Walmart: Arkansas Blog, Arkansas Times

Walmart hires Dan Bartlett, former George W. Bush spokesman, as executive VP

Max Brantley — Wed, 22 May 2013 10:36:00 -0500

Walmart has announced the hiring of Dan Bartlett as executive vice president for corporate affairs.

Bartlett, who's been in PR, is best known as former spokesman for President George W. Bush. His work included pushing reporters to find out who sent Joseph Wilson to Niger (the famous incident that ultimately led to the outing of CIA agent Valerie Plame) and defending Bush against post-administration charges by a former aide, Scott McClellan, that the administration had been untruthful in the runup to the Iraq war and in the Plame matter.

He did speak bluntly and accurately on at least one occasion, as told in Wikipedia:

At the end of 2007 Bartlett, during an interview with Evan Smith published in the January '08 Texas Monthly, implied some conservative bloggers, such as Hugh Hewitt, were unfiltered mouthpieces for the GOP and Bush White House.

I mean, talk about a direct IV into the vein of your support. It’s a very efficient way to communicate. They regurgitate exactly and put up on their blogs what you said to them. It is something that we’ve cultivated and have really tried to put quite a bit of focus on.

Rush Limbaugh, Mr. Bartlett from Walmart is on the line.

He'll be moving to Northwest Arkansas, where he should feel right at home.

WALMART NEWS RELEASE

Dan Bartlett Joins Walmart as
Executive Vice President of Corporate Affairs

BENTONVILLE, Ark., May 22, 2013 — Today Walmart announced that Dan Bartlett, 41, will become the company’s new executive vice president of Corporate Affairs in late June. Bartlett was most recently president and CEO of the U.S. arm of Hill+Knowlton Strategies, a global business advisory firm serving corporations, non-profits and associations in 52 countries.

Bartlett will report to Mike Duke, Walmart’s president and CEO, and will serve as a member of the company’s executive council. His responsibilities will include oversight of external communications, government relations and sustainability, as well as the Walmart Foundation, which contributed more than $1 billion in cash and in-kind donations last year.

“Corporate Affairs plays a strong role in helping us meet our business objectives at Walmart,” said Mike Duke. “The team also helps us step up to the broader role we can play in meeting some of the biggest social challenges in the world today — issues like fighting hunger, job creation, sustainability, women’s economic empowerment and the availability of healthier food.”

Duke added, “Dan’s personal integrity, strong professional skills and broad understanding of world affairs make him the ideal leader to continue moving us forward. He has had key roles in government and at a major communications company. He has also counseled a wide range of multinational corporate clients in areas such as growth strategy, crisis management and public opinion. He is known for being straightforward, a good listener and collaborative — all traits that will serve him well at Walmart.”

“Growing up in a small Texas town, I've seen first-hand the opportunity Walmart provides and the positive impact it can have on local communities,” said Bartlett. “Now Walmart is in a unique position to make a difference in the lives of millions of people around the world. I am honored and excited to be part of that.”

At Hill+Knowlton, Bartlett helped lead the firm’s international growth and managed its day-to-day operations. He provided strategic counsel to the company’s largest accounts, which represent key industries, including finance, telecommunications and defense. He has also helped multinational companies and NGOs build and align their sustainability, public policy and philanthropic programs.

Prior to this, Bartlett was a senior counselor to President George W. Bush. In this role he was responsible for all aspects of the president’s strategic communications planning, formulation of policy and implementation of the president’s agenda. He also oversaw the White House press office and the Offices of Communications, Media Affairs and Speechwriting and Global Communications. Bartlett also played a key role in George W. Bush’s presidential and Texas gubernatorial campaigns.

Bartlett has a Bachelor of Arts in political science from the University of Texas at Austin and is currently an adjunct professor at the university’s Lyndon B. Johnson School of Public Affairs.

Bartlett, his wife Allyson and their four young sons will be moving to northwest Arkansas.

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White House budgeting goes the Walmart way

Max Brantley — Sun, 03 Mar 2013 22:50:25 -0600

One last note before happy hour:

An e-mail from Walmart corporate communications on President Obama's nomination of Walmart Foundation President Sylvia Mathews Burwell to be Director of the Office of Management and Budget

“We congratulate Sylvia on her nomination by President Obama to be director of the Office of Management and Budget.

“Sylvia is a strong leader who both masters the details and has a clear vision for making big things happen. She cares deeply about people and has natural personal warmth that enables her to build relationships and drive results that deliver impact. She understands business and the role that business, government and civil society must play to build a strong economy that provides opportunity and strengthens communities across the country.

“Sylvia does a great job leading the Walmart Foundation, and if confirmed by the Senate, will do a tremendous job serving our country.”

Think this might improve the way in which Arkansas members of Congress receive Obama administration budget numbers?

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Walmart 'freaking out' about the economy

Max Brantley — Tue, 19 Feb 2013 11:49:56 -0600

From The Washington Post's Wonkblog:

“Well, we just had one of those weeks here at Walmart U.S. Where are all the customers? And where’s their money?”

Not doing so well. (The Washington Post)

On Friday, Bloomberg published a couple of internal e-mails from Wal-Mart executives panicking about the company’s worst sales start in seven years — “a total disaster,” as one put it. The execs attributed Wal-Mart’s slump to the payroll tax hike that kicked in on Jan. 1, cutting the median family’s take-home pay by about $1,000 this year.
So if Wal-Mart is struggling, does that mean everyone else should worry? There are two ways to look at this. The first is that this is a terrible omen. Wal-Mart makes up such a huge chunk of the U.S. economy — 2.3 percent of GDP in 2006 — that many analysts look to it as a key bellwether.

