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Big Brother Mart

 
 
Reply Thu 29 Mar, 2007 06:38 am
This is from today's New York Times. I know many people can't access it without signing up, so I'm posting the whole thing here.

I wish Walmart investigated it's sweat shops in Asia as well as it does it's own employees.How far should companies go in policing their employees? Would you work for a company that did this if you had another choice? Do you think a company has the right the dictate your conduct 24 hours a day or only during the hours they are paying you? Where should the line be drawn?

Quote:

Bare-Knuckle Enforcement for Wal-Mart's Rules
The investigator flew to Guatemala in April 2002 with a delicate mission: trail a Wal-Mart manager around the country to prove he was sleeping with a lower-level employee, a violation of company policy.
The apparent smoking gun? "Moans and sighs" heard as the investigator, a Wal-Mart employee, pressed his ear against a hotel room door inside a Holiday Inn, according to legal documents. Soon after, the company fired the manager for what it said was improper fraternization with a subordinate.

Wal-Mart, renowned to outsiders for its elbows-out business tactics, is known internally for its bare-knuckled no-expense-spared investigations of employees who break its ironclad ethics rules.

Over the last five years, Wal-Mart has assembled a team of former officials from the C.I.A., F.B.I. and Justice Department whose elaborate, at times globetrotting, investigations have led to the ouster of a high-profile board member who used company funds to buy hunting equipment, two senior advertising executives who took expensive gifts from a potential supplier and a computer technician who taped a reporter's telephone calls.

The investigators ?- whose résumés evoke Langley, Va., more than Bentonville, Ark. ?- serve as a rapid-response team that aggressively polices the nation's largest private employer, enforcing Wal-Mart's modest by-the-books culture among its army of 1.8 million employees.

Wal-Mart is certainly not the only company, or even the first, to investigate its employees, a practice used widely in corporate America to guard against fraud and protect trade secrets. But despite the retailer's folksy Arkansas image, few companies are as prickly ?- or unforgiving ?- about its employees' wayward behavior, a legacy of its frugal founder, Sam Walton, who equated misconduct with inefficiency that would cost customers money.

No case better demonstrates the company's prowess ?- or, former employees say, its ruthlessness ?- than the exhaustive investigation of Julie Roehm and Sean Womack, two former top Wal-Mart marketing executives.

After Ms. Roehm sued Wal-Mart for wrongful termination, the company disclosed the results of the investigation last week in a detailed and at times salacious countersuit. Investigators obtained records that they said showed the two married executives had engaged in a sexual affair, accepted free meals from an advertising agency vying to win Wal-Mart's business and begun negotiating a deal to leave Wal-Mart to work for that agency.

Yesterday, Ms. Roehm called Wal-Mart's investigation "a smear campaign" intended to destroy her reputation and, in a nod to Wal-Mart's investigative firepower, said the company had outmanned her with "ex-C.I.A. operatives" and "former F.B.I. men."

The Wal-Mart investigation was striking in its scope. Lawyers for Wal-Mart subpoenaed Mr. Womack's wife, Shelley, compelling her to give sworn testimony about how she discovered a sexual relationship between her husband and Ms. Roehm. They prompted her to turn over dozens of embarrassing e-mail messages that her husband had sent to Ms. Roehm from a private account.

"I miss you ridiculously," began one of the e-mail messages from Ms. Roehm to Mr. Womack. "I hate not being able to call you or write you. I think about us together all the time. Little moments like watching your face when you kiss me."

Wal-Mart investigators also persuaded the top executives at a major advertising agency, Draft FCB, and its parent company, the Interpublic Group of Companies, to turn over hundreds of confidential e-mail messages, dinner receipts and notes from meetings. One revelation was that Ms. Roehm accepted a case of Effen vodka, valued at nearly $400, from the chief executive of Draft FCB, calling the gift, which violated Wal-Mart's policies, "a HUGE hit" in a thank-you e-mail message.

Ms. Roehm and Mr. Womack have denied they engaged in a sexual relationship or did anything wrong. Mr. Womack did not respond to phone messages.

Kenneth H. Senser, a former top official at the C.I.A. and F.B.I. who runs Wal-Mart's security department, said cases like these showed that Wal-Mart was determined to enforce consistently its employment policies, no matter how high the rank of the workers involved. Both Mr. Womack and Ms. Roehm, for example, were senior executives with six-figure salaries.

"It's been very clear from these investigations that the company has taken a definitive stand," said Mr. Senser, who interviewed both Ms. Roehm and Mr. Womack before they were fired in late 2006. "The chips are going to fall where they may. If it's a senior vice president or cashier in the store, we are going to look at the allegations the same way ?- and not give somebody a pass."

