Home Depot Case Study

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1.On the basis of Home Depot’s response to environmental issues, describe the attributes (power, legitimacy, and urgency) of this stakeholder.

Since developing its environmental principles on the twentieth anniversary of Earth Day in 1990, Home Depot has been on the forefront of environmental. They have developed many programs to address environmental concerns and have garnered support from the National Retail Hardware Association and Home Center Institute. They initially began using recycled materials for many of their supplies, but have since expanded their recycling initiatives to packaging, compact fluorescent light bulbs, and even opened the first drive-thru recycling center in Georgia (Ferrell, Fraedrich & Ferrell, 2009). In addition to these recycling programs, they also teamed up with organizations dedicated to forest conservation and began offering wood products certified by these organizations and eventually announced that they would “stop selling products made from wood harvested in environmentally sensitive areas” (Ferrell et al., 2009). To further promote their environmental activism, they have made numerous charitable donations, instituted a carpooling a program and created The Home Depot foundation to support non-profit housing initiatives.

While the environmental activists could comprise many of the stakeholders, the primary stakeholder they represent is the customers. While many of Home Depot’s customers may not be as environmentally conscious, their numbers are growing and they can have a profound effect on business. The power of these stakeholders is evident in how the company has reacted to the protests by ceasing to sell wood harvested from sensitive areas. The stakeholders’ concern for the future of the planet is certainly legitimate, especially for a company such as Home Depot that makes its business selling such a large amount of wood products. As far as urgency is concerned, many will state that there is no more urgent...
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