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Q1. How does UPS's approach toward sustainability impact the triple bottom line? Be specific.

As a founding member of UPS’s 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-interested the companies have a responsibility to contribute to society and the environment, and that very investment a company mes 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

Q2. Which internal and external stakeholders are positively and negatively affected by UPS's approach to sustainability?

Stakeholders are the people whose interests are affected by an organization’s activities. There is two types of stakeholders, which is internal and external stakeholders the internal stakeholders that are positively affected by UPS’s 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 UPS’s approach to sustainability the external stakeholders that are positively affected by UPS’s approach to sustainability are their customers, suppliers, distributors, allies, unions and lenders while for the eternal stakeholders that are negatively affected by UPS is competitors.

Q3. To what extent is UPS's approach toward sustainability consistent with the four approaches to deciding ethical dilemmas?

The four approaches to deciding ethical dilemmas are: the utilitarian approach: for the greatest good, the individual approach: for the greatest self-interest long term, which helps others, the moral-rights approach: respecting fundamental rights shared by everyone, the justice approach: respecting impartial standards of fairness. UPS’s approach toward sustainability is consistent with these four approaches. Utilitarian approach; UPS joins its forces with other companies for the good of helping. Individual approach; joining with these other companies created productive partnerships, which will help UPS in the future for other needed partnerships. Moral-rights approach; UPS has been and was searching for newer and better ideas that can help increase sustainability. And the justice approach; by respecting fairness, UPS has started assessing their strengths, so that they do not fall behind the other countries.

Q4. How does UPS's approach toward sustainability “pay off”? Discuss.

UPS’s approach toward sustainability “pays off” when we look at all of the things that UPS has accomplished so far. The approach allowed them to make a large profit from its reliable customers in both America and international countries. With sustainability, those reliable customers will learn to trust UPS more and buy from them more often. Buying from the company means more money from the customers goes into the UPS. UPS’s partnerships also helped “pay off” their approaches toward sustainability. These partnerships lead to helping with world-crisis’s, which gave the company a good face. This good face is causing customers to use UPS for package delivery: meaning more profits

**** The Cease Study below****

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
  1. 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.

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.

  1. 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….

  1. 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….

  1. 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 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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Answer #1

Solution 1

Triple bottom line refers to an approach which talks about sustainability and business where companies and business houses should not measure value just by profit or loss, but , with addition of societal and environmental bottom line.

UPS's approach has been very clear, as mentioned in the case, Kurt Kuehn has been very particular about how the company achieves the sustainability. UPS's has followed a five step approach towards sustainability which is

  • Assess your strength
  • choose your spot
  • find momentum
  • build productive partnership
  • Convene other sources of strength.

By following this 5 step approach UPS's make sure they attain sustainability the right way.

Solution 2

Stakeholders are people whose interest is dependent on what the company plans to do or is involved in doing. How a company manages to sustain eventually helps the stake holders to grow. So, their growth and profits are all dependent on what a company does, its profits , its actions in society, how socially and environmentally responsible they behave, all this leads to the sustainability of a company.

UPS's 5 step approach to sustainability has ensured a trust in the hearts of its stakeholders. UPS involves itself in many environmental and socially responsible activities like providing safety training for drivers in certain emerging economies thereby helping managers identify the market potential in that place and helping in improving its sustainability in the business world.

UPS's stakeholders are mainly its customers, shareholders, suppliers and activists who may become a risk to the business if sustainability is not reached. But UPS's approach to sustainability has ensured its stakeholders a sense of trust and hence the stakeholders are positively affected and none is negatively affected.

Solution 3

Four approaches to deciding ethical dilemas are

  1. Utilitarian approach which is for the greatest good. UPS  joining its forces with other companies for the good of helping.
  2. Individual approach which is for the greatest long term self interest. UPs joining hands with other companies creates productive partnership which helps them for future needed partnerships. The idea of aiming for maximum efficiency and minimum effort helps them decide that some projects are not for their benefit which is an individual approach.
  3. Moral right approach which deals with respecting moral rights shared by everyone. Socially responsible acts like providing training to drivers in emerging countries deals with moral rights of poorly trained new drivers and their safety. Also UPS's search for newer and better ideas that can help increase sustainability.
  4. Justice approach which is dealing with impartial standards of fairness. UPS has started assessing its strengths so that they do not fall behind the other countries.

Solution 4.

UPS's aproach towards sustainability has paid off well. When we look at the stakeholders trust in the companies activities we can confirm that the approach had done well. UPS has made sure it makes financial profits as well as acts well towards the society and the environment. Its 5 step approach and the use of the materiality matrix analysis is an all inclusive deal or a complete package of trust and confidence to all its stake holders.

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