Wal-Mart's Unusual Rewards for Employees Who Give to Its PAC

Photograph by Alex Segre/Alamy
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Liberal groups and a union-backed Walmart worker group are asking the Federal Election Commission to investigate Wal-Mart Stores’ policy of rewarding contributions to its political action committee with donations to charity. Under the policy, every $1 an employee donates to Wal-Mart’s PAC, which supports such probusiness candidates as Ohio Republican House Speaker John Boehner, Texas Republican Senator Ted Cruz, and Arkansas Democratic Senator Mark Pryor, triggers a $2 donation to a charity for Wal-Mart employees in need.

Using charitable contributions to reward PAC donations has become a widespread practice among U.S. corporations, which are restricted by law from donating directly to their PACs. At least seven times over the past two decades, FEC commissioners have been divided over whether to restrict companies from matching the political donations with philanthropic cash.