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Research paper on two different companies (Patagonia, Walmart, Tesla, Nike, or Google) and the different stakeholders responsibility to them. Who and what the companies prioritize and their legitimacy. I attached the outline as a guidance, but not everything has to be included in the paper. Book isn't required, but I'll answer any questions. I just want to give as much information as I can to help, haha not trying to scare anyone away. Thanks:)
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Running head: LEGITIMACY AND STAKEHOLDER ANALYSIS
Legitimacy and Stakeholder Analysis: Tesla and Wal-Mart
Student’s Name
Institutional Affiliation
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LEGITIMACY AND STAKEHOLDER ANALYSIS
Legitimacy and Stakeholder Analysis: Tesla and Wal-Mart
Introduction
Modern socioeconomic landscape has continued embracing corporate social
responsibility (CSR) as one of the key facets of enhancing legitimacy. Companies have in the
recent past been inclined toward improving their CSR commitment to ensure that they are rated
well by sustainability rating agencies (Filatotchev & Nakajima, 2014). It is almost impossible to
clearly establish whether these firms do so for maximization of responsibility or they do so for
profit motives. Either way, most of the firms that commit themselves to CSR have earned more
legitimacy in the public eye, and their ratings by stock market indices have been on the rise. The
interest of the current paper is examining legitimacy and stakeholder analysis through the lens of
Tesla and Wal-Mart. While Tesla has shown considerable efforts to maintain good relationships
with community, customers and employees, Walmart primarily focuses on meeting the concerns
of investors and customersin furtherance of the “profit-first” objective.
Company Backgrounds: Tesla and Wal-Mart
Wal-Mart was incorporated in 1969 and is currently the largest retail store in the US. It
provides low—priced merchandise and services to its broad range of customers. The firm has
three main segments—Sam’s Club, Wal-Mart International, and Wal-Mart U.S. The international
segment mainly operates through various retail websites. Tesla, on the other hand, was founded
in 2003. It is an energy and automotive juggernaut based in California. It mainly specializes in
the manufacture of electric cars. The company’s CEO, Elon Musk, claims that its main objective
is to provide affordable electric cars to enhance the progress of society toward a sustainable
planet (Lee & Jay, 2015).
Company Policies and their Impact on Stakeholder Commitment
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LEGITIMACY AND STAKEHOLDER ANALYSIS
The legitimacy of companies is shaped by various actors—internal and external— who
influence the flow of resources that play an integral role in shaping the profitability, growth, and
survival of the firm. Many organizations acknowledge the impact of these actors on their
success. Therefore, they have embraced policies that can enable them to take advantage of the
actors’ influences and to extract the maximum possible legitimacy from those interactions.
Walmart, on the one hand, has crafted its policy in such a way that the investors are put at the
forefront of every facet of the organization. The policy of maximizing profits through
minimizing costs is important for the achievement of this goal. However, such a policy is at the
expense of some of the stakeholders, particularly the employees. This is because for t...
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