Sustainable supply chain management in the oil and gas industry: A review of corporate sustainability reporting practices

Impact of institutional pressures and dynamic capabilities on sustainability performance of oil and gas sector

Purpose

Globally, the oil and gas (OG) industries are under pressure from numerous stakeholders for their sustainable operations against the backdrop of climate change, ecological damage and social challenges. Drawing on the twin theoretical frameworks of the institutional theory and dynamic capability perspective, this study aims to examine the impact of the institutional pressures and dynamic capabilities on the overall sustainability performance of OG industry.

Design/methodology/approach

This study uses survey method to analyze the responses from 275 middle management professionals of OG industry in India using partial least squares structural equation modeling. Further, focused group discussions with the select industry leaders validate the empirical findings of this study.

Findings

The research reveals that both institutional pressures and firm’s dynamic capabilities have significant positive impact on its economic and environmental performances in OG sector in India. However, they do not have any impact on social performance, unlike earlier findings.

Research limitations/implications

The main limitation of the study is generalizability of the findings, given the cross-sectional design of the study.

Practical implications

Insights of this study will help regulators and policymakers in formulating effective regulatory and policy frameworks, besides creating awareness amongst the organizations to simultaneously focus on all the three aspects of sustainability performance.

Originality/value

The research has bearing on policy formulation and creating a regulatory ecosystem to ensure overall sustainability performance of OG industry in India.

The potential bias for sustainability reporting of global upstream oil and gas companies: a systematic literature review of the evidence

Sustainability reporting is very important for upstream oil and gas companies. The characteristics of industrial operations require direct involvement in environmental management, which causes better policies. Therefore, it is important to explain that these companies are motivated by ecological awareness or a specific purpose. This research conducts critical discourse analysis with a systematic literature review (SLR) approach of the last eleven years related to the sustainability reporting of the oil and gas industry. Various factors influence companies when implementing sustainability reporting, such as increasing credibility, maintaining reputation, transparency, and avoiding legal sanctions. The results showed several global upstream oil and gas companies still have the potential bias for sustainability reporting because they have not implemented the triple bottom line concept. This potential bias is related to irregularities and fraud in Corporate Social Responsibility (CSR) practice. However, the organization as a ruling group can still carry out its mission of hegemony in the environment and the surrounding community. This research contributes academically and practically because it discusses various studies that used several methods, including surveys, case studies, experiments, and literature to form its conclusions.

Sustainable Supply Chain Management: A Comprehensive Systematic Review of Industrial Practices

Sustainable business practices are those that allow companies to increase their profit while still considering the triple bottom line of sustainability, which involves economic, environmental, and social aspects. There are a lot of studies exploring various aspects of supply chain practices. However, there remains a gap for the proposal of a complete framework concerning various industries. This research fills this gap by studying existing empirical and review studies. Based on a content analysis of 86 studies, 789 practices are derived and categorized, leading to a comprehensive classification of sustainable practices in supply chains. Moreover, the employed methods to analyze the data are investigated. The practices are cross-checked versus the studied industries showing the current sustainable industries. The details of the studied papers are presented in a comprehensive table. The sustainable framework showing the industrial solutions toward sustainable supply chains is divided into 38 minor practices classified into 11 main categories. This paper provides a novel interpretation of the sustainable solutions addressed by different industries and presents a new and updated classification of the literature identifying future directions. This offers many advantages for practitioners and researchers to transform a supply chain into an improved version in the bigger picture.

Integrated approach for finding the causal effect of waste management over sustainability in the organization

Purpose

In developed and developing countries, organizations need to do sustainability reporting. The purpose of this paper is to identify the vital linkages of sustainability, which helps to capture the existing waste management practice in sustainable organizations.

Design/methodology/approach

This paper reports a mixed-method approach for sustainable organization. Initially, the waste management and sustainability factors have been linked together for finding the relation between them through the situation, actor, process, learning, action, performance (SAP-LAP) linkages framework; it has been used as qualitative design details to achieve sustainability in the organization. The waste management and sustainability factors linkages have been used as a reference to guide the cause and effect relationship through decision-making trial and evaluation laboratory (DEMATEL) to upgrade knowledge for a sustainable organization.

Findings

The proposed method has been used to meet the functional requirements of sustainability in the organization. Waste management has been analyzed as the most significant benchmarks to achieve sustainability in the organization. The causal relationship reveals that the social image of an organization as a sustainable organization is the effect of its governmental directives, followed by the organization. The governmental directives is the most influencing dimension, and waste management efficiency and energy consumption are the most related, whereas wastivity is the most flexible dimension of sustainability in the organization. To increase its customer satisfaction, profit share and market value, these factors must be considered as vital factors of organization's sustainable performance.

Research limitations/implications

The scope of the present research has been limited to benchmark sustainability by analyzing eight waste management factors and ten critical sustainability factors that have been grouped into four dimensions in the service sector, which could be generalized. The expert's view has been captured for DEMATEL based on “ratings provided by experts,” which may be biased.

Practical implications

Benchmarked sustainability factors have been proposed to increase the value and performance of the organization. The cause and effect relationship is useful to present the capability of waste management to act as a strong foundation for establishing a sustainable organization, where governmental directives, wastivity, waste management efficiency, and energy consumption act as the benchmarking factors to compare sustainable organization performance in developing the county's viewpoint. The present study considered the fourth dimension of sustainability “government and customer” as the dynamic dimension of sustainability, which can absorb and diffuse the changes in sustainable organization with time and can improvise social acceptance.

Originality/value

The research improves the existing method of measuring the performance of the sustainable organization by using well-established methods.