On the other hand, maybe Walmart's troubles are about competition, not the economy.

The theory here is that Wal-Mart is an “inferior good” — when times are tough and incomes are falling, consumers switch to shopping at the cheaper retail giant.

The flip side of that: When the economy rebounds, Wal-Mart’s higher-priced rivals do better. As it happens, Target’s sales rose 3.1 percent in January, part of an overall uptick in merchandise and department store shopping. So it’s very possible that Wal-Mart’s woes are just specific to the company — and not part of a broader trend.

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Walmart to make veterans hiring commitment

Max Brantley — Tue, 15 Jan 2013 06:31:17 -0600

New York Tines reports that Walmart will announce today a plan to hire every veteran who wants a job.

It will apply to anyone who left the military in the previous year and did not receive a dishonorable discharge. The program begins Memorial Day. Walmart estimates it will provide 100,000 jobs in five years.

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UPDATE: Walmart backs state's new idea for covering health costs

Max Brantley — Thu, 10 Jan 2013 06:29:18 -0600

Walmart and Gov. Mike Beebe have an announcement coming today on the state's effort to move Medicaid and other insurance to move away from fee-for-service reimbursement for health care. The idea is to address "episodes" of care, reward good outcomes and generally promote a continuum of sound health practices that should reduce costs by producing better general care over time.

It is an occasion to say again that single-payer universal health insurance is the most rational approach to health care for a wealthy, developed nation. If our single payment be a pass-through to Walmart, well, why not? The school model is heading that direction under encouragement from Walton billions. They do know how to supply desired goods cheap.

David Ramsey explained the state's Payment Improvent Plan in detail in our Big Ideas issue earlier. Check it out here if you missed it.

UPDATE: Walmart, which self-insures its employees, will contribute $670,000 to underwrite the effort in Arkansas and participate in other ways in development of the state plan. The news release doesn't say so specifically, but the announcement indicates general favor on the part of the giant retailer in moving toward a system like that the state favors. Walmart's use of a similar system isn't a direct benefit to state costs in Medicaid, for example, but it's a powerful addition, along with Blue Cross and Qualchoice, to pressure building to get all elements of the health system to buy into the idea.

Walmart's news release follows:

Arkansas Governor Mike Beebe announced today that Wal-Mart Stores, Inc. (NYSE: WMT) is joining a groundbreaking effort to create a more patient-centered and costefficient health payment system through the Arkansas Payment Improvement Initiative (APII). Walmart has committed $670,000 to underwrite the ongoing work of the new program, the first of its kind in the United States.

“We have worked for the past two years to bring the public and private sectors together in order to
provide better health care in more cost-efficient ways,” Governor Mike Beebe said. “It’s critical that large, selfinsured companies like Walmart be involved in this complex work that has the potential to serve as a model for the rest of the nation. With more than one million people on its health plan, Walmart’s willingness to step forward and lead in this effort shows the company’s continued pursuit of innovation and the initiative’s potential for the future of health care.”

Now in the first phase of implementation, the Arkansas Payment Improvement Initiative is designed to reward physicians, hospitals and other providers who give patients high-quality care at an appropriate cost.

The long-term goal is to build a new and sustainable system that provides the best possible health care for Arkansans through team-based approaches and cost containment. For example, when primary care providers actively encourage patients to use preventive services, patients can manage chronic diseases and reduce future serious illnesses and costly treatments. And, when people receive appropriate follow-up care after hospitalizations, the likelihood of hospital readmissions can be dramatically reduced, which results in better health and lower costs.

As part of the agreement, Walmart will serve on the newly created APII Employer Advisory Council, fund the development and distribution of information to the public that explains how payments are being restructured, and help underwrite an annual statewide tracking report that will evaluate the impact and effectiveness of the project.

“We are very supportive of this work that will reward doctors, hospitals and other providers who offer great care at an appropriate cost,” said Sally Welborn, Walmart senior vice president of benefits. “Governor Beebe is leading a first-of-a-kind payment-reform effort in Arkansas that health experts elsewhere are following closely. We respect the work being done in Arkansas, and we are excited about the opportunity to offer real support to such a meaningful project in our home state.”

Health care costs in the United States are projected to increase 6.3 percent in 2013. The average deductible for an individual on health plans in the U.S. increased nearly 9 percent last year.

“Our health care system is at a tipping point brought on by rising costs, an increasingly unhealthy population and a fragmented system of care,” said Arkansas Surgeon General Dr. Joe Thompson. “We need all hands on deck if we are to restructure the health care system to better meet the needs of our citizens. Private companies pay for a large portion of our health care costs. So, it is very encouraging to have an organization of Walmart’s stature join this important effort.

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Walmart: Answers to no one UPDATE

Max Brantley — Wed, 09 Jan 2013 09:06:50 -0600

Thanks to Norma for a link to a report on Walmart's refusal of an invitation to join Vice President Joe Biden's meeting on gun violence. Hell, even the NRA has deigned to attend.

Walmart no longer answers to anyone.

They own the legislatures. Even U.S. Rep. Steve Womack and Dr. No Boozman of Yellow Dog Republican land feel safe carrying Walmart's water on the Internet sales tax in a district where a vote even to put a highway tax issue on the ballot was viewed as toxic for some politicians.

They own the legislature now on education issues, see the coming charter school/voucher enabling session to begin next week.

