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NYC Comptroller Calls for Investigation into Wal-Mart’s Spying Tactics
Wal-Mart’s surveillance of employees, shareholders and critics has many up in arms, including New York City Comptroller William C. Thompson, Jr., who is now calling for the US Attorney General and the SEC to investigate Wal-Mart’s potentially illegal actions.
Official Asks for Probe Of Wal-Mart ‘Surveillance’ [Wall Street Journal]
The New York City Comptroller asked the U.S. Attorney General’s office and the Securities and Exchange Commission to investigate Wal-Mart Stores Inc. for what it called “ill-considered and possibly illegal surveillance operations” directed at shareholders who submitted proxy petitions.
In letters to both agencies, Comptroller William C. Thompson Jr., citing a recent article in The Wall Street Journal, said he was “particularly troubled by reports that Wal-Mart engaged in chilling and truly outrageous surveillance activities.”
The April 4 article detailed the company’s extensive surveillance of employees, critics and shareholders. As one example, the article detailed how internal security groups were asked to investigate shareholders who had submitted proposals that could potentially disrupt the company’s annual meeting and that the company was trying to block.
The comptroller’s office submitted a proposal that requested the Wal-Mart board to abide by a corporate code of conduct for companies doing business in Northern Ireland. New York City’s Pension Funds hold approximately eight million Wal-Mart shares, currently valued at nearly $400 million.
The April 4 article noted that in a January internal memo viewed by the Journal, a Wal-Mart official asked its internal security groups to “do some preliminary background work on the potential threat assessment for the Annual Shareholders Meeting,” listing the 14 submitted proposals. The official cautioned that the company’s efforts to thwart some of the petitions “can create a potential for a negative reaction from the shareholder group that submitted the proposal.”
Shortly after the article ran, Wal-Mart contacted some of the shareholders to apologize, particularly for referring to them as potential threats. Mr. Thompson said the phone call didn’t appease his office.
“The response they gave my office was that it was justifiable and that they had no problem with it,” Mr. Thompson said. “We want to know to what level this background investigation went. If they just Googled us, fine. But we can’t get answers.”
Wal-Mart wouldn’t comment, but it provided a letter written by its top legal officer that was faxed this past Thursday to all shareholder proponents, in which the company said the request to do a threat assessment was never carried out.
The letter went on to explain that “in the ordinary course of business and for legitimate business reasons, Wal-Mart will conduct background research on persons or organizations, including proponents of shareholder proposals ... Any information gathered about proponents of shareholder proposals would come from internet searches and from other publicly available sources of background information.”
The Comptroller’s office says it received the fax but still wasn’t satisfied.
Other shareholders got on the Wal-Mart threat list with a variety of petitions. Action Fund Management LLC, which operates the Free Enterprise Action Fund, submitted a proposal that would require the company to report on what it has done to promote “the social benefits of business and the virtues of capitalism.” Last week, after the Journal article ran, the group sent a letter to Wal-Mart seeking “any and all information” that Wal-Mart may have collected on the fund and its managers.
Steven J. Milloy, the Potomac, Md., fund’s managing partner, asked that the retailer’s chief executive and general counsel “personally certify” that the company had done no “inappropriate surveillance of shareholders” who submitted petitions for the upcoming annual meeting.
Posted by Alex Goldschmidt on Wednesday, April 11, 2007
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COMMENTS
I’d like to see “the 14 submitted proposals”. See just how threatening they were.
The only one I remember from last year’s meeting was a proposal to tie Scott’s compensation to his performance. That one never saw the light of day. If Bentonville was doing this spying stuff last year, I’d bet that bunch got looked at.
Ken V in Texas
Wednesday, April 11 at 11:54 AM
Wal-Mart conducted research and threat assessments on potential troublemakers? Is this any different than any other company? What do you call pickets blocking the gate of a plant from which they are on strike? What do you call union goons videotaping people as they walk to their cars, writing down their plate numbers, blocking their way and laying sharp chains across the road to flatten tires and cause accidents?
Oh, I know, that is sort of off topic but I couldn’t resist.
If you have ever been the plaintiff, defendent, judge, lawyer or jury member in a court case, you have been heavily investigated, especially as a potential juror in a major civil trial. Interviews with colleagues, neighbors, employers, educators, friends, etc. and credit checks, background checks, pictures of your home, where you shop, what you buy, what organizations you belong to, etc. are all looked at. If you run for political office, you’ve been investigated.
