Sustainability at United Parcel Service

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Table of Contents
1. Introduction..................................................................................................................3

2. Analysis.......................................................................................................................3

2.1. UPS’s Values and Practices..................................................................................3

2.2. UPS’s...................................................................................................................5

2.2.1. Sustainable Sourcing Strategies......................................................................5

2.2.2. UPS’s Sustainable Packaging Design.............................................................5

2.3. UPS’.....................................................................................................................6

2.3.1. Sustainable manufacturing processes.............................................................6

2.3.2. Waste and Recycling.......................................................................................6

2.4. Detailed Description............................................................................................7

2.4.1. Ethical and Sustainable Sourcing....................................................................7

2.4.2. Early Supplier Involvement............................................................................8

2.4.3. Strategic Alliance Development.....................................................................8

2.5. UPS Benchmarking.............................................................................................8

2.5.1. Carbon footprint..............................................................................................8

2.5.2. Consumption of Energy and Waste Reduction...............................................8

2.5.3. Social impact...................................................................................................9

3. Conclusion...................................................................................................................9

References..........................................................................................................................10
 1. Introduction

The global economy thrives on sustainable practices. Over the last few decades, where

other companies have been focusing on creating a large customer base with the help of their

novel product and service, they have been focusing on mass production and serving a greater

number of customers, instead of delivering with sustainability and ethics (Chen & Sriphon,

2022). The term sustainable practice refers to those services that are responsible for maintaining

the qualities of a physical environment, like producing and serving those elements that are eco-

friendly, goes well with the living environment of biodiversity, and do not harm the lives of

living organisms in any scenario. The current case study is an analysis of United Parcel Service

(UPS) a globally recognized shipping and receiving supply chain company that is believed to be

among the most ethical and sustainable organizations in contemporary times (Unishippers,

2022).

2. Analysis 

2.1. UPS’s Values and Practices

Founded in 1907, the American-based multinational shipping, receiving, and supply

chain management company, UPS (United Parcel Service) is one of the Fortune 500 companies

(Hess, 2021). The key deliverables of the company include ground shipping services, UPS

stores, UPS shipments that are offered through the retail chain, and an overnight air shipping

service through UPS SurePost (UPS, 2022a). The value UPS provides for the country cannot be

challenged. In 2020, the company earned over the US $85 billion in revenue, beating their

competitors like FedEx and DHL by a long mile (Bruner & Carr, 2021). The company has

created an image of an ethical organization by focusing on becoming an equal employment

provider for people from all cultures, languages, religions, and ethnic backgrounds (UPS,
2022b). To create a higher impact on society the company undertakes a “Social Impact” initiative

where they promote volunteerism, diversity, inclusiveness, and equality as part of their ESG

strategy (Environmental, Social, and Governance) to work for the betterment of the environment

and communities. According to the report by UPS (2020), entitled “UPS Corporate Sustainability

Report”, there are five things that can highlight the company’s values and practices in terms of

sustainability.

The first is the inclusive and transparent structure (UPS, 2022a). Currently, the company

holds the title of an equal employment provider with 31% ethnically diverse members and 46%

women on the Board of Directors (UPS, 2020c). Even the CEO of the company is a female who

is among the few female CEOs, proving the company’s commitment to diversity, inclusiveness,

and sustainability. The second is the work towards social benefit. As of 2022, UPS has left a

positive mark on the lives of people and has a mission to positively impact the community

through volunteerism, charity, equality, diversity, and inclusiveness. The target is to positively

impact one billion people by 2040 (UPS, 2020c). And the final is “social impact storytelling”.

The company takes benefits from the storytelling aspect as they take away the traditional

approach of representing sustainability reports to the general republic and focusing on

testimonies from actual people in the ESG Stories initiative (UPS, 2020b). This approach is

effective as the initiative provides an actual image of what is being done by the company instead

of focusing on corporate reports.

2.2.  UPS’s

2.2.1. Sustainable Sourcing Strategies

As a global logistics leader, UPS has maintained broad choices of logistics and supply

chain solutions that include freight and package transportation, and international trade (UPS,
2022c). UPS has top-notch technology at its disposal to fully utilize all of its resources

effectively and efficiently. The sustainable sourcing strategies of UPS rely on several

sustainability pillars as its sourcing strategy (UPS, 2020c, 2022a).

 Environmental Responsibility: The company is technologically advanced and

utilizes evidence-based practices to promote innovatively, and creative methods to

engage employees and the people altogether. The material and products being

sourced need to fulfill ethical, social, moral, and sustainability criteria.

 Economic Enhancement: The economy and the communities as a whole should

gain benefits as the company proposes new initiatives to help businesses compete

with global markets.

 Connected Community: UPS runs on diversity, therefore creating a global

community where people of all cultures, traditions, and ethnic backgrounds work

for the improvement of the global economy.

 Consultation: The company provides suggestions and strategies to those

companies who face sustainability challenges and similar hurdles in sourcing.

