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Lesson 2

A stakeholder framework identifies the internal stakeholders (employees, boards of directors, and managers), and the external stakeholders (customers, special interest groups, regulators, and others) who agree, collaborate and engage in confrontations on ethical issues. Most ethical issues exist because of conflicts in values and belief patterns about right and wrong among and within stakeholder groups. This framework allows an organization to identify, monitor, and respond to the needs, values, and expectations of different stakeholder groups.

Reference: FERRELL, FRAEDRICH, AND FERRELL (2013). BUSINESS ETHICS (10th ed.). Stamford, CT: Cengage Learning.

Read the case study – Home Depot (company overview and ethical issues faced over past years).

Use the following resources to do further research:

Home Depot Community

Home Depot’s Stakeholders: a CSR Analysis

Home Depot’s Blueprint for Culture Change

Create a presentation answering following questions:

1. On the basis of Home Depot’s response to environmental issues, describe the attributes of this stakeholder. Assess the company’s strategy and performance with environmental and employee stakeholders.

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, and affordable housing might be appropriate for strategic philanthropy by Home Depot?

3. How is Home Depot working toward reducing its weaknesses to increase its stakeholder orientation?

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