Only Wal-Mart is evil for investigating. Everyone else is just doing their jobs.
Nick in
Wednesday, April 11 at 01:13 PM
...potential troublemakers...?
These were stockholders! Really makes you want to run out and buy large quantities of WMT. Warren Buffet notwithstanding.
Bentonville wouldn’t know a good business decision if it hit them in the face.
Ken V in Texas
Wednesday, April 11 at 02:22 PM
Ken V,
“These were stockholders”
It’s good to know that a stockholder cannot be a ‘trouble maker’. When I was a union organizer, I was told that the union bought stock in all companies they either, represented members in or were trying to unionize, so that they could get shareholder reports to base their demands on!! Are you saying that the union, would in no way be trouble makers?
Bob in
Wednesday, April 11 at 04:09 PM
Quote from Ken The Genius:
“Bentonville wouldn’t know a good business decision if it hit them in the face”.
So, the 44th CONSECUTIVE YEAR of RECORD SALES & RECORD PROFITS means nothing. Only a company that doesn’t know a good business decision would post 44 consecutive years of RECORD performance.
Apparently, Wal-Mart was incompetent enough to sell $345 billion in goods to 140 million customers per week in 2006, while turning a record profit of more than $11.6 billion AFTER a write down of more than $800 million for discontinued operations.
Sounds pretty incompetent to me. Perhaps Ken could do a better job.
Here is Ken’s business plan.
1. Open only environmentally friendly, small stores in downtowns where they are welcomed with open arms.
2. Sell only goods produced in the US.
3. Recognize a union for workers. Start all workers at $20 per hour plus 100% paid benefits, with wages to rise based on the employee’s needs and expenses.
4. Collect profits, which are then given to employees because the banks who lend money and the stockholders who invest money are simply money grubbing, capitalist pigs who are trying to exploit the workers and who do nothing to create wealth. The workers get all the profits since only sweat produces wealth.
5. SUCCESS!!!!
Nick in
Wednesday, April 11 at 06:04 PM
Funny how Wal-Mart is good enough for the NYC Pension fund to hold $400 million dollars worth of the company’s stock but heaven forbid if Wal-Mart actually is allowed to build a store in NYC to save those people some money.....no...I think I would rather pay $5 for a loaf of bread from some stupid mom & pop store in Manhattan.
John Adams in NYC
Wednesday, April 11 at 10:35 PM
When was it worth $400 million, John? When they bought it? Or now? (((ouch!))))
I appreciate you whipping up a business plan for me, Nick, but I don’t think that one would fly with my banker.
What other “records” did Wal-Mart set in ‘06? Record number of blunders?
Ken V in Texas
Thursday, April 12 at 02:37 AM
The spying is also on employees.
I wonder what Bentonville would say about me for
buying a $1,000 computer from Best Buy? I’m a
threat?
I hope more & more people will take their saved
up money elsewhere.
Rob in Surfside Beach, SC
Thursday, April 12 at 10:31 AM
Funny how Wal-Mart is good enough for the NYC Pension fund to hold $400 million dollars worth of the company’s stock...
Oops, John Adams, you spoke too soon!
“We were not satisfied with that response,’’ says Kenneth Sylvester, New York City’s director of pension corporate affairs. A Thompson subordinate, he oversees the city’s five pension funds with assets of $100 billion.
That’s one of the hardships of trying to stick up for Wal-Mart. Just when you think you’ve made a valid point Bentonville comes along and pulls the rug out from under you.
Ken V in Texas
Thursday, April 12 at 02:06 PM
Just for the record-Nick is a paid blogger for conservative sites. Notice how he will never admit Wal-Mart is at fault for anything and he will never say a good word about unions. Bob is just a lapdog ass licker.
jl in cincy
Thursday, April 12 at 09:40 PM
jl in cincy,
“Bob is just a lapdog ass licker.”
And, you are a braindead, idiot, so what’s your point, except that you know how to call people names?
Bob in
Thursday, April 12 at 11:11 PM
I was on a jury last year and so far as know I was not checked
I have been sued,and also have brought suit against others my lawyer and the other lawyers I do expect to have check for background but I do not expect them to treat me as a criminal .
