There is an old phrase, "Doing well by doing good." Show the public what a nice guy you are and people will be more likely to do business with you.
According to The New York Times, "Responding to the economic downturn, Wal-Mart Stores Inc. plans to give more than 90 million pounds of fresh food annually to the nation's largest nonprofit organization addressing hunger, Feeding America." That seems like a lot of food, probably because it is.
Wal-Mart's (NYSE:WMT) new program will certainly help the poor but it may not bring the retailer more sales. There may be some good PR in it, but there's no guarantee that the initiative will help bring in customers at all. In that way, it is truly charitable.
A number of big companies give money to museums and the arts. Many encourage their employees to contribute to the United Way or help out on community projects. But it would be hard to find something which has such a direct benefit as feeding people who cannot feed themselves.
Wal-Mart has take its share of beatings in the press. It ought to get a lot of credit here.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
11-19-2008 @ 12:52PM
Jason said...
It's nice to see Wal-Mart getting some good credit.
www.eeinvesting.com
11-19-2008 @ 1:06PM
Irish said...
Give "credit" to Wal-mart? I don't think so. Wal-mart has helped create the poverty level of many due to its business practices. Importing mostly Chinese-made products and lowering prices that kill off American businesses because they can't compete with affordable products and prices CAUSED many to be unemployed and forced out of business. They don't deserve CREDIT - for once, they are fulfilling their RESPONSIBILITY to the American people to give BACK what was TAKEN by them. The day Wal-mart STOPS importing Chinese-made products and permits other businesses to thrive through competition, THEN, and only THEN, will Wal-mart receive ANY credit from me. Behind this little gesture lessening their guilty conscience, Wal-mart is STILL opening stores in CHINA, accepting unions (that they won't here), and monopolizing the market by killing off any potential struggling competitors. No credit here, sorry - they'll have to do more than this to get any recognition from me, but why do they care what I think?