Type: Critical Essays
Sample donated: Archie Copeland
Last updated: September 30, 2019
United Pareservice Inc.
(UPS) is an American Company specializing in the collection andthe routing of parcels throughout the world. In 1970’s UPS expended fromcoast-to-coast and began to consolidate and expand its international servicesinitially in Canada and then Western Europe (Germany). By 1987, UPS wasservicing almost every address in North America, Western Europe and Japan.This was done mainly be the establishment of high throughput distributioncenters forming major air hubs. Since 1988, UPS operates its own airline; UPSAirline.
From the hub, UPS delivers to more than 391 national airports and over219 international ones. By 2001, UPS was offering direct air freight servicesto China.The enterprise represents an excellent example of a corporation activelyinvolved in freight distribution and the application of logistics. According tothe UPS’s website; The Company Headquartered in Atlanta and serves more than 220 countriesand territories worldwide. UPS handles all levels of service (air, ground,domestic, international, commercial and residential) through one global pickupand delivery network. All packages are commingled within the Company’s network.The Companysettles so many air hubs all over the world. As informed in U.
S. DomesticPackage; “The Company’s European air hub is located in Cologne,Germany, and the Companymaintains Asia-Pacific air hubs in Shanghai, China; Shenzhen, China; and Hong Kong.The Company’s regional air hub in Canadais located in Hamilton, Ontario,and the Company’s regional air hub for Latin America and the Caribbean is in Miami, Florida.In the United States,Worldport is supported by the Company’s regional air hubs in Columbia,South Carolina; Dallas,Texas; Ontario,California; Philadelphia,Pennsylvania; and Rockford, Illinois.The Company’s United Statesground fleet serves all business and residential zip codes in the contiguous United States”.
Pressroom.ups.comdeclared that UPS (NYSE:UPS) announced the expansion of its earliest morningpackage delivery service, UPS Worldwide Express Plus™. By expanding its reachto 28 new countries and enhancing service to cover more postal codes in 25existing countries, shippers can reach the top 20 economies in the world¹earlier than ever before. In the 25 existing countries, shippers can reach morecustomers in many global business centers. The service is not limited to thelargest cities. This expansion now makes the service available in 3,000additional postal codes in the United Kingdomand 2,000 more postal codes in Canada.Europe adds19 countries with the greatest expansion of service in emerging economiccenters including Romania, Turkey and Serbia.
Expanding early morningdelivery in Paris, Londonand Milan willbenefit luxury goods retailers that demand quick turnarounds between theirdesign, sampling, production and fulfillment cycles. UPS announcedthat it added a less-than-container load (LCL) operation for rail shipmentsfrom China to Europe. The service will be available from Zhengzhou, China,to Hamburg, Germany, and is now part of the UPSPreferred® multimodal freight services portfolio, which combines air, rail, andocean and/or ground transportation. UPS established a full container load (FCL)operation for rail shipments from Chinato Europe in June 2014. The company offers FCLservice between Zhengzhou and Germany, as well as between Chengdu,China, and Lodz, Poland,as reported in Journal of commerce.
The UPS Foundationwas established in 1951 leads its global citizenship programs and is responsiblefor facilitating community involvement to local, national, and globalcommunities. In 2015, UPS and its employees, active and retired, invested morethan $110 million in charitable giving around the world. UPS is a proactiveleader in social responsibility. It cooperates with other associations bygiving donations and helping in natural disasters. As aircargoworks.
comannounced; “On behalf of the American Red Cross, the UPS foundation deliveredabout 45 tons of relief supplies to help more than 50,000 residents of theCommonwealth of the Northern Mariana Islands, located northeast of Guam in theNorthern Pacific. The islands were battered by both Typhoon Soudelor on Aug. 2and Tropical Storm Goni on Aug. 15. Typhoon Soudelor later made landfall innortheast Taiwanon Aug.
8.”As releasedon csrwire website; During October in Atlanta,nearly 20,000 UPS (NYSE: UPS) employees on five continents around the worldwill participate in the company’s 14th annual Global Volunteer Month. Employeesare expected to donate 325,000 volunteer hours to more than 300 communityservice events taking place across North America, Europe, Latin America, AsiaPacific and Indian subcontinent, Middle Eastand Africa (ISMEA).
“Volunteerism and diversity are at the heart of ourculture,” said Eduardo Martinez, president of The UPS Foundation and chiefdiversity and inclusion officer for UPS. “UPS and The UPS Foundation arecommitted to community service all year round; by designating a specific monthfor an increased focus on volunteerism, we can take our commitment to the nextlevel to make a significant difference in our global communities.” Each year,UPS concludes Global Volunteer Month by awarding $10,000 grants to 14non-profit organizations UPS employees volunteer at in each U.S. region, international regionand business unit.
And accordingto the same website; The UPS Foundation announced a partnership with Zipline, aCalifornia-based robotics company, and Gavi, the Vaccine Alliance, to exploreusing drones to transform the way life-saving medicines like blood and vaccinesare delivered across the world. “UPS is always exploring innovative ways toenhance humanitarian logistics to help save lives, and we’re proud to partnerwith Gavi and Zipline as we explore ways to extend the Rwandan government’sinnovations at a global scale.” said Eduardo Martinez, president of The UPSFoundation and chief diversity and inclusion officer at UPS.
