For all the talk about Wal-Mart improving its reputation and changing their ways, they aren't doing too well where it counts. A new Harris Interactive poll of consumers shows that while Wal-Mart is the most well known company in America (more than McDonald's or Coca-Cola, more than Google or Microsoft), their reputation has slipped from the already sad 40 of 60 to a rank of 44. Wal-Mart also ranks a telling 47th of 60 on the question of sincerity. This slip in reputation comes at a time when Wal-Mart is spending millions on PR campaigns, has rolled out a new slogan, is profiting from the relatively slow economy, and when Wal-Mart has spent a ton of time and effort on programs designed to improve their reputation. They have "improved" their health insurance coverage - it's not much better than it was and only covers a few more of its employees. They've started "going green" to convince you they are socially responsible, and to sell lots of new environmentally friendly stuff - even though their model of business can never be sustainable and is, in fact detrimental to the environment.
In spite of their best efforts, (and a TON of money and effort) Wal-Mart can't shake their bad reputation. People aren't buying their PR campaigns, they can tell when Wal-Mart is doing something to boost their reputation. Perhaps when Wal-Mart starts making real changes, their reputation will go up.
Here's an article from The Morning News about the poll:
Report: Wal-Mart Reputation Continues To SlideWal-Mart Stores Inc. in 2007 continued to slip down a list of corporate reputation rankings, according to a survey.
The Bentonville-based retailer ranked No. 44 on the Harris Interactive report, which ranks the reputations of the country's 60 "most visible" companies based on consumer perception surveys.
It was the third consecutive year Wal-Mart's score on the list declined.
Wal-Mart's slipped score was the also the third largest rating change, trailing behind Bank of America and Halliburton Co., which saw more significant declines in reputation scores.
Wal-Mart has similarly dropped down Fortune Magazine's list of America's most admired companies.
Wal-Mart in 2003 and 2004 was America's No. 1 most admired company on Fortune Magazine's list, but fell to No. 12 in 2005. The retailer in 2007 dropped to No. 19.
Wal-Mart isn't too concerned with reports on its reputation."At a time when the public and Wal-Mart customers specifically are being pressed financially to make ends meet, we think the ultimate measure of reputation is sales," said Greg Rossiter, a Wal-Mart spokesman. "Our sales over the last several months demonstrate pretty clearly that the public trusts Wal-Mart to help them save money to live better."
The retailer has in recent years set out to be a better corporate citizen by incorporating health care and environmental sustainability initiatives into its business. But it may take time for the public to shift their perceptions of the retailer, said Sam Waltz, the director of Sam Waltz & Associates and a specialist in corporate reputational management.
"When there's acute reputational damage that becomes chronic reputational damage, it becomes a very difficult thing to regain positive attributes," Waltz said.
"In other words, it can take some time to get public credit for the good work Wal-Mart is doing now. It could take months and years because there's people who look at them with a political paradigm and just do not want to give them credit."
Nearly half of the American public surveyed said that companies need to address global social issues such as poverty, hunger and disease. Yet treatment of employees, including labor practices and human rights, continued to be a the most important measurement in evaluating a company, according to the report.
Harris Interactive, a Rochester, New York-based market research company, surveyed more than 20,000 people and asked them to rate on a point scale a company's reputation on 20 attributes like vision and leadership, emotional appeal, financial performance and social responsibility.
Each survey participant is asked to rate one randomly selected company from the 60 included and each is given the option to rate a second company.
About 535 people rate each company.
Posted by Taylor - June 24, 2008 10:16 AM - In The News
Hi,
As an employee myself, I would recommend the employers to look in for the workers need. Only then they can improve the standard of the company. They have the need to address global social issues such as poverty, hunger and disease. Doing that they get popularise.
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john
Posted by jo1981 - June 25, 2008 12:01 AM
Company reputation has many aspects. To some, what's most important is how a company treats its communities, the environment and society in general. To others, its product quality and service first and foremost. Wrapping it all together in one "Reputation" is an oversimplification, and can be misleading.
We're trying to address this by using social media to track 23 different aspects of company reputation. We invite you to check out our take on Wal-Mart:
http://vanno.com/company/wal-mart .
Unlike most surveys/polls, at Vanno you can see all the information that goes into the reputation evaluation. And if you disagree (or agree) you can add your own insight - by voting, commenting and submitting Articles.
Posted by Nick DiGiacomo - June 26, 2008 10:59 AM