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Digging into Wal-Mart's latest ethics mess

Filed under: Bad news, Rumors, Wal-Mart (WMT), EmployeesIn the litigious days we live in, it should be common for large, global companies to put ethics in front of all employees at all times to ensure compliance (and protect against lawsuits, heh), but what happens when an activity that seemingly borders on illegality turns out to have no ethics concern at all? This is the root of Wal-Mart Stores Inc. (NYSE: <a rel="nofollow" href="http://finance.aol.com/quotes/wal-mart-stores -inc/wmt/nys?tabs=quotesandnews">WMT)'s latest ethics controversy, which pits employee Chalace Lowry against the retailer in what appears to be an innocent mistake more than anything.

Ms. Lowry, who was working as an administrative assistant in Wal-Mart's communications department, was asked to make copies of several documents that appeared to be related to Wal-Mart stocks. Ok, so far no problem. But, Lowry, who was told in employee orientation to report anything "that had the appearance of something unethical," reported the incident. She was told that those papers she had copied did not deal with insider trading on stock options or anything of the sort (which turned out to be true). Ms. Lowry acted in the best faith of the company, but now she is being given 90 days to look for an in-company transfer or "next steps" may be taken (whatever that means).

Well, although this innocent mistake was just that, the uncomfortable feeling that was left behind would seem to suggest that Ms. Lowry and her boss should be! split u p, the crux here is that Ms. Lowry's identity was disclosed to her boss (she was given no choice, according to statements) in the first place. In turn, that environment made it virtually impossible for her to stay where she was. Is it Wal-Mart's position or Lowry's to find another position of equal responsibility inside Wal-Mart? Although this is not really an ethics fiasco at all (most like an overblown mistake), the sensitivity to every little possible appearance of impropriety got the best of the situation here. From Wal-Mart's perspective, the retailer acted in good faith from what I have read. But, does the retailer want to scare off employees form the very thing that it stresses when it comes to possible ethics violations?
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