The attributes of the stakeholder on the basis of Home Depot’s response to environmentalist issues can be measured in their power, legitimacy, and urgency. They possess power because they are willing to not shop at a company that is not environmentally responsible, so this put greater pressure on Home Depot to certified by the Forest Stewardship Council (FSC) and continues to keep them “honest” as far as their environmental contributions and practices. The stakeholder has legitimacy because they want to make sure that Home Depot’s appearance of being environmentally responsible is not a sham, so they force them (power) to get certified and make sure they rank high comparatively on company’s environmental responsibility lists. They have urgency, because they wanted Home Depot to respond immediately to the growing need for large corporations to be economically responsible. As far as Home Depot’s strategy and performance with environmental and employee stakeholders, I believe that overall Home Depot is using a Proactive approach and doing more than is required by the industry. For instance, not only have they gotten certified and donated millions to relief funds and the Red Cross organization, but they are also donating volunteer hours and hosting workshops for women, children, and people who are buying new homes. These activities, along with their massive contributions to many charities and relief efforts, earned them an A on the Council on Economic Priorities Corporate Report Card and a Proactive on their new business approach to be environmentally and socially responsible.
As a publicly traded corporation, Home Depot can justify budgeting so much money for philanthropy because that is what shareholders like to see in a company. Since in 2007 Home Depot suspended a stock buy-back program in order to avoid losses and prevent borrowing money, the stakeholders need something to hold onto and they, especially customers, feel good about a company that...
Please join StudyMode to read the full document