Turning Up the Heat on Wal-Mart

By Don Hazen, June 3, 2005

With its stock gone flat and bad publicity in virtually every news cycle, Wal-Mart is feeling pretty defensive these days. Among recent company missteps are fines and monetary settlements for hiring illegal immigrants and allowing underage employees to operate heavy machinery.

According to a recent article by AlterNet reporter Kelly Hearn, a more complete list of Wal-Mart's myriad transgressions includes "union busting, labor law violations, shipping jobs overseas, artificially suppressing wages, financial improprieties by a top corporate officer and links to a powerful Chinese businessman allegedly involved in the weapons-trading arm of the People's Liberation Army."

In the face of a steady drumbeat of bad publicity, the company has recently started spinning its PR wheels to cover its tracks. First, Wal-Mart broke a long-held tradition and invited the media to its Bentonville, Arkansas headquarters. The company has set up a new Web site that emphasizes its "positive impact on business." It has also shown sudden support for journalism schools, minority scholarships, and even -- gasp -- funding for NPR programming.

But Wal-Mart should prepare to dig much deeper into its PR budget, because its image is about to get much more tarnished.

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Perhaps more insidious is that by building new stores as quickly as possible in as many communities as possible, and engaging in its trademark predatory pricing, Wal-Mart is rapidly destroying the small businesses that make up the fabric of rural and exurban life. And many of those businesses -- small newspapers, grocery stores, gas stations and more -- are hopping mad.

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Read the full article here.