Wal-Mart Pays Good For Its PR

STACKING the DECK: WAL-MART'S OPERATION TO MANUFACTURE GOOD PUBLIC RELATIONS

  • Wal-Mart Backed Organization Makes Its Debut. As the AP reported, "With backing from Wal-Mart Stores Inc., a group of community leaders - from clergy to Latino activists to businesswomen - announced the formation Tuesday of a national group to speak up for the world's largest retailer and launch counter-attacks when they sense criticism is unfair." [Associated Press, 12/20/2005]

  • Working Families For Wal-Mart Is A Wal-Mart Operation.  The AP further reported, "The steering committee of 16 people, partially funded by Wal-Mart, organized Working Families for Wal-Mart, whose job will be to talk about what they see as Wal-Mart's positive contributions." [Associated Press, 12/20/2005]

  • Working Families For Wal-Mart's Steering Committee A Mix Of Pro-Business Elites and Republican Activists. From the group's website, "Steering committee members come from a variety of backgrounds and communities.  They are customers, business leaders, activists, civic leaders, educators and many others with first-hand knowledge of Wal-Mart's positive contributions.  They make their homes throughout the country from Los Angeles, California to Jacksonville, Florida to Jackson, Michigan." The group includes legendary heavy metal singer Pat Boone, overnight filmmaker Ron Galloway, and Republican-activist Rev. Ira Combs of the Greater Bible Way Temple of Jackson, MI. [Source: forwalmart.com]

  • Wal-Mart Bought A "Campaign Mentality" To Combat Critics. Wal-Mart has hired, among other public relations firms, the Herald Group to help clean up its bad image. One of Herald's leaders says Herald wants to bring "a campaign mentality" to strategic communications and public affairs by integrating communications, lobbying, grass-roots mobilization and other disciplines to influence public policy. [Washington Post, 09/29/2005]

  • Wal-Mart Listens To PR Execs Instead of Cleaning Up Bad Behavior. The formation of Working Families for Wal-Mart was spelled out in a 2004 report by McKinsey & Company, in an effort to patch up Wal-Mart's bad reputation. Instead of cleaning up bad behavior, Wal-Mart is trying to pay its way into good standing with the American public. [Source: McKinsey memo, 2004, page 4]

WAL-MART WATCH'S THREE RECOMMENDED WAYS TO AVOID BAD PUBLIC RELATIONS:

  1. Pay Your Employees Well:

    Wal-Mart Associates Earn $2.60 Less Per Hour Than American Retail Workers.     Wal-Mart's stated average hourly wage is $9.68. This is $2.60 per hour less than the average hourly wages of retail workers of $12.28. Costco, for example, pays its hourly workers $16.00. [WalMartFacts.com, New York Times, "Parrying Its Critics, Wal-Mart Says Its Wages Must Stay Competitive," 5/4/05]

  2. Provide Affordable Healthcare:

    Wal-Mart Covers Just 48 Percent of its Employees; Other Large Employers Average 68 Percent.     According to WalMartFacts.Com, the company provides health care benefits to about 620,000 of Wal-Mart's 1.3 million associates in the United States. Based on Wal-Mart's own figures, the company covers only 48 percent of its workforce. In comparison, 68 percent of workers in large firms (200 employees or more) receive their health benefits from their employer. [http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx; Kaiser Family Foundation and Health Research and Educational Trust, Employer Health Benefits 2004 Annual Survey, Exhibit 3.2]

  3. Don't Discriminate Against Your Employees:

    1.6 Million Current And Former Female Employees Are Suing Wal-Mart For Gender Discrimination.      Women hourly workers earned up to 37 cents less per hour than their male counterparts. At the time the suit was filed, women comprised 92% of Wal-Mart's cashiers, but only 14% of Wal-Mart's store managers. On a business trip, a female store manager along with several male executives, stopped at a strip club. "Although I had never been in a place like this and had no interest in being there, I had no choice but to stay because I did not have my own car."[Dukes v. Wal-Mart, Class Member Declarations, The Impact Fund, http://www.walmartclass.com, Los Angeles Times, 6/23/04]

The Wal-Mart Flog

Edelman Worldwide came under harsh criticsm last month after posting a fake blog, or "flog," for its client Wal-Mart. The flog, entitled "Wal-Marting Across America," was shut down after Wal-Mart Watch exposed the site as an Edelman-funded front.

"Wal-Marting Across America" purportedly told the story of an anonymous couple named "Laura" and "Jim" who were driving across the United States, stopping to talk to Wal-Mart employees long the way. These employees gave glowing reviews of working at Wal-Mart without fail. The hitch? The project was being paid for by Wal-Mart: Laura and Jim were hired to create he stories, and Jim was a staff photographer for the Washington Post.

Learn more...

Andrew Young

Former Wal-Mart spokesman Andrew Young touched off a national firestorm with his derogatory comments about Jewish, Asian and Arab business owners. Wal-Mart's public relations crisis, which coincidesd with image guru Leslie Dach's first week on the job, was another setback for the retail giant's efforts to expand into urban areas and build relationships with minority leaders.

Click here to view a sampling of the widespread media coverage of the controversy.