Write 2 pages with APA style on Unit 5. Fedex and Environmental Defense: Building a Hybrid Delivery Truck Fed Ex and CSR: Do you believe FedEx demonstrates corporate social responsibility? Explain. In other words, does FedEx demonstrate the responsibilities we discussed with regard to the Pyramid of Social Responsibility?
The company demonstrates corporate social responsibilities (CSR) by cooperating with the Environmental Defense to acquire new generation delivery trucks with increased fuel efficiency, saving and environmental protection. The company announced purchase of new trucks that used clean energy to avoid air pollution. The firm is socially responsible in that it makes conscious efforts to buy vehicles that don’t pollute the environment in anyway. Its efforts to collaborate and cooperate with the Environmental Defense indicate that the company cares for its community and is conscious of the impact of its actions and activities on the society. Compliance with CSR is also indicated by the company’s move to phase out old batteries and replace them with new ones that are environmental friendly (Hoyt & Plambeck, 441). The new batteries are mostly made from biodegradable and recyclable materials. This conserves the environment because the old batteries are reused, rather than dispose them, thereby causing solid waste pollution. FedEx also cooperates with the government in ensuring that its vehicles meet the set guidelines and use the required materials to protect the environment.
2. Fed Ex Case Issues: In this case study, what were the problems FedEx and Environmental Defense were trying to tackle?
The two organizations were trying to find ways to increase fuel efficiency and protect the environment. The challenge was to produce new generation trucks that met the objectives of largely improving fuel efficiency, reduce environmental pollution and increase functional and operational efficiency. The company, therefore, wanted to meet NOx requirements to reduce NOx emissions by the required 90%. However, the technology that reduced these emissions (NOx absorber and a catalyst that dissolved NOx), was less reliable and too expensive, prompting FedEx to abandon these technology in its hybrid prototype proposal. However, the company selected Mercedes engines and freightliners that had processed particulate matter and reduced particulate pollution and NOx emission by 93% (Hoyt & Plambeck, 451). This was in addition to increasing fuel efficiency and dramatic reduction of fuel costs. The company in collaboration with the Environmental Defense and other stakeholder such as the Texas Council on Environmental Technology (TCET) achieved the objectives by producing vehicles that saved on fuel and protected the environment from pollution.
3. Fed Ex Case Actors: Who were some of the major actors in this case? Which sectors did they represent? How would you characterize the relationship between the major actors? Do you think this is the norm?
Several players were involved in developing the hybrid delivery fleet. The project commenced when FedEx and the Environmental Defense formed a partnership to find ways of improving emissions and save on fuel costs. The relationship with the Environmental Defense was healthy and mutually beneficial. It wasn’t a normal relationship and FedEx went out of its way because most motor companies rarely comply with environmental regulations, let alone collaborate with an environmental regulator. The company worked with Freightliner Custom Chassis Corporation (FCCC), a chassis manufacturer. FCCC made the chassis used for the hybrid trucks according to FedEx’s specifications (Hoyt & Plambeck, 455). The two organizations worked together to develop chassis that met environmental specifications and increased operational and functional efficiency of the nee trucks. The company also consulted the Texas Council on Environmental Technology to ensure that the vehicle met international standards of safety, environmental conservation and fuel efficiency.
Hoyt, D., and E. L. Plambeck. “FedEx and Environmental Defense: Building a Hybrid Delivery Fleet. Case study, Graduate School of Business.” (2005).