Wal-Mart extends political reach

By Jim Hopkins
USA Today

Wal-Mart, the nation's biggest company, is beefing up in a new area: politics.

It has rocketed to No. 2 among top campaign givers in the 2004 federal elections. Four years ago, it didn't rank in the top 100, says the Center for Responsive Politics, a nonpartisan watchdog group.

Republican candidates are the big winners in this year's election. They received about 85 percent of the company's contributions, including those of its political action committee, employees and children of founder Sam Walton.

Wal-Mart's rise is significant because of the impact it might have on congressional debates about healthcare, labor and other hot-button regulatory issues, says Larry Noble, the center's executive director.

The company has more than $250 billion in annual revenue. (No. 2 is General Motors, with $187 billion in annual revenue.) Wal-Mart is also the nation's biggest private employer, with 1.2 million workers.

But unions say Wal-Mart's push to keep costs low is driving thousands of factory jobs overseas. It's facing a potentially costly sex discrimination lawsuit from female workers. Plus, a federal grand jury is investigating claims that Wal-Mart cleaning companies used illegal immigrants.

Wal-Mart denies the sex discrimination claims. It says it is innocent in the case of illegal immigrants. Still, the growing criticism has tarnished the company's image, and helped spur its leap into Washington.

"Our voice wasn't there to be heard," says company spokesman Jay Allen.

It's now being heard through:

Campaign donations. Wal-Mart's political action committee and employees have given about $1 million in the 2004 elections so far — almost entirely to congressional candidates.

Just $5,000 went to President Bush, and none to Democrats seeking the White House — a trend underscored yesterday in campaign finance data released by the center.

Wal-Mart gives to pro-business candidates, without expectations, Allen says.

"There are no quid pro quos," he says.

Walton's children are big givers, too. Wal-Mart Chairman Rob Walton last year gave $25,000 to the National Republican Congressional Committee. His brother, John Walton, has given more than $150,000 to Republican causes since 2000. Their sister, Alice Walton, gave more than $100,000 in the same period.

Lobbying. Wal-Mart has five staff lobbyists in Washington — up from one when it opened its office there in 1999.