More Wal-Mart damage control

From the Washington Post:
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A series of image-improving initiatives announced by Wal-Mart Stores Inc. in recent days closely follows the recommendations of a consultant's report that found that the public believes the retailer treats its employees poorly and is a negative force in communities where it operates.

The report, by consulting firm McKinsey & Co., was obtained from Wal-Mart Watch, a union-backed nonprofit that opposes the company's business practices. Wal-Mart Watch spokeswoman Tracy Sefl said the report was sent to the group anonymously.

"Sincere concerns exist that Wal-Mart is not treating its employees well, is too aggressive and is hurting local companies," the Aug. 24, 2004, report said. "The challenge is likely only to intensify," said the report, which went on to lay out a plan to defuse those concerns.

"Like any company, we want to make sure our associates, customers and local communities feel good about us," said Mona Williams, a company spokeswoman. "This research provided a benchmark to help us understand what we are doing well and where we need to improve."

Wal-Mart chief executive H. Lee Scott Jr. announced in a speech Monday that Wal-Mart would add a new health care plan. He introduced a program that would reward environment-friendly suppliers and pledged that Wal-Mart would curb its energy use. Scott also called on Congress to raise the minimum wage. The federal minimum wage is $5.15 an hour. Wal-Mart says its full-time workers are paid an average of $9.68 an hour.

But those initiatives left critics wanting more. "We'd be the first to applaud them. But the jury's out on how much of this will amount to real and meaningful, lasting change," Sefl said.

The McKinsey report outlines a long-term approach to "managing change." In the first three to 12 months, the company was told, it should find ways to convince the public that its wages and benefits are better than perceived, spread messages that it cares for employees, build local relationships, increase local philanthropy, and research the impact of stores on their communities. Next, the study calls on the company to create another initiative that benefits workers ("e.g. workplace education, child-care program"). Finally, the study says Wal-Mart should "take public leadership on broader societal issue."
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