They own the University of Arkansas. I think Walmart clout, as much as anything, explains the F*** You UAF Chancellor David Gearhart wrote for the Arkansas Democrat-Gazette op-ed page about the newspaper's opinions on the UA's $5 million budget-busting, primarily in its fund-raising arm, that came with scant accountability for those responsible. Gearhart, of course, comes from the fund-raising world and he knows from whence the dough flows, particularly the Walmart empire where his brother is a top executive. It was, of course, the source of the UA's biggest gift, in part so that the university would create the Waltons' own "education reform" department to advance their political ideology. (PS: Hey, D-G. Curious. That story today about the UA budget analysis that showed the overspending was even greater than the $3 million bottom line the UA put out earlier, did you perhaps learn that from the numbers the UA compiled at my request and that I wrote about recently? Just curious. If so, you're welcome. If not, good you caught up.)

The nation's giant gun retailer darn sure doesn't intend to listen to any lectures from somebody as lowly as vice president of the United States.

UPDATE: I still don't think Walmart constructively answers to anyone, but it is sensitive to appearances, apparently. It has just announced it will deign to join the Veep after all.

At first, Wal-Mart was not going to send anyone to Biden's meeting, saying its senior leaders could not be in Washington this week and that it spoke in advance with Biden's office to share its perspective, spokesman David Tovar said.

"We underestimated the expectation to attend the meeting on Thursday in person, so we are sending an appropriate representative to participate," Tovar added.

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NY Times expands reporting on Walmart bribery in Mexico

Max Brantley — Mon, 17 Dec 2012 20:42:11 -0600

Major new investigative piece by the New York Times on bribes paid in Mexico to aid Walmart expansion.

It reveals a pattern of payments last decade to clear the way for store development and — worse — knowledge of Walmart officials about what had occurred that it failed to report to authorities or fully investigate on its own.

Walmart is ready with statement that says allegations are among those under review in a company internal probe.

BENTONVILLE, Ark., Dec. 17, 2012 — The following statement can be attributed to David Tovar, Vice President, Corporate Communications.

“The allegations contained in the New York Times article surrounding events in 2003-2004 involving the permitting and licensing process for a Walmart de Mexico store in Teotihuacan, Mexico, have been part of the company’s ongoing investigation of potential violations of the U.S. Foreign Corrupt Practices Act we began more than a year ago.

“The Audit Committee of the board, comprised entirely of independent directors, is overseeing the investigation.

“We are also continuing to cooperate with the Department of Justice and the Securities and Exchange Commission on this matter.

“At this point, the investigation is still ongoing and we have not yet reached final conclusions. A thorough and independent investigation will take time to complete. We wish we could say more but we will not jeopardize the integrity of the investigation.

“We are committed to having a strong and effective global anti-corruption program everywhere we operate and taking appropriate action for any instance of non-compliance.

“While the investigation is ongoing, we have not waited to act. Over the past 20 months, we have made significant improvements to our compliance programs around the world and have taken a number of specific, concrete actions with respect to our processes, procedures and people.

“Over the past several months we have:

Established several new compliance positions around the world;

Directed more than 300 third-party legal and accounting experts who have dedicated in excess of 79,000 hours to this effort;

Conducted more than 85 in-country visits and more than 1,000 interviews of market personnel;

Spent more than $35 million on new processes and procedures; and

Conducted training sessions attended by more than 19,000 associates.

“We recognize that our effort to date is a work in progress and there is more to be done as we continue building a world-class FCPA compliance program.”

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Letter from India: Low prices every day

Max Brantley — Wed, 12 Dec 2012 07:25:01 -0600

Here I sit in Chennai (Madras). I'm 10 hours from a 4:45 am plane to Abu Dhabi. 40 hours from a scheduled arrival in Little Rock for reasons not easy to explain.

An observation: India is still newspaper crazy. Maybe because poverty still holds back Internet access, if not cell phones, which I've seen beep in the hands of rickshaw drivers.

And the 10 or so newspapers I'm perusing today are shouting front page headlines about, what else, Arkansas. Or more specifically our state's gift to corporate skulduggery worldwide, Walmart. The news today is outrage from some Indian politicians about revelations of Walmart lobby spending to get into the billion-person market here. Small shopkeepers are not sanguine. Reporting includes details about powerhouse lobbying firm Patton Boggs and its ties to Indian power brokers, plus its boasts about ability to pierce the bureaucracy. (The Indian government bureaucracy is a story unto itself. Memorably, five uniformed officers inspected a double set of documents issued by other workers before we gained entry to one port. )

But money talks in India, our guides have told us. And prices are low. Almost as low as buying the Arkansas legislature or members of Congress for the likes of Internet sales tax and charter school bills and other pet Walton projects. Undercutting already low prices here will take some doing, however. Not to mention attracting customers able to risk life and limb to motor to wherever Walmart eventually builds.

Don't get me wrong, by the way. I love this country. It is overwhelming. I'll post more this weekend, but I already know my photos don't do it justice.

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The great Walmart debate

David Ramsey — Mon, 26 Nov 2012 11:55:00 -0600

With another Black Friday (er, Thursday) in the books, the national media has Walmart on the brain, but this year it’s not just stories of deal-seeking grannies elbowing their fellow citizens out of the way. With nationwide protests over Walmart’s labor practices, the talking heads are taking stands — is the retail behemoth an economic force for good or an exploitive villain?

