Transcript Business Ethics - Australian Graduate School of Management

Business Ethics
Case Analysis – Home Depot
Minh Bui
Bonnie Zhang
Sumithra Krishnan
Sidd Venkatesan
Case Overview
• Originally focus of protests
• Steps taken to become environmentally
responsible
• New executive position to handle
environmental aspect of business
• Home Depot used as good example to
others
• Process created longevity in supplier
line
Question 1 – For position
• Purpose of green group interaction to
build up reputation in view of extra
revenue in future.
• Free publicity
• Green group looking at longer time
frame and so could be useful to ensure
long term company viability.
Question 1 – For position
• Information retrieval
• point out which are sensitive to green
groups and fix them rather than useless
things
• background information to be gained from
• why being targeted instead of others
• learn of best practices (in point of view
of green groups)
Question 1 – Against position
• Protests form of being held hostage,
with emotions possibly running high
• Information exchange could leave
exposed, regardless of process
succeeding
Question 2
• “Instead of seeking change through
government legislation, activists target
specific corporations through boycott and
protests.”
• Are such activities for
• (1) environmental issues?
• (2) labour issues?
• (3) customer issues (such as asbestosrelated sickness and death)?
Corporation-targeted actions vs.
Government legislation
• Economic pressure
• Faster time to results
• Global reach
• But: Persistent results ?
Determinants for activist actions
Local
issue
Global
issue
Repeatable
issue
One-off
issue
Longer-term
consequences
Entire
industry
Effectiveness
of activist
actions
Immediate
consequences
Single
company
Question 3 – How to Anticipate
Anticipate ethical issues when:
• In a sensitive industry
• What public desires
• What possible effects to environment
• How it affects our business
• Increasing public complaints
• Issues against competitors, suppliers and
customers
Question 3 – How to Act
• Be proactive
• Set up CSR Department
• Research and benchmark
• Communicate
• Monitor and manage
• Document and filing