mba 595.n.1 corporate communication and reputation audit l gerdeman
TRANSCRIPT
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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
23
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
29
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.