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Homewonder Ltd: Shareholders Versus Other Stakeholders
Authors:Flora Niu  Bixia Xu
Institution:Wilfrid Laurier University
Abstract:Corporate social responsibility involves various economic and social issues. This case presents a dilemma of the trade‐off between economic benefits to shareholders and social benefits to other stakeholders. To respond to recent flat sales growth, as well as serious needs for cost reduction and meeting analysts' expectations, Homewonder Manufacturing Ltd. is considering a strategic plan to expand into Asia. To facilitate this plan, the CEO of the company proposed offshoring and outsourcing some business operations, as well as downsizing the company's current social programs. Various stakeholders will be affected by this plan. This case analysis requires an integration of the shareholder and stakeholder theories of the firm. It provides opportunities for students to consider whether relationships with other stakeholders are a salient corporate strategic concern, and perform costs and benefits analyses arising from this dilemma.
Keywords:Corporate social responsibility  Conflicts of interests between stakeholder groups  Strategic planning  Relevant costs  Benefits analysis  analyse coû  ts‐avantages  conflits d'inté    ts entre groupes de parties prenantes  coû  ts pertinents  planification straté  gique  responsabilité  sociale de l'entreprise
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