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Corporate Communication and Reputation Audit

Lisa M. Gerdeman

Effective Professional CommunicationMBA 595.N1

March 6, 2013Dr. Kershaw

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Table of ContentsMission & Values

3Brand 4Identity 6Reputation 8Image 12Corporate Social Responsibility 14

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Mission & ValuesWalmart’s mission is “helping people around

the world save money and live better -- anytime and anywhere -- in retail stores, online and through their mobile devices”.

Walmart believes this mission, along with innovative thinking and leadership through service, has made them successful.

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Brand“Save money. Live better.” Walmart’s brand strategy is built around

these words. Their strategy of charging low prices every

day is aimed at helping people save money, stretch their paychecks, and provide a better life for their families. 

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BrandMillward Brown BrandZ™ Top 100 is

based on 150,000 annual interviews on key brand metrics including: brand consideration image usage & strength brand personality or character trust & recommendation price & desire corporate reputation

Walmart ranks #17 on the top 100 listAmazon ranks closely behind at #18 Target ranks #76Costco did not make the top 100

Source: http://www.millwardbrown.com/brandz/2012/Documents/2012_BrandZ_Top100_Chart.pdf

Walmart Target Amazon Costco

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76

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BrandZ Rank 2012

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IdentityWalmart wants the public to see that they are committed to not only providing low costs, but also to financial success, to their communities, and to corporate social responsibility.

Source: http://www.walmart.com

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IdentityThree key stories are currently highlighted on www.Walmart.com:

1. Affordable, healthier foods The First Lady Michelle Obama visited several Walmart

stores to celebrate Walmart’s progress on making food healthier and more affordable for families nationwide. 

2. Q4 2012 earnings Walmart announces Q4 earnings per share of $1.67, full

year earnings per share of $5.02, full year dividends of $1.88 (up 18%). Walmart U.S. gains market share and adds $4.7 billion in comp sales for the year.

3. Sustainability Walmart works with suppliers and buyers to make their

products more sustainable and supply chain more ethical.

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ReputationPositive Media CoverageLow prices Price matching Reduced lay-away feesSeasonal hires -during the Christmas season

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Reputation Rankings

In 2011, Walmart ranked 2nd on the Fortune Top 500 list –dropping from the #1 spot in 2009 & 2010.

Both revenues and profits continuously increased during the period 2007 through 2010 at Walmart. In 2011 profits declined

Walmart’s revenues and profit are much higher than their competitors. With that, they rank well

above each on the Fortune 500 list.

Walmart

Target Amazon Costco

2

3856

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Fortune 100: Rank-ing 2007 2008 2009 2010 2011

1

2

1 1

2

Walmart Trend: Ranking

Walmart

Target Amazon Costco

$446,950

$69,865 $48,077 $88,915

Fortune 100: Revenues

($ in millions)

2007 2008 2009 2010 2011

$378,799

$405,607

$408,214

$421,849

$446,950

Walmart Trend: Revenues

($ in millions)

Walmart

Target Amazon Costco

$15,699

$2,929 $631 $1,462

Fortune 100: Profits($ in millions)

2007 2008 2009 2010 2011

$12,731

$13,400

$14,335

$16,389

$15,699

Walmart Trend: Prof-its

($ in millions)

These low price strategies have been successful for Walmart in terms of profits.

Source: http://money.cnn.com/magazines/fortune/fortune500/?iid=H_F_QL

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ReputationNegative Media CoverageLabor disputes

Disputing: low wages, poor treatment, & unpleasant working conditions

Black Friday complaintsOpening on Thanksgiving day

Alleged bribery scam at Walmart de MexicoProtests against Walmart entering the New

York City market

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Reputation RankingsWalmart ranks #40 on the

Harris Poll Reputation Quotient®

Walmart’s score is rated “Fair”.

Competitors rank betterAmazon is rated “Excellent” Target is rate “Very Good” Costco is rated “Very Good”

Walmart’s score dropped from 69 in 2012 to 66 in 2013.

Walmart Target Costco Amazon

40

22

101

Harris Reputation Quotient

2011 2012 2013

66.03

74.8277.9582.62

Harris Reputation Quotient Score

Walmart

Target

Costco

Amazon

Source: http://www.harrisinteractive.com/vault/2013%20RQ%20Summary%20Report%20FINAL.pdf

®

®

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Image Top 100 Best Companies to

Work For 2/3rd of score

The survey asks questions related to their attitudes about management's credibility, job satisfaction, and camaraderie.

1/3rd of score The Culture Audit asks detailed

questions about pay, benefits programs, hiring practices, internal communication, training, recognition programs, and diversity efforts.

Walmart was not ranked in the top 100 on this years’ survey.

Most Admired Companies Survey of business people

asked to vote for the companies, from any industry, that they admired most.

Walmart ranks #23 This ranking is down from

previous years Competitors Costco & Amazon

are up

2009 2010 2011 201205

1015202530

11 9 11

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Top Most Admired Com-panies

Wal-Mart

Target

Amazon

Costco

Source: http://money.cnn.com/magazines/fortune/most-admired/

Wal-Mart Target Amazon Costco02468

10

Top 100 Best Companies to Work For

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Walmart’s Response to Negative Media Coverage Planning and preparation are important in crisis communication and crisis

management. Walmart issued statements responding to each of these crises.

Labor disputes and Black Friday Walmart believe that the protests do not reflect the attitudes of all employees, but merely

a small sampling. Walmart believes the disputes are unwarranted. I believe they need to communicate the

reasons why and promote Walmart’s labor policies in a positive light & that they offer fair opportunities for all.

In my opinion, Walmart did not take ownership or sympathetically show that they hear the voices of the employees and that they would address their concerns.

If they haven’t already, Walmart needs to develop an effective employee communication strategy specifically for these labor disputes.

Bribery scam Walmart denied the allegations Walmart did not communicate much beyond their initial statement regarding the issue

NYC protests Walmart’s response was good. Walmart clearly identified the reasons it wants to enter the market and list their

supporters –which included the mayor.

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Corporate Social Responsibility Hunger relief & healthy eating

Walmart is fighting hunger by making food healthier, making healthier food more affordable, and by strengthening the global food supply chain.

Sustainability Walmart is believes in sustainability because it's the right thing for the environment. Walmart

encourages their employees to make positive contributions to the environment and, in turn, believes they will encourage customers to do the same.

Women’s economic empowerment Walmart is working towards initiatives that will change the lives of countless women around the

world.

Career opportunity Walmart provides career training and job opportunities to our nation’s veterans and military

families. Diversity is also core to Walmart’s culture.

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Corporate Social ResponsibilityAlthough Walmart focuses a lot of corporate

communication on CSR, they did not rank within the top 50 companies on the Corporate Social Responsibility Index (CSRI).

Amazon ranked #5Target ranked #29Costco ranked #43

Wal-Mart Target Amazon Costco

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5

43Most Socially Responsible

Companies

Source: http://www.bcccc.net/pdf/CSRIReport2011.pdf

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Corporate Social ResponsibilitySocial responsibility is vital to a company’s profits.

75% of Americans take into consideration corporate social responsibility before making an investment decision.

There is also a strong correlation of good corporate citizenship and a strong public image. Walmart is not perceived to be a highly socially

responsible company (according to the CSRI) …even though they seem to be doing a lot in this realm

I believe that Walmart needs to improve communications regarding their CSR efforts which, in turn, should help to improve their image and reputation. This is particularly important now that their reputation

rank seems to be declining.