Assignment reportcourse business ethicstopic best buy fights against electronic waste

Consumer engagement shows how the company has established a goodrelationship with the consumers by providing them with the best customerservices.. Best Buy History Early history The Bes

NATIONAL ECONOMICS UNIVERSITY

Hà Nội - 2022

Table of contents Page

Introduction………

I CASE SUMMARY………

1 Best Buy history ………

2 Visions………

2.1 Consumer Engagement………

2.2 Employees Engagement………

2.3 Community Engagement………

3 Becoming more sustainable ……….

4 Conserving energy one store at a time………

5 Environemtal sustainability energy star products………

6 Combating E-waste………

7 Recycling program benefits………

8 Challenges for Best Buy………

9 Corponate gorvernance challenges………

II. QUESTIONS 1 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?

2 Do you think the resources Best Buy dedicates to help the consumers recycle their old electronic devices represent a good investment for Best Buy Resources that Best Buy is dedicating to help consumers recycle their old electronic devices represent a good investment……

3 How do Best Buy’s social responsibility efforts impact key stakeholders such as employees, shareholders, consumers, and suppliers………

III CONCLUSION………

REFERENCE ………

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INTRODUCTION

Best Buy Company is an organization that deals with supply of electronicmaterials; it is a company that is well known for supplying electronic materialsand equipment globally because it has branches in most parts of the world Thecompany is known because of its ability to provide satisfactory customerservices, and this has been proved by the attributes the customers have about theservices being provided in this company The company is therefore on thecampaign against the waste of electronics It has initiated programs to ensurethat they recycle electronic wastes The report describes the analysis of thecompany, and it therefore describes various aspects such as; ethical issues andcorporate responsibility of the company which explains how the company plans

to comply with the ethical issues that ensure good conduct in the business, thecorporate responsibilities describe how the company has established arelationship between the stakeholders, employees and the customers in order toinfluence sustainability

Consumer engagement shows how the company has established a goodrelationship with the consumers by providing them with the best customerservices The customers are able to give attributes regarding the twenty-fourhour services being provided by the company It has managed to engageconsumers towards contributing to sustainability by providing them withinformation The company also engages the employees by influencing them onhow to recycle electronic waste; this has helped the company to influence notonly the employees but also other stakeholders and suppliers Communityengagement explains how community participation has resulted in attaining thegoal of sustainability and environmental conservation

1 Best Buy History

Early history

The Best Buy Company Inc was founded by Richard M Schulze who was

a specialist in consumer electronics and his partner in the year 1966 In 1966 heopened an Audio Specialty store in Twin cities with the name of ‘Sound ofMusic’ The business started flourishing, hitting $1 million in annual revenue by

1970 The stores basically aimed at college going students who wanted high endelectronic goods But soon he realized that there was very little future ahead inthis market with the target audience decreasing day by day In 1983, Schulze

converted his Sound of Music stores into a high-volume discount Sellingelectronics, consumer appliances, videocassettes, and record He renamed thischain Best Buy Then, in 1984, Schulze took another major step by introducingthe superstore format and quickly capturing 42 percent of the local market Thechanges Schul e implemented included eliminating the backrooms of stores andz

bringing all merchandise onto the sales door, paying salespeople hourly wagesrather than commissions, and retraining salespeople to be more customerfocused

Acquisitions

Best Buy embarked on acquisitions to increase its market share

Extensive expansion

Best Buy operates businesses in several countries outside the United States

as well, including stores in Canada and Mexico While attempts to open BestBuy stores in China were unsuccessful, the company's subsidiary Jiangsu FiveStar Appliance is thriving In 2009 the company opened its first stores based inthe United Kingdom Today, Best Buy is a leading provider of consumer

electronics with a presence in U.S., Canadian, British, Chinese, and Mexicanmarkets

- In 2007, electronic waste was rapidly accumulating in landfills, andsociety has become increasingly concerned with how to reduce this waste.Best Buy answered this call through implementation of a wide-scaleelectronics recycling program

