Today’s Wall Street Journal
(subscription required) marvels at Wal-Mart’s recent transformation “from Demon
to Darling.” It credits the
company’s transformation to communications czar Leslie Dach, a former Democratic
operative and executive at Edelman PR.
Dach deserves a lot of credit, but the roots of the company’s makeover
is more than skin deep and it’s not the product of wordsmithing or sharp
elbowed “truth squads.”
Wal-Mart tried that early in
Dach’s tenure when it began punching back at critics out of a political
campaign-like “war room” and built its own front groups. Nothing seemed to work. In fact, some of the stealth campaigns
backfired when the media tumbled to them.
Ironically, it took a hurricane
to help the company realize that actions spoke louder than words. When Wal-Mart
was quicker than the government and many charitable organizations to get relief
supplies to Hurricane Katrina’s victims along the Gulf Coast, CEO Lee Scott
realized that it had the power to positively influence communities.
He decided to rebuild the company’s
reputation by taking credible action on two burning issues – sustainability and
health care. The retailer offered
lower cost health insurance to its own employees, started selling generic drugs
for $4, and opened in-store health clinics, which offer low-priced services
from vaccinations to cholesterol screening. It set aggressive targets for energy conservation and
reduced waste, became the world’s largest buyer of organic cotton, sold more
organic milk and produce than any other retailer, sold more green-friendly
products like energy-saving fluorescent bulbs, and made selling local produce a
priority.
Jim Prevor, a long-time Wal-Mart
observer, who publishes a newsletter called The Perishable Pundit, found the secret behind the company’s
greening. "Helping the
environment is an area where Wal-Mart felt culturally comfortable,” he said.
“It could maintain its core values of eliminating waste and driving costs down
while reducing packaging and creating energy-efficient stores." Plus, he might have added, it was good
for the bottom line.
Wal-Mart’s actions were not a cynical attempt
to distract its critics. They were
the product of a new understanding of a company’s place in society. The company isn’t perfect, but it
deserves credit for its efforts.