Business Ethics and CRS

BUSINESS ETHICS AND CRS 5

BusinessEthics and CRS

Business ethics and CRS

Questions on Home Depot

1. Thecompany has various programs that address the interest and needs ofdifferent stakeholder groups, and in particular employees andcustomers. The company`s success is attributed to its focusenvironmental issues that encompass different stakeholders of thebusiness. The environmental issues have evolved based on the industryand business. Home depots stakeholders are involved in theenvironmental issues, programs, and policies. All the stakeholdersaffect the company in terms of consumer preference, supply adequacy,and performance. It is noticeable that the environmental efforts ofthe firm not only require, but also encourages suppliers to enhancetheir environmental sustainability. Furthermore, the firm`sstakeholders have the power not to visit a company that is notenvironmentally responsible, and this has forced Home Depot to beenvironmentally conscious in its production and supply chains.Lastly, the stakeholders have the legitimacy because they have theresponsibility of ensuring that the firm is truly conscious about theenvironment. They force/power the company to get the necessarycertification that will prove that it is certified. Therefore, it isthe stakeholders that make the company to rank high in theenvironmentally responsible lists (Ferrell,2014).

2. HomeDepot majors on not only giving back, but also recycling theirresources back to the community. The motto of the consumers involvesfulfilling the firm’s objective of assisting those in need.Therefore, those who are in need are not only part of the disasterrelief, and environment, but also youth. The management is workingwith all the stakeholders to ensure that they give back to thesociety according to company`s policies. Other areas that the firmfocuses on are schools and the elderly in the society. Therefore,Home Depot focuses on not only the consumers but also the communityas a whole. The mentioned has enabled the company to enjoy acompetitive advantage in the market. In the schools and foster homesfor the elderly, the company should consider giving free productslike tilling bathrooms and toilets, and educating the community aboutimportance of cleanliness. The mentioned strategy will be beneficialto the company, as it would cut costs on marketing. This is becauseCSR has proven to be an ideal marketing strategy for most large andsuccessful companies. The company can improve its corporate socialresponsibility by introducing specific sustainability orenvironmental requirements for all the suppliers. The mentioned willmake suppliers to practice various activities that will protect andsustain the environment (Ferrell,2014).

3.The company is working towards minimizing its weaknesses in order toimprove the stakeholder`s orientation. The company is employing thecustomer first strategy in all of its operations. The firm has uniqueCRS policies that give it a superior advantage over its competitorsin the market. Additionally, the firm has investor and customerrelations programs that further strengthen its competitive advantageits consumer patronage, and brand loyalty. Moreover, the CRS programshave positive effects on attracting and retaining stakeholders.However, it is recommendable for the company to consider creating apositive and ethical corporate culture. It should also focus oninnovation, and develop positive relations with all the firms`stakeholders. By adapting the mentioned strategies, it is possiblefor Home Depot to reduce its weaknesses and enhance stakeholder`sorientation. Ethical decision making is significant for company`soperations and survival in the global competitive market.Additionally, for a firm to implement global ethics programs it needextensive training (Ferrell, 2014).

EthicalScandal

2. Thecase of fraud and corruption at the SNC-Lavalin is based on lackingof proper training on the global ethical programs. It can also beargued that the company subsidiaries were charged with corruption,because what the SNC-Lavalin was facing was a corporate risk thatentail damage of reputation, fraud and allegation of corruption andbribery, and regulatory violations. It could have been important forthe firm to understand well the risks it is likely to face. Thiswould assist it in handling the case well without damaging itsreputation further. Before it responds to the allegations, it isimportant for the firm to examine all the regulatory and legal needsthat might emerge from the territories, which it operates. Therefore,it would be ideal for the firm to review its major risks i.e.corruption and fraud. It can be argued that the incidence was due tocarelessness. The company could have put in place different programsto mitigate fraud and corruption (Giroux, 2013).

Inconclusion, for the company to prevent future occurrence of fraud andcorruption, it should implement internal controls, which have provento be more effective. These should include data analysis of alltransactions, management reviews, partner, and client vetting inaddition to conducting qualitative interviews for all the employees.The firm had a similar case, and therefore it could have come up witheffective strategies and programs to prevent the incident fromoccurring again. Lastly, the firm could have considered adaptinganti-fraud policies to prevent potential fraudsters from takingadvantage of the firm`s lack of oversight, which is the case withSNC-Lavalin.

References

Ferrell,O. C. (2014). Business ethics: Ethical decision making and cases.Stamford, CT: Cengage Learning.

Giroux,G. A. (2013). Business scandals, corruption, and reform: Anencyclopedia. Santa Barbara, Calif: Greenwood.