Wal-Marts Stakeholders and Their Stakes - Case Study Example

Name Tutor Course Date Wal-Mart’s stakeholders and their stakes A stakeholder is a person or an individual who is connected to a company or an organization as a beneficiary or a risk bearer. A stakeholder also contributes so much to the ideas of development and creativity of the company. In this particular case the stakeholders involved are Wal-marts de Mexico top executive such as Sergio Cicero Zapata (former executive member), the government suppliers, management, employees and the society or customers. The table below states clearly how the company is rated in the different categories that are to be distinctively discussed in this essay. The Table Showing Analysis Details Of Stakeholders at Wal-Mart De Mexico STAKE HOLDERS STAKES ATTRIBUTES ACTION RESONSIBILITY ETHICAL PRINCIPLE COLLABORATE ETHICAL PROFIT MAXIMIZATION RIGHTS POWER INVOLVE ECONOMICAL UTILITARIANISM INTEREST LEGITIMACY DEFEND LEGAL UNIVERSALISM OWNERSHIP URGENCY MONITOR PHILANTHROPIC RIGHTS Customers Interest and rights Legitimacy and urgency Involve and collaborative Ethical, economical, legal, philanthropic Utilitarianism, universalism and rights Employees Rights, interest and ownership Power and legitimacy Monitor, involve, collaborative and defend Ethical, legal and philanthropic Utilitarianism, profit maximization and rights Management ( the board) Interest, right and ownership Urgency, Power and legitimacy Defend, monitor, involve and collaborative Ethical, philanthropic, economical and legal Universalism, rights, profit maximization and utilization Suppliers Interest and rights Urgency and legitimacy Collaborate, involve and monitor Ethical, philanthropic and economical Profit maximization, rights and universalism Competitors Rights and interest Legitimacy and urgency Monitor and involve Ethical, legal and economic Profit maximization and universalism The government Ownership, and interest Power and legitimacy Defend, monitor and collaborate Legal, economical and ethical Rights, profit maximization and universalism Media Interest Legitimacy Monitor and defend Legal, philanthropic and ethical Universalism and utilitarianism The executive members Interest, ownership and rights Power, legitimacy and urgency Collaborate, monitor, defend and involve Legal, economical, philanthropic and ethical Rights, utilitarianism, universalism, profit maximization Customers as stakeholders Their stakes are based on the interest that they have on the products that Wal-mart de Mexico brings to the market. At the same instance they also expect as their rights towards their immediate needs in the business be meet. Their interest in the goods bring bought must meet the standardized rights. As stakeholders their legitimacy and urgency is reflected on how frequently they do their shopping. Through their action in buying goods they collaborate and involve themselves in making legal, economical and ethical patterns of responsibility. Through the principle of utilitarianism they in on way of another strategically expand the business (O'Connor 1). Employees Another type of stakeholder that is featured is the employee who through working for the company obtains ownership and interest. As employees they also have several rights such as proper duty of care while at work. Their attribute is power through their efforts of making work easier by running different departs in legitimacy. They act in defense of the company where crisis arise. According to Barstow (1), they are also highly involved in collaboration and monitoring the daily business activities while at work. Through the workman force they bring up the ethical, economical and legal aspect of business. Their main strategy for profit maximization is through making sure that the sells being made make profitable returns. More so, they make sure that different type’s employees rights are not left outside. Management as stakeholders The management is a sensitive type of stake holder because is more of the stem of the business. Their stakes are highly massive because they feature the interest, rights and ownership of the business. The management makes sure that everything connected to the business is safely handled through the three stakes. Through power and legitimacy the express their attributes in the business by giving the delicate leadership position to personnel’s who are reliable and proactive in bringing growth. Barstow (1) notes that their actions are seen in defending the business in times of crisis such as when there was the bribery case that was investigated in 2005. They collaborate and involve themselves in making solution and bring back the business to a stable position monitoring. The management is responsible for making sure that the business in running ethically and legally and more so that the economic standard are highly maintained to increase. According to O'connor, the management has to use strategies like making sure that every stake holder has its rights fully packaged through the utilization, universalism and profit maximization strategies. Suppliers as stakeholders Suppliers are another package of stakeholders who work strategically in maximization of profit by making sure that they deliver goods that are necessarily needed in the market. They have