Criticism of Walmart

Criticism Of Walmart

Wal-Mart has been subject to criticism by various groups and individuals. Among these are some labor unions, community groups, grassroots organizations, religious organizations, environmental groups and Wal-Mart customers. They have protested against Wal-Mart, the company's policies and business practices, including charges of racial and gender discrimination. Other areas of criticism include the corporation's foreign product sourcing, treatment of product suppliers, environmental practices, the use of public subsidies, and the company's security policies. Wal-Mart denies doing anything wrong and maintains that low prices are the result of efficiency.

In 2005, labor unions created new organizations and websites to influence public opinion against Wal-Mart, including Wake Up Wal-Mart (United Food and Commercial Workers) and Walmart Watch (Service Employees International Union). By the end of 2005, Wal-Mart had launched Working Families for Wal-Mart to counter criticisms made by these groups. Additional efforts to counter criticism include launching a public relations campaign in 2005 through its public relations website, which included several television commercials. The company retained the public relations firm Edelman to interact with the press and respond to negative media reports, and has started interacting directly with bloggers by sending them news, suggesting topics for postings, and sometimes inviting them to visit Walmart's corporate headquarters.

Economists at the Cato Institute suggest that Wal-Mart is a success because it sells products that people want to buy at low prices, satisfying customers' wants and needs. However, Wal-Mart critics argue that Wal-Mart's lower prices draw customers away from other smaller businesses, hurting the community.