Brian Olmanson
Symposium Paper
Honors 1105
Nielsen, Mengelkoch
May 7, 2006
From Prom Parties to Women’s Shelters
One of the most important factors in people’s perceptions of a corporation is its local impact. The different impacts that corporations have range from economics to environmental. Giving back to the community is one way for these large companies to have a positive impact. Bemidji, Minnesota, a small, northern city, has recently had a Wal-Mart Supercenter open. The organization that provides the best example of Bemidji’s Wal-Mart’s charitable donations versus other businesses is the United Way. In 2005, the total incoming contributions were $401,000 from individuals and businesses in the Bemidji area. $1,248 of this amount was given by Wal-Mart. However, half of that is from employees alone, and the other half was corporate matching. The donations from Wal-Mart amounts to only $624, compared to Target, whose corporate gift was $1,000. The employees of Target raised $10,000 for the United Way. Clearly Target gave much more both through the corporate level and through its employees. Pamida gave $1,500 to the United Way. Small businesses gave from $20 to $500 (Jennifer Sandford, April 25, 2006). In Bemidji, the Wal-Mart Supercenter could have given more than it did.
Wal-Mart is fairly selective about who are the recipients of donations. Groups requesting funds must complete a form stating who they are and their intentions are with the money they receive. Individuals who seek financial aid are less likely to receive funds unless they have a way of showing what they are going to do with it or that they are really a part of a community organization. Andy Abello, the Bemidji Wal-Mart Manager came and spoke to the Honors 1105 class in March. When asked how Wal-Mart decides who receives donations, he stated that the company looks for what will touch the community the most (Andy Abello, March 29, 2006). He also said that they tend to give to organizations rather than individuals.
The contributions that Wal-Mart made in 2005 were varied: academics, health services, community help programs, youth groups and organizations, community improvement/volunteer groups, entertainment and fine arts, and many other types of organizations. School donations ranged from prom parties to just giving directly to the school. The Red Cross and the March of Dimes were two recipients of financial support in the health area. Community help and improvement contributions included donations to the Bemidji Area Food Shelf, the American Legion, the Bemidji Fire Department, and the DARE program. The list of groups that Wal-Mart has given to includes the 1st City Pipe Band, the Bemidji Art Council, the Paul Bunyan Angling Association, the Bemidji Curling Team, and many others. In their advertisement, the total number of groups they gave to summed to 162 different groups and organizations that have received donations from Wal-Mart.
Most donations consisted of small cash amounts. The gathered information about Wal-Mart’s local giving showed that a large portion of those were $50 donations. These were given to schools, prom parties, 1st Care Nursing Home Fosston, Camp ASL, Bemidji Lions Club, and the Laporte Spanish Club. While most of the cash donations were $50, the smaller end donations ranged from around $25 to $200. From the variety of amounts donated, it seems that Wal-Mart gave what was asked of it from the organizations.
Wal-Mart also had a number of donations that reached high levels. Many $1000 donations were made to groups like the American Cancer Society, the Bi-County Community Action Program, and the Northwoods Interfaith Volunteer. Organizations including the White Earth Land Recovery, Bemidji Art Council, Radio-thon to End Child Abuse, and the American Legion all received $2000 in cash gifts.
Certain groups are targeted more by corporations more than others. Causes that consumers support often receive fairly generous amounts from large companies. In the Bemidji area this is apparent in much of who Wal-Mart gives to. Many donations have been given to organizations tied with children and women. Another important type of aid that corporations are very willing to give is in times of crisis. The motives for this action could stem from real care for the problem, or it could be to become more appealing to consumers.
People have an impulse to help those who are hurt or helpless, especially animals. The Beltrami Humane Society has received much support from the Wal-Mart in Bemidji. In the advertisement that Wal-Mart took out in the Bemidji Pioneer, it stated that it gave $18,692.82 to the Humane Society. Factors must be taken into account when considering these numbers. This merchandise that was donated was counted at retail price, because that is the amount that Wal-Mart is giving up in profits (Wal-Mart May 7, 2006). Counting the cost to them as the shelf price rather than what they paid for the item will make it appear that they are giving more than they truly are. Along with that is the quality of the items they give. Clearance items that will no longer bring a profit to the company are sometimes given away, but counted at their full price. Items not fit for sale are also donated. This is true for many food shelfs. They receive damaged cans that are still edible, but cannot be sold.
