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Case Analysis for Home Depot

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Case Analysis for Home Depot In analyzing the Home Depot case I will cover the following; relevant stakeholder interests, ethical and social concerns, tradeoffs, and possible alternatives. Through analyzing case evidence along with the integration of key concepts, I will give a recommendation for Home Depots course of action. The organization is feeling external pressures to address a unique development that has affected many of their stores and local communities. Day laborers across the country have chosen to use Home Depot locations as a hub for soliciting work. With increasing public scrutiny and rising stakeholder concern, day laborers are making Home Depot’s reputation very fragile. The organization needs to address the ethical dilemma of day laborers. No two stakeholders are more important to the organization than the local governments and communities. Home Depot has avoided addressing the problem to prevent conflict that may arise from opposing stakeholders. This is why local government agencies are critical to Home Depot’s day laborer issues. Local government and officials have the ability to help remedy a positive outcome. Day laborers have put Home Depot and their stakeholders at the intersection of the political debate between illegal immigration and human rights. There is no other stakeholder who can proactively work with Home Depot to develop a solution for the day laborer problem. Proactively working with local government agencies that are already caring for most areas of the day to day lives of citizens will give the organization a viable support. The communities Home Depots are located in are made up of families, local businesses, and activist groups on both ends of the political spectrum. Together they make up the customer base for Home Depot and without their business the organization ceases to exist. Not only are the communities of Home Depot diverse but as a publicly traded company, the corporation is owned by a vast number of individuals with different backgrounds and beliefs. For these two reasons, Mr. Sandor, spokesman for Home Depot, stated “that the day laborer problem is beyond the organizations control and that the community and local governments need to take the lead. Home Depot’s priorities are to have great customers, good community standing, and profit maximization.” In a case as politically centered as this the voice of the community carries a lot of weight. The level in which the communities agree with Home Depots deposition is enough to promote future growth or slow profits and mark the companies branding. For this reason alone no group is more important to Home Depot in this case than the communities they impact. In order to help Home Depot address their day laborer issue I have put together alternative courses of action. Understanding the pros and cons for each will allow Home Depot to be able to better address concerns that may arise once they initiate a strategy. According to freeman’s narrative the overriding goal of a corporation is profitability. Under this assumption, Home Depot should stop day laborers from soliciting work through increased security and prosecution. While day laborers are convenient for contractors they are not the reason contractors shop at Home Depot. On the other hand Home Depot loses business from homeowner’s who feel intimidated by day laborers. Soliciting brings down store appeal, creates legal liabilities, and is a source of friction with neighboring businesses. Financially the organization does not benefit from having day laborers soliciting work. Furthermore, Home Depot will not lose any business by putting a stop to soliciting because their competitors also prohibit such activities leaving no other substitute. This free market perspective focuses on profits but it fails to consider other non-quantitative factors. In following this approach Home Depot runs the risk of upsetting local homeowners and businesses who support the day laborers efforts to find work as well as the Hispanic and immigration groups who are striving or equality. Understanding the repercussions from taking a stance against the day laborers we can develop another course of action that is less offensive to the groups listed above. In this course of action Home Depot should take a Deontology approach. This approach will focus on the respect for life, equality, and maximizing social welfare. Rather than stopping day laborers from soliciting work, the organization would designate an area or structure for day laborers to gather at specific times to find work. This approach would solidify job opportunities for thousands of workers who are unable to find work elsewhere. Home Depot would also be giving these men dignity and more structure in the hiring process allowing them to not feel like beggars. In allowing the day laborers the opportunity to seek work Home Depot should still ensure that these men are not interfering with customers and other local businesses. The organization should also ensure release of all liability for any illegal conduct or incidents stemming from the solicitation of work. In taking this approach Home Depot can show the public that they are sympathetic to helping those in need and that the organization’s mission is greater than just profit maximization. On the other hand, just like the non-soliciting approach the organization faces criticism from activist groups, homeowners, and local businesses who oppose the illegal solicitation of work by day laborers. In addition, this approach also has the threat of major liability. With the majority of day laborers being illegal immigrants the hiring of these men is illegal. In making specific allocations to help these men, Home Depot is indirectly promoting an illegal activity. Furthermore because Home Depot is allowing these activities the public will be quick to hold them responsible for any incidents that stem from this type of solicitation whether they are legally responsible or not. The third course of action available for Home Depot consist of finding mutual ground between those for and those against day labor. With an increase in soliciting, arrests, and illegal worker’s many believe the activities at Home Depot are counterproductive to the community. On the other hand, Home Depot has stakeholders in the community who believe it is important to support and provide amenities for these workers who have little opportunity elsewhere. Both parties have valid points leading me to my final course of action which I believe is the one Home Depot should adapt moving forward. Like in the first course of action Home Depot should stop day laborers from soliciting work first by posting signs and giving warnings. If day laborers continue to defy this policy Home Depot should further increase security and follow through with prosecution. This will allow for Home Depot customers to be able to shop without worry of being hassled. It will also relieve Home Depot employees from feeling responsible for handling further day laborer issues at their stores. In addition to preventing solicitation at their stores Home Depot should proactively work with local governments and officials to create a system
To encourage contractors to use local hiring halls when one is available and when a hiring hall is not available and soliciting is a problem home depot proactively working with local officials through financing to start a hiring hall. Also making charitable donations to organizations who aim to help day laborers. Home Depot could also sponsor a program at the hiring halls they sponsor to give free legal help to those seeking citizenship. Through helping promote the legal hiring of day laborers Home Depot will utilize the business perspectives of utilitarianism, deontology, and ethic of care. Home Depot perspective of utilitarianism is presented through

• Stop day laborers through prosecution and through fining contractors for soliciting – increase in security and authorities but providing transportation to local hiring halls when one is available and when a hiring hall is not available and soliciting is a problem proactively working with local officials through financing to start a hiring hall. Also making charitable donations to organizations who aim to help day laborers. Home Depot could also sponsor a program at the hiring halls they sponsor to give free legal help to those seeking citizenship.

Because of this utilizing the local government agencies diversity .

In order to take a neutral position it is critical that Home Depot work with local officials to develop a solution to resolve the strife day laborers have created with their communities. One of the strengths of local government agencies is its diversity. There is no other stakeholder who can proactively work with Home Depot to develop a remedy for the day laborer problem. Proactively working with the local government agencies that are already caring for most areas of the day to day lives of citizens will give the organization a viable support.
The communities where Home Depot attracts large numbers of day laborers are feeling the ripple effect, causing their different political views to become more prominent. ( Maybe talk about freedman and Gates and mackey some where in this)
This can help prevent the organization from receiving backlash from an opposing party if they were to try and resolve this issue on their own. Ultimately, Home Depots course of action will have a profound impact on their organization and on the rest of the country. The communities where Home Depot attracts large numbers of day laborers are feeling a ripple
The day laborer phenomenon at Home Depot is not something the organization could have foreseen. Still the company carries legal responsibility for incidents that may occur on their property by these non-employed laborers.

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