Running head: BEST BUY CASE STUDY 1

Best Buy Fights Against Electronic Waste

Deyanelys Navarro 19-0653

Universidad Iberoamericana

AI1402-40-2021-1- Professional Ethics

12/11/2020

Ali Hashmi
BEST BUY CASE STUDY 2

Abstract

In the following paper, the case study “Best Buy Fights Against Electronic Waste” is analyzed.

After reading the entire case, an introduction to best buy and its history is provided. Then, 3

questions are answered regarding their practices and impact. Followed, by a conclusion on the

findings and takeaway from this case study. To conduct this analysis, the ethics book was used,

external research on the company best buy, and on the impacts of social responsibility. All

sources used are properly cited in the reference page.

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Best Buy Fights Against Electronic Waste

Best Buy is the one of the leading providers of electronics and it is all due to how they

are able to adapt to the changing world all while making their consumers the top priority. Best

Buy is known not only for its high-quality and affordable products but also because of their

customer centered business approach and giving back to the community. It is these best practices

that have helped them be so profitable. In addition to winning multiple recognitions in both the

united states and worldwide. It has been classified as one of Ethisphere’s World’s Most Ethical

Company and America’s Most Reputable Companies by Forbes.

However, it has not all been good times for the company. Throughout its 40 years of

businesses the company has faced many challenges that have forced them to innovate and

implement best practices. It was first founded with the name of “Sound of Music” by Richard

Schulze in 1966. Sound of Music’s equipment was originally targeting college students who

needed electronic goods of high quality. In 1983 Schulze adapted to the competition and began

selling electronics, consumer appliances, videocassettes, and records to target a greater audience.

This is also when the chain was given its current name “Best Buy”.

Best Buy’s vision is “People. Technology. And the pursuit of happiness.”. They strive to

achieve through their belief that if their employees are content and they are giving back to the

community, it translates into happy customers. They make sure to hear out their customers, how

they feel and what they want. They take customers requests and concern very seriously, so when

customers started to demand sustainability from the company because of the over growing e-

waste, Best Buy stablished their first CSR (Corporate Social Responsibility Report). “Best Buy’s

surveys revealed its customers want the company to find ways to recycle electronics and use less
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energy. Best Buy answered this call through implementation of a wide-scale electronics recycling

program (Ferrell et al., 2014, p. 606).”

Employees are a crucial part of the company’s vision and they play the most important

role in fulfilling it. “In customer service circles, employee engagement leads to strength in team

solidarity -- a critical component to a brand that can help satisfy its customers with exceptional

customer experience. (dkcnisdv).” Best Buy invests in their employee and training them to be

familiarized with the products to better assist customers in the stores. Just like they listen to their

customers, they created an online forum to listen to what the employees have to say. The

company takes great pride in their diversity and inclusion culture. Other benefits that they

provide their employees with is family health insurance, tuition assistance, and adoption

assistance. On the other hand, for community engagement the company has taken many stands.

The established the Best Buy Children’s Foundation, they partner with relief organizations to

donate money and stablished the Best Buy Teen Tech Centers.

Why do you think Best Buy has been able to gain competitive advantages in the retail

electronics market while also driving many initiatives to support sustainability?

Best Buy has been able to gain competitive advantages in retail electronics market

because of their practices. They prioritize their consumers by making sure their employees are

happy and ready to serve. These practices have given them a very loyal list of consumers. In

addition to this, they are always innovating.

Looking back at when it first received the name of Best Buy it was because it noticed it

was staying behind compared to the competition, so they adapted and expanded their product list.

While other companies like Circuit City failed to adapt to the fast-paced marketplace, Best Buy
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has always been innovating becoming in 2009 the primary online and brick-mortar provider for

the eastern United States.

In addition to this, BB’s many sustainability initiatives have aided the company in

gaining and maintaining its competitive advantage. They recognized the devastating effect of

electronic wastes and implemented the Best Buy Consumer Electronics Recycling Program.

Their efforts in making sure that vendors also follow the sustainability practices that they haves

set, demonstrate how determined they are. The consumers see that the company cares about them

and about the environment and this gives BB the competitive advantage.

Do you think the resources Best Buy dedicates to help consumers recycle their old

electronic devices represent a good investment for Best Buy?

The resources put into helping consumers recycle their old electronic devices represents a

good investment for Best Buy. This is because this practice demonstrates that Best Buy cares

about the effects its business can have on the environment and they want to limit that. It also

shows the consumers that they hear their petitions, take it serious and act on it.

Best Buy has been able to reduce up to 1 billion lbs of e-waste. This has gotten them

recognition by winning numerous awards for their practices. These awards create brand

awareness and not only do their existing customers feel proud to be part of the company and

creates loyalty, but it also attracts new potential customers. Customers who are with the

competition but are not pleased with their ethical practices can switch to BB after seeing

practices like this. This pleases the customers as well as the investors who can see that their

money is safe.
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How do Best Buy’s social responsibility efforts impact key stakeholders such as employees,

shareholders, consumers, and suppliers?

Social responsibility for all company has a great impact on their key stakeholders. “The 2015

Cone Communications/Ebiquity Global CSR study found that a staggering 91% of global

consumers expect businesses to operate responsibly to address social and environmental issues.

Furthermore, 84% say they seek out responsible products wherever possible. (Collier, 2020)

Best Buy’s social responsibility efforts impact its consumers by creating brand awareness

and loyalty. Best Buy asked its customer what they needed, and they replied by asking for

sustainability. They heard the demands and worked on it! The impact is going to have on the

consumer is making them feel like they are part of a responsible company who also listens to

them. This creates a loyalty very hard to break by any competition.

The impact on the employees is building respect for the company. Best Buy cares about

keeping their employees happy and included. Therefore, they have such benefits and inclusive

practices. If the employees are happy and feel like they are part of a responsible company, they

will take care of it and do a lot of word-of-mouth marketing.

Conclusion.

Best buy is a socially responsible company which is 100% focused on its customers and

their satisfaction. Their best practices have won them multiple recognitions and awards. Their

ability to innovate has made it possible for them to expand and be profitable. They can be a role

model for their competitors when it comes to recognizing their challenges and putting resources

into overcoming them. Their sustainability practices have spoken more than words ever could

and generated a strong customer loyalty. They keep their employees motivated and happy to

make sure that as a result their customers are as well.

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References

Collier, E. (2020, September 30). The Importance of Corporate Social Responsibility for Your...

The Hub | High Speed Training. https://www.highspeedtraining.co.uk/hub/importance-of-

corporate-social-

responsibility/#:%7E:text=CSR%20demonstrates%20that%20you’re,business%20sense

%20to%20operate%20sustainably.

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2014). Ferrell/Fraedrich/Ferrell’s Business Ethics:

Ethical Decision Making & Cases, 10th edition plus 4-months instant access to

CengageNOW. (1st ed.). Cengage Learning.

Pipes, T. (2018, May 2). How Best Buy Invested in Employees. Shiftonomics by Branch | Branch

Blog. https://blog.branchapp.com/how-best-buys-bet-on-employee-first-helped-engineer-

a-turnaround/