Respecting stakeholder values
A Michelin case study

Page 1: Introduction

Michelin continues to be the world's number one tyre manufacturer. The company has a unique and famous marketing emblem, 'Bibendum', more commonly known as the Michelin Man. As an international organisation Michelin has a sales network in more than 170 countries. In 2004, Europe represented 53% of sales. North America had 33% and Asia, South America and the Middle East and Africa Zone took 14...
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Page 2: What is a stakeholder?

Every business has people or groups of people who have an interest in what it does. These are called 'stakeholders'. It matters to them what happens with a business and what a business does. The reasons for diverse 'stakes' in certain businesses differ - we shall see this in the case of Michelin. Stakeholders should not be confused with shareholders. A shareholder is a part owner of a business...
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Page 3: Customers and employees

Customers Michelin sells tyres to two markets: vehicle manufacturers users, through an intermediate customer, for example distribution channelssuch as ATS Euromaster. Within the tyre markets, customers' expectations fall into five main categories for which significance or priority will vary from one customer to another: improved safety lower cost per mile or per tonne...
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Page 4: Company shareholders

In late December 2004, Michelin had 2,584 institutional shareholders and 188,947 individual shareholders. All were registered with the company by name. The economic well-being of Michelin is a prime concern of its shareholders. They need a return on the cash they invest. They not only seek to share in the success of the business, but they share in the risks too. If something happened that...
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Page 5: The wider community, society and the environment

World leaders have become very aware of the concerns about the planet we depend upon. Pollution is a danger to all nations. The pressure is therefore on global businesses such as Michelin. National and world agencies are demanding more. The whole world is a stakeholder in the actions of Michelin. The company takes great care to assess the business' 'environmental footprint'. It produces the...
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Page 6: Conclusion

At the heart of all of Michelin's activities lies respect for the needs of the diverse categories of stakeholders. The Michelin thinking is simple - success is dependent upon meeting the wishes of stakeholders. The company view is that these interests are interconnected. By doing the right thing by stakeholders, the company will achieve its objectives.
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