The Humane Society was grateful for the contributions that Wal-Mart has made thus far. Food and cat litter are the two items that are received the most. They are usually bags of pet food that have been broken open, spilled, or they just cannot sell. Wal-Mart is by far the highest contributor when compared to other local businesses and individuals. Goods delivered from Wal-Mart used to come two to three times a week. Now the deliveries have slowed down to once a week or as little as once a month. But merchandise donations have not been the only way that Wal-Mart has supported the Humane Society. In their pet department, the Supercenter has an area designated for Pet Finders, a system aimed at helping people find lost pets or to find one to bring home. The Humane Society benefits greatly from the relationship it has with Wal-Mart (Steve Suari, April 24, 2006).
The largest donation that Wal-Mart made was $21,763.00 in merchandise to the Northwoods Coalition for Battered Women (NCBW). This is the cumulative sum of the donations made over the year of 2005. These donations were often diapers and some clothing. Boxes of clothes are brought by Wal-Mart to be given to the NCBW. These boxes often contain numerous clothing of the same exact make (Lois Hollerman, April 24, 2006). Once again, the amount that Wal-Mart counted as having donated is the retail price of the item (Wal-Mart, May 7, 2006). The items are usually donated when they are on clearance for much less than their original price. This means that the actual cost to Wal-Mart is less than what they say they gave. Out of other local contributors, Wal-Mart calls the most. The other big box stores of Bemidji have little involvement with the NCBW.
Wal-Mart made a generous donation to the Red Lake High School Victims Support of $14,000. A communication with Wal-Mart revealed that this donation was all cash (Wal-Mart, May 7, 2006). This is an excellent example of giving aid in a crisis, especially locally. Everyone in the community was affected by the tragedy. Wal-Mart stepped up to lend a hand in the situation.
At the national level, Wal-Mart does not come very close to matching the donations of Target. It surpasses it in pure dollar amounts, but as a percentage of income, it is far behind. In 2004, the average sales of a Supercenter was $83.4 million. The total donations made by Wal-Mart in 2005 came to $127,692 (The Bemidji Pioneer February, 12, 2006). Assuming that the Bemidji Wal-Mart matched the sales of an average Supercenter in 2004, its total giving came to .23%. Target, on the other hand, is the highest cash giving company by percentage in America at 5% of its pre-tax profits (Target 2006).
The Bemidji Wal-Mart exceeds the corporate expectations in local donations. “The typical Supercenter raises or gives $30,000 to $50,000 a year to local charitable needs ranging from youth programs to literacy councils” (Wal-Mart.com). This statement by Wal-Mart seems to be covering the lower end of the spectrum though. By giving $127,692, the Bemidji Wal-Mart greatly surpassed this amount. The donations of local businesses could not be tracked down to be able to compare it to the contributions made by Wal-Mart.
A classic example of the difference between local businesses and corporations was given in a story told by Dr. Kenneth Stone. Wal-Mart was trying to get into a small town. One point it emphasized that it would help improve the community by was through donating $25,000 to the community. Laughter was the reaction of the community. Wal-Mart came back and said that they would raise their donations to $40,000. Again, the corporation was simply laughed at. In this small community, one local grocer alone donated $120,000. The total donations of the local stores combined summed to $200,000 (Kenneth Stone, April 11, 2006). When a business is locally owned, much more comes right back to the community rather than most of it leaving. That is the difference between the two types of ownership.
The Bemidji Wal-Mart has given back to the community, but could have made more donations than it did. The NCBW and Humane Society are better off for having Wal-Mart come into town. However, the extent to which Wal-Mart could potentially give is unknown. Surely the Bemidji Wal-Mart has a fairly substantial income. It draws from not only Bemidji and the immediately surrounding area, but there are people that come from way out of town because there is not another store like it as close. If Wal-Mart truly cared about the community it sells to, it would try to be a better citizen by giving back more.
References
Andy Abello (personal communication, March 29, 2006.)
Jennifer Sandford (personal communication, April 25, 2006.)
Kenneth Stone. (Presentation at Bemidji State University, April 11, 2006.)
Lois Hollerman (personal communication, April 24, 2006.)
Steve Suari (personal communication, April 24, 2006.)
Target. (2006). Targeting the Community. Retrieved May 2, 2006 from http://www.target.com
Wal-Mart. (2006, February 12). Wal-Mart Advertisement. The Bemidji Pioneer. (April 20, 2006.)
Wal-Mart (personal communication, May 7, 2006.)
