Walmart -Industrial Dispute

8/8/2019 Walmart -Industrial Dispute

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How Strategic Management Handled Wal-Marts

Reputation, During dispute and after


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` Headquartered in Bentonville, Arkansas U S

` Topped the list of Global top 500 for the sixth timein seven years

` Over 2 million employees worldwide one of thelargest private employers in the United States


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` In 2003 Wal-Mart associates made $8.23 an hour,amounting to $13,861 a year, almost $1,000 belowthe federal poverty line for a family of three

` By 2008 the company was simultaneously facing80 different lawsuits that involved labor-relatedissues

` The Shipley Audit in 2000 showed 75,000 various

violations in 127 out of 128 stores during a shortone-week period


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` In June 2001, a former Wal-Mart employee, BettyDukes (Dukes), had filed a case accusing thecompany of 'sex discrimination in promotions,

training and pay'` Apart from the sex discrimination case, Wal-Mart

was also accused of breaking Federal laws thatprotected the freedom of association of workers


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` Labor unions

` religious groups

` environmentalist groups and

` community members have all rallied against

Wal-Mart


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` Wake-Up Wal-Mart and Wal-Mart Watch formed inspring of 2005

` Formed as a result of the seemingly anti-union

stance of the company` Wake-Up Wal-Marts vision: to have the company

focus on people before profits

` Wal-Mart Watchs focus: to have the company act

morally responsible and positively impact thecommunity


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` Held a press conference in Bentonville, AK in April2005, opening its doors for the first time

` Hired a team of 35 consultants from Edelman

Public Relations, along with highly prominentpolitical advisers


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` From September 27th to October 9, 2006 a coupleby the name of Jim and Laura journeyed acrossAmerica 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 thatthey were funded by Edelman as a publicity stunt

for the company


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` 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 andscholarships

` $39 million towards the Childrens Miracle Network

` Pledge for environmental sustainability


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` Wal-Mart should be more aware of how its policiesare affecting its reputation, and should becomemore proactive with the challenging issues theyface, rather than acting defensively.

` Wal-Mart should take measures to build betterrelationships with its associates and with itsexternal publics, as these constituents servepublic relations roles and are indicators of whether

or not the company has a positive image andreputation.


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` Wal-Mart could build credibility by being accountablefor some of its negative business policies andpractices.

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 straightforwardand transparent in their communication.

By hiding affiliations with publicity stunts in the past, thecompany has severely tarnished its reputation. Through opendialogue with constituents, the company will be seen as ethicalin its practices.


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` The issue of employee and labor relations is but onlyone of the many obstacles Wal-Mart is currently facing,as it continues to operate as the largest privatecorporation in America.

` From its many challenges and blunders in publicrelations strategy, to its success in changing negativeperceptions, Wal-Marts strategic communicationresponse to its critics included many ups and downs,failures and successes.

` It will be interesting to observe whether Wal-Mart willlearn its lessons from the past and reshape itscommunication strategy to enhance its position insociety as a corporate good citizen and leader.

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Walmart -Industrial Dispute