Wal-Mart: The High Cost of Low Price (2005)

Wal-Mart has been subject to criticism by various groups and individuals. Labor unions fund and lead community groups, grassroots organizations, religious organizations, and environmental groups in protests against Wal-Mart, the company's policies and business practices, and Wal-Mart customers.[1][2][3] 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.[4] Wal-Mart denies doing anything wrong and maintains that low prices are the result of efficiency.[5][6][7]

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 Wal-Mart 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 their public relations website,[8] which included several television commercials. The company retained the public relations firm Edelman to interact with the press and respond to negative or biased media reports,[9] and has started interacting directly with bloggers by sending them news, suggesting topics for postings, and sometimes inviting them to visit their corporate headquarters.[10]

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