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Alexa Ferreira
09/28/2015
PRS 340
Regina Bell
Reputation Paper: Wal-Mart
Reputation is an intangible asset to a company or business. It is not something
that can be physically held, however, it is something that can be seen and understood
(Schreiber 2011). The value that reputation has for a company is crucial in order for a
business to run both effectively and successfully. In this day and age companies have to
not only compete with their products in order to make profit, but they also have to work
to build and protect the perception that the public has regarding the reputation of the
business. Organizations have to work towards developing, building, and maintaining a
good reputation in order to measure up to other organizations.
A suitable way to think of reputation is to associate it with being competitive.
Having an organization that is reputable and ethical has become a necessity in order to
stay on top. Those companies with good reputations are currently towering over those
who dont. A good reputation should differentiate you from others. Approximately 50%
of consumers are willing to leap over companies that are known for having a bad
reputation and purchase from only those who are reputable. An organization that is
known for having a good reputation also correlates to having good quality products that
are liked by customers. A good reputation also insists that an organization is trustworthy
and responsible for their products and services as well as the treatment of its customers.
In addition, reputation relates to the effective practice of communications as well
as ethics. According to the Institute for Public Relations, Reputation article by Elliot S.
Schreiber, Reputation is often difficult to define since the perception of what is and is

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not reputable is in the eye of the beholder. Further meaning that reputation can mean
different things depending on whether it is being viewed from the perspective of the
company or the stakeholders. Stakeholders include anyone that is directly impacted and
or affected by an organizations actions and policies. This can include but is not limited to
owners, employees, investors, suppliers, and creditors. The organization looks at
reputation as an asset that is needed in order to maintain and satisfy their stakeholders,
while stakeholders look at reputation as whether or not the communications and actions
of an organization resonate with their needs and interests (Schreiber, 2011). As an
organization, Wal-Mart is effective in managing its reputation based on its specific public
relations strategies/tactics.
Wal-Mart was founded in Arkansas in 1962 by Sam Walton and now operates
approximately 11,000 retail units worldwide. Wal-Mart has created a footprint in 28
countries and houses approximately 245 million customers (Wal-Mart Our Company
Homepage). Wal-Mart is considered a discount store which houses goods that are lower
in price in comparison to other like stores. They are known for saving people money and
keeping middle class families on a manageable budget. Wal-Mart has grown ever so
greatly that they now have everything from delis to pharmacies and also offer many
services. It is known as a one-stop shop where the consumer and the retailer both win.
According to Wal-Mart Corporate and Financial, Wal-Mart earned profits in excess of
$482.2 billion in the fiscal year ending in January 2015 and is ranked first on the 2014
Fortune 500 list of the worlds largest companies by revenue and the average household
save $2,300 a year by shopping there. This discount idea means that those middle class

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and hardworking families are friends with Wal-Mart and contribute to its high volume
sales.
In recent years however, the companys reputation has been under a lot of
scrutiny. The size of this corporation interferes with their reputation making it harder to
manage. Due to the number of customers they have shopping in their stores on a daily
basis, there have been news reports containing fights in stores, parking lot crimes, and
other negative influences, which is often out of the realm of Wal-Marts control. This bad
publicity has nothing to do with their products and prices, which keeps customers loyal to
the brand regardless of the accusations. Despite these accusations Wal-Mart has remained
successful and continues to prosper due to the low price goods and their community out
reach programs. Wal-Mart remains successful in gaining a powerful reputation with the
companys charitable efforts. Wal-Mart benefits people in many different ways through
fundraising, educational efforts, and volunteering. These efforts helping the community
aid in redeeming any bad press that has accrued over the years.
Wal-Mart recognizes that there is a correlation between corporate reputations and
overall financial performance and works to better their workplace issues in order to
maintain an effective reputation. Wal-Marts blog page highlights the reputable things
they are doing in order to boost company reputations and the publics perception of them.
These articles support that they are managing their reputation and taking pride in
protecting their name. They realize that they have made mistakes in the past and have
worked to change that.
In a letter to associates, the CEO of Wal-Mart Doug Mcmillon announced that
their will be higher pay and enhance their training protocol, in order to ensure that they

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are setting their employees up for success. The CEO is taking responsibility to make sure
that Wal-Marts actions begin to match their beliefs. Since 1979 their secret to success
has been working together and that our people make the difference. They also decided
to tweak their dress code, raise the temperatures in stores, and create employee contests
in order to vamp employee morale. They are now focusing on decreasing their employee
turnover rate and giving employees more ownership in their jobs.
Doug Mcmillon further discusses his seriousness in better employee treatment in
this article:
Ive seen us change a lot over the years. Were always trying to do the
right thing and build a stronger business. We frequently get it right but
sometimes we dont. When we dont, we adjust. In recent years weve
had tough economic environments, a rapidly growing company, and
fundamental shifts in how customers are shopping. We also made a few
changes aimed at productivity and efficiency that undermined the feeling
of ownership some of you have for your business. When we take a step
back, its clear to me that one of our highest priorities must be to invest
more in our people this year (Mcmillon 2015).
According to their package of changes Wal-Mart raised its current U.S.
associates wages to $10 an hour or higher for a part time position by early next year
however in the time being Wal-Mart raised there starting rate to $9 to start. The average
full time hourly wage will begin at $13 an hour. They are also implementing a training
program that will create clear paths for associate to grow a career at Wal-Mart with
entry level with the pay of $15 or more. This package also includes a benefits package

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that meet their employee needs such as health care, sick leave, education, and a 401(k)
package.
In addition to improving employee treatment and engagement they are also
making impacting charitable decisions. According to the corporate Wal-Mart package
Wal-Mart and the Wal-Mart Foundation are committing $100 million over five years
to support programs that help increase economic mobility for entry level workers by
advancing their careers, in order to promote a stronger work force. The ending
statement of this package wraps up the meaning behind implementing these changes:
Ultimately, we believe this package of changes will benefit associates,
customers and the business. When added all up, a job at Wal-Mart comes
with good wages and a clearer, merit-based path to promotions and
raises. It comes with scheduling that works with an associates life. It
comes with health care benefits, bonus opportunities, a 401(k) and paid
sick-leave. It includes education and training opportunities that are
relevant whether a person stays at Wal-Mart or chooses another path
(Mcmillon 2015).
Based on the information presented above, Wal-Mart is effective in managing its
reputation based on its specific public relations strategies/tactics. They are making
significant changes in order to change the publics perception of them as an organization.
Wal-Mart has the opportunity to not only be a high volume sales company but also to be
reputable and measure up against their competitors in order to compete with like
organizations. It is time that their PR team shines light on the beneficial things they are
doing as an organization.

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Works Cited
McMillon, Doug. "In Letter to Associates, Walmart CEO Doug McMillon
Announces Higher Pay." Walmart Corporate. N.p., 19 Feb. 2015. Web.
Schreiber, Elliot S. "Reputation Institute for Public Relations." Institute for Public
Relations. N.p., 14 Jan. 2011. Web. 28 Sept. 2015.
Wal-Mart Corporate
http://cdn.corporate.walmart.com/a1/0e/6fec066e4cf48b9ec4b9f09bcd67/associateopportunity-fact-sheet.2.pdf
Walmart., E. Or Outside Of, 2015 February 19, and For More Information Please
V. WALMART TO INCREASE WAGES FOR CURRENT U.S. WORKERS TO $10 AN
HOUR OR HIGHER, LAUNCHES NEW SKILLS-BASED TRAINING FOR ASSOCIATES
(n.d.): n. pag. Walmart Corporate. Web.
Wal-Mart Stores, I. (20015). Economic Opportunity Fact Sheet [Electronic
Version]. http://www.walmartfacts.com/FactSheets/_Economic_Opportunities.pdf