Stakeholders 1d4f4i

Joel Perez February 24, 2014 Business Ethics

Decisions Home Depot’s new marketing strategy was to emphasize the store’s everyday low prices, high product value, and quality energy-saving products. Home Depot has had to deal with negative publicity associated with customer-satisfaction measures published by outside sources which caused the Home Depot’s CEO to be replaced. Home Depot’s program, Kids Workshop, teach children skills related to home improvement is a good example of social responsible activity by connecting with their customers. In 1991, the retailer began using store and office supplies, advertising, signs, and shopping bags made with recycled-material content.

Stakeholders Involved Customers Suppliers

Employees Community

Government Critics

Customers Children

Community Employees

Media Customers Employees Community Employees Schools

Environmentalists Suppliers Customers

The firm launched a program to recycle wallboardshipping packages, which became the industry’s first “reverse distribution” program.

Community Employees

Environmentalist Suppliers Customers

The company ed the Certified Forests Products Council, a nonprofit organization that promotes responsible forest product buying practices and the sale of wood from Certified Well-Managed Forest.

Community Environmentalists Employees Suppliers

Government Regulations Tourism Customers

Arthur Blank announced that Home Depot would stop selling products made from wood harvested in environmentally sensitive areas.

Community Environmentalists Employees Suppliers

Government Regulations Activists Customers

Community Students Employees

Families Customers Universities

Home Depot made cash and in-kind donations exceeding $50 million in 2008 and awarded $15.5 million in grants monies to housing development organizations.

Home Depot works with more than 350 s of Habitat for Humanity, a nonprofit organization that constructs and repairs homes for qualified lowincome families.

Community Families Volunteers Employees Interest groups Suppliers Partners

Home Depot s YouthBuildUSA, a nonprofit organization that provides training and skills development for young people.

Community Families Volunteers Employees Interest groups Suppliers Partners Students Universities Teenagers

Home Depot, with more than 300,000 employees; provide about 2 million volunteer service hours each year. In 2005, Home Depot formed partnerships with the ASPIRA Association, Inc., the Hispanic Association of Colleges and Universities, and the National Council of La Raza to recruit Hispanic candidates for part-time and full-time positions. As of the Women’s Business Enterprise National Council and the National Minority Suppliers Development Council, Home Depot has come into and done business with a diverse range of suppliers, including many minority- and women-owned businesses.

Community Employees

Environmentalist Suppliers Customers

Community Families Volunteers Employees Interest groups Suppliers Partners Students Universities Hispanics Community Families Volunteers Employees Interest groups Suppliers Partners Women Universities Minorities

HOME DEPOT S THE CERTIFIED FORESTS PRODUCTS COUNCIL

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Primary Stakeholders Secondary Stakeholders

Community

Tourism Industry

Customers

Home Depot

Government

Environmentalist

Employees

Suppliers

Animal Welfare Groups

My criteria to help me analyze each stakeholder are contribution, legitimacy, power, and urgency.

1. Home Depot’s decision to the Certified Forests Products Council has make them a role model for the retail industry by selling wood from only certified forest and works with its suppliers and urges them to manufacture certified products. With this said, Home Depot will reject the acquisition of wood and wood products from threatened regions around the world which guarantees that there will be wood for the generations. Home Depot helps their stakeholders understand and help the world’s issue. I chose this decision because Home Depot will not only help each individual in the world have a greener world for themselves and their future children but also encourage other companies, retailers and businesses to make the same decision by ing the council. 2. Stakeholders posses power since they are prepared to not shop at a company that is not environmentally responsible, so this put more stress on Home Depot to be certified by the Forest Stewardship Council and continues to keep Home Depot honest as far as their environmental contributions and practices. They also have legitimacy because they want Home Depot to guarantee that their appearance of being environmentally responsible is not a fake, so they influence them to get licensed and make sure they rank high on the company’s environmental responsibility lists. Finally, they have urgency because they wanted Home Depot to answer straightaway to the growing need for large corporations to be economically responsible. 3. I believe Home Depot’s decision to the Certified Forests Products Council was affected by their stakeholders. Throughout the last few years consumers concerns in the environmental effects of the products they use has increased, which has led to the growth of a large industry to offer environmentally preferable products. Home Depot has established ethical standards for their products, employees, and suppliers to provide a better environment. Recognized as one of the world’s major supplier of wood products, Home Depot initiated to address this concern by offering products from responsibly managed forests and pledging to stop selling wood from environmentally sensitive areas. In addition, Home Depot is working with suppliers to develop alternative products to reduce pressures on the world’s forest resources. Home Depot expects its vendors and their suppliers of wood and wood products to maintain compliances with laws and regulations pertaining to their operations and the products they manufacture.