After an interesting discussion on MSNBC’s "Up With Chris Hayes," Reason's Peter Suderman gave a 17-point Twitter defense of Walmart (basically, he argues low prices for low-income folks is good; Walmart’s labor practices ain’t that bad). Kathleen Gier of The Washignton Monthly, meanwhile, counters that because Walmart is so big and its “ideology is so passionately anti-labor, it has been one of the driving forces in our economy that has been disempowering and immiserating American workers and accelerating economic inequality.” The Atlantic’s Jordan Weissmann is similarly harsh but lays the blame on all of us as consumers. Ezra Klein at the Washington Post takes the middle road:

Whether Wal-Mart has been, on net, “good” or “bad” is a complicated question to frame and a devilishly tough one to answer. Soon, I’m sure, the question will be whether Amazon.com has been good or bad. I wish I had a definitive answer. All I’m certain of is that Wal-Mart has been — and Amazon.com will be — economically transformative.

Were the protests a success? Depends on who you ask. Gier called it a “rousing success” while the Daily Beast’s Megan McArdle labeled it “underwhelming.” Strike organizers claim that protests took place at more than 1000 Walmart stores and hundreds of workers walked off the job; Walmart officials call this “grossly exaggerated” and claim that less than 50 employees took part, about the number that missed their scheduled shift last year.

Matthew Yglesias at Slate suggests that workers and unions have too much at stake to mount an action that would move the needle:

To create a situation in which politicians fear creating a bloody massacre, the workers have to be motivated and prepared to risk a bloody massacre. That's a high bar.

What say y'all?

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UPDATE: Unions keep plugging at Walmart with demonstrations today

Max Brantley — Wed, 10 Oct 2012 09:13:15 -0500

Organized labor has been singularly unsuccessful at cracking Walmart, though unions might argue that some more benevolent personnel policies developed over the years are a product of pressure and lawsuits (think wage-and-hour violations, among others). Nonetheless, the unions haven't quit.

The New York Times reports that protests are planned at Bentonville today for the company's annual meeting with financial analysts. Also, as part of a national day of action, at least 88 employees at 28 stores in 12 states have missed work as part of an action to pressure the retailer in the runup to the Christmas shopping season. Five dozen employees struck at a Los Angeles store last week. A Black Friday demonstration of some sort also is a possibility, the article says.

Walmart dismisses this as a publicity stunt by a tiny number of its more than 1.4 million employees. True on both counts. But not without benefit to the union. See the Times article.

UPDATE: Here's Walmart's report on what it told analysts about the coming year — try to spend a bit less on capital costs, but make more. And pass the savings on to the customer.

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What's so happy about Walmart's 50th birthday?

Max Brantley — Tue, 03 Jul 2012 09:06:26 -0500

Walmart has been drawing huzzahs and print tributes all over, particularly in Arkansas, on the occasion of its 50th birthday. A host of Arkansas-made millionaires nod along happily, not to mention throngs of devoted Walmart shoppers.

Some believe there is another side to the Walmart story, of course.

For example, there's this from sumofus.org, a global consumer group, which provided the graphic above and commentary:

In half a century, Walmart has led a transformation in retail in the United States and, increasingly, the world. The company, the largest retailer in history, has driven a push towards big-box suburban stores that has decimated smaller retailers, accelerated urban sprawl and siphoned up money both from local communities and the federal government, as many Walmart employees must rely on government assistance to make ends meet.

It also provides these factoids:

* The six Walmart heirs have a net worth equal to the bottom 30% of Americans.

* Walmart costs U.S. taxpayers upwards of $1.5 billion. That is the same amount that was cut from the global poverty alleviation budget in 2012 due to budget shortfalls.

* Walmart’s highest-earning women continue to be paid 67 cents for every dollar their male counterparts earn.

* The average Walmart sales associate would have to work for over 21,000 years to equal the amount of money Walmart pays out to the average Walton heir annually.

Then there's this from Stacy Mitchell, author of "The Big Box Swindle" and a researcher at the Institute for Local Self-Reliance:

Walmart has been a primary driver behind many troubling trends in the U. S. economy:

* Some 40,000 U. S. factories closed between 2001 and 2007, eliminating millions of jobs. During these six years, Walmart's imports from China tripled in value from $9 billion to $27 billion.

* Between 1992 and 2007, the number of independent retailers fell by over 60,000, according to the U. S. Census Bureau.

* The percentage of working poor is at the highest its been in more than two decades, according to Census data. The average Walmart employee relies on $943 a year in food stamps, Medicaid, and other public assistance, according to data from the Ohio Department of Job and Family Services.

"Whatever we may have saved shopping at Walmart, we've more than paid for in diminished opportunities and declining income."

But ... the poor and unemployed can buy cheaper groceries thanks to Walmart.

... and many moooooorrre!

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Walmart agent poses as reporter to spy on union

Max Brantley — Thu, 14 Jun 2012 15:20:41 -0500

June 1, at the celebrity-studded Walmart annual stockholders' meeting, heir Rob Walton said, "Acting with integrity is not a negotiable part of this business."

Alas, the business is not a person, despite what the Supreme Court might think. Humans do strange things.

From Gawker on a union organizing effort targeting Walmart in Los Angeles:

And now, one labor group says that an employee of a PR firm working for Wal-Mart actually posed as a reporter in order to infiltrate one of their meetings.

The union has film.

Walmart tells Gawker the action was "unacceptable, misleading and wrong. Our culture of integrity is a constant at Walmart and by not properly identifying herself, this individual's behavior was contrary to our values ..." The employee is gone from the PR firm. A "junior member" who made an "immature decision," says the firm.

