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

A PR Ethical Case Study ： Edel -Mart’s blogging program. Xi Luo PUR6934. The Ethical Event . Background Criticism of Wal-Mart L ow wages, poor working conditions, inadequate health care and Wal-Mart anti-union policies.

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

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  1. A PR Ethical Case Study：Edel-Mart’s blogging program Xi Luo PUR6934

  2. 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.

  3. The Ethical Event • Media coverage March 7, 2006—”Wal-Mart Enlists Bloggers in P.R. Campaign” by Michael Barbaroin 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 PallaviGogoiin 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.

  4. 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.”

  5. Ethical Theories • Egoism: Self-Interest • Use “positive” information to divert the publics’ attention on Wal-Mart’s misdeed. • The questionable PR campaign made therelationship between Wal-Mart and its stakeholdersmore 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.

  6. 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

  7. 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

  8. 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.

  9. 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

  10. 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

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