- Its subsidiary, the Geek Squad, provides 24-hour service on-site, athome, or through the Internet Overall, Best Buy's customer satisfactionratings display an upward trend in the past few years as the company'scustomer centered focus provides it with an advantage in the marketplace andenables it to grab market share

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2.2 Employee Engagement

- Best Buy invests heavily in training its employees The companydevoted 50,000 hours to employee training to teach employees about thenewest features of the Windows 8 product so employees could better assistcustomers in-store

-Best Buy's corporate culture emphasizes listening to employees as well

as customers Employees can post their thoughts on online forums such as theWatercooler and on an internal news site

- Best Buy takes a stand on diversity training for its employees Everyyear it holds a Cultural Immersion program for its employees at the LorraineHotel in Memphis It is Best Buy's goal to encourage employees to practiceinclusion and awareness of different cultures

- Finally, Best Buy offers a wide range of benefits for its employees.Employees who work 32 hours at the retailer qualify for family healthinsurance, tuition assistance, and adoption assistance In addition to offeringflexible programs, Best Buy allows those employees working at least 32 hours

a week to reduce his or her hours or engage in job sharing as needed Due to

its flexibility and benefits, Best Buy was awarded first place in Working Mother's 2012 Best Companies for Hourly Workers.)

2.3 Community Engagement

Best Buy frequently engages stakeholders in communities where itoperates, particularly in the areas of education and technology

- TECHNOLOGY ACCESS FOR TEENS: In 2012, Best Buy established

a new program titled Best Buy Teen Tech Centers Here, teens go after schooland explore the world of current and new technology The company isdeveloping classes and online tutorials to be used in workshops at the centerswith the help of Geek Squad In 2012 tech centers opened in Chicago, Miami,San Antonio, and St Paul/ Minneapolis

- DISASTER RELIEF: Best Buy partners with disaster relieforganizations to donate money and aid to hard-hit areas around the world BestBuy donated $200,000 for disaster relief in Haiti after the devastatingearthquake in 2010 In late 2012 Best Buy donated 1,000 disaster kits

(batteries, flashlights, and chargers) through its partner, The Salvation Army, toprovide connectivity in times of crisis Best Buy supports employees who live

in areas affected by natural disasters If the Best Buy store in the area is forced

to close, employees are paid until the store reopens or are given the opportunity

to work at another Best Buy if the store remains closed Hotlines, counselingservices, and employee assistance programs are available for employeesimpacted by natural disasters

3 Becoming more sustainable

Becoming more sustainable goes hand in hand with Best Buy's businessmodel and strategy Best Buy incorporated eco-friendly practices into severalfacets of its operations from reduced energy consumption to recycling ofelectronic waste (e-waste)

- Best Buy began selling electric bicycles and providing charging stationsfor Ford Motor Company's electric cars

- Best Buy formed partnerships with other companies such as Energy Star

to reduce its environmental footprint

- Best Buy joined with SmartWay Transport to reduce greenhouse gasemissions Smart Way Transport is a collaboration between the EnvironmentalProtection Agency and the freight industry with the goal of reducing waste andbecoming more energy efficient

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- Best Buy began to enforce ethical and sustainable practices among itsvendors Suppliers must adhere to the company's Supplier ComplianceStandards, and to ensure compliance, Best Buy audits its various suppliers eachyear.