Wal-Mart. (2006). Wal-Mart Giving. Retrieved on April 18, 2006 from http://www.walmart.com
Symposium Paper
Honors 1105
Nielsen, Mengelkoch
May 7, 2006
From Prom Parties to Women’s Shelters
One of the most important factors in people’s perceptions of a corporation is its local impact. The different impacts that corporations have range from economics to environmental. Giving back to the community is one way for these large companies to have a positive impact. Bemidji, Minnesota, a small, northern city, has recently had a Wal-Mart Supercenter open. The organization that provides the best example of Bemidji’s Wal-Mart’s charitable donations versus other businesses is the United Way. In 2005, the total incoming contributions were $401,000 from individuals and businesses in the Bemidji area. $1,248 of this amount was given by Wal-Mart. However, half of that is from employees alone, and the other half was corporate matching. The donations from Wal-Mart amounts to only $624, compared to Target, whose corporate gift was $1,000. The employees of Target raised $10,000 for the United Way. Clearly Target gave much more both through the corporate level and through its employees. Pamida gave $1,500 to the United Way. Small businesses gave from $20 to $500 (Jennifer Sandford, April 25, 2006). In Bemidji, the Wal-Mart Supercenter could have given more than it did.
Wal-Mart is fairly selective about who are the recipients of donations. Groups requesting funds must complete a form stating who they are and their intentions are with the money they receive. Individuals who seek financial aid are less likely to receive funds unless they have a way of showing what they are going to do with it or that they are really a part of a community organization. Andy Abello, the Bemidji Wal-Mart Manager came and spoke to the Honors 1105 class in March. When asked how Wal-Mart decides who receives donations, he stated that the company looks for what will touch the community the most (Andy Abello, March 29, 2006). He also said that they tend to give to organizations rather than individuals.
The contributions that Wal-Mart made in 2005 were varied: academics, health services, community help programs, youth groups and organizations, community improvement/volunteer groups, entertainment and fine arts, and many other types of organizations. School donations ranged from prom parties to just giving directly to the school. The Red Cross and the March of Dimes were two recipients of financial support in the health area. Community help and improvement contributions included donations to the Bemidji Area Food Shelf, the American Legion, the Bemidji Fire Department, and the DARE program. The list of groups that Wal-Mart has given to includes the 1st City Pipe Band, the Bemidji Art Council, the Paul Bunyan Angling Association, the Bemidji Curling Team, and many others. In their advertisement, the total number of groups they gave to summed to 162 different groups and organizations that have received donations from Wal-Mart.
Most donations consisted of small cash amounts. The gathered information about Wal-Mart’s local giving showed that a large portion of those were $50 donations. These were given to schools, prom parties, 1st Care Nursing Home Fosston, Camp ASL, Bemidji Lions Club, and the Laporte Spanish Club. While most of the cash donations were $50, the smaller end donations ranged from around $25 to $200. From the variety of amounts donated, it seems that Wal-Mart gave what was asked of it from the organizations.
Wal-Mart also had a number of donations that reached high levels. Many $1000 donations were made to groups like the American Cancer Society, the Bi-County Community Action Program, and the Northwoods Interfaith Volunteer. Organizations including the White Earth Land Recovery, Bemidji Art Council, Radio-thon to End Child Abuse, and the American Legion all received $2000 in cash gifts.
Certain groups are targeted more by corporations more than others. Causes that consumers support often receive fairly generous amounts from large companies. In the Bemidji area this is apparent in much of who Wal-Mart gives to. Many donations have been given to organizations tied with children and women. Another important type of aid that corporations are very willing to give is in times of crisis. The motives for this action could stem from real care for the problem, or it could be to become more appealing to consumers.
People have an impulse to help those who are hurt or helpless, especially animals. The Beltrami Humane Society has received much support from the Wal-Mart in Bemidji. In the advertisement that Wal-Mart took out in the Bemidji Pioneer, it stated that it gave $18,692.82 to the Humane Society. Factors must be taken into account when considering these numbers. This merchandise that was donated was counted at retail price, because that is the amount that Wal-Mart is giving up in profits (Wal-Mart May 7, 2006). Counting the cost to them as the shelf price rather than what they paid for the item will make it appear that they are giving more than they truly are. Along with that is the quality of the items they give. Clearance items that will no longer bring a profit to the company are sometimes given away, but counted at their full price. Items not fit for sale are also donated. This is true for many food shelfs. They receive damaged cans that are still edible, but cannot be sold.
