Organizational stakeholders Essay Example | Topics and Well Written Essays - 500 words

Organizational stakeholders - Essay Example Home Depot being a company running on such a large scale has a great responsibility towards its stakeholders. Home Depots major stakeholders include its board of directors and shareholders/investors, the customers, employees and the suppliers. Bob Nardelli, the former chairman and chief executive of Home Depot contributed greatly towards the success and expansion of the organization. Nardelli was a true leader and followed an autocratic approach. However, along with the positive changes that Nardelli brought with him, he also made some mistakes that greatly affective various stakeholders of the company. Nardelli was considered to have an arrogant and authoritative approach which was a cause for alienation of many stakeholders. Nardellis attempt on cutting down labor costs by hiring more part-time workers as compared to full-time lead to the loss of good workforce. This also lowered the morale of the existing workers. Another one of his errors was the cut back of inventory budget which left the stores undersupplied and the customers dissatisfied. Nardellis attempt of increasing profit margin through demanding lower prices from suppliers led to the loss of significant vendors as they were not satisfied with the price offerings. Most importantly, Nardellis hefty pay was a great source of concern to shareholders and corporate governance groups and was prone to a lot criticism. Under the chairmanship of Nardelli, shareholders were not given the rights that they were entitled to and were not given an opportunity to speak up. This shareholders matter led to the arousal of Nardellis credib ility issues which made the investors lose trust in him and his management (Waters, 2007). This was one of the biggest set backs for him as the shareholders tend to hold immense influence on the organization. The present chairman and CEO of Home Depot is Frank Blake. Many