2.2.2. UPS’s Sustainable Packaging Design

UPS, being a global supply chain company is well aware of the stated facts and make

their packaging by performing “carbon impact analysis” to reduce carbon emission through their

shipping process while offering sustainable packaging developed through “UPS co-innovation

workshops” and “Eco Responsible packaging program”. Furthermore, the extensive network of

the company allows them to alternate drop-off and pickup locations, which helps in the reduction

of delivery stops that the drivers have to make, ultimately reducing fuel usage and emissions

(UPS, 2022a).
 2.3.  UPS’

2.3.1. Sustainable manufacturing processes

UPS does not manufacture products of its own rather the manufacturing process includes

printing/document services, packaging and shipping, and mailboxes (UPSStore, 2022). But the

primary strategy for sustainability is helping smaller businesses achieve sustainability

(UPSStore, 2021). As per UPS (2022a), there will be a 9 billion global population by 2050 and

with the search population, there will be extensive demand for goods and services. this will leave

the companies helpless against sustainability issues if not taught and maintained from the start.

For such reasons a proactive approach is being taken by UPS where they offer just inability and

feasibility solutions for smaller struggling companies (UPSStore, 2021).

2.3.2. Waste and Recycling

For the processing of manufacturing waste and recycling, the strategy used by UPS

includes the following (UPS, 2022a).

 Interconnectivity: Which involves the expansion of the company’s logistic

solutions so that innovative ways could be created to overcome supply chain

challenges.

 Reducing Distance: This leads to lower consumption of fuel and avoids

emissions. The inter-moda shifting, the company reduces energy intensity and

delivers the product on time.

 Fuel-Efficient Fleets: UPS has over 110,000 vehicles that are technology-

powered, and they eliminate excessive emissions and reduce mileage.

Furthermore, the company also has 7,000 vehicles that are particularly designed

for lower emissions.

 2.4.  Detailed Description

According to Leonard (2009), the USA has 5% of the world’s population, but its

economy is using 30% of global resources and creating 30% waste of global waste.

Sustainability is at the risk of sacrifice when a product is produced and is put in the supply chain

which is responsible for putting it through wholesale and retail distribution. It has been observed

that theoretically and practically a product that is affordable for all social classes is much more

expensive to afford in the first place (Aseev & Manzoor, 2018). The products are made cheaper

in several ways, like poor pay to the workers at retail, child labor, and poor utilization of

resources by the third-world country (Leonard, 2009, 9.55). This leaves high emissions, devasted

bio-diversity, and long-lasting negative impacts on society, the economy, and the environment.

Following such logic, the small framing company that is being worked on should contain the

following practices to maintain sustainability.

2.4.1. Ethical and Sustainable Sourcing

As shown in section 2.2.1, these three elements can lead to ethical and sustainable

sourcing strategies.

1. Environmental Responsibility

2. Economic Enhancement

3. Connected Community

2.4.2. Early Supplier Involvement

The supplier management strategy involves suppliers during the beginning of the product

design process to draw on their experience and knowledge to better designs and illicit

higher quality results.

 2.4.3. Strategic Alliance Development

As shown in sections 2.2.1 and 2.3.2, these three elements have provided strategic

alliance development to the company

1. Interconnectivity

2. Reducing Distance

3. Consultation

2.5.  UPS Benchmarking

UPS benchmarks its success in ethical and sustainable strategy implementation by using

KPIs (Key performance indicators) like the following.

2.5.1. Carbon footprint

The company consistently focuses on carbon-neutral ventures. The drivers have a milage

of two billion miles a year but the investments are predicted to reduce 50% of CO2 by 2035

(UPS, 2020a).

2.5.2. Consumption of Energy and Waste Reduction

Energy consumption is measured by LEED (Leadership in Energy and Environmental

Design) as the company has certified 18 green-building facilities. The LEDs used by the

company are 90% more energy efficient and reduce the amount of wasted heat, and energy (UPS,

2020a).

2.5.3. Social impact

The social impact is visible as UPS invests in “Environmental, social and governance

(ESG)”. The company created “Equity, Justice & Action”, a task force for monitoring

governance (UPS, 2020a). They also improve transparency and equitability by adding diversity

and inclusion (UPS, 2020b).

 3. Conclusion

Through extensive research on UPS’s sustainable practices by following the learning

journey e-centennial, it has come to light that economies are running based on ethics and

sustainability. For running a business, a company must go through multiple ethical dilemmas,

which relate to decision-making as to whether customers’ need is to be put forward or should the

sustainability factors be prioritized. On a personal account, UPS has achieved a sustainable and

ethical work practice where they are impacting society, governance, the environment, and the

business ethic positively.

 References

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Sustainability from an Optimal Growth Model of Natural Resource Consumption. Lecture

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Bruner, R. F., & Carr, S. (2021). The Battle for Value, 2004: Fedex Corp. Vs. United Parcel

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Chen, J. K. C., & Sriphon, T. (2022). The Relationships among Authentic Leadership, Social

Exchange Relationships, and Trust in Organizations during COVID-19 Pandemic. Advances

in Decision Sciences, 26(1). https://doi.org/10.47654/V26Y2022I1P31-68

Hess, E. (2021). United Parcel Service of America, Inc. SSRN Electronic Journal.

https://doi.org/10.2139/ssrn.1284801

Leonard, A. (2009). The Story of Stuff. https://www.youtube.com/watch?v=9GorqroigqM

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ways-to-go-green-with-your-ups-shipping

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 https://about.ups.com/content/dam/upsstories/assets/reporting/sustainability-2021/

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