Whole Foods Market’s stakeholders are addressed through the company’s numerous programs for corporate social responsibility (CSR). Stakeholders’ interests impact business through various ways, such as consumer perception and investor confidence. In Whole Foods Market’s case, corporate social responsibility programs are set up to ensure that stakeholders’ interests are accounted for. With a strong brand image and a growing market presence, Whole Foods Market now has more than 400 locations in the United States, Canada and the U.K. However, to ensure continued success, the firm must address the interests and demands of stakeholders in its business. Whole Foods Market does so through its evolving corporate social responsibility programs.
Whole Foods Market effectively addresses the interests and demands of its stakeholders through appropriate corporate social responsibility policies and programs.
Whole Foods Market’s Stakeholder Groups
Whole Foods Market’s international business impacts various stakeholder groups. These stakeholders present concerns and interests based on their market contexts. In Whole Foods Market’s case, the following are the major stakeholder groups that determine the firm’s corporate social responsibility activity:
- Employees (team members)
- Suppliers (producers)
Employees (team members). Whole Foods Market’s employees are part of teams that support business capacity and competitiveness. The main interests of these stakeholders are compensation, motivation, and morale based on corporate image. Whole Foods Market’s corporate social responsibility efforts address this stakeholder group through above-average salaries and wages. For example, the company’s average hourly wage was $18.89 in 2013, which was higher than what most other retailers give to their workers. Whole Foods Market addresses this stakeholder group’s morale and motivation concerns through various programs, such as team growth programs and transparency policies.
Investors. Investors are a second priority in Whole Foods Market’s corporate social responsibility efforts. These stakeholders are interested in business growth and profitability. Whole Foods Market satisfies this stakeholder group by emphasizing high profitability. The firm is one of the most productive and profitable retailers in the United States. Thus, Whole Foods Market’s corporate social responsibility efforts fulfill the interests of investors as stakeholders.
Customers. Whole Foods Market keeps its focus on customers as one of the most important stakeholders groups. These stakeholders are interested in getting high quality products. Whole Foods Market addresses these stakeholders’ interests through high quality standards that ensure organic and natural products. Thus, Whole Foods Market’s corporate social responsibility efforts encompass the quality interests of customers as stakeholders.
Suppliers (producers). Whole Foods Market has a growing network of geographically dispersed suppliers, who are also a major stakeholder group. Many of these suppliers are local and regional producers. These stakeholders have interests in continued profitable business relations with Whole Foods Market. To address such interests, the company’s corporate social responsibility efforts include a strategy of local sourcing to ensure a local neighborhood ambiance in each store. Whole Foods Market also informs producers about its quality standards to help them comply.
Communities. Communities are a stakeholder group in Whole Foods Market’s business. The main interests of these stakeholders are the positive effects of the firm on economic development and the environment. Whole Foods Market satisfies these stakeholders through corporate social responsibility programs for sustainability and fair trade. For example, Whole Foods Market uses Whole Trade Guarantee for its supply chain. Whole Trade Guarantee involves criteria like environmental impact, fair pricing, and fair wages and employment practices of suppliers.
Analysis of Whole Foods Market’s Performance in Addressing Stakeholders
The overall corporate social responsibility performance of Whole Foods Market is satisfactory in addressing the interests of its stakeholders. Various stakeholder groups are effectively included in the firm’s business efforts. Whole Foods Market also continues to improve its corporate social responsibility performance by implementing new policies. For instance, in 2018, the company will complete the implementation of its new policy of labeling GMO-containing products.
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