Being the world's biggest retailer doesn't make Wal-Mart Stores, Inc. (NYSE: WMT) feel secure. No sir! According to the Wall Street Journal [subscription required], Wal-Mart spies on reporters, critics, stockholders and the consulting firm McKinsey & Co.
And you thought the US was paranoid with its Patriot Act that lets librarians track your web searches and its Total Information Awareness system. Wal-Mart makes Hewlett Packard Company, Inc. (NYSE: HPQ) -- which spied on its board of directors to detect press leaks -- look like a chump!
Wal-Mart's spying operation is run by a 20-person Threat Research and Analysis Group from the Bat Cave -- a separate glass-enclosed structure which its employees access by holding the palm of their hands to a biometric reader. Here are some of the choice details of Wal-Mart's spying scheme:
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Protestor infiltration. Wal-Mart hooked up a wireless microphone to a long-haired employee who infiltrated an anti-Wal-Mart group -- Up Against the Wal's -- to determine if it planned protests at Wal-Mart's annual meeting.
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Vendor porn tracking. Wal-Mart used Defense Department monitoring equipment that detected the degree of flesh-tone on a viewed Internet image, and alerted monitors that a vendor sharing Wal-Mart networks was viewing pornography.
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Employee spying. Wal-Mart managers receive a list of email addresses and phone numbers with which their employees have communicated, and a list of Web sites visited. Wal-Mart limits Internet access, blocking social-networking and video sites. It also views emails that employees sent to or received from private accounts such as Hotmail or Gmail whenever the employees were hooked into the Wal-Mart computer network.
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Consultant monitoring. Suspecting that the leaks of confidential memos might have come from McKinsey employees who had been working on a health-care project at Wal-Mart's Bentonville, AK headquarters at the time of a leaked memo, Wal-Mart's security experts monitored McKinsey Internet activities.
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Shareholder resolution threat assessment. The Bat Cave also conducted "potential threat assessment" of those submitting proposals to its June shareholder meeting, particularly those whose resolutions Wal-Mart was trying to block. The list included proposals from a Boerne, TX, religious group; the New York City Controller's office; and Sydney Kay, an 85-year-old, retired science teacher who submitted a resolution requiring that board nominees own at least $5 million in Wal-Mart stock, and his 93-year-old sister Hilda Kaplis. (Kaplis sounds particularly threatening.)
Wal-Mart sounds like one sick puppy to me. I think it needs psychological counseling! Do you really want to support a company with that view of the world?
Peter Cohan is President of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Hewlett Packard or Wal-Mart.











Reader Comments (Page 1 of 1)
4-04-2007 @ 12:18PM
Gary Kimball said...
Seems George Orwell was off a few years