Source: Wal-Mart Execs Fired Over Integrity Breach

This is very interesting. Usually companies don't make voluntary comments about "firing" people. Usually they say people leave to "pursue other interests" or some such innocuous comment.

This makes you wonder more about what the alleged infraction was and whether an infraction over integrity translates into a potential lawsuit. Wal-Mart does not do things frivolously.

Len Lewis, President, Lewis Communications, Inc.

Problem with the firings is the word "integrity" and the various meanings it has. This is just another example of how Wal-Mart still doesn't understand PR and the use of sound bites. Prudent wisdom says they should not say anything more about this issue for the sake of every other associate at Wal-Mart. Wal-Mart has always prided themselves on having the very highest of standards, so what they might perceive as a lack of integrity the public might shrug off as no big deal. However when the public hears the word "integrity" they start thinking of the worst. Simply put Wal-Mart has themselves in still another bad PR with no easy way out other than merely letting time takes its toll.

Mark Hunter, President, TheSalesHunter.com

The union campaign to organize Wal-Mart hasn't stopped veteran union members and their families from shopping at the retailer, and this and similar news won't have much of an impact on shoppers or sales either.

Ron Margulis, Managing Director, RAM Communications

If anything, were the executive firings to be deemed newsworthy, it could only help Wal-Mart that a few heads rolled on the heels of their recent bad press. I don't believe such stories impact their core customer base, but they clearly do little to win over the vocal "I'll never shop at Wal-Mart" crowd.

Carol Spieckerman, President, newmarketbuilders

As I walk around in a Wal-Mart store or supercenter I see an army of people scurrying about shopping zealously but I see hardly anyone that I perceive gives much of a hoot about investing their time learning about why somebody they never even heard of got fired in Bentonville for whatever valid reason. If today's busy shopper perceives that the price, value and quality are right by their standards of expectancy, then executive "doings" are matters not so much for customers as for the scandal-starved media to feast upon.

Gene Hoffman, President/CEO, Corporate Strategies International

Let's remember that Wal-Mart will be limited in what it can legally put out to the public. Suffice it to say, "it all depends" on what the offenses were, whether they can be absolutely proven, etc. Wal-Mart would be foolish indeed to open itself to lawsuits from those who were dismissed, if it sends out a detailed public statement. There are bad apples everywhere, and people get dismissed from jobs all the time without a lot of fanfare. Unless the offense is egregious and symptomatic of being widespread, I think the class thing to do is just shut up and not say anything. It's unpleasant enough to fire people, without getting into public statements about it. Wal-Mart, being huge, is a lightning rod, for better or worse. But from what I've seen, people at Wal-Mart do live by some very strict rules. The execs I know there, I hold in very high personal and professional regard.

Warren Thayer, Editor & Managing Partner, Frozen & Dairy Buyer

This is a great example of WM living up to their own stated principles. Bad news is tough to package nicely but you have to say they are walking the walk. Increasing shareholder value means following the corporate policy, not just when it's easy but it's especially meaningful when it is uncomfortable.

'bagboy'

Now if the headline read "Sam Walton returns from the dead to fire executives" THAT would make their customers take notice. Otherwise, I don't think anybody cares.

Michael L. Howatt, Retail and Shopper Insights Consultant, Ascension Growth & Innovation Strategies

Personally, I appreciate Wal-Mart not shilly shallying around about it. It speaks volumes that a major corporation takes actions for "integrity issues." I got the message, Wal-Mart associates and suppliers got the message and any customers who cared and heard got the message. The very BEST kind of PR. If it costs Wal-Mart later in some court, probably worth the price.

Herb Sorensen, Ph.D., Scientific Advisor TNS Global Retail & Shopper, Adjunct Senior Fellow, Ehrenberg-Bass Institute

Wal-Mart employees have always been scared to death of getting caught breaking any of their tough rules and this will send shivers down the backs of all management employees. If we thought they were fanatical in following the rules before, we probably haven't seen anything yet. They were afraid to accept a free cup of coffee in the past, now they will likely be afraid to drink one in your presence even if they have the receipt to prove it.

Art Williams, Retail Marketing Consultant/Analyst, Independent

This will definitely send a message to the everyday worker at Wal-Mart! Rules apply for everyone!

I wonder, however, just how many of these firings are a result of their lack-luster "Black Friday" advertised items and the ensuing poor sales.

Wal-Mart was over confident that shoppers would break down the doors on the day after Thanksgiving, but truthfully, their prices weren't up to everyone's expectation, which is why they are slashing prices now!

Just how much of this is simply a case of the people in charge dropping the ball and being held accountable?

'retailworker'

Wal-Mart doesn't need to go into detail. It's a private matter. Consumers could care less about some executives getting fired, especially when there is no real indication of why they were fired. The consumer is only concerned about getting low prices. With a company the size of Wal-Mart, I'm sure there are thousands more employees with integrity issues. Four people seems rather insignificant.

David Livingston, Principal, DJL Research

I called on Wal-Mart for over 13 years and I never once witnessed any integrity issues. I heard many stories, but saw none first hand. It is not important why these people were terminated. If they committed an integrity violation, they should go and we should accept the fact that they were treated fairly. I am sure the facts will come out through unnamed sources, but Wal-Mart should have to make a public announcement on why they were terminated.

'newc47'

Lee Scott has said at the Annual Shareholders Meeting that these are harsher times and that misbehavior that was handled by discipline in the past requires firings today. Without knowing the details of the misconduct, Wal-Mart is walking it's talk and sending a message to managers across the company.

So far the customer doesn't stop coming to buy goods at Wal-Mart but the delay in getting stores built is becoming more apparent. Wal-Mart is having to spend considerable time and resources in trying to gain local community approval for their new stores. This is a costly impact of the negative brand image, which keeps getting refreshed with each incident.

'freeman'

I wanted to address something Mr. Hunter said above. Wal-Mart really said nothing about these firings. An anonymous source told the Northwest Arkansas Business Journal the seven who were fired lost their jobs because of "personal judgement pertaining to integrity issues." Seems to me it's those anonymous sources that are using buzz words like "integrity."

David Livingston, Principal, DJL Research

Yes, it is a personal matter; if this was a privately owned company. As a shareholder, I feel I have every right to know what issue of integrity was breached. What ever this breach was, it was was on a scale that warranted the firing of 3 company executives. The investing public is becoming ever so tired of the incompetence and impropriety at the executive level and within the board of directors. This is where current and potential investors judge whether they wish to support a company and decide if their investment will be affected by this "breach." All information adds to the investors' ability to make "informed" decisions.

Carmen Liggett, Material Handler, Ryder Logistics

Should they? ...Maybe yes, maybe no. They will likely, as normal, discuss as little as possible. What they might do is launch a PR campaign about the integrity of their workers just as they have in announcing what a great neighbor they are to the communities they reside in.

Will it affect the consumers decisions? Not likely. There really has been little or no effect to Kmart with regards to Martha Stewart's issues. So if integrity was an issue with the consumer, would it likely not have shown up there? In fact, her stock actually rose - did it not?

Integrity is a term with many definitions. As it has been said before in the previous comments, 'It all depends.'

'Scanner'

You can bet your boots just from the careful phrasing that this is a personal behavior, not a "business" integrity issue.

These guys did something potentially scandalous, probably had nothing to do with a job activity, but broke the WMT code of personal conduct. As such, it's really no one else's business, and, though WMT is far from being a company I sympathize with, I think they know the difference quite well and are probably doing exactly what they think they ought to do, including telling no details.

I agree that WMT shoppers won't care, and most won't even know or notice.

'RetailSeer'