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Improving Walmart’s Corporate Communications Strategy
Walmart’s image had been steadily eroded by continuing accusations of malpractices and lawsuits to the point that business is experiencing losses. Many have chosen not to shop anymore as a sign of protest. Walmart must a take a proactive stance in facing negative publicity by defining and implementing a communications strategy.
Walmart’s detractors have testimonies and evidences that they are willing to bring to court and if there is truth in any of these, the best that Walmart can do is to recognize them and present a conciliatory stance rather than denying accusations, covering up or keeping silence. The latter responses will only do greater damage. Tell and acknowledge the truth at all costs is the most prudent policy (How to respond to bad publicity, 2012)
The second tenet is to be the first to tell the story. If the breakout of a negative story is imminent, Walmart should announce the story first with its carefully studied responses which will soften the impact. The same story can have variations for each of the target audiences: employees, customers, labor unions, regulators, courts, etc.
There should be a strategic theme for messages to address negative publicity. It can be along the line of “We have become a very large and complex organization and at time. We can unintentionally commit improprieties but those are isolated cases which we will always act on immediately.” The challenges are to define what measures will be offered to compensate and how will they be conveyed to the affected parties. How the messages will be conveyed will depend on the target audiences’ preferences. Younger people will be more reachable in social media while community events can benefit more the older set.
Lastly, Walmart should treat its critics as partners who can help it identify violations. The message here is that Walmart welcomes criticism because it can help improve its public image.
Recovery from Accusations
Aside from obligingly answering allegations of bad practices to employees, Walmart responds by positive programs that target the aggrieved directly. There had long been many complaints about Walmart being indifferent to the difficulties of pregnant women and it peaked in the case of Candis Riggins. Walmart also faced a class suit by women for alleged under-compensation based on gender. Walmart responded with new policies which it claims is more than what the law requires. (DePillis, 2014)
This response was reactionary and didn’t do much to improve the image. What created positive reactions is its creating a worldwide program called Women’s Economic Empowerment Initiative whose aim is for Walmart to source products from small businesses owned by women all over the world. This response is more effective than legal ones as it depicts Walmart as a large powerful social agent who looks after a large segment of society. The program is specific to women and is being attributed as an indirect response to its case against against pregnant women. (Thau, 2013)
In another closely-related program for women, Walmart also launched a training program for women who want to become business owners. This attracted prominent publicity where it engaged the international women’s advocacy group WEConnect and Indian farmers’ organization Vrutti. Trainers are Indian women entrepreneurs and the set-up foresees a sustainable worldwide program.
In both responses, Walmart reveals its strategy in overcoming unpopular issues. Rather than just defending against allegations on individual merits, it answers with the widest most impactful possible response in the form of worldwide initiatives. The wider scope of benefit dwarfs whatever the damage there was from the local issues in the US; another application of “Size matters.”.
Becoming More Socially Responsible
Aside from directly addressing negative issues against it, Walmart uses corporate social responsibility (CSR) as a communications vehicle for positive publicity. The general message is that Walmart’s concern is not only business and profits but it also values the welfare and betterment of society and the environment. CSR involves communities where more people can provide testimonials of Walmart’s benevolence. This is more effective than Walmart just speaking for itself. The Walton brand is both about low-priced goods and betterment of the world.
Walmart Foundation introduces itself as the proponent of CSR and it focuses on global sustainability, women’s economic empowerment and food and nutrition initiatives. The foundation increases it visibility and of the Walmart brand by collaborating with other CSR organizations. These organizations and their publicity campaigns will readily mention Walmart as well. For food provision assurance, Walmart gives grants to Feeding America and other organizations where it can be mentioned as a donor or sponsor. (Kanani, 2014)
As the world’ largest company, Walmart has cleverly used itself as the showcase for environmental sustainability. It increases efficiency and safety in its business while at the same time, it provides vast material to promote itself as an environmentalist. Its environmental goals are renewable energy, zero waste and a sustainable supply chain. The first two can easily be related to by all people and mass messages can easily be concocted. The third will use Walmart’s massive supplier network to include its name in their CSR initiatives.
In 2014, it had 300 renewable energy projects of which renewable energy supplied 24% of energy needs. Energy use in its buildings was cut-down by 20% and fleet efficiency by 84%. It also reduced waste to its landfills by 80%. These are powerful images to the increasing number of people who now carry serious concern for the planet.
References
DePillis, L. (2014, April 5). Under pressure, Wal-Mart upgrades its policy for helping pregnant workers. The Washington Post. Retrieved June 29, 2016 from https://www.washingtonpost.com/news/wonk/wp/2014/04/05/under-pressure-walmart-upgrades-its-policy-for-helping-pregnant-workers/
How to respond to bad publicity. (2012, Jan 25). The Business Journals. Retrieved June 29, 2016 from http://www.bizjournals.com/bizjournals/how-to/marketing/2012/01/how-to-handle-bad-publicity.html
Kanani, R. (2014, July 7). How The World's Largest Company Thinks About Social Responsibility. Forbes. Retrieved June 29, 2016 from http://www.forbes.com/sites/rahimkanani/2014/07/07/how-the-worlds-largest-company-thinks-about-social-responsibility/#1f2d06aa24ce
Thau, B. (2013, March 14). Does Wal-Mart's New 'Empowering Women' Program Signal a Turning Point in Socially Conscious Retailing?. Forbes. Retrieved June 29, 2016 from http://www.forbes.com/sites/barbarathau/2013/03/14/does-wal-marts-new-empowering-women-program-signal-a-turning-point-in-socially-conscious-retailing/#4b596b41683e
