Sustainable Logistics & Supply Chain Management

MGT6081 Sustainable
Logistics & Supply Chain
Management
CSR and the logistics function
© Dr Erica Ballantyne
Overview
 Logistics Social Responsibility
 CSR reporting in the logistics industry
Logistics Social Responsibility (LSR)
 Examination of CSR in relation to logistics management
(Piecyk & Björklund, 2015)
Environmentally responsible logistics
(ERL)
Environmentally Responsible Logistics
(ERL)
 “When a firms objectives are cost minimization and profit
maximisation, continuous improvement of the process to
reduce end-of-pipe contamination and focusing on
pollution prevention makes sense” (Wu and Dunn, 1995, p22)
Importance if the social element
 “For true corporate sustainability, an organisation must
recognise value and promote the capability of its people”
 “To achieve human resource sustainability, human
resources policies and practices need to be integrated for
sustained business performance and positive employee
outcomes of equity, development and well-being”
(Wilkinson et al., 2001)
Social sustainability and logistics
 The main social sustainability aspects covered recently in logistics
research include:
 Labour and human rights
 Employment (contracts, compensation and wages)
 Working conditions, and occupational health and safety
 Job satisfaction, working hours, and the time workers stay away from
home
 Ethics
 Workforce diversity
© Dr Erica Ballantyne
Drivers of proactive LSR
• Lower environmental impact actions will be in synergy with
better economic performance
Performance Driven
• Actions undertaken to respond to consumer demand
Stakeholder Driven
• taking steps to strengthen brand image and be portrayed as
a good citizen
Value Driven
© Dr Erica Ballantyne
CSR reporting – Environmental indicators
 Common environmental indicators include:
 Actions and initiatives aimed at reducing climate change impacts of
services offered including certification to environmental standards
 Greenhouse gas emissions (GHGs)
 Energy consumption
 Waste generated, and waste recycled
 Water usage
 Emissions of air pollutants
© Dr Erica Ballantyne
CSR reporting – Social indicators
 Most commonly reported social indicators relate to – Employment practices and
decent work
 Human rights performance is an aspect of CSR that is less well addressed
 KPI’s reflecting contribution to society are often present
 Initiatives aimed at employee mental health and physical wellbeing are also
common in logistics CSR reports
 Humanitarian logistics – LSPs are well placed to offer physical support to relief
agencies due to the nature of their core business
 Working with universities / academia is also an important indicator
© Dr Erica Ballantyne
Summary
 LSR can positively contribute to increased competitiveness, and lower costs,
and therefore generate long-term value to organisations.
 Provided a review of CSR reporting practises in the 3PL sector that shows that
whilst LSPs do report aspects of CSR there remains significant room for
improvement
 Where CSR reports are published, rates of reporting is still relatively low and
/ or content is limited.
© Dr Erica Ballantyne
Suggested further reading
 Björklund, M. and Forslund, H. (2013) ‘The inclusion of environmental
performance in transport contracts’, Management of Environmental Quality:
An International Journal, 24 (2), pp214-27.
 Carter, CR and Jennings, MM (2002) ‘Logistics Social Responsibility: An
integrative framework’, Journal of Business Logistics, 23 (1), pp145-80.
 Walley, N. and Whitehead, B., (1994) “It’s not easy being green”, Harvard
Business Review, Vol. 72 No. 3, pp. 46-52;
 Walley, N. and Whitehead, B., (1994) “The challenge of being green”, Harvard
Business Review, Vol. 72 No. 4, pp. 37-50.