Wall-Mart Stakeholder Analysis - Essay Example

due Wall Mart Stakeholder Analysis Wal-Mart de Mexico is the largest retailer in Mexico and the largest private sector employer in the country. It was the company’s greatest success and attracted investors since it was viewed as a model of future growth. In the beginning of the year 2012, a lot of reports surfaced about Wal-Mart that showed the bribes used by the company to move forward into the most important locations in Mexico. This led to an investigation that uncovered evidence that showed the bribery actions which included a paper trail of payments of more than 24 million dollars and documents that showed that the Wal-Mart top executives were aware of the illegal payments and they concealed it from the Wal-Mart’s headquarters which are in Bentonville, Ark. Mr. Cicero through the interviews said the main targets were city council members, mayors, urban planners and low level bureaucrats who had power to favor Wal-Mart’s growth and expansion. They wanted the zoning maps redrawn so that Wal-Mart could build supercenters and storage warehouses in densely populated areas around the country. .Hundreds of protests emerged from the local residents of Mexico City including a small village known as Teotihuacan where there were ancient pyramids and ruins are held as protected historical grounds. The Wal- Mart’s success and growth led to the decline in open air markets, independent businesses and the traditional vendors in the country. They could not be able to compete with company due to the growth speed of Wal-Mart and its strong financial muscle. The following is a stakeholder’s analysis to how they should respond to this matter. STAKEHOLDER STAKES ATTRIBUTES RESPONSIBILITIES STRATEGIES 1 Shareholders Interest- right Power Urgency Legitimacy Economic Collaborative 2 Media Interest Power urgency Ethical-legal Non-supportive Defend 3 Wal-Mart de Mexico Interest Right Ownership Urgency Power Legitimacy Legal- ethical-economic Mixed blessing Collaborate 4 Suppliers Power Legitimacy Economic-ethical Involve- support 5 Consumers Interest power right Power Urgency Ethical- economic Involve -defend 6 Leaders Interest power Power urgency Legitimacy Economic-ethical-legal Collaborate 7 Government Interest power Power Ethical-legal Collaborate 1. Shareholders Stakes: This stakeholder has a right and interest in the Wal-Mart company since they are the ones who experience financial torture if anything happens to the company. They also have the power to influence the company are interested in making money and gaining profits. A success in the company means them financial progress is successful but in case of any damages to the company there is also financial damages which in the end has an effect on them. Attributes: They have power, urgency and legitimacy. Since they are the financial muscle of the company they have legitimacy. Power comes from the influence they have on the company and urgency is included since they must be informed about everything that goes on in the company which can affect their shares. Responsibilities: they finance the company thus providing economic force and they should be well pleased with the company to avoid financial withdrawal which kills the company. Action: collaborative shareholders results in a successful company and a good reputation for them. There is supposed to be a good collaboration between the company and the shareholders 2. Media Stakes: this stakeholder is interested on how the company runs and its effects to the people. In case of any development about the company they are the first to let the world know about any development. Attributes: their stakes has power and urgency. They have the power to make or break the company by influencing the people and by making the company look good or bad. They have urgency since they are very quick in providing any information behind the scenes of the company to the people. Responsibilities: Wal-Mart Company has legal and ethical responsibilities to the media, as they are supposed to be quick to offer responses on any allegations in order to avoid bad image of the company. For example the lack of legal and ethical action not taken due to the corruption scandal. Actions: The media does not have any links with the company, all they need is information to report on, positive or negative it doesn’t matter. That’s why they are non supportive stakeholders. The company therefore should defend themselves against them in order to keep the image of the company and prevents its downfall. 3. Wal-Mart Mexico Stakes: this stakeholder has a right to the Wal-Mart de Mexico Company since it is owned by the Wal-Mart Mexico. They have interest since they may offer funds and they have the right what happens in the company since if anything happens they are affected too. Attributes: it owns the Wall-Mart de Mexico Company and has financial power to support them. They have the urgency to report on any allegations that may endanger the company’s name. Responsibilities: Wal-Mart de Mexico has legal, economic and ethical obligations to the Wal-Mart since they are owned by them. They should strive to keep the image of the company and make money thus economic growth. Actions: they have a blessing collaborative relationship since they share the same interests. 4 Suppliers Stakes: they supplier such as the city council have a high power in the company for they supply permits to the company and if they disagree then the company’s growth can be halted. Attributes: they have legitimacy over the company for they are the sources of products for example construction permits. They also have a right to a ratio of what the company earns. Responsibilities: the company has ethical and economic responsibility to their suppliers. They should improve labor and health care plans for the employees and support small businesses and make sure the suppliers are happy to avoid strikes that can damage the company Actions: the company should support the laws and policies provided in order to avoid corruption and thus have a great media image and keep the investigators away. 5. Consumers Stakes: this stakeholder has interest, power and right to the company. They buy things from the company which shows their interest. They have power since they can affect the company in different ways such as finances and they have the right and urgency since they are the consumers of the goods and services Attributes: they have the power and urgency as they are the source of money and they provide economic growth. They are supposed to be informed about anything that happens in the company. Responsibilities: the company has ethical and economic responsibilities to the consumers. They showed be well behaved when offering services and by satisfying their customers they provide the opportunity for economic growth. Actions: the company should involve their consumers in their products processes thus providing knowledge to them about their products. They should also be ready to defend themselves against any allegations and complains. 6. Leaders Stakes: they have interest, power and legal action over the company. They are interested in the labor force, suppliers and economic growth of the company. They have the power to influence people in the company and also donors for funds and support. .They can also take legal actions against corrupt or any cruelty in the company Attributes: they have legitimacy by intervening on how things are conducted in the company Responsibilities: the company has legal, ethical and economic responsibilities for the leaders. The company can be sued for acquiring permits illegally and for improper treatment of employees. If there are corrupt leader like in this case, this leads to the destruction of the company’s image thus economic declination Actions: the leaders must collaborate with the company with all the rules and policies to avoid bad reputations. In case of any corruptions there should be no concealing of the act. According to utilitarianism, the most important factor is the overall happiness of all the parties involved in a given situation. A successful business is determined by long term satisfaction, profit and growth of the company. In this situation the company will face hardships with stockholders and they will miss out on profits in terms of long term success. Through their corruptive ways they hurt the stakeholders in one way or another. Secondly, in achieving the profit maximization goal, the company needs to cut unnecessary expenses. However, most expenses, though not direct costs are necessary to maintain the firm’s reputation. Customer, both internal and external, satisfaction ought to be maintained at all costs as any unethical action such as cutting wages or compromising quality to reduce costs results to reduced productivity or sales in the long run. Work cited New York Times,. Vast Mexico Bribery Case Hushed Up By Wal-Mart After Top-Level Struggle,”. 2012: n. pag. Print. Read More