In the face of controversial business practices and union complaints, Wal-Mart distracted employees at its annual meeting with J-Lo, energetic dancers and Sinbad. Instead of answering complaints, the world’s biggest retailer just gave everyone glitz and poppy glamour.
Digital Journal — At the University of Arkansas’ stadium, thousands of people cheered wildly as Jennifer Lopez performs on a heavily-lighted stage. Booming laughter rippled across the crowd after an irreverent joke courtesy of comedian Sinbad. In the midst of this medley of entertainment was a performance from the cast of High School Musical, singing from American Idol winner Jordin Sparks and a speech of diversity from Chris Gardner, the source of inspiration for Will Smith’s movie The Pursuit of Happyness.
What sounded like a pop-culture festival is actually Wal-Mart’s annual meeting of “shareholders” (read: employees). The Guardian called it “an extraordinary orgy of corporate self-satisfaction.” Of course, Wal-Mart’s opulent pat-on-the-back shouldn’t be a surprise to anyone following their spin doctoring in the past few years. But what’s truly deplorable is this revelation from the shareholder meeting: Wal-Mart could only devote there minutes each to 11 resolutions put forward by shareholders, blaming “time constraints.”
The 15,000-strong crowd were ecstatic to see J-Lo and Sparks perform, but were strangely silent went it came time to get some business done. The world’s biggest retailer listened patiently as two nuns spoke during their three minutes about Wal-Mart’s refusal to discuss its policies.
A union activist, Jennifer O’Dell, also had her say, accusing the group of failing to promote a pay-for-performance principle, the press reported recently. She said the Labourers’ International Union issued similar resolutions at 60 companies in a year, but Wal-Mart was the only company which didn’t try to engage in a dialogue. This complaint, and many others, weren’t addressed by Wal-Mart execs during the four-hour meeting.
Instead, the enthusiastic red-shirted workers were treated to platitudes and PR speak. The Guardian reports Sam’s Club boss Doug McMillan saying, When my kids ask me what I do, I don’t say I buy and sell merchandise. I say we make a difference in peoples’ lives – because our low prices mean they can access things they wouldn’t otherwise be able to afford.
If the audience found those kinds of statements boring, they could always wriggle uncomfortably in their seats at Sinbad’s off-colour jokes, such as one directed to Wal-Mart workers in the toy department:
You got kids in there acting crazy? Hit ‘em with something. But wear someone else’s name tag when you’re doing it.
Wasn’t Jerry Seinfeld available? Or at least Carrot Top? Hiring Sinbad as an MC doesn’t do anything to elevate Wal-Mart in people’s eyes. And jokes like the aforementioned dud makes Wal-Mart look worse than it already is, which is no small feat.
Human Rights Watch recently listed 15 rulings against Wal-Mart by the National Labour Relations Board for unfair treatment of staff. Close to 1.6 million women have sued the company for sexual discrimination. And Wal-Mart CEO Jeff Scott has been accused of infringing the company’s ethical policy by accepting gifts and yacht rides from an entrepreneur working with Wal-Mart.
And to further bruise the company’s reputation, presidential candidates are distancing themselves from the retailer. Barack Obama backed a union-led campaign to change working conditions at Wal-Mart, and Hillary Clinton called the company “a mixed blessing” in a television debate.
So was this shareholder meeting a glitzy reminder that everything is hunky dory? Or was it business-casual as usual for a company accustomed to suffering the slings and arrows of unfortunate headlines?
It’s not easy being number one, and Wal-Mart execs are experts is enduring any insults flung at them. What is necessary, though, is for Wal-Mart to do more than just listen to complaints, smile, and then nod. To allay public fear about a complete “Wal-Martization” of today’s consumer culture, the mega-retailer shouldn’t be distracting employees with J-Lo’s booty and D-list one-liners. They should be giving answers to important questions, because transparency can be a business’s best friend.
During Wal-Mart’s annual shareholder’s meeting, executives cut things short to watch a circus-like performance. Welcome to the new corporate America:
