MGT101 Saudi Electronic UPS Actively Pursues Sustainability Case Study 1 – All answered must be typed using Times New Roman (size 12, double-spaced) font.

MGT101 Saudi Electronic UPS Actively Pursues Sustainability Case Study 1 – All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).WORD format only2 – check the attached file to answere Assignment 2
• The Assignment must be submitted on Blackboard (WORD format only)
via allocated folder.
• Assignment submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks
may be reduced for poor presentation. This includes filling your information
on the cover page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from
students or other resources without proper referencing will result in ZERO
marks. No exceptions.
• All answered must be typed using Times New Roman (size 12, doublespaced) font. No pictures containing text will be accepted and will be
considered plagiarism).
• Submissions without this cover page will NOT be accepted.
Assignment Workload:
• This Assignment comprises of a short Case.
• Assignment is to be submitted by each student individually.
Assignment Purposes/Learning Outcomes:
After completion of Assignment-2 students will be able to understand the
LO 5. Ability to carry out organization’s role in ethics, diversity, and social
responsibility. (Lo3.3)
• Please read the case “UPS Actively Pursues Sustainability.” in
Chapter 3 “The Manager’s Changing Work Environment & Ethical
Responsibilities” available in your textbook – Management: A Practical
Approach 7th edition by Kinicki, A., & Williams, B., and answer the
following questions:
(1.25 x 4= 5 marks)
Q1. How does UPS’s approach toward sustainability impact the triple bottom
line? Be specific.
Q2. Which of the six general environmental forces influenced Mr. Kuehn’s
approach toward sustainability? Discuss.
Q3. To what extent is UPS’s approach toward sustainability consistent with
the four approaches to deciding ethical dilemmas?
Q4. Evaluate UPS’s approach toward sustainability against Carroll’s model of
social responsibility shown in Figure.
Figure: Carroll’s Model of Social Responsibility
‫ﻗطﻌﺔ اﻷﺳﺎﯾﻣﻧت اﻟﺛﺎﻧﻲ‬
Management in Action
UPS Actively Pursues Sustainability
Kurt Kuehn is the Chief Financial Officer at UPS and
a 2013 winner of the C. K. Prahalad Award for Global
Sustainability Leadership.
As a CFO who advocates sustainability, I’ve noticed
that many of my peers take a lukewarm view of the
idea, perhaps because they simply don’t see how sustainability can produce returns for a business. I can
relate: I too am always looking for ways to allocate
resources effectively and create value. . . .
As a founding member of UPS’s sustainability
steering committee, I have wrestled with the challenge,
and I’ve developed a point of view—one that emphasizes the power of organizational momentum and
embraces “enlightened self-interest.” My approach is
rooted in two beliefs: that companies have a responsibility to contribute to society and the environment, and
that every investment a company makes should return
value to the business.
These beliefs don’t have to be at odds. . . . In fact,
the programs with greatest impact not only align with
companies’ strategies but move in tandem with their
activities. . . . UPS has established a five-step approach
toward sustainability in order to balance the needs of
various constituents. They are considered below.
1. Assess your strengths. What does your company
have to offer that could make a big difference? Find
out by assessing your core competencies, infrastructures, and relationships as part of your sustainability
strategizing. You will probably discover strengths
that charitable partners often lack, such as:
• Capital
• Specialized knowledge and experience
• Relationships
• Processes
• Physical assets
• Business acumen
2. Choose your spots. Finding the right space for your
efforts in sustainability has to begin with narrowing
down the field somehow. You might take cues from either external stakeholders or internal managers. Stakeholders include customers, shareholders, and suppliers
that increasingly prefer to do business with companies
they see as responsible—but also activists, who may
be a risk. Managers know the company’s capabilities,
cost structure, and objectives well, and can see the strategic fit of one proposed initiative versus another.
We think both these perspectives are important, and
we combine them in what’s called a materiality matrix . . .
one axis indicates how relevant our external stakeholders believe certain issues are to being a good corporate
citizen; the other indicates which ones senior executives consider strategic and important to the company’s
future success. . . .
