Home Depot Rocked By Kickback Scandal

(CBS)  In an exclusive, CBS News has learned of a corruption scandal involving The Home Depot.

In recent weeks, four Home Depot purchasing managers were fired at a meeting at an Atlanta hotel for their role in the scandal, reports CBS News chief investigative correspondent Armen Keteyian.

The managers were allegedly paid enormous sums — totaling millions of dollars — to insure that certain flooring products made their way onto the company's shelves, which is among the most competitive retail real estate in the world.

The world's largest home improvement retailer, The Home Depot boasts more than 2,000 stores.

One source tells CBS News that CEO Frank Blake took immediate action upon learning of the scheme. On Thursday, the company is expected to hold meetings with employees to reiterate its ethical standards.

The FBI is said to be investigating and had no immediate comment.

When contacted by CBS News late Tuesday, the company confirmed the nature of the investigation and issued a statement saying it is "cooperating with authorities" and that "maintaining our ethical standards is of the utmost importance to The Home Depot."

[cbsreader4]

Perhaps I get the last word here but...

Home Depot could be a shining example of a business as it once was.

If Home Depot once again puts customer service ahead of everything else then it will once again be a winner in everyone's eyes- including the stockholders.

Home Depot... are you listening????

[jetranger7]

CORPORATE AMERICA gone awry with Stupidity ! These were Managers huh, some Managers they were, typical now days of Management to do stuff like this, thinking they can get by with it and the hell with the workers. Guess thats why I won't work for any of these Big Corportations, they're all phony as a 3 dollar bill ! Then theres the stupid procedure they want you to go thru to get the job, not like it was in the 70s. It isn't working, what they insist you do to get the job either, sure didn't prevent these idiots from getting Kickbacks !

[hdemployee]

For those of you that have never worked in the meat grinder that is the Home Depot, consider this: the company has over 340,000 employees, most of whom are Sales Associates who are paid on an hourly basis. The Company SOP book (Standard Operating Procedure) covers anything that you may or may not think of in terms of employee conduct. You can be fired for buying a bottle of water while you are in your apron and on the clock. You can be fired for not giving good "Customer Service". You can be fired for being late to work because you needed to see that your kids got safely onto their school bus. You have been asked to VOLUNTARILY go home early, or not work 40 hours per week so that your store does not go " OVER HOURS". You do not get paid if you do not work, nothing wrong with that but the hourly people are the only people at Home Depot that don't get paid because they don't work. Having said that you must understand that your Store Manager and all of the Assistant Store Managers are salaried, not hourly, and they still get paid while you are at home not being paid so that they can look good on the sales per hour scale.
SO, when something like this happens, the Purchasing Management taking bribes in " the millions of dollars", the hourly people are a tad upset.

[u4y3b9p]

Wow...the offensive language/remarks on these boards are unbelievable. Someday, head on over to one of the UK's news sites like Daily Mail; the difference in civility is striking.

Name-calling, slurs and epithets are not constructive and don't get you taken seriously. You're definitely not going to win anybody over to your way of thinking!

Honestly, I'm not sure why sites like these have started adding message boards. They rarely add anything intelligent and useful to the story.

[dirtydog55]

The term is called "buy-in". It requires money from a specific budget of the manufacturer called "Market Development Funds". There are legitimate funds spent on brining an item to market and there are the somewhat fine lines that can be crossed, (as in this case with Home Depot), but these lines are crossed every day. Home Depot was just caught (by the media) in the act. Posted by USAyesterday at 07:04 PM : Aug 01, 2007


Your opinion is based on surmise. There's not enough information in the story to make an intelligent conclusion.

There must be a lot more to it than what is said in the story for the FBI to be involved.

So, surmise all you want. You and everyone else on this topic is just guessing.

Chew on this: HD paid Bob Nardelli $210 million in severence pay in spite of the FACT that HD stock actually DECLINED during the biggest real estate boom in American history. During this same period, Lowe's stock TRIPLED because their profits rose a lot faster.

Nardelli didn't do anything wrong; he just got what he asked for.

[usayesterday]

..... and the final example:

3. This final example is just like the story mentioned in this article. Vendors/manufacturers pay thousands of dollars for each item to be carried at a particular retailer. The term is called "buy-in". It requires money from a specific budget of the manufacturer called "Market Development Funds". There are legitimate funds spent on brining an item to market and there are the somewhat fine lines that can be crossed, (as in this case with Home Depot), but these lines are crossed every day. Home Depot was just caught (by the media) in the act.

That's retailing in America for you!

[usayesterday]

I laugh when I see/hear people get upset about the actions at various retailers, this example of Home Depot being one of them. In fact, I'll just have to throw out some more examples of retailers' actions that get people all bent out of shape. The funny thing is, every retailer is guilty of the following examples:

1. People get upset at Walmart for its imports of cheap Chinese products made from "sub-standard" working conditions ('sub-standard' of what?). But has anyone ever taken a look at the TVs sold at Best Buy? Or the laptop computers from Comp USA? Or even your friggen iPod?! Those items are not made in the gool 'ol USA! Can we say China and/or Taiwan!

2. EVERY RETAILER REPACKAGES AND RESELLS ITEMS THAT WERE RETURNED FROM CUSTOMERS AFTER THEY HAD BEEN OPENED! There are very few situations where that's not the case. Returns cost each retailer millions of dollars, especially from the not-so-honest customers. However, it's a necessary evil in order to provide a decent level of "customer service". To minimize the cost of the returns, if an item is returned with the entire contents of the package, and the packaging shows minimal to no signs of 'tampering', then the retailer re-shrinkwraps or repackages the item to be sold new once again.

[libocrat]

Could you libs fill me in on how this affects you?

[usayesterday]

All of you who are jumping down Home Depot's (and the president's ?) back are just full of liberal bull ***. You all stand on your high horse and think that the world owes you something.
Posted by HDChick4

*** are you talking about? This (moderate) lib was defending HD. Get off your effing high horse . . . .
Posted by down-ndirty

Ok, where is everybody purchasing their high horses from Lowes or HD?
Posted by rushlimpdrug at 02:10 PM : Aug 01, 2007
.................

Nah, the high horses are at WalMart.... $49.99

Made in China, and contains lead paint!

(But many people still ride them, day after day after day).

[whatashame1]

What a shame for all the good vendors that were working with home depot saving all of us money with stock items on the store shelfs. Only to be droped by these buyers so they can make there pockets fat with vendors from china
what a shame.