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Walmart releases shareholder votes

Max Brantley — Mon, 04 Jun 2012 08:30:36 -0500

With the Walton family in control of the majority of shares, last week's Walmart shareholders' meeting was a formality insofar as business was concerned. Their slate of directors would be re-elected and shareholder proposals they opposed would be defeated.

The company today released the official results of votes — overwhelmingly in the direction I've outlined.

But there were a couple of outliers:

* DIRECTORS: Opposition to director re-election tended to be in the low single-digits, except, notably, for top Walton insiders, such as Rob Walton (12.6 percent opposed); current CEO Michael Duke (13 percent), and former CEO Lee Scott (15.6 percent). Some major stockholders, including big pension plans, had indicated before the meeting they'd vote against some directors because of the Mexican bribery scandal that occurred on the leaders' watch.

* POLITICAL CONTRIBUTIONS: A proposal to require more disclosure on this spending was defeated, but drew support from 15.8 percent of shareholders.

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Walmart stockholder meeting underway

Max Brantley — Fri, 01 Jun 2012 08:56:23 -0500

Walmart's annual big show in Fayetteville is underway and the big news from the stockholders meeting so far seems to be the appearance of Justin Timberlake, photo above from Walmart's own Twitter feed.

Rob Walton has said integrity is non-negotiable at Walmart and the company will be stepping up efforts to comply with federal foreign anti-bribery law (while, presumably, continuing to work in concert with other businesses to weaken the anti-bribery law.)

You can get by-the-second coverage in 140-character Twitter bursts at the link. It's by no means all propaganda or cheerleading from believers, though there's plenty of that. You'll also find cheers for a comment that stores are understaffed, calls for Rob Walton and Mike Duke to resign, complaints about mistreatment of unions and more. Example Tweet:

Livestreaming #WMTShares—they spent $$ for music & pomp, but they fight not to spend any of their billions on taxes or fair wages

Oh, yes, Walmart is broadcasting live on the web. Just caught Lionel Richie. Closing with Celine Dion.

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Walmart drops support of ALEC

Max Brantley — Thu, 31 May 2012 09:23:27 -0500

Add Walmart to the growing list of major corporations that have decided to drop financial support of the American Legislative Exchange Council, a thinly veiled corporate lobby that stocks compliant state legislators, usually Republican, with cookie cutter bills to advance the corporate agenda. Anti-tax, anti-regulation, anti-health care reform and pro-gun are frequent themes. ALEC is also pushing voter ID laws aimed at suppressing turnout among minority, elderly and youth constituencies that lean Democratic.

Why would Walmart be uncomfortable backing this group, even with the occasional embarrassment of ALEC's support for the likes of "stand your ground" laws that have led to a rise in gun killings in sometimes dubious circumstances.

Think Progress, in reporting the development, cite state efforts in the West (and could they be far behind in Arkansas when the radical Republicans take control) to take control of federal lands for private exploitation and development. This happens to run counter to a Walmart program.

Wal-Mart’s decision to drop ALEC makes sense in the context of their successful “Acres for America” program. Since 2005, Wal-Mart has partnered with the National Fish and Wildlife Federation in an effort to conserve an acre of land for every one occupied by a Wal-Mart facility. As of January 2012, the project has protected 687,000 acres.

As Wal-Mart’s corporate website states:

That promise reflected a company-wide dedication to sustainability and stewardship of our natural resources. With an initial $35 million commitment, Walmart expected to enroll an estimated 138,000 acres in the program by 2015. But by the end of 2010, it had far surpassed that benchmark, conserving more than 625,000 acres and connecting more than 6.7 million protected acres—an area larger than Connecticut, Rhode Island and Delaware combined.

Walmart made the announcement late Wednesday. It said it wanted to focus on the economy and cited no specific policy disagreement.

"Previously, we expressed our concerns about ALEC's decision to weigh in on issues that stray from its core mission 'to advance the Jeffersonian principles of free markets,'" Maggie Sans, Wal-Mart vice president of public affairs and government relations, said in a May 30 letter addressed to ALEC's national chairman and executive director.

"We feel that the divide between these activities and our purpose as a business has become too wide. To that end, we are suspending our membership in ALEC."

ALEC is simply a secretly funded cutout for the Republican Party agenda, including social causes that discriminate against millions of people who shop at Walmart. Maybe those are the "unique pressures" ALEC cited in explaining Walmart's decision.

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Walton money and the environment

Max Brantley — Wed, 25 Apr 2012 10:45:22 -0500

Walmart, which needs some good press lately amid the Mexico bribery investigation, got some recently in a New York Times article on the company's progress at becoming more environmentally friendly. The environmental push has made some urban areas, not previously friendly to Walmart stores, more receptive, the article noted.

The article said Walmart had been working with the Environmental Defense Fund on the effort, but said the EDF took no money from Walmart.

Perhaps, says Columbia Journalism Review. But the Walton Family Foundation, a charity built with Walmart riches, has given $39.5 million since 2003 and accounted for 13 percent of the group's revenues in 2009. The Waltons still control ownershp of Walmart, just so you'll know. Times' readers won't. No error was made and it is against the paper's policy to make "clarifications," the public editor is quoted in the Journalism Review article.

As luck would have it, the Walton Family Foundation sent a news release this morning on the $71 million the foundation gave to environmental causes in 2011. The release follows. The full list of grants shows ~~$4.1 million~~ three grants totaling $13.6 million to the Environmental Defense Fund.

