After highlighting the huge increase in Wal-Mart's lobbying efforts in January, the AP now has official numbers for how much Wal-Mart spent in 2007. At nearly 4 million dollars, Wal-Mart's lobbying budget increased 60% last year. This huge increase fits right in with Wal-Mart's new corporate-as-government style. I guess there's really just one question to ask: do you want Wal-Mart making governmental policy?
Here's the article from the AP:
Wal-Mart, the world's largest retailer, jacked up its lobbying budget by 60 percent in 2007, spending $4 million to influence the government on issues ranging from energy efficiency to retail crime.While its lobbying budget is still pocket change compared with other major trade groups and corporations, Wal-Mart (nyse: WMT - news - people )'s increased spending marks a growing recognition that the bottom line in Bentonville, Ark. is subject to the ways of Washington.
In 2006, the company spent about $2.5 million in lobbying dollars, up from $1.6 million in 2005. But less than a decade ago, Wal-Mart barely broke the six-figure mark thanks largely to Sam Walton's distaste for it. It spent $140,000 in 1999, after establishing a Washington shop about 10 years ago. It spent about a $1 million annually for the next several years, before increasing its lobbying representation and funds in 2005 amid increased criticism of labor practices and benefits.
A spokeswoman in company's Washington office said Wal-Mart decided around 2004 that it needed to focus more on federal relations and better educate policy makers on the many issues affecting the global retailer and employer. The company has 12 registered lobbyists now, up from two in 1999, said E.R. Anderson, who is part of the office's D.C. staff.The company also has worked with a stable of outside lobbying firms, including Patton Boggs LLP, the Podesta Group Inc., Mehlman Vogel Castagnetti Inc. and 10 others for the last few years.
Wal-Mart Stores Inc. easily ringed up more than its major rivals. Target Corp. (nyse: TGT - news - people ) spent $200,000 lobbying in 2007, while Costco Wholesale Corp. (nasdaq: COST - news - people ) and Macy's Inc. (nyse: M - news - people ) aren't even registered to lobby. Wal-Mart also outdistanced the top retail trade group, the National Retail Federation, which spent about $1.7 million last year.
Wal-Mart didn't nudge its way into the K Street stratosphere of major trade groups and veteran corporate lobbyists.
The drug industry trade group, the Pharmaceutical Research and Manufacturers of America, spent $22 million in 2007, while Exxon Mobil Corp. (nyse: XOM - news - people ), the world's largest publicly traded oil company, spent $17 million.
Wal-Mart lobbied on numerous issues, including a food stamp program, free trade, consumer product safety legislation, energy efficiency and standards. It also pushed for tougher enforcement of organized retail crime.
It also lobbied for a bank license, although it dropped its bid last year after it was strongly opposed by banks, unions and other critics. It continues to push for the ability to offer other financial services, such as prepaid Visa debit cards for millions of low-income shoppers who don't have bank accounts.
Long criticized for its skimpy employee health-insurance benefits, the company has also lobbied against legislation that would allow employees to form, join or help labor organizations. Its employees are not unionized.
The company - which lobbied Congress, the White House, Consumer Products Safety Commission and Commerce and Labor departments, among other agencies - spent more than $2.2 million in the second half of 2007 to lobby the federal government, according to a disclosure form posted online Feb. 15 by the Senate's public records office. It spent nearly $1.8 million in the first six months of 2007 to lobby on similar matters.
Breana Teubner, a former legislative assistant to Rep. Jeff Flake, R-Ariz., was among those lobbying on behalf of Wal-Mart.
Lobbyists are required to disclose activities that could influence members of the executive and legislative branches, under a federal law enacted in 1995.
Posted by Taylor - March 10, 2008 02:07 PM - In The News