I have sent in proxy for some stock I owned and have voted against the broad I do not think I was very thought of as a threat.The Stock holders meeting is a big thing at Wal-Mart very thing is planned and on schudel they do not expect any one to say any thing out of line or to disagree with Scott they have people out in the audience to ward this off
When you are interview for Wal-Mart just for cashier or floor associates they want you to be prove who you are since Wal-Mart is so big they are afraid of some stealing there secerts,really I have seen some do this kind of interview and tell them.
Now I can see if you are interviewing in Bentonville,but the local small town store,,before you say anything you cannot get into any computer without a manger setting it up and then you are just limited to what you should know every time you log in someone in Bentonville knows how long you are on and what you looked at, the paranoia runs deep with this company.
I expect to be monitor at work but when I leave and my own hours are my own and Wal-Mart has no business in my affairs or the customers
beenthere in
Thursday, April 12 at 11:33 PM
beenthere,
“When you are interview for Wal-Mart just for cashier or floor associates they want you to be prove who you are since Wal-Mart is so big they are afraid of some stealing there secerts,really I have seen some do this kind of interview and tell them.”
First off, you say they ask you to prove who you are, well, with the ‘illegal alien’ situation we face, and the ‘Identity fraud’ situation going on, I would hope that the company would check this!!! As for Wal-Mart being “ afraid of some stealing there secerts”, this goes on in almost ALL companies. Have you not seen the reports about ‘copy cat’ and ‘bootleg’ things? And, when “Confidential” documents start showing up in a union headquarters, I don’t blame Wal-Mart for beefing up security!!!
“you cannot get into any computer without a manger setting it up and then you are just limited to what you should know”
In this ‘computer age’, this is STANDARD PRACTICE at most companies, not just Wal-Mart!!! And, why is it that you feel the need to be able to go to places on the computer, that you don’t need to know about to do your job? Do you just like to snoop into things that are none of your business? You have to remember that there is a difference between being an associate and being in upper management!!!
Bob in
Friday, April 13 at 12:30 PM
You two crazy fucks (nick and bob) don’t listen to reason. Here are your two main statements. Wal-Mart can do no wrong and unions are terrible. It doesn’t matter what the evidence is-you guys defend these points even when the facts are against you. And for some reason, bob likes to bring up unions when the topic isn’t even going in that direction. Sometimes you make good points, but a lot of the times your views are fanactical and unreasonable. Okay nick, go ahead and post a 5 page incoherent and rambling post in response.
jl in cincy
Friday, April 13 at 02:02 PM
You catch on quick, jl.
Ken V in Texas
Friday, April 13 at 02:18 PM
“Here are your two main statements. Wal-Mart can do no wrong and unions are terrible. It doesn’t matter what the evidence is-you guys defend these points even when the facts are against you”
Is that anything like Ken V, SDV, Alex and the host of other anti-Walmart bloggers who say Walmart “can ONLY do wrong” even though they keep getting bombarded with evidence to the contrary?
So jl, your statement means what?.....
mary in
Friday, April 13 at 07:13 PM
jl in cincy,
“Here are your two main statements. Wal-Mart can do no wrong and unions are terrible.
And, there is where you are wrong. First, where Wal-Mart goofs up, we admit they were wrong, but, on the other hand, we aren’t on a vendetta to crusify Wal-Mart and take everything and blow it out of proportion like some here want to do. Do you really read some of the stuff here? A guy gets shot in a Wal-Mart parking lot and Wal-Mart becomes the crime capital of the world, give me a break!!! Second, I don’t think unions are terrible, both my father and I and many of my family members were union members, I was even a union organizer for awhile. But, we had a system for joining the union, you got consensus, had a vote and became represented. But, now, the union wants to bypass that system and eliminate the consensus and VOTE parts, I happen to think that is wrong!!!
“And for some reason, bob likes to bring up unions when the topic isn’t even going in that direction.”
In case you hadn’t noticed, the union sponcers and funds this site and puts up the articles. I bring up the union, when it is to show the anti Wal-Mart slant that is being put on the story presented.
“Sometimes you make good points, but a lot of the times your views are fanactical and unreasonable.”