NEWS RELEASE

BENTONVILLE, Ark., April 25, 2012 – Today the Walton Family Foundation announced investments totaling more than $71.4 million in environmental initiatives in 2011. The foundation made grants to more than 160 organizations in the U.S. and other countries that work to protect natural resources while strengthening the local economies that depend on them. The foundation directed an overwhelming majority of the grants toward its two core environmental initiatives – Freshwater Conservation and Marine Conservation.

“Our work is rooted in our belief that the conservation solutions that last are the ones that make economic sense,” said Scott Burns, director of the foundation’s Environment Focus Area. “The foundation and our grantees embrace ‘conservationomics’ – the idea that conservation efforts can and should bring economic prosperity to local communities.”

The Walton Family Foundation worked over the past year to bring conservation, business and community interests together to find long-term solutions to big problems. The foundation’s work to repair the damage done to the Gulf Coast by the 2010 oil spill led to the formation of a coalition of environmental advocates, small business owners and local governments dedicated to the economic and environmental restoration of the region. This coalition worked tirelessly to ensure that fines paid for the spill will be directed to restoration projects along the Gulf Coast.

In 2011, the foundation made strategic investments to further its Freshwater Conservation and Marine Conservation initiatives.

Freshwater Conservation - $26.8 Million

· The National Audubon Society helped develop nature-based tourism opportunities throughout the Mississippi River Basin that will bring jobs and economic growth to the region.

· The Nature Conservancy developed innovative ways of protecting and restoring the Colorado River that benefit both people and nature.

Marine Conservation - $30.5 Million

· Conservation International continued to implement a three-year program to empower local communities to manage and conserve fishing resources on Costa Rica’s Pacific Coast.

· The Marine Stewardship Council worked with seafood buyers and retailers to create a market for sustainably-caught seafood, preserving the livelihoods of fishermen while protecting depleted fish populations.

The foundation’s 2011 portfolio included conservation projects across the globe, from the Mississippi River Basin to the islands of Indonesia and from Colorado to Costa Rica. In each region, the foundation supports programs that work toward healthy environments, healthy communities and healthy economies.

“Our commitment to conservationomics means that we support restoration projects that create jobs and boost local economies,” said Burns, a former commercial fisherman. “We are proud that our grantees are working to ensure that our rivers flow as strongly as the electricity they generate for nearby towns and that fishermen’s families and fishing communities are thriving alongside recovering fish populations.”

Environment Grant-making Profile

2011 Environment Grants $71,406,878

By Initiative
· Freshwater Conservation $26,842,289

· Marine Conservation $30,541,682

· Other Environment Grants $14,022,907

Top Five Grantees
· Conservation International $16,208,278

· Environmental Defense Fund $13,683,709

· Marine Stewardship Council $3,122,500

· Nature Conservancy $3,024,539

· National Audubon Society $2,739,859

2010 Environment Grants $71,823,528

By Initiative
· Freshwater Conservation $22,877,967

· Marine Conservation $36,341,561

· Other Environment Grants $12,604,000

Click here for a full list of 2011 Environment Grants

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Walmart updates response to bribery allegations

Max Brantley — Tue, 24 Apr 2012 12:08:25 -0500

Walmart has issued an updated response to allegations that the company covered up evidence of bribery in the course of building the retail chain's footprint in Mexico several years ago.

In short, the statement says the company works diligently to comply with the U.S. Foreign Corrupt Practices Act and has heightened its vigilance since the New York Times broke the story. The company emphasizes, again, that the actions date back six years. That doesn't fully address, of course, the allegation that current high management officials had knowledge of events.

WALMART STATEMENT

BENTONVILLE, Ark., April 24, 2012 — The following statement can be attributed to David Tovar, Vice President, Corporate Communications.

“Walmart has been working diligently on U.S. Foreign Corrupt Practices Act (FCPA) compliance and has a rigorous process in place to quickly and aggressively manage issues like this when they arise.

“In the last year, we have taken a number of specific, concrete actions to investigate this matter and strengthen our global FCPA compliance processes and procedures around the world and in Bentonville and Mexico.
“In Bentonville, we have added a series of new escalation and review protocols to ensure FCPA investigations are managed consistently and independently. This ensures investigations are conducted rigorously and the findings are appropriately addressed.

“We have created a new Global FCPA Compliance Officer position. This position will have responsibility for compliance with the FCPA in every market around the world and will oversee five FCPA compliance directors based in the international markets.

“In Mexico, we have taken a number of actions to establish stronger FCPA compliance. We have implemented enhanced FCPA compliance measures including:

robust policies and procedures;
internal controls;
training;
enhanced auditing procedures; and
issue escalation and remediation protocols.

“We established a dedicated FCPA compliance director in Mexico who reports directly to our new Global FCPA Compliance Officer in Bentonville.

“All of this is in addition to the worldwide review of our anti-corruption program that we initiated in March of 2011. We are taking a deep look at our policies and procedures in every country in which we operate. This includes developing and implementing recommendations for FCPA training, anti-corruption safeguards, and internal controls.

“We believe it’s also important to keep a few things in context:

The allegations in The New York Times story about the decisions made in Bentonville are more than six years old.
Six months ago, we launched an aggressive investigation under the auspices and supervision of the Audit Committee of the Board of Directors into the issues contained in the article. We are working quickly to determine what happened and are committed to getting to the bottom of this matter.

We are continuing to cooperate with federal law enforcement authorities.

“The Audit Committee of the board is overseeing the investigation and is comprised entirely of independent directors, who are assisted by outside legal advisors and forensic accountants. The Audit Committee is being briefed on this matter on a regular basis and they have instructed the Company to use whatever resources necessary to conduct an independent investigation.