several interests in the business especially in the growth of the business and their rights to receive good tenders where they based on contractual terms. Their attribute is based on legitimacy and urgency of the goods that are to be delivered. Where Wal-mart de Mexico will need goods and products the suppliers have to supply. Their actions have to be collaborative and involving. They must monitor the market price and frequency in making deliveries and introducing new product that will produce profit. Through such the strategy of maximum profit and universalism are essentially liable. In reference to Barstow (2012, p. 1), furthermore, the suppliers are responsible in making sure that ethical and legal standards are monitors in the efforts of making economical gains. Movements such as the CSR may be involved in collaboration of the suppliers and the business management (O'Connor 2012, p. 1). Competitors as stakeholders Competitors make a very crucial element in creating rights and interests in any business environment. They have the right to create a competitive environment and urgency of bring products that create competition in the market. According to O'Connor (2012, p.1), the competitors monitor and involve themselves by bring up new similar businesses in the market to challenge the existing ones. In addition they are faced with the fact that they have to observe the ethical and legal requirements throughout their competitive nature. With these two aspects the economic standards are automatically put to consideration. Strategically the competitors highly consider the fact that they have to come up with means and ways of universalism and rights. The universal aspect is through the common commodity aspect as the look up making gains through the profit maximization theory. The government as stakeholders The government makes sure that the market and companies involved in business are highly responsible in making sure that the legal and ethical aspect in business is involved. In this government official are appointed to survey and make audit reports on companies like Wal-mart. In reference to O'Connor (2012, p.1), the attribute of power, survey and legitimacy is seen in the ability to control and supervise all businesses that are running. At Wal-mart the government officials were involved when the bribery case came up. Legal personnel were given the mandate by Wal-mart to make investigations on the bribery case. This came up as a collaborated action with effort from the government to monitor and defends its people and it policies around the business circle. Media as stakeholders The media has stakes of interest in connection to highlighting the rights being observed and those being infringed by the company. Their attribute is through legitimacy of the company and in making sure that they monitor and defend the public where things are not running in the correct order. In a view they observe the ethical and legal aspect of the company and any other formality that should be strictly followed. The media utilizes the universalism and utilitarianism strategy in making sure that rights are not infringed irrespective of any grounds (Barstow 2012, p. 1). Executive members as stakeholders The executive members of the company owe the company a duty of car and responsibility, through the stake of ownership, rights and interest. The attribute of power, legitimacy and urgency is also seen in this type of stake holder for instance where an emergency report of bribery was sent to the lawyer for investigation. In the same incident this type of stakeholder proved the actions of collaboration, defense monitoring and involvement when a former executive member had to be questioned. In reference to O'Connor (2012, p.1), they showed the responsibility of ethical and legal ground through their need to bring back the company to a standstill. In its reputation the executive observed their philanthropic and economical responsibility in all strategic position. Recommendations Stakeholders of a company are vision bearer. There move, intention and cooperation toward the growth of the business is very essential in making sure that the business does not decline. For Wal-mart, the stakeholders involved should make sure that they play their role and put into effect strategic moved distinctively. The government should be on the move to use more of its power to detect ant unethical and illegal moves. Up and above any business which lacks serious stakeholder is at a risk of collapsing at a certain point it time. Wal-mart de Mexico can be a good example to explain the effects in pros and cons of stakeholders. The resolution that can be given may be the strategy of rights with great support from the profit maximization, utilitarianism and universalism. The ethical and legal grounds should keenly observe the internally and externally by the company legal and government officials. Work Cited O'Connor, Matt. (2012), Wal-Mart: Foreign Expansion the Wrong Way, http://businessethicscases.blogspot.com/2013/04/wal-mart-foreign-expansion-wrong- way.html Barstow, David. (2012), “Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle,” New York Times, April 22, http://www.nytimes.com/2012/04/22/business/at- wal-mart-in-mexico-a-bribe-inquiry-silenced.html?pagewanted=all&_r=0 Read More