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Business performanceLatest NewsESGEconomics, government & businessHR strategy

Investors demand better staff practices at Wal-mart

by Michael Millar 3 Jun 2005
by Michael Millar 3 Jun 2005

Some of the largest investors in retail giant Wal-Mart have written an open letter to the US group demanding better employment practices after a series of damaging staffing scandals.

Wal-Mart, the world’s largest retailer, was forced to pay $11m (£5.8m) in civil penalties to the US government in March to settle charges that it employed illegal immigrants to clean some of its stores. It also faces a group action from 1.6 million female staff in an equal pay claim.

The letter from the shareholders, which is timed to coincide with the company’s AGM, claims that the negative publicity is damaging share values.

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The letter to Roland Hernandez, chairman of Wal-Mart’s audit committee, said there were “serious concerns about reports of legal and regulatory non-compliance at Wal-Mart.

“We are deeply concerned about potential contingent liabilities and negative effects on the company’s stock price and reputation,” the letter added.

Michael Millar

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