The Foundation hasawarded an $800,000 grant to support the initial launch of this initiative in Rwanda.While Rwanda’snational drone network is initially focused on the delivery of blood supplies,the plan is to expand the initiative to include vaccines, treatments forHIV/AIDS, malaria, tuberculosis, and many other essential and lifesaving medicines.Rwanda’sdrone delivery operation is expected to save thousands of lives over the nextthree years and could serve as a model for other countries.2. Business Ethics:United Parcel Service is the world’slargest package delivery company and a provider of supply chain managementsolutions.
UPS delivers more than 15 million packages per day to more than 7.9million customers in more than 220 countries and territories around the world.On many occasions UPS has been awarded for being an ethical company. It isplaced in the rankings of: Fortune Magazine – World’s Most Admired Companies inMail, Package, and Freight Delivery Industry; Boston College Center – CorporateCitizenship and many other relevant awards. And it is known as the World’s MostEthical Company for the tenth consecutive year by the Ethisphere® Institute, aglobal leader in defining and advancing the standards of ethical businesspractices. “At UPS, operating as an ethical company means doing what we say wewill do, in business conduct, in our impact on the environment and in how wetouch the lives of people in the communities where we live and work. Operatingwith high ethical standards internationally is part of the culture of UPS andthis commitment is shared throughout our organization,” said Mohammad Azam, UPSchief compliance officer. “A common theme among the 2016 World’s Most EthicalCompanies is a drive to improve corporate integrity in a way that impacts theworld,” explained Ethisphere’s Chief Executive Officer, Timothy Erblich.
“UPS’sCommitted to MoreTM motto is demonstrated not only through their CSR efforts,but by the recognition of their role in the global business community and thevalue this creates for their investors, customers and employees.Congratulations to everyone at UPS for being recognized as a 2016 World’s MostEthical Company!”There are so many reasons that makeme believe that UPS is ethical; the company puts the community and itsdiversity first, by making the workforce, suppliers, and stockholders feel safeas possible, as announced in code ofbusiness conduct, (page: 20) “Workplace Health, Wellness, and Safety: Thewell-being of our people is of utmost importance to UPS. We are committed toprotecting the health, wellness, and safety of each UPS employee. We strive toprotect our people, customers, and the public from injury and illness throughour health and safety programs. Government regulatory standards and employeeinput are used to develop comprehensive programs and work processes that aredesigned to promote safe workplaces and good health.
We all are responsible forunderstanding and complying with UPS Health and Safety processes, procedures,and guidelines, as well as those issued by applicable regulatory authorities”.UPS gives employees equal rights andprotects them from discrimination of race, religion, sex, and gender,” We treateach individual fairly, and recruit, select, train, promote, and compensatebased on merit, experience, and other work-related criteria. We comply with alllaws governing fair employment and labor practices. We do not discriminateagainst any applicant for employment or any employee in any aspect of theiremployment at UPS because of age, race, religion, sex, disability, sexualorientation, gender identity, military status, pregnancy, national origin,veteran status, other legally protected characteristic or basis, or anyunlawful means.” Code of business conduct, (page: 19). Another example in which UPS puts peoplefirst, is by giving them the opportunity and encouraging them to finish theirstudies or even to begin their education. Workers and people of the communityare provided with options like scholarship funds and employment benefits whereUPS will pay for college classes.To help people, UPS tries tointroduce to their employees the value of contributing hours directly insteadof just giving money to charities by requesting that they perform at leasteighty hours of volunteer work per year.
These hours in the past years haveincluded working with relief agencies and providing locations in need withLogistics Emergency Teams, or just by doing work with people through the ‘United Way.’ UPS is admired for having a sustainableproduction, for their Greenhouse Gas Reduction Strategy (carbon avoidance &neutral shipping) and other great achievements, according to its code ofbusiness conduct;” We are committed to conducting our business in a manner thatprotects the environment. Our commitment to the environment goes beyondcomplying with environmental laws and includes a commitment to advancingprograms that promote a reduction of our carbon footprint while improving theenvironment. Everyone who is part of the UPS organization is expected tosupport our effort to maintain a leadership role in protecting the environment.
“(Page: 37). To achieve this, UPS has the best technology, an optimizedtransportation network, a fuel-efficient transport mode and they use renewableenergies. UPS has a green fleet composed of more than 2,500 vehicles, usingalways a variety of alternative fuels and other advanced technologies.Besides focusing on fuels the companyalso focuses on water scarcity affecting a significant number of locations inwhich they have facilities and operate.
This is why they participate in theGlobal Water Tool, which enables them to design and implement strategies inwater-sensitive places. The Global Water Stewardship program is an example thatallows them to be transparent, improve conservation, and reduce their waterconsumptions, engagement and awareness around the world. Additionally, thecompany supports forestry preservation and reforestation efforts by minimizingthe negative impacts on biodiversity, and by preventing the transportation ofinvasive species.Mike Eskew, former Chairman and CEOof UPS states in a press release on the company’s website: “We care as muchabout how we get results as we do about getting the results. Getting results atthe cost of violations of laws or through unscrupulous dealings do more thanviolate our standards – they challenge our ability to grow our business andundermine our reputation.”For more thana century, UPS founders worked hard to establish Values and principals, whichremain critical to their Company success, by making people motivated to worktoward mutual goals. The core of these values is a simple statement: UPS is acompany of honesty, quality, and integrity. This legacy is very important totheir ability to create shareowner value, support the communities in which theywork, and protect their reputation.
3. Financial Ratios:Financial ratio analysisis one of the ways managers evaluate a company’s current strengths andweaknesses by computing ratios that compare values of key accounts listed ontheir company’s financial statements. The most important ratios fall in fourbasic categories; liquidity, asset management, leverage, and profitability.