CHAPTER 3

1. How does UPSs approach toward sustainability impact the triple bottom
line? Be specific.
As a founding member of UPSs sustainability steering committee have wrestled
with the challenge and developed a point of view, one that emphasizes the power
of organizational momentum and embraces enlightened self-interest. The
companies have a responsibility to contribute to society and the environment, and
that very investment a company makes should return value to the business. UPS
has established a five-step approach toward sustainability in order to balance the
needs of various constituents such as assess your strengths, choose your spots,
find momentum, build productive partnerships and convene other sources of
strength.
2. Which internal and external stakeholders are positively and negatively
affected by UPSs approach to sustainability?
Stakeholders are the people whose interests are affected by an organizations
activities. There is two types of stakeholders, which is internal and external
stakeholders.
The internal stakeholders that are positively affected by UPSs approach to
sustainability are the owner, the board of directors and employees and there is no
internal stakeholders that will be negatively affected by the UPSs approach to
sustainability.
The external stakeholders that are positively affected by UPSs approach
to sustainability are their customers, suppliers, distributors, allies, unions and
lenders while for the external stakeholders that are negatively affected by UPS is
competitors.

3. Which of the six general environment forces influenced Mr. Kuehns

approach toward sustainability ? Discuss.
Political-legal forces influenced Mr. Kuehns approach toward sustainability.
Political-legal forces are changes in the way politic shape laws and laws shape the
opportunities for and threats to an organization. For instance, sometimes the

momentum a company needs to recognize comes from governmental priorities.

Indeed, failing to respond to them may imperil its license to operate.
Next, technological

forces influenced Mr. Kuehns

approach toward

sustainability. Technological forces are new developments in methods for

transforming resources into goods or services. For example, UPS has joined
forces with some customers on disaster relief project, ensuring that their donated
products are received on time around the world. The effort is particularly
productive when we can combine multiple customer-donation shipments,
reducing transportation costs for all by sharing trucks and planes or using
employee volunteers to pack emergency supplies.
4. To what extent is the UPSS approach toward sustainability consistent
with the four approaches to deciding ethical dilemmas?
-Ethical dilemma is a situation in which you have to decide whether to pursue a
course of action that may benefit you or your organization but that is unethical or
even illegal.
The first approach is the utilitarian approach which is guided by what will
result in the greatest good for the greatest number of people. The example of
UPSs approach on this is the safety training for drivers in certain emerging
economics. Stakeholders were concerned about the emerging economics will
brought out a traffic nightmares which not only more commercial vehicles on the
road but also a huge influx of first-time drivers.
The second approach is the individual approach that is guided by what will
result in the individuals best long-term interest, which ultimately are in
everyones self interest. For example, UPS assess their strengths in order to what
they are lacking so that sustainability of their company will be higher.
The third approach is the moral rights approach which is guided by respect
for the fundamental rights of human beings. UPS have joined multicompany
projects, particularly those relating to the humanitarian logistics and disaster
relief. As an illustration, they joined United Nations World Food Programme
during disasters in order to help people who always in hunger. Besides, UPS also

joined forces with some customers on disaster relief projects ensuring that their
donated products are received on time and around the world.
The fourth approach is the justice approach which is guided by respect for
impartial standard of fairness and equity. For instance, UPS does not hold the bias
view and is willing to join UNs World Programme and cooperate with their
competitors that is TNT and Agility.
5. Evaluate UPSs approach toward sustainability against Carolls model of
social responsibility shown in Figure 3.2.
UPS has moved its philanthropic responsibility giving over the past decade
toward expertise and in-kind donations and has aligned it with the corporate
mission to enable global commerce through logistics. UPS strategic approach to
sustainability has led to many of the projects have taken on recently. UPS make
the test of a good strategy is not just whether it has doing good things but it must
also allow you to decide what not to do. UPS aiming for maximum efficiency and
minimum effort. UPS have been able to see more clearly that some projects and
ideas arent for them.
More generally, UPS makes fewer one-off contribution. When all the components
of a sustainability program are guided by a materially matrix analysis and a plan
to find and increase momentum, connections tend to form among them and
creating a cumulative effect.
6. How does UPSs approach towards sustainability pay off Discuss.
-UPS has done many ethical behavior and high social responsibility, but does it
pay off financially?
First of all, from the aspect of effect on customers. According to surveys,
mostly of the customers will be more prefer to purchase products from the
companies that are socially responsible than from company that are not. The
increase of customers also indicates the increase of the sales growth.
Secondly, workers in UPS will be more efficient, loyal and creative when
they feel a sense of purpose. Employees will develop negative feelings toward the
organization if their employers set profits their as primary focus.

Thirdly, ethics can also affect the quality of people who apply to the work
in an organization. So, by carrying out the social responsibility and maintain a
good business ethnics will attract more job applicants and increase the employee
retention as for them a business ethics of a company is very important based on a
survey that had been carried out.
Fourthly, the stock price of UPS will increase as based on a survey which
showed that 74% of people polled said their perception of a firms honesty
directly affected their decision about whether to buy its stock or not.
Lastly, UPSs approach will elevate the profits of the company as according to a
studies which suggested that profitability is enhanced by a reputation for honesty
and corporate citizenship.