. 19 Oct. 2014. Barstow, David. "Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle." CNBC. N.p., 21 Apr. 2012. 22 Oct. 2014. Blodget, Henry. "BUSTED: Walmart Caught In Huge Bribery Scandal -- Senior Management Knew About It And Tried To Cover It Up." Business Insider. Business Insider, Inc, 22 Apr. 2012. 22 Oct. 2014. "Company Statement in Response to Charges." CNBC. N.p., 21 Apr. 2012. Web. 22 Oct. 2014. Harris, Elizabeth A. "After Bribery Scandal, High-Level Departures at Walmart." The New York Times. The New York Times, 04 June 2014. 22 Oct. 2014. Voreacos, David, and Renee Dudley. "Wal-Mart Says Bribe Probe Cost $439 Million in Two Years." Bloomberg.com. Bloomberg, n.d.19 Oct. 2014. "Walmart Statement in Response to Recent New York Times Article About Compliance with the U.S. Foreign Corrupt Practices Act." Walmart Statement in Response to Recent New York Times Article About Compliance with the U.S. Foreign Corrupt Practices Act. Walmart, 21 Apr. 2012. Web. 22 Oct. 2014.