The Scarlet W

Will Wal-Mart Hurt Hillary? That was the headline on AOL news when I signed on this morning, complete with a downcast image of Saint Clinton. Hillary's past presence on the Wal-Mart board is now apparently a sin that she must wear around your neck like some kind of scarlet W:

With retail giant Wal-Mart under fire to improve its labor and health care policies, one Democrat with deep ties to the company - Sen. Hillary Rodham Clinton - has started feeling her share of the political heat.

Clinton served on Wal-Mart's board of directors for six years when her husband was governor of Arkansas. And the Rose Law Firm, where she was a partner, handled many of the Arkansas-based company's legal affairs.

Clinton had kind words for Wal-Mart as recently as 2004, when she told an audience at the convention of the National Retail Federation that her time on the board "was a great experience in every respect."
But in recent months, as the company has become a target for Democratic activists, she has largely steered clear of any mention of Wal-Mart. And late last year, Clinton's re-election campaign returned a $5,000 contribution from Wal-Mart, citing "serious differences with current company practices."

As Clinton sheds her Arkansas past and looks ahead to a possible 2008 presidential run, the Wal-Mart issue presents an exquisite dilemma: how to reconcile the political demands she faces today with her history at a company many American consumers depend upon but many Democratic activists revile.

What does it say about our society today when membership on the board of directors of one of the most successful retail operations in history is considered a blemish on your past? Hill and Bill have some pretty deep roots with Wal-Mart:

In 1986, when Wal-Mart's founder, Sam Walton, tapped Clinton to be the company's first female board member, Wal-Mart was a fraction of its current size, with $11.9 billion in net sales.

Today, Wal-Mart is the world's largest retailer and largest private employer, with over $312 billion in sales last year and 1.3 million employees or "associates" in the U.S. alone. But recently, the company has drawn intense scrutiny for its labor practices - from its wages to the lack of affordable health coverage for employees, to its stiff resistance to unionization.

Throughout the 1980s, both Bill and Hillary Clinton nurtured relationships with Walton, a conservative Republican and by far Arkansas' most influential businessman.

Among other things, Hillary Clinton sought Walton's help in 1983 for Bill Clinton's so-called Blue Ribbon Commission on Education, a major effort to improve Arkansas' troubled public schools. The overhaul became a centerpiece of Clinton's governorship.

And Wal-Mart's Made in America campaign, which for years touted the company's sales of American products in its stores, was launched after Bill Clinton persuaded Walton to help save 200 jobs at an Arkansas shirt manufacturing plant. The Made in America campaign has virtually vanished in recent years, as the company's manufacturing has gradually moved overseas - another point of criticism by many anti-Wal-Mart activists.

The Clintons also benefited financially from Wal-Mart. Hillary Clinton was paid $18,000 each year she served on the board, plus $1,500 for each meeting she attended. By 1993 she had accumulated at least $100,000 in Wal-Mart stock, according to Bill Clinton's federal financial disclosure that year. The Clintons also flew for free on Wal-Mart corporate planes 14 times in 1990 and 1991 in preparation for Bill Clinton's 1992 presidential bid.

The company which she once served and honored now has its campaign contibutions returned as though the funds were tainted by scandal. Once again politics trumps principal.