Wal-Mart: The Down Side Of Paranoia

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By Douglas A. McIntyre Published
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Wal-Mart (WMT) fired an employee recently for intercepting a reporter’s phone calls. As it turns out, the practice may only be the tip of the iceberg. According to The Wall Street Journal, the employee in question was "part of a larger, sophisticated surveillance operation that included snooping not only on employees, but also on critics, stockholders and the consulting firm McKinsey & Co."

Hiring consultants and spying on them would seem to be counter-productive.

What has come to light is that the company has a Threat Research and Analysis Group that tracks employee communications and other activities.

While it is understandable that a company might want to protect itself against devious employees and outside groups that may want to harm the company’s image, nothing would seem to do more damage to that image than the revelation that it has a network of spies on the payroll.

Wal-Mart seems particularly adroit at drawing bad publicity. It recently fired on of its chief marketing employees for taking gifts and having an alleged sexual relationship with another employee.

Working at a company where one of the more high-profile activities is an internal monitoring system to keep employees in line may make it a big tougher to get new recruits.

The posting on Craig’s List might read: "Wanted, Employees with appropriate skills who don’t mind being watched all day by goons from the corporate office."

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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