Wal-Mart\'s Reputation, and the Actions

¶ … Wal-Mart's reputation, and the actions that perpetuate this image.

PR strategies to remedy the problem

Strategies such as the letter campaign in California, as well as nationwide advertisements.

The effect of the above strategies

Little has changed in Wal-Mart's basic system of practices. Until this occurs, the corporation will not be able to improve its image for the public.

As a result of various discriminatory actions against workers, and a number of lawsuits as a result of these, the public perception of Wal-Mart has been increasingly unfavorable. Furthermore the company has reportedly been guilty of exploitative actions in order to keep their prices as low as possible, and below cost in some cases. According to McKay (2004) Wal-Mart's aim is to monopolize the market through this strategy, and to raise prices once this has been accomplished.

The problem is thus one of image. Wal-Mart's image is unfavorable because of their actions, which have become public knowledge (Hightower, 2002).

The problem is perpetuated by the fact that the buying public is not negatively affected by Wal-Mart's practices. Instead, advertisement campaigns project a positive, caring business that cares deeply for the needs of the public. However, persons working more closely with Wal-Mart know that this image is false, and have made this knowledge public by means of lawsuits and public complaints. Workers, neighborhoods, competitors and suppliers count among an increasing number of unhappy associates of Wal-Mart (Hightower, 2002).

Workers for example are denied rights such as health care, and if they are the premiums are too high to pay with the $15,000 per year that the average full-time Wal-Mart employee brings home. The company is also fiercely against unionization (Wal-Mart Watch, 2002-2004).

Exacerbating the problem is the financial status of the corporation. Wal-Mart's promise of "Always Low Prices" is being kept by exploiting others; not their own profit, as is claimed. Statistics show that Wal-Mart makes huge profits - in the rang of $7 billion per year, and its managers are among the richest people in the world. These profits are gained by exploiting workers and their rights. Workers are being treated unfairly in terms of wages and benefits, thus inflating the already huge profits made by the company. Thus obviously the claim of slashing profits rings somewhat untrue (Wal-Mart Watch, 2002-2004).

The above problems have become public knowledge by means of convictions and fines attracted by these practices. By their disrespect for the law and human rights, Wal-Mart has earned the increasing disdain of its public and its workforce alike. Indeed, according to Wal-Mart Watch (2002-2004), some Wal-Mart stores reach as high as a 300% employee turnover every year. Furthermore labor laws in terms of the international workforce have been entirely ignored, as workers are paid less than half of minimum wage in China, for example. This is earned for shifts of 16-20 hours per day (Hightower, 2002).

Public knowledge of such practices has become so prominent that citizens are opposing Wal-Mart's expansion even in the face of its promise to cut prices lower than any of its competitors. Apparently the ethics of the average American citizen are higher than that of Wal-Mart (McKay, 2004).

The proposed superstore in Los Angeles would cover about 25 acres and employ 600 workers. Of course the surface benefit of this is both job creation and lower prices for goods. Yet the deeper truths have become too prominent to be ignored.

Wal-Mart's success on the other hand is indicative of the state of the American workforce, which is impoverished to a state where they are forced to look for the lowest prices, regardless of ethics and morals. Wal-Mart itself perpetuates this, as even their American full-time workers are paid little over minimum wage, and their foreign workers receive below minimum wage, in addition to no health protection or benefits (McKay, 2004).

The cycle is perpetuated by Wal-Mart's practice of buying offshore for the cheapest possible prices, thus at the same time encouraging foreign sweatshops and undermining American jobs and wages. American workers are thus forced to lower their standard of living and of working as a result, accepting lower wages with fewer benefits in order to benefit large corporations such as Wal-Mart (McKay, 2004).