4 Conserving energy one store at a time

Realizing its stores consume large quantities of energy-some that could beconserved through more sustainable practices—Best Buy joined the Businessfor Innovative Climate and Energy (BICEP) in February 20109/10/2022

Best Buy improves lighting in its stores through skylights, prohibitingtrucks from running their engines outside Best Buy locations investigating new

energy-saving technologies such as virtual servers and surge protectors/power

bars Additionally, in 2010 Best Buy created an everyday in-store recyclingprogram in the U.S

5 Environmental sustainability energy star

products

In addition to saving energy in its operations, Best Buy sells energy-savingproducts Best Buy's extensive partnership with Energy Star saves its customersmoney on energy costs and helps the environment by selling energy-efficientitems

6 Combating E-waste

As the world moves toward sustainability, the issue of e-waste takes on anincreased importance among consumers Best Buy then established its Best BuyConsumer Electronics Recycling Program Consumers drop off their usedelectronics and Best Buy recycles them Electronics over 32 inches in size used

to cost $10 to recycle, although customers were given a $10 Best Buy gift card

to replace the money spent on recycling them However, in late 2011 Best Buyeliminated this $10 fee This is a step toward Best Buy's goal to recycle 1 billionpounds of e-waste by 2014

Other resources Best Buy uses in its large-scale recycling initiatives are itstrade-in program, recycling kiosks near the stores (used to recycle small itemsincluding rechargeable batteries, cell phones, and ink cartridges), and TV and

appliance pickup service The trade-in program offers consumers two options:trading electronics online or in-store The trade-in system allows consumers toexchange an item and use the store credit to buy a newer model of a similaritem In 2003 Best Buy became a member of the Environmental ProtectionAgency's Plug Into eCycling program that is committed to increasing consumerawareness about the importance of recycling

Best Buy has partnered with various recycling companies, many thatattempt to give used electronics a "second life” To ensure its partners are acting

in a socially responsible manner, Best Buy monitors recyclers to make sure theyfollow safe recycling practices These partnerships serve to reduce pollution bykeeping items out of landfills

7 Recycling program benefits

As Best Buy demonstrates, recycling can have positive implications for thebusiness world as well For example, if a product like a cell phone can be fixed,

it can be sent to outlets like eBay who can resell the product If not, the productsare taken apart so the materials can be reused Best Buy splits the profit madefrom recycled products with its partners

Recycling programs encourage manufacturers to take greater responsibility

in product design For example, Dell began using fewer screws in its computers

to make them easier to recycle

Best Buy feels the connections developed between Best Buy and thecommunity make the company's effort worth the cost) Best Buy hopes its status

as a sustainable and ethical company attracts more loyal customers, aiding bothits reputation and its bottom line

8 CHALLENGES FOR BEST BUY

Best Buy faces intense competition from retailers such as mazon andA

Apple It is more common for consumers to visit Best Buy stores, find itemsthey want, and shop for those items on Amazon or other e-commerce sites atlower prices

→ Solution: Since the holiday season of 2012, Best Buy began a price matching policy that stated the company would match online prices inhopes to win consumers back Therefore, their stock price increased 95 percent

holiday-in the next five months They also reduced their merchandise return policy from

30 days to 15 days

Best Buy has sometimes struggled with delayed delivery services as well.During the 2011 Christmas season, many products ordered at Thanksgiving weredelayed and not delivered until after Christmas

→ Solution: Best Buy apologized to thousands of customers andexperienced a dip in customer satisfaction ratings They also reduced theirmerchandise return policy from 30 days to 15 days

Best Buy faces challenges in global markets The company's big-boxretailers did not form well in the Chinese market, causing Best Buy to abandonits nine branded stores in that country Once again, price may have been aprimary factor

→ Solution: While it is shutting down its branded stores, Best Buy hasexpanded its Chinese subsidiary Five Star which targets China’s middle class

As China's economy pogresses, Best Buy is confident these stores will continue

to profit

9 CORPORATE GOVERNANCE CHALLENGES

In April 2012, CEO Brian Dunn Brian Dunn was pressured to resign andwas provided with a $6.6 million separation package after an internalinvestigation from the audit committee led to accusations, he violated companypolicy by having a close personal relationship with a female employee Asupervisor of the employee informed the committee the employee's workplacebehavior was impacted, thereby contributing to a negative work environment.Even more distressing for Best Buy came the decision of founder RichardSchulze to step down from his position as Chairman after it was revealed he hadknowledge of the relationship but he did not act according to good governance