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Wal-Mart in Hot Water: Honesty and Transparency an Issue
You know how we talk about transparency on the web?
As in, if you’re working with a client and you promote their products or services, you need to disclose it? Or, if you’re doing the same on behalf of the company you work for, you’d better be darn sure it’s indicated that you work there?
In fact, according to the FTC, it is required to disclose your relationship with the company you’re promoting.
But you know what? This goes for offline, too. We’re in an age of transparency and faking it doesn’t cut it.
Enter Wal-Mart and Their PR Firm
You likely heard the news earlier this year that Wal-Mart allegedly covered up the bribes they paid Mexican officials in exchange for getting building permits faster and other favors to help it aggressively expand in the region.
Well, it seems they’re at it again. This time in Los Angeles.
They want to open a store in Chinatown, but like they did in Chicago, the unions are putting up a pretty big stink in opposition of it, complaining of unfair working conditions.
One of the unions, Warehouse Workers Union, held a news conference on June 6 in which a young woman named “Zoe Mitchell” posed as a University of Southern California student who was a school reporter and “storyteller at heart.”
In fact, she conducted a 20 minute interview with a warehouse worker about low wages and tough conditions in his job, recording the entire conversation.
No harm, no foul, right?
Wrong.
It turns out “Zoe Mitchell” was at another news conference later in the week, where an activist pointed out she was not, in fact, a reporter, but an employee for Mercury, the Wal-Mart public affairs and lobbying PR firm.
The Statements
The managing director for Mercury was swift to issue a statement:
This action was in no way approved, authorized, or directed by Wal-Mart or Mercury. This young woman is a junior member of our team who made an immature decision. She showed very poor judgment, and Mercury takes full responsibility. We are taking the necessary disciplinary actions. This is an isolated incident that has never happened before and will not happen again.
From all accounts, it looks as though the young woman has been fired.
Steve Restivo, a Wal-Mart spokesperson, also said:
Our culture of integrity is a constant at Wal-Mart, and by not properly identifying herself, this individual’s behavior was contrary to our values and the way we do business. We insist that all our vendors conduct themselves in a way that is transparent and honest and we will reinforce that expectation to ensure this type of activity is not repeated.
Except the culture of integrity seems to be fabricated, as we’ve learned from the Mexican bribery scandal.
The Transparency Issue
I was waffling on whether or not this young lady did this on her own accord, until a friend and former colleague reminded me, after he left Arment Dietrich, he went to work for a firm that required their employees to do unethical, and sometimes even unlawful, things in order to keep their jobs.
Perhaps she did act on her own accord, thinking she could get ahead at work if she got information from the union workers that would be helpful in their fight to get Wal-Mart into Chinatown. Or perhaps she was told to do it by a supervisor who now has thrown her under the bus.
Either way, it’s unethical, it’s wrong, and it’s completely not transparent.
Disclose everything you do – online and off. Not only is it the right thing to do, it’s the law.
Having been a vendor of Walmart I could curl your nose hairs with the %^&* they get away with behind closed doors. She was thrown under the bus - no doubt.
@prosperitygal This makes me even more angry. I don't understand how businesses are allowed to operate this way.
@JGoldsborough The Gawker links are much better ones - and I'm tired of PR people taking the holier than thou approach to PR. #pr20chat
@selena_cameron @WalMart Hey, @ginidietrich wrote this article. She'll be speaking at one of our future meetings. #pr20chat
This really sounds like the people up above saying can you dig up this information for us and once she got caught they turned there back on her. Wouldn't be surprised if she kicked up a fuss she would get some sort of compensation package... that is if she isn't actually guilty ;)
@PaulLint I'd be surprised if she doesn't have an attorney working with her right now. Either you're right and she got a package to keep her mouth shut or she's about to sue them.
I ate too many fries on Sunday while watching Germany trounce Denmark in the European Cup. And I feel really bad about it but not because I work for Heinz, McCain and the Brazen Head (the pub I was at). I liked it too.
In all seriousness, full disclosure is a rare beast. If you do that then you have some serious integrity. The trouble is that the world is so cynical and because of clowns like Wal-Mart we have no idea what to believe anymore. @ginidietrich please make it all go away.........;-)
The incident sounds real fishy and really, for the woman to act on her own as an employee, it's either she is hungry for a promotion (to show that she's smart) or she was offered a deal with Walmart / the Agency.
@janwong That's what I think...she was guided toward this. Which makes it even more despicable in how they responded.
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No way Walmart and the Agency did not do this on purpose. Walmart and every one of their media vendors is ALWAYS guilty until proven innocent. This is per Supreme Court Case My Little Pony Vs Walmart 1998 when it was proven the Waltons are part of an ultra satanic coven bent on destroying the world. Either that or they are just rich greedy dumbasses. One or the other.
Seriously (well I was serious already) what staffer would do this on their own to get ahead? What young employee just grateful to have a job today when the young jobless is 25% and above in the US would ever risk being unemployed. I would watch to see if this woman doesn't get a 6 figure payment in a canary island bank to take the fall.
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@HowieSPM That's what I think too. But I also can't believe an employer would throw you under the bus the way they did.
The law is the law. Doesn't get more straightforward than that. It amazes me how many people get in trouble when pure self interest would dictate that they completely avoid the situation. Especially when there are often other ways of dealing with these situations that are completely legal And ethical.
@Tinu The funny thing is, if you go to the union's website (this is all over it), they say, "We've been trying to get Wal-Mart to talk to us for months." So they finally get Wal-Mart to pay attention, but it's through the use of spies? They're not happy...as you can imagine.
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@ginidietrich @Tinu kind of funny the Waltons are ok with bribery and threats to force stores into neighborhoods on the back of government services (like aid to the poor and healthcare) at the same time they are donating money to candidates looking to screw most of their employees.
And they frown on someone selling pot on the street instead of going the fraud and government embezzlement rout because White Collar Crime is a whole lot better than Blue Collar Crime?
@ginidietrich Her name is Stephanie Harnett - will be interesting if she comes out and throws Walmart under the bus!
@brenniam I know...I didn't want to name her in the blog post bd I felt like she'd gotten too much flack for something she didn't create
@ginidietrich I only mention her name so we can check on her later. I really have my doubts that she acted alone in this.
@ginidietrich and the saga continues - another "PR flack" was told to do something similar. http://t.co/pquZw5AA
@brenniam I don't think she did, either. It astounds me she would lose her job over it. I hope she's consulting an attorney
Hi Gini, This reminds me of the political town hall meetings of a few years ago where people were planted with prepared questions so political candidates could give their controlled answers. You're right, we need to be transparent, it's not just a good idea, it's required.
In the tech community, it's important to reveal if you are reviewing a device, an app or other tech product or service that has been provided to you for review. When an affiliate link is in an article, people need to disclose that information. Pinterest recently got in trouble for including affiliate links with members' pins. The ironic thing was that Pinterest could have done it without any problems if they had just disclosed it.
Thanks for this important reminder, Gini!
@wonderoftech I just used this as an example when we recorded Inside PR. How many companies have done this for their clients? I shudder at the thought.
@ginidietrich I suppose b/c I live and breathe policy, I expect all to be aware and follow. But that does not work so well.
@vargasl One would think it should be that simple. Maybe someday we'll rule the world and make it law
@ginidietrich It's clear she didn't benefit from the right kind of guidance (or expectations). Motivations reveal much.
@GeneneMurphy Or that she was told, specifically, to do it and then got thrown under the bus
@ginidietrich (Smiling.) Certainly possible. Pairing an exec who'd make an "immature decision" for a high-profile client seems suspect too.
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