Has Wal-Mart (NYSE:WMT) made a mistake?

255

Wal-Mart (NYSE:WMT) is an American retail store, with its headquarters located in Arkansas. The retail giant of the country has its chain of departmental stores spread out all over the United States. They include warehouse stores as well as discount departmental stores. In terms of revenue, Wal-Mart (NYSE:WMT) has the privilege to stand as the world’s largest company.

Wal-Mart (NYSE:WMT) was handed over the administration of a committee for a political action. However it has been reported that Wal-Mart (MYSE: WMT) failed to carry out the task properly and as a result of which was target by advocacy groups.

The advocacy groups are expected to file a report against Wal-Mart (NYSE:WMT) to the Federal Election Commission. According to the Wall Street Journal, the complaint that will be filed with the Federal Election Commission will be focused on a specific program that involves taking donations for the PAC from the employees with a promise to make similar donations to Critical Need Trust Wal-Mart Associates. This has emerged as a problem for the otherwise reputed retail giant, because the Corporations are apparently not allowed to directly donate money to PACs. They are then, not supposed to compensate for any money they gave to the donors. Keeping these rules in mind and considering the actions by Wal-Mart (NYSE:WMT), it can be deduced that the scenario could be highly against the laws of Election Commission.

The respective PAC has gathered an approximate $2.8 million worth of donations, during the last twenty months. In this scenario, Wall Street Journal reports that a company spokesperson talked to them about the issue and told them that Wal-Mart (NYSE:WMT) strongly thinks that the company is operating within the legal boundaries. That is why Wal-Mart (NYSE:WMT) believes that the reports being filed are baseless.

Comments