Module 6-1 Responses (2 replies needed)

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CSR and ESG Policy

FedEx has a committed approach to their Corporate Social Responsibility efforts. They have embraced their role within the communities they serve and have the sentiment of, “We believe a connected world is a prosperous and sustainable world. And we aim to deliver that forward.” FedEx has implemented their CSR efforts globally with as much work being put in across their international locations as their domestic United States headquarters. The company won a sustainability and CSR engagement award in Malaysia for 2023. They have also been honored in Dubai for their CSR efforts over the years.

The FedEx Global Citizen Strategy operates with five pillars:

1. Sustainable Logistics: Implement sustainable transportation methods to work towards achieving goal of carbon neutral operations by 2040.

2. Delivering for Good: Utilize company team members and company vehicles and planes to assist for humanitarian relief efforts.

3. Global Entrepreneurship: Assist small businesses with creating jobs and building capital.

4. Diversity, Equity, & Inclusion: Provide education, workforce development and cultural awareness to build a more inclusive workforce and community.

5. Community Grants & Service: Embody the company values by bringing team members to local events that support local communities.

FedEx’s largest CSR effort is their FedEx Cares program. The goal of FedEx Cares is, “To help make the world a better place through in-kind shipping, volunteering our time and expertise, and charitable giving.” The organization releases an annual report with a listing of the highlights of the ways the company was able to make charitable contributions, provide volunteer work and bring attention to important causes.

Contributions to non-profits like St. Jude Hospital are not the only focus of FedEx Cares. Much of the work is done by providing opportunities to people in underserved communities. Education and career growth grants and scholarships are one of the efforts that are applied across the board regardless of location. Students with an interest in business degree programs can apply for scholarships or to have an opportunity to have an internship with FedEx to get hands on experience learning how the daily logistics work for transportation companies.

When it comes to Environmental, Social and Governance strategies, FedEx embodies their Purple Promise to “Make Every FedEx Experience Outstanding.” Working with FedEx as a customer, vendor or investor should be a positive experience. Customers want their products and services to be provided for a fair price while knowing the company is paying fair wages to their workers. Vendors and business partners want to be provided with the best resources to get the job done in support of FedEx’s business processes. And they want to be paid competitively for their contributions to FedEx operations. Investors want the company to have long-term growth goals and a way to balance the increased cost of doing business. All these demands are part of the ESG mission.

To have long term success as a transportation company, FedEx must explore alternative fuel options to power their vehicles and find ways to reduce carbon emissions. FedEx relies on air transportation, long haul freightliners and many different sizes of delivery vehicles to transport goods. Environmental sustainability efforts are inevitably a benefit to the long term operations goals of FedEx.

Desired Culture

FedEx operates with a progressive and empowered workplace culture. Leaders are supported by the Quality Driven Management program that allows them to make quick decisions that support the business and goals without too much clerical red tape. The latitude given speaks to the trust in management and their judgement when it comes to control of management of labor resources.

FedEx utilizes their business relationships and the work done by their political team to contribute their input on legislation that is being reviewed that might change the regulations they must follow for flights and interstate commerce. Being involved in the drafting of laws provides the lawmakers with direct input from the people who are on the frontlines. This real-life input makes the issues personal and can direct positive changes for workers and business partners alike.

Communication Strategies

To align workers with the CSR and ESG policies in place at FedEx, they make the decisions personalized. Founder Fred Smith and CEO Raj Subramaniam both have a wealth of experiences and professional situations that they pull from to display the reason that certain policies are supported by the board. If there is a focus on military members or veterans, the company communicates the ways that they have been involved with the Wounded Warrier Project or Humanitarian aid delivery to war zones that our military has been on the frontline of.

Instead of just soliciting requests for volunteer hours and donations from workers for organizations like United Way and St. Jude’s Children’s Research Hospital, FedEx incorporates the real-life stories and experiences of workers that have been personally affected by childhood illnesses or had a need to utilize United Way services due to natural disasters.  

Scenario Planning for Change Management

When preparing for change within any organization, scenario planning is important for ensuring that there are plans in place for success under various circumstances. Implementing new operational methods, use of new equipment and creation of new positions all begin as a test and learn. To properly integrate these changes with the least resistance from the workforce, it is easier to show that consideration of all possible outcomes has been reviewed and prepared for.

Long Term sustainability efforts related to the environment are plans made with the intent of flexibility. The knowledge and science of alternative fuels rapidly changes. If more cost-effective options are available by the time certain environmental goals are to be met then a back up plan should be in place to pivot resources and work towards the option that is still environmentally beneficial and financially sound.

*Citations have not been included as draft is still a work in progress.