Okay, I’ll ask you, what is unreasonable and fanatical about wanting to maintain tha American way of life, by continuing the principles of the Constitution? What is wrong about being FOR the Free Enterprise System, the system that made us the greatest nation on Earth? What is wrong with promoting ‘Personal Responsibility’ and being against Socialistic and Communistic changes to our government? What is wrong with being against a Welfare or Police State? And, what is wrong with allowing you to hear both sides of an issue?
Bob in
Friday, April 13 at 09:35 PM
..bombarded with evidence to the contrary
Your “evidence” doesn’t pass the smell test, Mary, and don’t you think “bombarded” is a touch hyperbolic?
You and Nick latch on to a straw and ride it for dear life, hardly shock and awe.
I wonder if Wal-Marts counts criminals in the parking lot as part of their 176 million weekly visitors?
Ken V in Texas
Saturday, April 14 at 03:27 AM
Oh Mary,
I was wondering if you were a shareholder sucker of WalMart as well as a taxpayer sucker for all their government subsidies? Public subsidies for WalMart should not be going to pay for surveillance on you as a stockholder. Perhaps it is coming out of your shareholder value. You might ask Bruce Gabbard but he did not work in accounting at WalMart. But then again nobody ever has.
SanDiegoView in
Saturday, April 14 at 05:49 AM
jl
Apparently, you and I have different definitions of “reason”. To me, “reason” means logical, fact based, supported by actual evidence and unbiased. If it just so happens that “reason” often comes out in support of Wal-Mart, so be it. I also attack Wal-Mart when they are wrong. In fact, and I think Bob has said this in the past as well, if Wal-Mart were to go out of business at the hands of another competitor tomorrow, we would not be heartbroken. That would mean that another store came along with better prices & products and we all benefit. Of course, you would know that if you actually read our posts.
Your definition of “reason”, like all intellectually challenged individuals, is this: if someone disagrees with your point of view, they are not listening to “reason”. Let me clue you in. “Reasoning” has nothing to do with your opinion or someone supporting or disagreeing with said opinion. Reason has to do with logic, which is a process whereby one can ascertain facts based on intelligent observations and clear evidence.
Now come back and post when you have digested this lecture.
Nick in
Saturday, April 14 at 06:05 AM
Nick, Bob-
Why bother defending yourself against a post that should be deleted if WMW fairly policed these boards? jl didn’t say anything new, nor anything of substance. I wouldn’t have bothered. A response was exactly what he wanted.
Someone in USA
Saturday, April 14 at 10:00 AM
Someone,
You and I both know that the future politicians who are currently working for WMW (and have a duty to oversee this blog) will *not* delete anything, because they could care less what happens beyond whatever it is they do.
JB
Jim Bunch in
Saturday, April 14 at 10:59 AM
You pro Wal-Marters are beginning to sound a little pathetic. Your crusade isn’t going well so you blame the blog?
I’ve recommended several times that you all might be happier at a blog comprised of more like-minded people. You can’t handle being deleted and you get upset when others aren’t censored.
More to defending the indefensible than meets the eye, huh?
Ken V in Texas
Saturday, April 14 at 03:01 PM
Ken V,
“You pro Wal-Marters are beginning to sound a little pathetic. Your crusade isn’t going well so you blame the blog?”
What you fail to understand, is we don’t have a CRUSADE, but you do with your revenge thing!! All we are trying to do here, is provide BALANCE of thought!!! We are not trying to CHANGE or DESTROY Wal-Mart, you are!!! Wal-Mart will continue to be whatever it wants, no matter what we say here.
“I’ve recommended several times that you all might be happier at a blog comprised of more like-minded people.”
Then all you would have is an anti Wal-Mart “Love Fest”, all agreeing with each other until you got tired of ‘kissing each other’s butts” and soon it would be like WUWM’s site, almost empty of posters.
Bob in
Saturday, April 14 at 09:34 PM
...but you do...
You bet I do, Bob. I am anti Wal-Mart! I make no bones about it. I am dedicated to pulling away the smiley face and exposing the Beast within. So?
Don’t get me wrong, I welcome the “BALANCE of thought” provided by the pro side. Like I’ve said before, I’m a counter-puncher. Show me the glitzy Madison Avenue Wal-Mart and I’ll show you the ugly underbelly. Bring it on!
But whining about the blog? The playing field is what the playing field is and if you think the anti side has an advantage, your paranoid.
Ken V in Texas
Sunday, April 15 at 04:30 AM
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