“In March 2011, Walmart President and CEO Mike Duke directed the company to conduct a worldwide FCPA compliance review designed to ensure effective policies and procedures are in place in every country in which we operate. Mike is fully supportive of the independent investigation being conducted in Mexico with oversight by the Audit Committee, including ensuring that all resources necessary are available to pursue the independent investigation aggressively.

“We will not tolerate noncompliance with FCPA anywhere or at any level of the company.

“We are confident we are conducting a comprehensive investigation and if violations of our policies occurred, we will take appropriate action.”

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Walmart bribery charge reflects fact of life in Mexico

Max Brantley — Tue, 24 Apr 2012 06:25:38 -0500

The allegations that Walmart bribed heavily to gain dominance in Mexico occasions a New York Times look at the institutionalized nature of bribery in Mexico and the cost it puts on the country's economy.

"Everybody does it" is, of course, not an affirmative defense if accused of breaking the U.S. law intended to discourage illegal activities by U.S. companies operating elsewhere.

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NY Times: Walmart hushed up bribery in Mexico

Max Brantley — Sat, 21 Apr 2012 16:39:00 -0500

The New York Times has posted a big one for the Sunday paper, an investigative report that says, after uncovering use of bribery to dominate the Mexican market in 2005, Arkansas-based retailing giant Walmart took steps to cover it all up. The article says the company was more concerned with damage control than rooting out wrongdoing.

This is a big, very bad deal that reaches to the very highest ranks of Walmart, including the former CEO, H. Lee Scott, and the former director of the Arkansas State Police, Tom Mars, who was general counsel of the company in 2005 and is now executive vice president and chief administrative officer. Board chair and Walton heir Rob Walton reportedly received an e-mail about the bribery in 2008. Covering up employees' involvement in illegal activity is a different order of problem than, say, spreading money around to wine and dine or elect legislators or treating a few women in ways different than men in hiring and employment.

In one meeting where the bribery case was discussed, H. Lee Scott Jr., then Wal-Mart’s chief executive, rebuked internal investigators for being overly aggressive. Days later, records show, Wal-Mart’s top lawyer arranged to ship the internal investigators’ files on the case to Mexico City. Primary responsibility for the investigation was then given to the general counsel of Wal-Mart de Mexico — a remarkable choice since the same general counsel was alleged to have authorized bribes.

The general counsel promptly exonerated his fellow Wal-Mart de Mexico executives. [CORRECTION: My original post said this was a reference to Tom Mars. It was a reference to Jose Louis Rodfiruezmacedo Rivera—the Wal-Mart de Mexico General Counsel—not Tom Mars.]

When Wal-Mart’s director of corporate investigations — a former top F.B.I. official — read the general counsel’s report, his appraisal was scathing. “Truly lacking,” he wrote in an e-mail to his boss.

The report was nonetheless accepted by Wal-Mart’s leaders as the last word on the matter.

Walmart's response reached me before the NY Times' daily e-mail on its Sunday stories did — old news, but a new investigation is ongoing and the company is concerned, committed to integrity and yadda yadda yadda: It follows:

BENTONVILLE, Ark., April 21, 2012 — The following statement can be attributed to David Tovar, Vice President, Corporate Communications.

“We take compliance with the U.S. Foreign Corrupt Practices Act (FCPA) very seriously and are committed to having a strong and effective global anti-corruption program in every country in which we operate.

“We will not tolerate noncompliance with FCPA anywhere or at any level of the company.

“Many of the alleged activities in The New York Times article are more than six years old. If these allegations are true, it is not a reflection of who we are or what we stand for. We are deeply concerned by these allegations and are working aggressively to determine what happened.

“In the fall of last year, the Company, through the Audit Committee of the Board of Directors, began an extensive investigation related to compliance with the FCPA. That investigation is being conducted by outside legal counsel and forensic accountants, who are experts in FCPA compliance, and they are reporting regularly to the Audit Committee.

“We have met voluntarily with the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) to self-disclose the ongoing investigation on this matter. We also filed a 10-Q in December to inform our shareholders of the investigation. The Company’s outside advisors have and will continue to meet with the DOJ and SEC to report on the progress of the investigation.

“We are committed to getting to the bottom of this matter. The audit committee and the outside advisors have at their disposal all the resources they may need to pursue a comprehensive and thorough investigation.

“We have taken a number of actions in Mexico to establish stronger FCPA compliance. We have implemented enhanced FCPA compliance measures including:
robust policies and procedures;
internal controls;
training;
enhanced auditing procedures; and
issue escalation and remediation protocols.

“In addition, we have established a dedicated FCPA compliance director in Mexico that reports directly to our Home Office in Bentonville.

“The investigation is ongoing and we don’t have a full explanation of what happened. It would be inappropriate for us to comment further on the specific allegations until we have finished the investigation.

"We are working hard to understand what occurred in Bentonville more than six years ago and are committed to conducting a complete investigation before forming conclusions. We don't want to speculate or weave stories from incomplete inquiries and limited recollections, as others might do.

“Unfortunately, we realize that, at this point, there are some unanswered questions. We wish we could say more but we will not jeopardize the integrity of the investigation.

“We are confident we are conducting a comprehensive investigation and if violations of our policies occurred here, we will take appropriate action.

“Over the last several years, Walmart has focused diligently on FCPA compliance and implemented a series of changes to our FCPA compliance program to further strengthen them. This work is ongoing and continues today.

“As part of that effort, in the spring of 2011, we initiated a worldwide review of our anti-corruption program. We are taking a deep look at our policies and procedures in every country in which we operate. This includes developing and implementing recommendations for FCPA training, anti-corruption safeguards, and internal controls.

