Logistics & Supply Chain
CSR and the logistics function
Â© Dr Erica Ballantyne
ïµ Logistics Social Responsibility
ïµ CSR reporting in the logistics industry
Logistics Social Responsibility (LSR)
ïµ Examination of CSR in relation to logistics management
(Piecyk & BjÃ¶rklund, 2015)
Environmentally responsible logistics
Environmentally Responsible Logistics
ïµ â€œWhen 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 senseâ€ (Wu and Dunn, 1995, p22)
Importance if the social element
ïµ â€œFor true corporate sustainability, an organisation must
recognise value and promote the capability of its peopleâ€
ïµ â€œTo 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-beingâ€
(Wilkinson et al., 2001)
Social sustainability and logistics
ïµ The main social sustainability aspects covered recently in logistics
ïµ Labour and human rights
ïµ Employment (contracts, compensation and wages)
ïµ Working conditions, and occupational health and safety
ïµ Job satisfaction, working hours, and the time workers stay away from
ïµ Workforce diversity
Â© Dr Erica Ballantyne
Drivers of proactive LSR
â€¢ Lower environmental impact actions will be in synergy with
better economic performance
â€¢ Actions undertaken to respond to consumer demand
â€¢ taking steps to strengthen brand image and be portrayed as
a good citizen
Â© Dr Erica Ballantyne
CSR reporting â€“ Environmental indicators
ïµ Common environmental indicators include:
ïµ Actions and initiatives aimed at reducing climate change impacts of
services offered including certification to environmental standards
ïµ Greenhouse gas emissions (GHGs)
ïµ Energy consumption
ïµ Waste generated, and waste recycled
ïµ Water usage
ïµ Emissions of air pollutants
Â© Dr Erica Ballantyne
CSR reporting â€“ Social indicators
ïµ Most commonly reported social indicators relate to – Employment practices and
ïµ Human rights performance is an aspect of CSR that is less well addressed
ïµ KPIâ€™s reflecting contribution to society are often present
ïµ Initiatives aimed at employee mental health and physical wellbeing are also
common in logistics CSR reports
ïµ Humanitarian logistics â€“ LSPs are well placed to offer physical support to relief
agencies due to the nature of their core business
ïµ Working with universities / academia is also an important indicator
Â© Dr Erica Ballantyne
ïµ LSR can positively contribute to increased competitiveness, and lower costs,
and therefore generate long-term value to organisations.
ïµ 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
ïµ Where CSR reports are published, rates of reporting is still relatively low and
/ or content is limited.
Â© Dr Erica Ballantyne
Suggested further reading
ïµ BjÃ¶rklund, M. and Forslund, H. (2013) â€˜The inclusion of environmental
performance in transport contractsâ€™, Management of Environmental Quality:
An International Journal, 24 (2), pp214-27.
ïµ Carter, CR and Jennings, MM (2002) â€˜Logistics Social Responsibility: An
integrative frameworkâ€™, Journal of Business Logistics, 23 (1), pp145-80.
ïµ Walley, N. and Whitehead, B., (1994) “It’s not easy being green”, Harvard
Business Review, Vol. 72 No. 3, pp. 46-52;
ïµ Walley, N. and Whitehead, B., (1994) “The challenge of being green”, Harvard
Business Review, Vol. 72 No. 4, pp. 37-50.
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