Question

Best Buy ranks number 72 on the Fortune 500; it is the largest consumer electronics retailer in the world. Best known for its discounted high-quality products, customer centered approach, sustainable outreach, and extensive recycling program. Best Buy is listed as a “socially responsible” company. It was founded by Richard Schulze in 1966. Since then the company has undergone many changes.

College students, who wanted higher-end electronics, were the first customers they targeted. In 2000, when sales growth slowed, Best Buy acquired Geek Squad, a repair service. This acquisition led to their Concept 5 stores, where products are sold, and customers taught how to use them. This improved service turnaround time and increased customer satisfaction. By 2009, the company became the primary online and brick-and-mortar provider of consumer electronics.

             Best Buy views itself as a customer-centered organization. The company uses www.BestBuy.com to learn more about its customer needs and preferences. Customers can use that website to rate every product purchased. In 2007, the Company published its first Corporate Social Responsibility Report (SR) as result of the customers concern for sustainability. Electronic waste was filling landfills, and their customers wanted to see this problem addressed. In response to their concerns, Best Buy implemented a wide-scale electronics recycling program.   In 2009 Best Buy set a goal to reduce carbon emissions by 45%; by the end of 2016 they had reached nearly 47%.

             Today Best Buy employs a Chief Ethics Office and maintains a blog for company employees; it covers ethical lapses and related issues. Employees can visit the website and read about the company policy regarding ethically questionable behaviors and learn tips on how to best defend themselves from crossing ethical boundaries. Hubert Joly was appointed CEO in 2012 after a scandal forced out CEO, Brian Dunn and Chairman, Richard Schulz.

Under Joly, Best Buy, once again, became a growth company. He implemented its “Renew Blue” strategy, adding new product lines and services and emphasizing both in-store and online customer opportunities. Its Geek Squad division began an in-store, online, and home advisory program. He expanded into both Canadian and Mexican markets. Operations in China and Europe were closed to reduce costs, and he closed some domestic stores, under his lean management mandate.

             To improve customer service, the “Geek Squad hours were expanded to provide 24-hour service on site, at home, or through the Internet. The tech experts make about 4 million home calls a year. Walmart and Amazon their biggest competitors do not offer comparable at-home services. In March 2017, “Renew Blue” was officially closed by Joly and pronounced a success.

             In 2017, Joly announced the company will implement “Best Buy 2020 - Building the New Blue.” Best Buy began a try-before-you-buy program which allows the customer to rent gadgets such as audio equipment, fitness trackers, smartwatches, and cameras. If the customer decides to keep the product, 20% of the rental fee is deducted and applied to the final cost of the product.

             Best Buy will continue demonstrating new technology solutions, contracts and services and sustainability . The company plans to enhance their smart home areas in all stores, roll out its Best Buy Smart Home Powered by Vivint home automation and security offering to 450 stores, which will add 1,500 dedicated smart home employees. The “Geek Squad” expanded services will include “Smart Home ‘Total Tech Services, which will service every electronic product in your home no matter where the product was purchased and create a totally integrated technology system for your home.

Another service Best Buy will provide is the Smart Home Senior Care Services,” which is considered an “untapped white space opportunity.” The electronic “Assured Living” system will allow millennials /caregivers to look in on their aging parents while permitting the seniors to live independently. Mr. Joly envisions rolling out a broader business of sensor-based senior services, sold through health-and-wellness departments in Best Buy’s more than 1,000 stores.   With an aging population in the U.S., there will be 70 million people who will be seniors in 2027. Best Buy sees this growth opportunity and will use the Smart Home Business and its ability to get into people’s home as a trusted adviser.

Question:

How does Best Buy deal with ethically questionable behaviors, in short essay form

Answer 1

Best Buy's ethical moto has been to live by its values. The core of it is - 'Unleash the Power of Our People; Learn from Challenge and Change; Show Respect, Humility and Integrity; and Have Fun While Being the Best'. Hence, it enables someone to realise that Best Buy is not only in the business of profiteering or, is concerned only with the financial risk/reward; but, it also has the moral responsibility towards its people, communities and the environment.

In order to ensure the ethical face and image of the company remains unharmed, it has laid down transparent Code of Business Ethics that clearly and specifically authorizes everybody of the company to unconditionally report any possible unethical conduct to the Ethics Office. On the other hand, the informed Managers are entrusted with the responsibility to take immediate actions.

However, they maintain their sound and judicious stand when handling any ethics issues by not allowing content and form of reporting content to be intimidating and derogatory towards others. They also maintain utmost confidentiality in all such cases; and, safeguards the individual who reports any such case.

To make the work-place stress free and ethically fit, they have zero-discrimination and harrassment-free policy towards its employees. They also have due recognition towards maintaining health and safety standards in the company.

As a responsible organisation towards the environment and the community living in it, it constantly develops waste minimization, pollution free programmes. Their electronic waste recycling programme and the carbon emission reduction by 45% measures, clearly makes us understand its sincere approach towards CSR and sustainability.

In 2017, Joly announced the company will implement “Best Buy 2020 - Building the New Blue.”, in which, Best Buy offered try-before-you-buy program allowing customers to rent gadgets such as audio equipment, fitness trackers, smartwatches, and cameras. And, when the customer decided to keep the product, 20% of the rental fee is deducted and applied to the final cost of the product. This also indicates their fair and logical pricing policy. To treat customers with utmost respect and honour, it straight-away discourages salesteam to pressurize customers. Also, in order to support disabled customers, it has special accomodations for them.

Finally, as a moral and ethical company, it now has embarked to provide services towards the aging population by allowing the millenials and caregivers to install '“Assured Living” system in their home and looking after them with its assistance. Mr. Joly's strategic thinking keeping in mind USA's aging population, and how to enhance services towards them, clearly shows how much inclusive they are.