Biz Ethics Case Study Home Depot Essay
Case Study: Home Depot Implements Stakeholder Orientation 1. On the basis of Home Depot’s response to environmental issues, describe the attributes (power, legitimacy, and urgency) of this stakeholder. Home Depot seems to have been very responsible and responsive to the environmental issues. It initiated several practices and principles that are key to protecting the environment as a large corporation, but also in creating awareness and social responsibility.
It is obvious that our environment is what sustains us as human beings, and that we are not doing enough as a society. This is a very urgent issue to attend to.I know that I personally, might choose Home Depot over other home improvement centers, armed with this knowledge of their corporate responsibility with regard to the environment. It is unfortunate that, as the study indicates, the environmental groups seek out the biggest and easiest target when looking for action in practices that are detrimental to the environment.
It would seem more prudent to enlist the assistance of these large corporations to involve the UN and other international governing bodies that can help to make it illegal to employ slash and burn and other environmentally detrimental practices.Home Depot does not seem to be an enemy and would make a much better ally with their financial power, and their existing sensitivity to the environment. 2. As a publicly traded corporation, how can Home Depot justify budgeting so much money for philanthropy? What areas other than the environment, disaster relief, affordable housing, and at-risk youth might be appropriate for strategic philanthropy by Home Depot? I think that the stakeholders of this company support Home Depots’ philanthropy.
It is what aids to the success of it as a publically traded company.People are more apt to stand behind a company with some sort of social responsibility and a company that participates in philanthropic efforts that directly affect the common community. Additionally, it shows that the leadership of Home Depot has a moral compass and understands the value of acting responsibly. Home Depot could become a huge advocate of green building, sustainability and eco-friendly construction. Helping to develop solar, hydro and wind energy for the small builder and for the individual home owner would definitely give an upper hand in the marketing nd sale of such technology.
In addition, Home Depot might look to offering scholarships and grants for individuals interested in pursuing degrees in such fields. When you think of Home Depot, you think of building. Their slogan is, “Let’s build something. ” So the building of playgrounds, homes and aiding in the rebuilding of communities devastated by natural disaster are obvious choices.
It is hard to come up with a better arena for philanthropic efforts of a company that builds. Perhaps building schools or homes or community centers in third-world countries would be an appropriate idea.However, most Americans appreciate the support of the local community. Home Depot could perhaps look into investing in reforestation, donation of open space areas, or other “save the rainforest” initiatives as well as boycotting or not carrying wood that comes from those areas where the destruction of rainforest and natural areas directly impacts the environment or endangered species. Perhaps they could adopt mascots from the endangered species list to be mascots for the different areas of the store and a percentage of the proceeds would be donated to saving that particular animal species. .
Is Home Depot’s recessionary strategy of eliminating debt and halting growth a wise one? What would you recommend to the CEO? Home Depot has been very smart and savvy in the recession. Their decision to stop growth makes sense, as the economy is not growing; there is no real place for it. In addition, they have cut spending and this has allowed them to be in the black instead of the red. While some experts say that it could prolong the recession, I think it shows awareness of the situation and it seems reckless to continue to try to grow when there is nowhere to go at the moment.
Home Depot seems quick enough to ramp up growth again when it is more fiscally safe and in the mean time they have taken the time to improve upon what already existed. The greater good is served by not going further into debt, especially at a time when building is down. Regardless of the money one can save by buying land and expanding cheap, if there’s nobody to shop at the stores and no money to be spent there, it is ultimately going to result in failure.Understanding who they impact and what their needs are enables Home Depot to act accordingly, with high moral standard.
Home Depot did not have to befall any sort of huge scandal or impropriety in order to understand the need to be socially responsible. Their leadership has allowed them to be aware of the customer, fix mistakes when they happen, aim for the highest customer satisfaction, offer value and honesty in product information, care for the environment, give back to the community, foster diversity and act responsibly with their shareholders money.It seems that Home Depot really is a “feel good” company. GRADING: your case study provided some great case information, but did not include much module information beyond that. The paper does not integrate any real life personal experiences.
You addressed all the questions, but the answers do not include any insights from integrated literature. The paper follows the correct format, is clearly organized with reasonably good sentence and paragraph structure, and has no grammatical or spelling errors.