Discussion 2

Responsible Business Debate

Best Buy Excels in Stakeholder Communication Issue: Is communication the key to stakeholder satisfaction?

Best Buy was founded in 1966 by Richard Schulze. Ranking 72 on the Fortune 500 list, it is known for its discounted, high-quality products, customer-centered approach, sustainable outreach, and extensive recycling program. The success of Best Buy over the years can be attributed to a variety of factors, including savvy business decisions and services to increase employee and customer satisfaction.

As primary stakeholders, customers and employees have a major impact on the continued existence and profit of Best Buy; therefore, their satisfaction is a high priority. To meet stakeholders’ interests, Best Buy has implemented methods to foster communication with both customers and employees. The company uses its website to learn more about its customers’ needs and preferences, and customers can use that website to rate every product purchased. It was this type of communication that led Best! Buy to develop its first Corporate Social Responsibility Report in 2007. The report was a response to its customers’ repeated concerns over sustainability, particularly in the area of electronics. It showed customers that the company had received and understood their concerns. Electronic waste was filling landfills, and customers wanted to see this problem addressed. In response, Best Buy implemented a wide-scale electronics recycling program. The company has set a goal to cut carbon emissions by 60!percent in the next year and to be carbon neutral by 2050.

After a period of stagnant growth, Best Buy hired a new CEO, Hubert Joly, in 2012. Under Joly, Best Buy once again became a growth company. Research has shown that Best Buy’s advertisements tend to have more of an impact when they highlight products, which is prompting the company to engage in more product-oriented adver- tising campaigns. For example, the company introduced a

service called “Assured Living” in 2017, which uses smart home technology to allow millennials/caregivers to look in on their aging parents while permitting the seniors to live independently. To communicate this new service to consumers, Best Buy has developed a website and has advisors that can offer more detailed information to customers about the technology. Best Buy’s current CEO, Corie Barry, will work to continue this growth.

Best Buy invests in different platforms to foster its communication with employees. For example, Geek Squad forums provide a way for all Best Buy employees to exchange information and share ideas. In addition, Best Buy has conducted a multitude of interviews with employees to determine issues with usability of the store’s products. In response to these interviews, according to vice president of retail operations, Shari Rossow, Best Buy has invested in everyday products familiar to employees to cut back on necessary training, make employee duties easier, and help employees focus more on customer service than learning arduous programs. This not only benefits the employees, but also benefits customers and Best Buy as a company.

Stakeholder satisfaction is crucial to the success of any business, and communication with stakeholders is the key to that satisfaction. Best Buy has proved that it can listen to its stakeholders and will implement initiatives based upon their feedback. This communication has been integral in allowing Best Buy to develop strong stakeholder relation- ships, allowing the company to compete against online rivals and adapt to an increasingly digital world.

There Are Two Sides to Every Issue 1. Communication is the most important factor in stake-

holder satisfaction. 2. Though communication is critical, it is one of many

factors in stakeholder satisfaction.

Sources: Courtney Reagan, “Best Buy CEO Sees ‘Growth Opportunities’ Ahead, Wall Street Isn’t Buying It,” CNBC, September 19, 2017, https://www. cnbc.com/2017/09/19/best-buy-ceo-weve-fixed-what-was-broken-now-focus-is-on-growth.html (accessed January 6, 2019); Adrianne Pasquarelli, “Why Best Buy Is Reorganizing Its Marketing Team,” AdAge, April 21, 2017, http://adage.com/article/cmo-strategy/buy-reorganizes-marketing-team/308756/ (accessed January 6, 2019); Jeff Bullas, “How Best Buy Energized 170,000 Employees with Social Media,” jeffbullas.com, http://www.jeffbullas.com/how- best-buy-energized-170000-employees-with-social-media/ (accessed January 6, 2019); Best Buy, “Corporate Responsibility and Sustainability,” 2018, https://corporate.bestbuy.com/sustainability/ (accessed January 6, 2019); Corinne Ruff, “Why Best Buy Is Investing in Employees,” Retail Dive, February 7, 2018, https://www.retaildive.com/news/why-best-buy-is-investing-in-employees/516497/ (accessed January 6, 2019); “Fortune 500,” Fortune, 2018, http:// fortune.com/fortune500/list/ (accessed January 6, 2019).

Chapter 2 Strategic Management of Stakeholder Relationships 61

C B P _ F errell_ C h02.indd 61 12/9/2019 8:28:40 P M03/18/2020 - tp-70a028a4-6922-11ea-a484-024 (temp temp) - Business and Society