Walmart's strategic shift toward corporate social responsibility and reputation management

Top Management

Wal-Mart is one of the greatest retailers at an international level, and the undisputable leader of the American retail industry. The company has undergone a series of transformations throughout its existence and it has emerged as a stronger corporation. The main principle at Wal-Mart is that of offering the lowest possible retail price and the main strategy is that of attracting customers through the competitive advantage of a low price.

The company's search for the low price has constituted the target of numerous accusations throughout the years. Two notable sources of the criticism brought to Wal-Mart are represented by the website Wal-Mart Watch and by Robert Greenwald's documentary Wal-Mart: the high cost of low price (2005). Among the most notable accusations brought to the retail monolith, one could enumerate the following:

The offering of minimum wage to the employees

The lack of a medical insurance in the compensation packages

The fact that the Wal-Mart executives would ask the employees to put in extra hours, without pay

Gender and race-based discriminations

Imports from distant locations, in unsanitary conditions

Lack of emphasis on consumer and employee safety. The most relevant example in this sense is represented by the existence of numerous guards and security cameras within the store, but the complete absence of security in the parking lots, where people had been attacked and even killed.

While it initially denied the accusations, the company's reputation was beginning to be negatively impacted. This translated into the necessity to readjust the organizational strategies in a means that created a more favourable perception by the public. Today, Wal-Mart strives to become a notable member of the American society, to prove its worth and to support the development of the communities in which it operates. In other words, while the attraction of customers through the low price remains the main strategic effort, the company's strategic program has expanded to also include:

a) Increased access to jobs

Wal-Mart strives to attract those individuals who can become integrated in the organizational culture and to support their professional development. The company has diversified its recruiting resources to now attract prospective employees through various channels, including word of mouth, the internet or more traditional means, such as advertisements in the local media.

Another strategic HR endeavour has been that of creating opportunities for development. This is best represented by the opportunity the Wal-Mart employees are given to advance. They can also change positions within the firm until they find the job that best fits their skills as well as their needs.

b) Benefits

The executives at the Wal-Mart Stores have also developed a more comprehensive palette of employee benefits. Through these, the scope is that of attracting more prospective employees, better retaining the existent employees and stimulating their levels of satisfaction -- and as such performance. Some notable benefits include:

Coverage for medical services in the amount of 80 per cent compensation for eligible services

Dental insurance

Compensations of accidental death and dismemberment

Associate stock purchase plan

Retirement account rollover

Military differential pay (Website of the Wal-Mart Stores, 2010)

c) Diversity

The executives at the Wal-Mart stores implement diversity strategies as a means of integrating all staff members within the overall organizational culture. The scope is that of creating a pleased and contented workforce and having as such a favourable working environment. Also, through diversity, the scope is that of ensuring equal employment opportunities, as well as equal access to education and promotions.

Additionally, through diversity, the staff members become better able to satisfy the needs of the customers. On the one hand, this is attainable as a result of satisfied staff members, who intensify their efforts to serve the needs and wants of the clients. On the other hand, this is possible as the customers themselves -- especially the culturally diverse ones -- are satisfied by cultural diversity.

All in all then, the Wal-Mart Corporation is committed to improving its affected reputation and it strives to do so through the development and implementation of a complex strategic approach. The components of this approach include an intense emphasis on social and environmental responsibility, but also an incremental focus on the well-being of the staff members.

References:

2010, Website of the Wal-Mart Stores, http://walmartstores.com last accessed on January 14, 2011

2010, Website of Wal-Mart Watch, http://walmartwatch.com / last accessed on January 14, 2011

Greenwald, R., 2005, Wal-Mart: the high cost of low price, Documentary