Sustainable Logistics

Corporate social responsibility (CSR) means integration of environmental and social corporate responsibility in the company’s daily business.

Corporate social responsibility does not only mean that the company meets all the laws and regulations requirements. Company should look at its operations more broadly: if company’s action, for example, harmful to the environment or nearby residents, but not illegal, the company should make every effort to minimize the harmful effects. A responsible company therefore also takes into account aspects, so if they are being neglected does not lead to legal responsibility or bankruptcy.

An effective CSR is, therefore, extending company’s responsibility beyond the laws and regulations require and at the same time be prepared for the future tightening laws, standards and customer requirements, so in practice, for the risks to business.

In other words, CSR is a daily operation in the company’s strategic planning, which responds to future risks and opportunities. After all, for example, tightening environmental standards are risk in terms of increasing costs, but for the company, which knew to prepare for them, it is a possibility in cost or market leadership in the future.

Risk Mapping

Risk mapping is an important tool for defining corporate social responsibility. What are the company’s actions that pose a risk to the company or its employees, customers, and society now or in the future?

  • What is the well-being of the company’s employees?
  • What are the risks at work?
  • What about subcontractors?
  • What are the risks of work that are not yet visible?
  • How does the company affect its immediate environment or global environment?
  • What effects can be seen now or what may emerge in the future?
  • And is the company’s operations on an economically sustainable basis?
  • What risks are involved in holdings, loans or investments?
  • Does the company pose risks to its customers?

Once the risks of its operations have been identified, the company must identify the most significant and highest-risk ones and take practical measures to reduce the risks. It should be noted that the main components of CSR can be very different in the same industry. As a practical example, some transport companies raise safety concerns as the most important elements of corporate social responsibility, while for others CO2 emissions have been seen as the most significant.

Only when the factors of corporate social responsibility have been mapped and their significance for the company’s operations has been determined, it is necessary to move on to corporate social responsibility reporting. In corporate social responsibility reporting, the most significant elements of corporate social responsibility, their impact, the company’s goals and improvement measures are reviewed, and development is monitored.

When considering a corporate social responsibility strategy, it is also good to think about the financial impact of the factors. For example, safety risks are very often also financial risks, improving job satisfaction often also increases productivity, and investing in environmental friendliness can bring in new customers. A company’s active investment in corporate social responsibility is often also economically justified.

Ethical demand-supply chain management

Ethical Demand-Supply Chain is a demand-supply chain with all members committed to sustainable development.

The areas of sustainable development are defined by the Bruntland Commission

  • economic,
  • technical as well
  • social and cultural development.

The demands of consumers, financiers and investors on the ethics of business operations have increased interest and the need to design and manage ethical supply chains. In particular, the operation of global demand-supply chains raises many ethical issues, including the consideration of different cultures.