How Strategic Management Handled Wal-Mart’s

Reputation, During dispute and after

 Headquartered in Bentonville, Arkansas U S
 Topped the list of Global top 500 for the

sixth time in seven years

 Over 2 million employees worldwide – one of

the largest private employers in the United

States
 In 2003 Wal-Mart associates made $8.23 an
hour, amounting to $13,861 a year, almost
$1,000 below the federal poverty line for a
family of three
 By 2008 the company was simultaneously

facing 80 different lawsuits that involved

labor-related issues
 The Shipley Audit in 2000 showed 75,000

various violations in 127 out of 128 stores

during a short one-week period
 In June 2001, a former Wal-Mart employee,
Betty Dukes (Dukes), had filed a case
accusing the company of 'sex discrimination
in promotions, training and pay'
 Apart from the sex discrimination case, Wal-

Mart was also accused of breaking Federal

laws that protected the freedom of
association of workers
 Labor unions
 religious groups
 environmentalist groups and
 community members have all rallied against

Wal-Mart
 Wake-Up Wal-Mart and Wal-Mart Watch
formed in spring of 2005
 Formed as a result of the seemingly anti-

union stance of the company

 Wake-Up Wal-Mart’s vision: to have the

company focus on people before profits

 Wal-Mart Watch’s focus: to have the company

act morally responsible and positively impact

the community
 Held a press conference in Bentonville, AK in
April 2005, opening its doors for the first
time
 Hired a team of 35 consultants from Edelman

Public Relations, along with highly prominent

political advisers
 From September 27th to October 9, 2006 a
couple by the name of Jim and Laura
journeyed across America in an RV, blogging
about their stops at local Wal-Marts
 Though they claimed to be funded by

Working Families for Wal-Mart, it was soon

exposed that they were funded by Edelman as
a publicity stunt for the company
 Efforts during Hurricane Katrina in 2005:
◦ 45 truckloads of relief supplies before and 1,900
truckloads after Katrina hit
◦ Pledged over $2 million in contributions
◦ Opened doors for free merchandise
 $67 million towards supporting education
and scholarships
 $39 million towards the Children’s Miracle

Network
 Pledge for environmental sustainability
 Wal-Mart should be more aware of how its
policies are affecting its reputation, and
should become more proactive with the
challenging issues they face, rather than
acting defensively.
 Wal-Mart should take measures to build
better relationships with its associates and
with its external publics, as these
constituents serve public relations roles and
are indicators of whether or not the company
has a positive image and reputation.
 Wal-Mart could build credibility by being accountable
for some of its negative business policies and
practices.

◦ By admitting its shortcomings and working towards change,

negative perceptions of the company will most likely decrease.

 Wal-Mart should from now on be more

straightforward and transparent in their
communication.

◦ By hiding affiliations with publicity stunts in the past, the

company has severely tarnished its reputation. Through open
dialogue with constituents, the company will be seen as
ethical in its practices.
 The issue of employee and labor relations is but
only one of the many obstacles Wal-Mart is
currently facing, as it continues to operate as the
largest private corporation in America.
 From its many challenges and blunders in public
relations strategy, to its success in changing
negative perceptions, Wal-Mart’s strategic
communication response to its critics included
many ups and downs, failures and successes.
 It will be interesting to observe whether Wal-Mart
will learn its lessons from the past and reshape its
communication strategy to enhance its position in
society as a corporate good citizen and leader.