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Using the Reactive-Defensive-Accommodative-Proactive Scale, assess the company's strategy and performance with environmental and employee stakeholders

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1. On the Basis of Home Depot's response to environmentalist issues, describe the attributes (power, legitimacy, urgency) of this stakeholder. Using the Reactive-Defensive-Accommodative-Proactive Scale, 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, affordable housing, and at-risk youth might be appropriate for strategic philanthropy by Home Depot?

3. Is Home Depot recessionary strategy of eliminating debt and halting growth a wise one? What would you recommend to the CEO?

Total response about 700 words.

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Solution Summary

The expert examines using the reactive-defensive-accommadative for environmentalist issues.

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The Home Depot is one of the biggest retail companies of America that offer the products and services of home improvement. The company was founded in 1978 and headquartered in Georgia (Home Depot: Company Overview, 2010). At the end of fiscal year 2009, annual revenue and net income of the company is estimated approximately, US$71.3 Billion and US$4.38 Billion (Home Depot (HD), 2010). This paper explains the various parameters that are associated with the stakeholder's power. In addition, the paper also explains about the budget justification for philanthropy. There are some recommendations also given to the CEO over the recessionary strategy of eliminating debt and halting growth.

Attributes and Performance of Stakeholders

Home Depot has already taken many initiatives to become green and protect environment form pollution and hazardous gas emission. Company has realized that the success is highly dependent upon the notion of social responsibilities. It has executed many strategies for the well being of society and environment. For instance, company has made alliance with many universities for the production of solar energy and creates advanced energy efficiency (Nashville, 2007). According to the CRS and environmental issues the most important stakeholders of the firm are its employees, Customers and Investors.
Power of Stakeholders: The employees are the most important among all the stakeholders because of their treatment in the organization. The power of employees is normative power. The next most important stakeholders for the firm are the customers of the company. Customers of the company have also normative power, because the preference and liking defines the success of the firm.

The next important stakeholder of the firm is the investors and shareholders. The power of investor and shareholders is very high in the company because they are the main source who gives funds to the company to manage their various operations and projects (Wilson & Gilligan, 2005). Their power is known as Utilitarian power.

Legitimacy of Stakeholder: As the company operate at global level, the policies for the welfare of employees are not quite effective. The notion of moral legitimacy is not available in Home Depot for employee stakeholders. The company should concentrate on the ...

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