A PR Ethical Case Study：Edel-Mart’s blogging program

Xi Luo PUR6934

The Ethical Event

Background

Criticism of Wal-Mart

Low wages, poor working conditions, inadequate health care and Wal-Mart anti-union policies.

Criticism was being amplified by two union-backed groups, Wal-Mart Watch and Wake Up Wal-Mart.

To fight the negative news, Wal-Mart hired Edelman and started to use bloggers in its PR campaign since late 2005.

The Ethical Event

Media coverage

March 7, 2006—”Wal-Mart Enlists Bloggers in P.R. Campaign” by Michael Barbaro in New York Times

Edelman did not encourage bloggers to be transparent.

Edelman is to blame for propagating Pro-Wal-Mart information.

October 9, 2006—”Wal-Mart's Jim and Laura: The Real Story” by Pallavi Gogoi in Business Week

The Wal-Mart Across America blog is a fake grass-roots blog.

The bloggers were paid by Working Families for Wal-Mart, a fake grass-roots advocacy group organized by Edelman.

PRSA Codes of Ethics

Honesty: “We adhere to the highest standards of accuracy and truth in advancing the interests of those we represent and in communicating with the public.”

Disclosure of Information

Edelman hid the purpose in the emails contacting bloggers.

Created corporate-financed blog and used it as grass-roots support for Wal-Mart.

Fairness: “We respect all opinions and support the right of free expression.”

Free flow of accurate and truthful information

Rather than participating in an equal dialogue, Edelman intended to “control conversation by manufacturing it.”

Ethical Theories

Egoism: Self-Interest

Use “positive” information to divert the publics’ attention on Wal-Mart’s misdeed.

The questionable PR campaign made the relationship between Wal-Mart and its stakeholders more tense.

Dialogic Ethics: Communication based on mutual respect and compromise

Wal-Mart needs to, at least, respond directly to labor unions, and let its stakeholders know that their voice has been heard.

Edelman should first ensure the transparency of the public relations information and help Wal-Mart set up an effective online feedback system.

Social responsibility program

“ CSR is the voluntary actions that a corporation implements as it pursues its mission and fulfills its perceived obligations to stakeholders, including employees, communities, the environment, and society as a whole. (Coombs & Holladay, 2012) ”

In line with the definition of CSR, a corporation is obligated to respond to the expectations of stakeholders.

If there are conflicting interests…

"I pay low wages. I can take advantage of that. We're going to be successful, but the basis is a very low-wage, low-benefit model of employment.”—Sam Walton, Wal-Mart founder

Stakeholder Salience

CSR suggestions

Stop pretending to be someone else:

Be clear, saying “I am working for Wal-Mart.”

CSR activities: Satisfy stakeholders’ expectations in an alternative way

Contribute a part of its sales to employees in need as a subsidy.

Financial support for health screening and work-related stress management programs.

Promote communication during organizational changes

CSR progress model

1.Scanning and monitoring: Blogs and other social media have the potential to gather information and do environmental scanning.

2.Conducting formative research: Select CSR concerns, identify expectation gap, cultivate dialogue.

3.Creating the CSR initiative: Contact the employees to arrange a meeting about their concerns.

4.Communicating the CSR initiative: Conduct SOSC analysis and TARES test to satisfy professional code of conduct.

5.Conducting an evaluation and providing feedback: Reach the objectives and bring benefits to society as well as the corporation itself.

Evaluation

Determine whether the CSR process and outcome objectives are met.

Determine Process objectives: CSR activities

Determine Outcome objectives: Return on Investment

Financial Benefits of Wal-Mart

Job satisfaction of employees

Amount of positive stories from mainstream media and social networking website

Amount of positive response from labor unions

Amount of annual lawsuits

Reference

Barbaro, M. (2006, March 7). Wal-Mart Enlists Bloggers in P.R. Campaign. Retrieved fromhttp://www.nytimes.com/2006/03/07/technology/07blog.html?pagewanted=all&_r=1&

Coombs, W. T., & Holladay, S. J. (2012) Managing corporate social responsibility: A communication approach. (2012). Marketing Weekly News, 7-8, 21, 47-48, 91, 103

Gower, K. K. (2008). Legal and ethical considerations for public relations. Long Grove, Ill: Waveland Press, 1-19.

Gogoi, P. (2006, October 9). Wal-Mart's Jim and Laura: The Real Story. Retrieved fromhttp://www.businessweek.com/stories/2006-10-09/wal-marts-jim-and-laura-the-real-storybusinessweek-business-news-stock-market-and-financial-advice

Is Wal-Mart good for America?. Retrieved from http://www.pbs.org/wgbh/pages/frontline/shows/walmart/secrets/inside.html