University Case Study: Analyzing REI's Ethical Culture and Practices

This case study examines REI, a retail cooperative, and its approach to stakeholder orientation, social responsibility, and ethical culture. It details how REI prioritizes its customers, implements social responsibility through environmental initiatives like solar power and paper reduction, and fosters an ethical culture. The analysis covers REI's history, values, and commitment to customer satisfaction, ethical product quality, and environmental sustainability. The study explores REI's efforts to reduce environmental impact, promote youth engagement, and partner with non-profit organizations. The company's ethical practices, including product quality and profit-sharing, are also discussed. The case study concludes by highlighting how REI's values relate to the development of an ethical culture and the importance of maintaining ethical standards. This document provides a comprehensive analysis of REI's business practices and their impact on stakeholders and the environment.

Running head: REI CASE STUDY
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Name of the Student
Name of the University
Author note

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Describe Stakeholder orientation at REI?
REI is a retail cooperative where different individuals have come across to form a team in
order to provide a better service to the customer base. The members of the organization receives
a profit percent. REI have a total of 5.1 million members and generate a profit of about $2.2
billion. Customers are considered as the beginning of the stakeholder orientation of the REI
organization. They act as one of the most important stakeholder and this is the main reason that
they have been valuing the customer’s community and the issues that are important to them. It
have been observed that REI have been a customer cooperative. It is been seen that there have
been proper assessment of the philanthropic activities that are performed by the organization as
well as the advocacy efforts have been performed by the REI organization. This ensures that a
strong bond is created in between the customers and the organization. It have been seen that due
to the ethics related aspects, there is a proper assessment of the stakeholder management being
performed in the organization. Hence wise clients and employees are not the only stakeholders
they are concerned with.
The beginning of the organization was from an unpredicted process. It have been Lloyd
Anderson who have been searching for high quality axe. The condition that was considered to be
important in the process is that the quality of the axe need to be good and the price that will be
charged for the axe needs to be reasonable as well. Despite a long search he failed in finding the
adequate axe. After this process, he founded the product in Alpine Gear catalog for $3.50. The
research process have astonished the climbing community that is based in Seattle and hence wise
prompting of a new business. Lloyd Anderson, his wife and 21 fellow climbers started the
business that manufactured and sold mountain climbing gears. John Whittaker was the first

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appointed CEO of the organization. Since then REI have been selling gears for camping, hiking,
fitness, bicycling, paddling and other sports.
How do REI implement social responsibility?
It have been seen that REI have been highly focused on maintain the social
responsibilities that are to be performed by them. This section ensures the fact that the members
of the organization have been highly responsible in performing their social responsibilities. REI
have been creating an annual stewardship report. REI have been performing several activities
have been taking steps for reducing the impacts of the green house emission. They have been
using the solar power for powering the 26 REI locations. This is considered to be one of the
major initiative that have been taken by the REI for global benefit. They have been also
implementing and incorporating the retrofitting process. It can be stated that with the help of the
retrofitting incorporation the resources that are required for cooling purpose decreases. This have
been again reducing the cooling cost and is environmental friendly as well. This act can also be
considered as an act of responsibility. REI have also been working in reducing the usage of
paper. Despite the fact that it acts impossible for complete their business processing without
paper, they have been creating policies regarding usage of less paper. REI encourages buying
paper products that are manufactured with the post consumed wastes. The other source of paper
that have been used by the organization have been based on the virgin fiber that is manufactured
by the forests. Hence wise it have been seen that out of the total paper that have been used in the
process, 70.8% of the papers have been manufactured from waste products. Not only these, it
have been seen that REI have collaborated with Timberland, in order to create Eco Index. They
have also been using 25% of the total products that are blue sign certified. REI have been
continuing the process of lobbying in the outdoor and public lands. REI have also been

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partnering with the non profit organizations that have been providing better assessment of the
environmental products. The company have also been promoting environmental awareness
among the kids. They have been performing youth engagement programs in the operational
process as well.
How do REI’s values relate to the development of an ethical culture?
REI have been ethically highly sound. This insists the fact that there has been proper
assessment of the customer needs as per the ethical considerations. It is observed that the
products that are manufactured by the organization are properly observed that they meet the
personal need of the clients. 100% satisfaction is guaranteed in the process. REI have been still
incorporating the process of refund in the operational process. This ensures the fact that the
products that are purchased by the clients, incase fails to meet the satisfaction level of the clients
are returned. After passing the originality test proper refund is provided to the clients. This also
acts as an ethical aspect that have been benefitting the entire work process.
Despite the fact that there have been high competition in the market the quality of the
products are maintained. This maintaining of the quality of the products have been considered as
the main aspect that have been ensuring the fact that they have been maintaining the ethical
considerations. They have added the values of sharing the profit value with the clients as well.
REI have properly identified their clients and hence wise they have been providing them with
benefits regarding the purchases they make. REI have been ethical enough to share the profit
they had been making with the clients. Despite the fact that in high competition where several
unethical measures have been taken by the competitors and distortion in quality have been seen,
REI have constantly maintained the quality of the products and the charge that have imposed on

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the products are highly justifying. REI have also taken up the responsibility of teaching the youth
regarding outdoor ethics.

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