United Parcel Service (UPS) is very involved within the communities in which the company operates, and promotes the importance of volunteerism and philanthropy. UPS fosters a persona of being more than another company that is known for just delivering packages. The company has launched several different programs to help the communities not only where the company operates but also where employees and their families live. The company promotes the importance of community volunteerism by having employees and their families being heavily involved in the fostering of their communities. UPS’s environmental factors include, but not limited to alternative fuel truck fleets, fuel-efficient planes, “Green” certified facilities …show more content…
that also reduce the emissions of greenhouse gases. According to UPS (n.d.) the company also promotes the importance of employee education, offering a tuition reimbursement/continuing education program for part-time management employees of “up to $15,000.”
One such program the company launched, according to UPS (n.d.) is the “Neighbor to Neighbor” program, in which “UPS employees organize food drives, work in soup kitchens, mentor troubled youth and help to improve impoverished communities across the U.S. and around the world.” Volunteering also extends to sitting on the board of directors for nonprofit organizations by UPS employees. The company also promotes the initiative for employees and their families to volunteer in those communities in which they live, to “heighten awareness for community needs and promote the importance of volunteerism. Since 2010, volunteers have logged 1.2 million hours.”
Beyond volunteering and community outreach, UPS also has a major focus on the environment and safety.
According to the UPS Foundation (2012), “The UPS Foundation has invested $150,000 towards Canadian forest conservation as part of a total $675,000 commitment to global reforestation and climate change initiatives” (p. 12). UPS pushes for teenagers to learn and adopt safe driving techniques. According to the UPS Foundation (2012), the safe driving initiative is achieved through four classroom instruction sessions, and driving time in a virtual driving simulator. “To date, the program has reached young people in Canada through Boys & Girls Clubs of Canada, UK through UK Youth, Germany through Johanniter-Unfall Hilfe C.V., with plans in 2013 to expand to China through Hands On Shanghai” (p. …show more content…
16).
Slide 2- Analysis report
According to Rahardjo, Idrus, Hadiwidjojo & Aisjah (2013), the concept of corporate responsibility is the realization of the interdependence between the company, the environment, and the community. This concept has also accepted the veracity to the most recent worldwide economic crisis are due to business attitudes of not paying attention to business ethics, the reason behind financial motivation, neglecting the interests of society, and the not protecting the quality of the environment (p. 3).
Corporate Social Responsibility (CSR) requires corporation to monitor and study the communities in which they operate, or those that support the operations of the community in order to mitigate where and how the company should invest back into the community. Corporations can no longer ignore the effects on a community the company may have, and in turn, just give a small percentage of their quarterly profits as a charitable contribution. Both management and employees have to have a hands-on approach when it comes to the CSR. With the concept of Corporate Social Management (CSM), management has to be willing to go into the community and see what the company can do to make a change.
“Companies that consistently apply the CSM will produce better long-term financial performance. Despite this research is limited only to large corporations on a global scale and show the different results from one country to another. All companies are able to enjoy better financial performance and success of the CSM, such as better collaboration with stakeholders and mutual cooperation with society” (Rahardjo, Idrus, Hadiwidjojo & Aisjah, 2013, p.4).
There are many incentives for corporation to behave consciously and within the realms of the Corporate Social Responsibility. One reason is cost savings, where the company chooses to save money just by making changes to its daily operations, whether it’s using less energy, using less materials in packaging its products, or monitoring the way it uses energy; the savings from these simple changes can add up real quick. Another reason is innovation, where developing new and innovative products can help a company bring to life ideas which were once not the norm. This could be the adoption of new methods of delivering products, flex-fuel vehicle fleets, and increase in research and development, or building high-tech, state-of-the-art facilities that are environmentally friendly (Saltaji, 2013).
Another reason is consumer expectation, according Saltaji (2013), an average consumer, studies have shown, is willing to drive an additional 11 miles to a business that participates in, or supports a cause. More consumers are willing to shop or use the services of a company which is socially responsible. “More than 88% of consumers think companies should try to achieve their business goals while improving society and the environment; 83% of consumers think companies should support charities and nonprofits with financial donations.”
Slide 3-Recommendations
UPS has a major footprint with its philanthropic and charitable efforts in communities throughout the world. In many underdeveloped areas, however, UPS has limited outreach programs in place. UPS pushes for its employees and their families to be more socially involved in those communities in which they live, promotes volunteering, promotes the adoption of new technologies, and promotes education, safety, and the environment. UPS should have a greater impact in those smaller communities that are overlooked by other corporations, or at least those under-developed communities that UPS has operations near. It seems the environmental and community outreach has a main focus on where the company operates and where employees live, not on other overlooked communities.
Already UPS operates in 200 countries and territories around the world, and in one way or another has a CSR approach in those nations and territories that houses the company’s operations. UPS promotes itself as “one of the largest, most diverse companies in the world,” and the company thrives itself as being a good corporate citizen. According to UPS (n.d.), “more than 25 percent of our total dollars go to local organizations where UPSers (employees) volunteer their time.” With this said, UPS has a pertinent need to increase their corporate social responsibility to invest both money and time in those countries which decreased or minimal resources, by providing funding to local charities and other types of non-government organizations which can use the money to develop programs and services for those communities which are in need.
This type of economic fostering in those underdeveloped and overlooked nations will allow UPS to create a larger brand differentiation from its competitors, drive more consumer traffic, and increase the companies social corporate citizenship in giving back to the community and enhancing the image of a company that already gives so much in those communities in which the company actually has operations in.
References
Rahardjo, H., Idrus, M., Hadiwidjojo, D., & Aisjah, S. (2013). Factors that determines the success of corporate sustainability management. Journal of Management Research 5(2),
1-16. doi: 10.5296/jmr.v5i2.2993
Saltaji, I. (2013). Corporate governance relation with corporate sustainability. Internal Auditing and Risk Management 8(2), 137-147
The UPS Foundation. (2012). The logistics of caring. [Social Impact Report]. Retrieved from http://responsibility.ups.com/community/Static%20Files/sustainability/SIR%20FINAL%20small1.pdf United Parcel Service. (n.d.) Making a difference in worldwide communities. Retrieved from http://www.community.ups.com/Community United Parcel Service. (n.d.) Innovative fleets and facilities. Retrieved from http://www.community.ups.com/Environment/Innovative+Fleets+and+Facilities United Parcel Service (n.d.) Employee education. Retrieved from
http://www.community.ups.com/Education/Employee+Education