Wal-Mart and Action Alley

We've always noticed employees of Edelman visiting our humble site whenever the topic of Wal-Mart is brought up.

Jeffrey Goldberg - Annals of Spin: Selling Wal-Mart: Reporting & Essays: The New Yorker
On the second floor of Wal-Mart’s headquarters, in Bentonville, Arkansas, is a windowless room called Action Alley. In the Wal-Mart idiom, the term “Action Alley” usually refers to the main aisle of the company’s two thousand Supercenters—the stores that have upended the retail business by selling enormous quantities of groceries and imported goods at prices that competitors find difficult or impossible to match. At the “home office,” as Bentonville is known, Action Alley is the company’s war room, a communications center that was set up and is staffed by Washington-based operatives from Edelman, a public-relations firm that advises companies on issues of “reputation management.” Wal-Mart corporate culture is parsimonious except in the matter of executive compensation, but, according to a source, the company has been paying Edelman roughly ten million dollars annually to renovate its reputation.

How is that going for Wal-Mart anyway? Perhaps I'm a non-neutral observer, but sure seems as if Wal-Mart still is the topic of a ton of negatively slanted stories. Maybe they need to up Edelman's compensation?

... Today, Wal-Mart is the second-largest company in the world in terms of revenue—only ExxonMobil is bigger. Its revenues last year came to more than three hundred and fifteen billion dollars, with profits of more than eleven billion, and it has developed a reputation as a worldwide colossus that provides poor pay and miserly benefits to its 1.8 million employees. ...

Wal-Mart is traditionally a Republican-leaning company (during the past fifteen years, more than seventy-five per cent of its political donations have gone to Republicans) and has become a favorite target of Democratic politicians. Hillary Clinton, who once served on Wal-Mart’s board, recently returned a five-thousand-dollar donation because of what a campaign spokeswoman said were “serious differences with current company practices.”

Barack Obama and John Edwards have joined union-led campaigns to denounce the company for its wage-and-benefit policies. Wal-Mart is notably unfriendly to unions; in 2000, when meat-cutters at a single Wal-Mart in Texas organized into a collective-bargaining unit, Wal-Mart responded by shutting down its meat counters across Texas and in five neighboring states. It closed an entire store in Quebec, rather than see workers unionize.

The company has also been criticized for driving American jobs overseas, by demanding immense discounts from its suppliers. Senator Byron Dorgan, a North Dakota Democrat who is one of Wal-Mart’s main foes in Congress, says that the company, by forcing its suppliers to manufacture goods in China, shows that it “doesn’t stand for American values.” Wal-Mart has been the subject of numerous unflattering documentaries and books. Even Ron Galloway, the maker of a recent pro-Wal-Mart documentary, “Why Wal-Mart Works and Why That Makes Some People Crazy,” has turned against the company. Galloway told me that he now considers Wal-Mart to be a “heartless” employer. “They just instituted a wage cap for long-term employees—people making between thirteen and eighteen dollars an hour. It’s a form of accelerated attrition. They can’t expect me to defend that,” Galloway said.

Article continues, including this description of the job of Edelman Worldwide:

he job of the Edelman people—there are about twenty, along with more than three dozen in-house public-relations specialists—is to help Wal-Mart scrub its muddied image. Edelman specializes in helping industries with image problems; another important client is the American Petroleum Institute, a Washington lobbying group that seeks to convince Americans that oil companies care about the environment and that their profits are reasonable. Edelman does its work by cultivating contacts among the country’s opinion élites, with whom it emphasizes the good news and spins the bad; by such tactics as establishing “Astroturf” groups, seemingly grass-roots organizations that are actually fronts for industry; and, as I deduced from my own visit to Bentonville, by advising corporate executives on how to speak like risk-averse politicians.
...
(Sometime later, [Spokeswoman Sarah ]Clark suggested that I interview an employee about flexible scheduling, and she provided the name and number of one who would talk to me: Latoya Machato, a cashier at a Texas Supercenter. I called the store and asked for Machato, but was told that “cashiers can’t come to the phone during work.” I called later and was told that Machato could speak to me on her break, but would not be allowed to call long-distance from a company phone. I asked Clark if Machato could talk to me after her shift, but Clark said that that would be impossible, because the store would have to put her “on the clock,” and thus file the paperwork to get her paid an extra hour’s wage.)

Message received.

and the meat of the Edelman approach:

Tags: Bush_donor, /environment, /PR, /Wal-Mart