Business Ethics

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Business Ethics

• Case Analysis Home Depot
• Minh Bui
• Bonnie Zhang
• Sumithra Krishnan
• Sidd Venkatesan

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Case Overview

• Originally focus of protests
• Steps taken to become environmentally responsible
• New executive position to handle environmental
  aspect of business

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• Home Depot used as good example to others
• Process created longevity in supplier line

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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.

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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)

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Question 1 Against position

• Protests form of being held hostage, with
  emotions possibly running high
• Information exchange could leave exposed,
  regardless of process succeeding

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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 asbestos-related
  sickness and death)?

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Corporation-targeted actions vs. Government
legislation

• Economic pressure
• Faster time to results
• Global reach
• But Persistent results ?

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Determinants for activist actions
Global issue
Local issue
One-off issue
Repeatable issue
Effectiveness of activist actions
Immediate consequences
Longer-term consequences
Single company
Entire industry
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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

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Question 3 How to Act

• Be proactive
• Set up CSR Department
• Research and benchmark
• Communicate
• Monitor and manage
• Document and filing