Evolution of Wal-Mart’s influence
Introduction to Wal-Mart's Political Action Committee (PAC)
Similar to its lobbying shop, Wal-Mart's political action committee was small when it began a decade ago. It has grown dramatically since then.
Until 2004, Wal-Mart had a clear agenda. In that election cycle, Wal-Mart was the number one contributor to the Republicans.1 However, as the political tide has shifted, so has Wal-Mart's loyalties. This year, it is unclear which party has the company's support. On one hand, Wal-Mart is supporting Democrats as evident by its mid-year report that shows, "54 percent of contributions to House candidates delivered by Wal-Mart Stores Inc. PAC for Responsible Government this cycle have gone to Democrats."2 However, despite these contributions to Democratic politicians, Wal-Mart is telling its workers not to vote Democratic for fear of mass unionizing.3
Videos obtained from Flagler Productions shed new light into Wal-Mart's political giving strategy. Fully understanding that PACs are the primary vehicle for gaining influence in Washington, Wal-Mart was desperate to make sure its PAC was the most powerful, after years of neglect. However, Wal-Mart had a problem. With over $12 billion in profits last year, Wal-Mart cannot legally donate to its PAC. What the company can do is solicit funds from "corporate stockholders, executive and administrative personnel and the families of both groups."4 One strategy utilized Wal-Mart uses to increase funds is to match personal contributions made by its store managers to the PAC with a company donation to the Wal-Mart Employees in Critical Need Fund. The donation, made in the employee's name, potentially helps Wal-Mart employees in financial crisis. Not technically illegal, the practice is at the very least dishonest. Managers give money to the PAC thinking they are helping their fellow employees; however, the Wal-Mart Associates in Critical Needs Fund helps less than 1% of Wal-Mart's 1.3 million employees, while the PAC actively fights against legislation that would help all of the low-wage, hourly workers, such as workplace safety requirements. Wal-Mart will do whatever it can to "buy a seat at the table." At a 2001 Wal-Mart managers meeting in Houston, Wal-Mart officials boasted about how they lobbied against the Patients Bill of Rights for liability protection.
PAC Expenditures from 1998-2008
Wal-Mart's political loyalties have shifted back and forth over the past decade depending whom the company feels can best protect its interests during that cycle. After gathering data from the Center for Responsive Politics, we have been able to generate trends and patterns that have emerged over the past decade in Wal-Mart PAC contributions:
- In 1998, Wal-Mart gave $81,000 to House candidates and $54,750 to Senate candidates.5
- In 2007, Wal-Mart gave $748,700 to House candidates and $137,000 to Senate candidates.6
- From 1998 to 2008, there was a 980% increase in Wal-Mart's contributions to House candidates.7
- From 1998 to 2008, there was a 179% increase in Wal-Mart's contributions to Senate candidates.8
1 Featherstone, Liza. “Wal-Mart: Rise of the Goliath.” Multinational Monitor, January-February 2005.
2 Gonzales, Nathan L. “Wal-Mart Sends Mixed Political Signals.” Rothenberg Political Report, August 6, 2008.
3 Zimmerman, Ann, Kris Maher. “Wal-Mart Warns of Democratic Win.” Wall Street Journal, August 1, 2008.
4 Federal Election Commission Campaign Guide, http://www.fec.gov/pdf/colagui.pdf
5 Wal-Mart PAC contributions accessed at opensecrets.org
7 Internal calculation data from the FEC and opensecrets.org