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Green Witch
 
  1  
Reply Thu 29 Mar, 2007 06:39 am
Quote:
(Page 2 of 2)

Mr. Senser, 47, and his staff of roughly 400, investigate allegations of misconduct, guard Wal-Mart executives and prepare for potential crises of all kinds, from hurricanes to terrorist attacks. (During Hurricane Katrina, they established an emergency response center inside Wal-Mart's headquarters, filled with flat-screen televisions, that resembled one used by the F.B.I.)

Their backgrounds are impressive, if not slightly intimidating. Mr. Senser was a senior officer in the C.I.A.'s office of security, which was responsible for investigating agents considered a security risk. After that, he supervised the development of an internal security department at the F.B.I. when the agency discovered that Robert P. Hanssen, one of its agents, had spied for the Soviet Union and Russia.

Joe Lewis, who runs the internal corporate investigations unit at Wal-Mart, worked at the F.B.I. for 27 years, serving as acting assistant director for criminal investigations. He works closely with Thomas C. Gean, chief legal compliance officer, who was the United States attorney for the Western District of Arkansas.

In an interview, H. Lee Scott Jr., Wal-Mart's chief executive, said that "it has reached the point where there are issues that take specialized skills to get to the bottom of."

Mr. Scott conceded that the team has been unusually busy lately. "You almost have to laugh," he said of executives engaging in egregious conduct. "You can't make this stuff up."

Three weeks ago, for example, Wal-Mart fired a computer technician, Bruce Gabbard, and one of his superiors, Jason Hamilton, after a two-month investigation conducted by Mr. Senser and his staff. They found that Mr. Gabbard, acting alone, had taped phone conversations between members of Wal-Mart's media relations staff and this reporter of The New York Times. Using equipment he bought on eBay, he also intercepted text messages sent from his colleagues' BlackBerries.

Mr. Scott, who personally apologized for the incident, said Mr. Gabbard had tried to uncover the source of leaked internal documents shared with newspapers like The Times "because he thought what was happening to his company was unfair and he was going to do something about it." Mr. Gabbard has declined to comment.

Behind Wal-Mart's response to such cases is a proud preoccupation with sticking to the rules. Inside Wal-Mart's spare headquarters, large signs affixed to the doors of meeting rooms spell out a ban on gifts of any value from potential vendors, whether it is a free plane ticket or a cup of coffee.

No wonder, perhaps, that wasted money ?- from suppliers and Wal-Mart employees ?- is a recurring theme in the company's investigations.

One of the company's biggest investigations was of a board member and former vice chairman, Thomas M. Coughlin, whom it accused in 2005 of dipping into company funds to pay for CDs, beer, an all-terrain vehicle, duck-hunting boots and a customized dog kennel. His total theft, Wal-Mart said, was more than $500,000.

As with Ms. Roehm and Mr. Womack, Wal-Mart spared no detail in its case against Mr. Coughlin, who pleaded guilty to federal charges in the case. Investigators documented dozens of improper purchases that included fiber supplements and doughnuts and, in legal filings, described him as a rogue executive committed to defrauding the company.

But not all of Wal-Mart's investigations involve money, or even high-stakes business matters, prompting employees to protest that the company's investigative arm is, at times, used to intimidate employees who question authority or raise issues their bosses wish to remain secret.
0 Replies
 
Green Witch
 
  1  
Reply Thu 29 Mar, 2007 06:41 am
Quote:
James W. Lynn, a factory inspection manager at Wal-Mart, was fired in 2002 for fraternization with a subordinate after an investigation that extended across several countries.

During the investigation, a company investigator followed Mr. Lynn and a lower-level female colleague who worked in Costa Rica on a business trip to Guatemala City, where he spied on the pair for at least four days ?- even booking a hotel room directly across the hall from the female employee's room to keep watch on the pair. (In the end, both Mr. Lynn and the woman did say they kissed.)

Mr. Lynn, in an interview and in a wrongful-termination lawsuit filed against Wal-Mart, claims he was singled out because he openly criticized the working conditions in the Central American factories he inspected.

"Wal-Mart is the ultimate Big Brother in corporate America," Mr. Lynn said. He disputes Wal-Mart's claim that it investigates every employee the same way. "They are very opportunistic," he said. "If it is someone they want to get rid of, they will go all out. If it's somebody whose career they want to save, they won't."

Sarah Clark, a Wal-Mart spokeswoman, said the company "took the steps it deemed necessary to investigate the allegations of fraternization" and denied the company was motivated by Mr. Lynn's criticism.

Mr. Senser, who arrived after the investigation of Mr. Lynn, said his staff knew its boundaries.

