Introduction to Corporate Governance and Other ESG ...

Running head: STAKEHOLDER RELATIONS, CORPORATE GOVERNANCE AND ETHICS
Stakeholder Relations, Corporate Governance and Ethics
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STAKEHOLDER RELATIONS, CORPORATE GOVERNANCE AND ETHICS
Introduction
To have a successful run for long term, an organization must establish and maintain
professional and ethical relationship with its stakeholders. The relationship of the organization
with the stakeholders is considered under the corporate governance or organizational ethics of
the company (Schnackenberg & Tomlinson, 2016). This essay documents the ethical and
professional relationship of Kathmandu Holdings with their internal and external stakeholders
and their initiatives towards improving the relationship as well as sustainability efforts.
Kathmandu Holdings Limited is a multinational retail store chain that specializes in outdoor
adventure and travel apparel and gears, with operations in New Zealand, Australia, United States
and in the United Kingdom. It has three brands under the parent umbrella, namely, Kathmandu,
Rip Curl and the North American sports and adventure footwear brand Oboz. The company has
been operating for more than 30 years and has established itself to be one the leading outdoor
adventure brands of New Zealand and Australia. Being a multinational company, Kathmandu has
a large number of internal and external stakeholders. The company has put intense efforts in
building an effective relationship with the stakeholders that has led to the success of the
company for more than three decades.
Discussion
Identification of internal and external stakeholders and their engagement
Stakeholder refers to the individual or group of people who have interest in a company’s
business performance or who can affect or get affected by the company’s operations (Andriof &
Waddock, 2017). In other words, a person or a group of people having a stake or interest in a
business become the stakeholder of the company. There are internal and external stakeholders of

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STAKEHOLDER RELATIONS, CORPORATE GOVERNANCE AND ETHICS
any organization. For Kathmandu Holdings, six major stakeholder groups are the customers,
employees or staffs, suppliers, factories, local communities and shareholders
(kathmanduholdings.com (a), 2019). Among these stakeholder groups, employees and factories
are the internal stakeholders and customers, suppliers, local communities and shareholders are
the external stakeholders.
As found from the annual report and sustainability report of Kathmandu, the company
follows ethical practices for not only having a professional and ethical relationship, but also for
contributing towards sustainability practices which are aligned with the 12th Sustainable
Development Goal by the UN, that is, responsible consumption and production (un.org, 2020).
By analyzing the relationship of the company with their stakeholders, it can be inferred
that it has followed ethical and responsible activities for all stakeholders. Through these
relationships, various ethical issues have been raised, which the company will address for
stakeholder satisfaction and for ethical business practice. For example, Kathmandu engages with
the customers through social media, stores, website, customer insights through reviews,
feedbacks, and suggestions, through customer service team and the communication of the
Summit club members. The major issues highlighted by the customers are the animal welfare,
human rights in the supply chain, product care and maintenance, waste management, investment
in community for achieving investment and sponsorship and the increasing usage of microfibers.
The suppliers are engaged through site visits and meetings and they have raised issues
like fair and transparent procurement systems, impact on the environment, product quality and
safety, and fair working conditions for the suppliers.