Home Depot Implements Stakeholder Orientation
1. On the basis of Home Depot’s response to environmental issues, describe the attributes (power, legitimacy, urgency) of this stakeholder. Assess the company’s strategy and performance with environmental and employee stakeholders. Using the Reactive Defensive-Accommodative-Proactive Scale, the company can be assessed for their strategy and performance with environmental and employee stakeholders. In 1990’s, the people in the community began to push for more eco-friendly practices. Home Depot then began to develop and implement these environmental principles. These principles helped to guide a number of different programs to help eliminate and minimize the company’s and shopper’s impact on 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? The volunteers at Home Depot volunteer a lot of time to help out the less fortunate. They have raised and contributed to disaster relief projects and charities. Volunteering and donating time and money is a write of that Home Depot does not need to justify further. It builds trust with the community, customers, and stakeholders. 3. Is Home Depot’s recessionary strategy of eliminating debt and halting growth a wise one? What would you recommend to the CEO? Home Depot was able to forecast the recession that was coming and made them think twice about opening new stores. Instead of opening new stores they were able to ensure that they would have money for current bills without going under and having to ask for assistance from the government. I feel the CEO did well in this situation and do not have any further recommendations.
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