"We are not in the business of prosecuting people, or pursuing an allegation to find a violation of the law," Mr. Senser said. "We operate for the benefit of our shareholders to make sure this company is being appropriately and ethically run. There is a difference."
0 Replies
 
Phoenix32890
 
  1  
Reply Thu 29 Mar, 2007 06:56 am
It seems to me that I just wrote this saying recently, but it bears repeating, "Buy the premise, buy the package". No one is forcing anyone to work at Wal-Mart. People, especially on the managerial and executive levels, have many opportunities for employment.

I would expect, that when the person was offered his job, he was apprised of the rules and regulations. If so, and he accepted the job, he is obliged to follow those rules. If he found the regulations obnoxious, he never should have accepted the position in the first place.

I had a dissimilar but related situation when I was working. There were some regulations that went against my grain, and I seriously considered leaving, on account of them. I thought it all through, decided that the pluses outweighed the minuses, and I stayed.

I live in a deed restricted community. Again, it is a matter of choice. If I could not live with the rules, I would have moved elsewhere.

I really scratch my head when people become angry with a situation, and blame others, when the initial choice was theirs.
0 Replies
 
Green Witch
 
  1  
Reply Thu 29 Mar, 2007 07:20 am
The Walmart in my area has a terrible time keeping employees, but retail people (including managers) have many choices. My area has far more retail jobs than people who can fill them. However, that's not always the case. If you live out in East Jesus, Nebraska - Walmart might be the only game in town. Maybe your spouse owns the farm and you work outside to help support the family. Should people who have very limited choices have to put up with this?

Years ago I was desperate to get some experience in my chosen field and I worked for a man that made very personal comments about employees personal lives (upon meeting my boyfriend the boss asked him if I was any good in bed), he often made comments about what we wore to work and listened in on all our phone calls. Another woman in the business thought it was his right as the boss and owner to get away with it and said if I didn't like to I should leave. I stayed for a year because I wanted the job experience on my resume, but I never thought a boss should be given such carte blanche. I think WalMart is just being the bigger version of this guy I worked for.

(I might have to depart from this discussion as my workers arrive. In this case I'm the boss and I don't care who they slept with last night, but I do want them to get started when they get here and they need me to do that.)
0 Replies
 
fishin
 
  1  
Reply Thu 29 Mar, 2007 07:27 am
Green Witch wrote:
Years ago I was desperate to get some experience in my chosen field and I worked for a man that made very personal comments about employees personal lives (upon meeting my boyfriend the boss asked him if I was any good in bed), he often made comments about what we wore to work and listened in on all our phone calls. Another woman in the business thought it was his right as the boss and owner to get away with it and said if I didn't like to I should leave. I stayed for a year because I wanted the job experience on my resume, but I never thought a boss should be given such carte blanche. I think WalMart is just being the bigger version of this guy I worked for.


It would seem from the article you quoted that Walmart is being the exact opposite of your former boss.

People will complain if Walmart investigates and holds people to the corporate policy (as well as labor laws). They'll also scream and cry about how awful Walmart is for allowing supervisors to abuse their postions of authority if they don't investigate and allow people to get away with it.

Either way, the people that hate Walmart will find something to complain about.
0 Replies
 
Green Witch
 
  1  
Reply Thu 29 Mar, 2007 07:44 am
I think my former boss was acting exactly like Walmart by questioning my personal life and basically spying on me.I have no problem with a company enforcing labor laws, but it seems to me that WalMart has created a situation that goes beyond the office and into a person's personal life. I'm fine with a company making sure no employee violates the rights of another employee, but what about consenting adults not on company time? Where does personal life begin and end? Where does company life begin and end? How much should a company be able to get away with. I'm wondering where the line should be drawn.

I'm aware Walmart is not the only one with such a policy, but they are a big force in this country and cannot be ignored (love 'em or hate 'em). It also seems they are taking this control thing to incredible extremes.
0 Replies
 
jespah
 
  1  
Reply Thu 29 Mar, 2007 05:17 pm
I can see the business entertainment/gifts policy although I think it's exceptionally harsh. When I was auditing, we could not accept gifts but it was understood that if someone gave you a cup of coffee, you could be courteous and accept it without fearing for your job.

As for the affair, if any of it was on company time or money or site, then yeah, I can kinda see their point in that, too. E. g. if one person was on a business trip and then the company was hit for double occupancy charges in the hotel or two sets of meals on the food allowance or whatever.

It does, though, make me wonder what sort of contracts have been signed here. Are there morals clauses? If so, then the employees knew that their actions would be suspect although I'm sure they didn't think they'd be followed around, etc. But if not, it's absurd. Even if the company is trying to cultivate some sort of family values deal, or if they are trying to pin it on sexual harrassment or the like, it does give you pause when they are that tsk-tsk-y about two consenting adults.