One priority that UPS was able to identify through
this method is safety training for drivers in certain
emerging economies. Stakeholders were concerned that
the rapid expansion of the middle class in Vietnam,
Cambodia, South Africa, and elsewhere has created new
traffic nightmares—not only more commercial vehicles
on the road but also a huge influx of first-time drivers.
They perceived UPS as an expert in road and workplace
safety because of its systems and performance. Meanwhile, company managers recognized that these countries are strategically important to UPS as new growth
markets. Thus a program that involved working with
nonprofits and humanitarian relief agencies to deliver
our proven safety training programs wouldn’t encounter
resistance from either inside or outside stakeholders.
Even public officials have endorsed it.
The Manager’s Changing Work Environment & Ethical Responsibilities
Environmental projects, too, are a strategic fit.
We know that our vehicles and planes produce emissions and that we have an obligation to invest in a
cleaner planet.
3. Find momentum. A materiality matrix narrows the
field of possibilities, but it rarely points to a specific
initiative. For example, it might indicate that a given
company would do well to join the fight against
AIDS or help preserve pristine forests or improve air
quality, but within any of those areas numerous organizations are working in various places on different
parts of the solution.
Having a bias toward adding to momentum makes
the next step easier. It leads you to focus on where
energy is already in motion and where your company’s additional efforts could make a big difference.
Ideally, your existing operations and initiatives will
dovetail with societal or environmental needs for
which others are already driving change.
Sometimes the momentum a company needs to
recognize comes from governmental priorities.
Indeed, failing to respond to them may imperil its
license to operate. . . .
4. Build productive partnerships. Most companies
just sign up existing projects on the assumption that
they and the NGO [nongovernmental organization]
will figure out some way to shoehorn in the company’s strengths. . . .
To ensure a productive collaboration from the
outset, it helps to clearly articulate that the business’s
hope is to apply its strengths and add to its momentum. Then the partners can proceed to understand
each other’s strengths, weaknesses, and shared values and to compare perspectives about the impact
they want to achieve. Next they should draft a strategic plan; define goals and objectives; establish a
timetable, metrics, and milestones; and agree on the
resources required and what will define success.
Both sides need clear rules of engagement and an
open dialogue to adjust to each other, or to know
when it’s time to part ways. . . .
5. Convene other sources of strength. Large businesses
all participate in networks of organizations, in their extended supply chains and across their industries. They
have the power to convene other players and combine
their strengths. If they do so for a good sustainability
cause, they can add even more to its momentum.
UPS has enjoyed success with multicompany projects, particularly those relating to humanitarian logistics and disaster relief. Most notably, we’ve joined
with our competitors TNT and Agility to support the
UN’s World Food Programme during disasters. . . .
UPS has also joined forces with some customers
on disaster relief projects, ensuring that their donated
products are received on time around the world. The
The Environment of Management
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. . . .
What We Are Choosing Not to Do
Following the principle of adding to momentum, UPS
has moved its philanthropic 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. Our more strategic approach to sustainability has led to many of the projects we’ve taken
on recently. But the test of a good strategy is not just
whether it has you doing good things; it must also allow
you to decide what not to do. Aiming for “maximum
efficiency, minimum effort,” we’ve been able to see
more clearly that some projects and ideas aren’t for us.
More generally, UPS makes fewer one-off contributions. When all the components of a sustainability program are guided by a materiality matrix analysis and a
plan to find and increase momentum, connections tend
to form among them, creating a cumulative effect. . . .
Momentum’s Extra Benefits
When you approach sustainability from a position of
your strengths, the line between the two realms of
value creation—helping to make the business profitable and helping to keep the planet well—begins to
blur. As I’ve noted, business competencies can reveal
social possibilities. At the same time, sustainability
work can inspire business improvements.
This can happen in very small ways—and small
ways add up.

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