The Humane Society was grateful for the contributions that Wal-Mart has made thus far. Food and cat litter are the two items that are received the most. They are usually bags of pet food that have been broken open, spilled, or they just cannot sell. Wal-Mart is by far the highest contributor when compared to other local businesses and individuals. Goods delivered from Wal-Mart used to come two to three times a week. Now the deliveries have slowed down to once a week or as little as once a month. But merchandise donations have not been the only way that Wal-Mart has supported the Humane Society. In their pet department, the Supercenter has an area designated for Pet Finders, a system aimed at helping people find lost pets or to find one to bring home. The Humane Society benefits greatly from the relationship it has with Wal-Mart (Steve Suari, April 24, 2006).
The largest donation that Wal-Mart made was $21,763.00 in merchandise to the Northwoods Coalition for Battered Women (NCBW). This is the cumulative sum of the donations made over the year of 2005. These donations were often diapers and some clothing. Boxes of clothes are brought by Wal-Mart to be given to the NCBW. These boxes often contain numerous clothing of the same exact make (Lois Hollerman, April 24, 2006). Once again, the amount that Wal-Mart counted as having donated is the retail price of the item (Wal-Mart, May 7, 2006). The items are usually donated when they are on clearance for much less than their original price. This means that the actual cost to Wal-Mart is less than what they say they gave. Out of other local contributors, Wal-Mart calls the most. The other big box stores of Bemidji have little involvement with the NCBW.
Wal-Mart made a generous donation to the Red Lake High School Victims Support of $14,000. A communication with Wal-Mart revealed that this donation was all cash (Wal-Mart, May 7, 2006). This is an excellent example of giving aid in a crisis, especially locally. Everyone in the community was affected by the tragedy. Wal-Mart stepped up to lend a hand in the situation.
At the national level, Wal-Mart does not come very close to matching the donations of Target. It surpasses it in pure dollar amounts, but as a percentage of income, it is far behind. In 2004, the average sales of a Supercenter was $83.4 million. The total donations made by Wal-Mart in 2005 came to $127,692 (The Bemidji Pioneer February, 12, 2006). Assuming that the Bemidji Wal-Mart matched the sales of an average Supercenter in 2004, its total giving came to .23%. Target, on the other hand, is the highest cash giving company by percentage in America at 5% of its pre-tax profits (Target 2006).
The Bemidji Wal-Mart exceeds the corporate expectations in local donations. “The typical Supercenter raises or gives $30,000 to $50,000 a year to local charitable needs ranging from youth programs to literacy councils” (Wal-Mart.com). This statement by Wal-Mart seems to be covering the lower end of the spectrum though. By giving $127,692, the Bemidji Wal-Mart greatly surpassed this amount. The donations of local businesses could not be tracked down to be able to compare it to the contributions made by Wal-Mart.
A classic example of the difference between local businesses and corporations was given in a story told by Dr. Kenneth Stone. Wal-Mart was trying to get into a small town. One point it emphasized that it would help improve the community by was through donating $25,000 to the community. Laughter was the reaction of the community. Wal-Mart came back and said that they would raise their donations to $40,000. Again, the corporation was simply laughed at. In this small community, one local grocer alone donated $120,000. The total donations of the local stores combined summed to $200,000 (Kenneth Stone, April 11, 2006). When a business is locally owned, much more comes right back to the community rather than most of it leaving. That is the difference between the two types of ownership.
The Bemidji Wal-Mart has given back to the community, but could have made more donations than it did. The NCBW and Humane Society are better off for having Wal-Mart come into town. However, the extent to which Wal-Mart could potentially give is unknown. Surely the Bemidji Wal-Mart has a fairly substantial income. It draws from not only Bemidji and the immediately surrounding area, but there are people that come from way out of town because there is not another store like it as close. If Wal-Mart truly cared about the community it sells to, it would try to be a better citizen by giving back more.
References
Andy Abello (personal communication, March 29, 2006.)
Jennifer Sandford (personal communication, April 25, 2006.)
Kenneth Stone. (Presentation at Bemidji State University, April 11, 2006.)
Lois Hollerman (personal communication, April 24, 2006.)
Steve Suari (personal communication, April 24, 2006.)
Target. (2006). Targeting the Community. Retrieved May 2, 2006 from http://www.target.com
Wal-Mart. (2006, February 12). Wal-Mart Advertisement. The Bemidji Pioneer. (April 20, 2006.)
Wal-Mart (personal communication, May 7, 2006.)
Wal-Mart. (2006). Wal-Mart Giving. Retrieved on April 18, 2006 from http://www.walmart.com
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