Furthermore, it also makes you wonder about how such high quality surveillance is paid for. Is it any wonder they keep unions out? Then they'd have to actually pay a decent wage, and heavy-handed surveillance would, perhaps, not be such an easy budget line item to approve.
0 Replies
 
farmerman
 
  1  
Reply Thu 29 Mar, 2007 05:32 pm
Every company I worked for (and my own company) has ethics policies. In my market, we use services of many engineering subcontractors and other service companies(labs, geophysics etc). If theres a job out there that can bring them millions on a contract, we as individuals get targeted by their "sales staffers" who learn and develop large data bases on the "decision makers" Consequently Im not surprised that Wal Mart has set stiff reprisals for "baksheesh",or for accepting gratuities before a sale decision is made. This translates to "NO ACCEPTING ANYTHING OVER X BUCKS FROM A CONTRACTOR". Also, the fraternization rule can disassemble a team very quickly unless there are strict rules. If the parties are married, it can mean termination after a reasonable warning and reassignment of one of the parties.
The dude who violated a reporters privacy is almost a criminal act and he should also suffer.

This is all pretty much common sense. For the record, I dont shop Wal Mart, I dont like their policy of beating up their subs with threats of contract non-renewals. I also dont like the policy that theyve established that allowsthem to sell an inferior grade of , say, an appliance (specially made for Wal Mart) and they make it look lik youre getting a deal.
Wal Mart is also a town killing hydra with a corporate model that enhances town killing while eating up prime rural lands. (Theyve only recently begun an "inner city" business model, probably to throw the heat off.

However , having said all that, I still have to agree with their ethics policy for all employees, even the corner office boys.
0 Replies
 
ossobuco
 
  1  
Reply Thu 29 Mar, 2007 05:47 pm
I've a friend who worked for a hospital corporation which would not allow employees to fraternize with equipment purveyors, for obvious reasons.
Heh, they've been married thirty or so years now, and, for cause not related to that question, both moved to other, better, jobs.

I see the point on both sides.

Having been around where sales pitches were routine at "lunch time" - meaning they brought us what they ascribed as a feast and we didn't get our own break time to go out, run, shop, eat our choice of meal... that got annoying, but we never felt beholden.

It is a little infantilizing, that one is assumed to lose judgement with a cup of coffee or lunch, or ... gasp, some fooling around; people are more compllcated than that, or some are. On the other hand, corruption makes the world go round, and/or the appearance of it makes the earth swivel. I can see it's important for a firm to toe the "gift line". Am a bit recalcitrant on the romance thing - which I know is a rule, at least within layers of hierarchy - at many workplaces. (I just don't personally care what people do unless it affects job performance, I always look at (er) performance. I too was stunned by the level of spy expertise thrown at this at Walmart business. Shocked

On that with a side look at WalMart's general practices, I see GreenWitch's problemo.
0 Replies
 
farmerman
 
  1  
Reply Thu 29 Mar, 2007 05:55 pm
Quote:
(I just don't personally care what people do unless it affects job performance, I always look at (er) performance. I too was stunned by the level of spy expertise thrown at this at Walmart business. [Shocked]
. In the cases where 1 or both are married, or if one is a supervisor, or both work on similar roles, it WILL affect performance. As an employer, I dont buy "free time" fraternization that could end inaffaairs, broken affairs, broken families, =shitcans their performance. Most companies nip it in the bud with ethics rules. If you sign them, youre bound. No one is irreplaceable, especially the EO's .
0 Replies
 
fishin
 
  1  
Reply Fri 30 Mar, 2007 08:40 am
Green Witch wrote:
I think my former boss was acting exactly like Walmart by questioning my personal life and basically spying on me.I have no problem with a company enforcing labor laws, but it seems to me that WalMart has created a situation that goes beyond the office and into a person's personal life. I'm fine with a company making sure no employee violates the rights of another employee, but what about consenting adults not on company time? Where does personal life begin and end? Where does company life begin and end? How much should a company be able to get away with. I'm wondering where the line should be drawn.


In the article you quoted there is no mention of consensual affairs that don't involve people that are both employees of Walmart and any time there is a supervior/subordinate affair there is an immediate question of consent as well as questions about conhersion and unfair treatment. The article gives no indication of whether Walmart looks into affairs betwen an employee and someone who has no involvement with the comany or how far they might look if they do. Maybe they do look into it, maybe they drop it.

I'm not fond of their "no gifts at all" policy going as far as a cup of coffee but every company I've ever worked for had some sort of limit on gifts employees could accept. In most places there was a nominal limit set at $25-$35 which seems to me to be much more reasonable. Accepting vacation trips and cases of alcohol from someone seeking to do business with my employer hasn't been tolerated at any place I've worked for and I suspect it is the norm in the business world.
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