“Acting with integrity is the essence of our corporate culture. We have the same high standards of integrity for every associate – regardless of his or her position – and everyone is held accountable for those standards.

“In a large global enterprise such as Walmart, sometimes issues arise despite our best efforts and intentions. When they do, we take them seriously and act as quickly as possible to understand what happened. We take action and work to implement changes so the issue doesn’t happen again. That’s what we’re doing today.

“Walmart is committed to doing the right thing and we are working hard every day to become an even better company.”

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Study: More Walmarts = more hate

David Koon — Thu, 12 Apr 2012 10:53:02 -0500

From the weird files: A new study just out from Penn State University has found that the more Walmart stores a county has, the more likely that county is to have active hate groups. The study, published in the journal Social Science Quarterly, found the number of Walmart stores in a county predicted the number of hate groups there better than high crime rates, low graduation rates, and high unemployment.

Why? "The researchers believe that the correlation between Wal-Mart and hate groups exists because of breakdown of the community. Small local businesses are more likely to be members of civic groups and involved in the community. They are also more likely to have closer relationships among their employees."

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Walmeddling in politic$

David Koon — Thu, 29 Mar 2012 10:35:22 -0500

Interesting story here (hit tip to eLwood for bringing it to our attention) about a new California-based venture by Greg Penner, son-in-law to Walmart board chairman Rob Walton, that seeks to influence elections at the state level.

Though the group, called Govern For California, bills itself as non-partisan, the other two heads of the effort are a Democrat who worked for Gov. Arnold Schwarzenegger (and who is prone to decrying the idea that public workers should have collective bargaining rights) and billionaire registered Republican Ronald Conway. As for Penner, the article says he spent a quarter-mil of his own money in 2006 to help defeat an initiative that would have created a statewide preschool system in California by taxing earners making more than $400,000 a year. Both Penner and Conway are listed as having "no party affiliation" on the group's website.

It looks like Penner and his friends may be carrying on the longstanding Walton family tradition of monkeying around with the gears of public education: Govern for California recently endorsed their first candidate, State Assembly candidate Brian Johnson, who is the executive director of Larchmont Charter School, one of the biggest charter schools in L.A.

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Walmart in China

Lindsey Millar — Wed, 21 Mar 2012 14:14:29 -0500

Walmart's efforts (and failures) to make its massive global supply chain more sustainable get a deep look by in the latest issue of Mother Jones. China, where 70% of the goods Walmart sells are produced, attracts much of the attention. The independent auditors Walmart hires to ensure labor and environmental standards are met are demonstrated to be easily corruptible, and Mother Jones finds that those Walmart suppliers who are regulated outsource much of their work to "shadow factories," which operate outside of regulators' reach.

Walmart's campaign to green everything from its break rooms to its global supply chain is one of the most publicized, and controversial, experiments in American retail. The company had made a halfhearted attempt in the '80s and '90s, with a few green products and ecofriendly stores. But this latest effort was different. It was sweeping, embracing every part of the company's business. It emanated directly from the CEO's office.

...

Almost seven years into the program, many environmentalists remain convinced that Walmart is serious about sustainability—and that its actions can have a major impact on the world economy because of the gravitational pull of its vast network of suppliers, customers, and employees... My reporting—more than a year of research that took me from Arkansas to China—suggests a more complex, less flattering story: Walmart has made laudable though modest progress on many of its goals. But with the global economic slowdown tugging at the company's profit margins, people involved with the environmental campaign say the momentum seems to be stalling or vanishing entirely.

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Conway does battle over a Walmart

Max Brantley — Mon, 12 Mar 2012 06:41:05 -0500

Conway has tussled before about a new Walmart near a residential area and a good fight is apparently brewing at the Planning Commission at 7 p.m. tonight on a new Walmart Neighborhood Market on Prince Street. I recommend the comment thread on the Log Cabin Democrat article for a taste of the varying viewpoints on the issue.

My only comment is irrelevant to the land use issue but not to the "economic development" noise often raised in such circumstances: Some still believe new retail stores create jobs, as if retail demand expands, rather than migrates, because another big box pops up.

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Women rise at Walmart

Max Brantley — Fri, 20 Jan 2012 12:11:18 -0600

Given its battle against a huge sex discrimination suit, Walmart's announcement today of promotion of two women to lofty positions in the company seems worthy of note.

Rosalind G. Brewer, 49, will become president and CEO of Sam's Club and Gisel Ruiz, 41, was named chief operating officer of Walmart U.S.

Here's the full release, including some other promotions.

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Dutch pension fund dumps Walmart investment

Max Brantley — Fri, 06 Jan 2012 06:23:36 -0600

A major Dutch pension firm with $120 million invested in Walmart has announced it has blacklisted the Arkansas-based retailer over its labor policies and anti-union stance. From Huffington Post:

For four years, the fund met repeatedly with Walmart executives, trying to use its shareholder's influence to persuade the company to improve corporate practices, especially with regard to labor and the environment. There were some signs of improvement along the road: Last year's ABP Responsible Investment Report noted that "the company has taken steps in the right direction," pointing to the $100 million Walmart paid to settle court actions in November and December of 2009 alone. It also noted that, based on discussions with management, ABP felt that Walmart had changed its attitude toward unions.

But by January 2012, ABP decided that the company's time was up.

"There has been a change, but in the end we had to conclude that it was not enough," said Pot. "We felt that if the workers are not happy, then what does it mean for the company?"

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