The price of controversy
Many supposedly punitive fines companies like Wal-Mart pay amount to chump change when it comes to the size and scope of their businesses. Wal-Mart itself racked up $114 <em >billion in revenues last quarteralone. However, liabilities stack up, and the reputational risk that Wal-Mart faces in instances like these may be a far more costly intangible for investors to consider. Although Wal-Mart has cleaned up its act in many areas, it’s clearly still scrubbing away; investors should be wary of the multifaceted price of controversy.
The article Hazard Pay at Wal-Mart originally appeared on Fool.com and is written by Alyce Lomax.
Alyce Lomax has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
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