Implementing supplier management strategies for supply chain sustainability risks in multinational companies

Purpose

In a time where stakeholders increasingly demand social, environmental, and economic sustainability, mismanaging suppliers can impose substantial sustainability risks for a company and harm its reputation and business severely. This research explores the implementation of a corporate sustainable supplier strategy designed to cope with such risks from an agency theory perspective.

Design/methodology/approach

A case study of a multinational enterprise, a provider of leading mobility solutions in the realm of escalators, moving walkways and elevators, is conducted. Data is collected from multiple sources of evidence, including strategy documents, a focus group and semi-structured interviews.

Findings

The study identifies several implementation challenges and coping mechanisms in firstly, the agency relationships between the headquarter and the regional subsidiary units and secondly, the relationships between the regional subsidiary units and their suppliers.

Research limitations/implications

A framework conceptualising the implementation of sustainable supplier strategies is proposed. The framework positions the topic at the interface between supply chain sustainability risk, supplier quality management as well as agency relationships and identifies avenues for further research. The key limitations refer to the single case study methodology and the exclusion of suppliers in the data collection approach.

Practical implications

The proposed framework can support multinational enterprises in developing corporate sustainability strategies and in implementing them in the supplier network.

Originality/value

The originality of the framework lies in the integrated approach combining supply chain sustainability risk, supplier quality management and triadic agency relationships.

The Six Sigma framework improves the awareness and management of supply-chain risk

Purpose

Modern supply chains are at risk as a result of increasing disturbance. The use of Lean and Six Sigma’'s values, methods and tools can be one option to analyze, prevent and mitigate risks. The purpose of this study is to investigate whether a combined Lean Six Sigma philosophy can support the awareness and management of supply-chain risk.

Design/methodology/approach

The methodology followed in the study is based on a literature review and multiple case study, performed by means of qualitative methods of data collection, such as observations on-site, face-to-face interviews and document analysis. Case selection includes the results of research conducted in seven large Swedish companies.

Findings

It has been indicated that Lean and Six Sigma values, methods and tools can be very effective in companies’ efforts to control the supply-chain risks and that they improve the companies’ ability to handle variability and risk management. Lean Six Sigma supports a risk-management culture in the focal companies, but they must involve customers and companies in the supply chain if they wish to create a risk-management culture in the entire supply chain. In order to do this, they can use the Six Sigma training structure, but they need to include more risk tools and methods developed for the supply chain management. It has also been indicated in the literature that if more people involve in 6S projects, the financial results will be better, and the innovation of processes will increase.

Research limitations/implications

These include suggestions for how the companies can use the Six sigma training structure to collaborate in the supply chain.

Practical implications

This study gives practical suggestions for how the companies in supply chain can collaborate and use the Six Sigma training structure for creating a more holistic view of supply chain, which also decrease risks in supply chain.

Originality/value

This study indicates that Lean Six Sigma supports risk awareness and management in the focal companies of the supply chains, which improves companies’ ability to handle variability and risk management. It has also been demonstrated that the companies should use the Six Sigma framework, especially training, as a foundation, and they should create common projects for better collaboration in the supply chain, which will decrease the risks in the entire supply chain.

Social and financial aid for disaster relief operations using CSR and crowdfunding

Purpose

The purpose of this paper is to understand the interlinkages between corporate social responsibility (CSR) and crowdfunding in the context of disaster relief operations (DRO). It intends to explore how information quality moderates the relationship of CSR and crowdfunding to achieve financial and social stability. The study also controls variables such as type of disaster, size of the firm and sector to which the firms belong while drawing implications.

Design/methodology/approach

The study collects empirical data in an Indian context through a structured questionnaire. The respondents belong to organizations which made a financial contribution toward DRO during the past decade (2008–2018). The sample size for data analysis is 232 responses belonging to different industries like plastic, chemical, textile and apparel, automotive parts and electronics, and construction. The study employs partial least squares structural equation modeling for testing the hypothesis.

Findings

Results indicate a positive effect of CSR activities on donation-based crowdfunding to achieve financial and social normalcy in a DRO. CSR can thus be used as an alternate way to support DRO. Results also reveal that quality of information positively impacts the relationship between crowdfunding and social aid as well as financial aid offered to the victims of the disasters. It is further observed that the type of disaster accounts for the inflow and frequency of funds made by companies as a part of their CSR activities.

Research limitations/implications

The study restricts its analysis to CSR contributions made by Indian firms for DRO in an Indian context. While the study is centered in an Indian context, it holds strong implications by offering guidelines and framework for integrating funds of the government, CSR contributions of companies and donations made by citizens. The outcome also provokes thoughts on testing the results with multiple disasters across the globe in order to validate the findings and possibly extend them.

Originality/value

The approach of the study holds a unique slot in understanding concepts relating to CSR, crowdfunding and information science literature in the context of DRO. The study offers unique contribution in making the readers aware how CSR funds, when guided through a donation-based crowdfunding platform can help achieve social and financial aid for the victims of natural disaster.

Identification and causal assessment of supply chain flexibility

Purpose

The purpose of this paper is to map the causal relations among various supply chain flexibility (SCF) dimensions having significant impact on the Indian personal hygiene industry.

Design/methodology/approach

The author(s) have gone through extensive literature review and extracted 22 SCF dimensions. After conducting field visits and expert interaction in the firm related to case industry, 11 major SCF dimensions that seem to have a significant amount of influence on supply chain performance of the firms were retained for further consideration. The author(s) have used decision making trial and evaluation laboratory (DEMATEL) to establish initial causality and structural equation model (SEM) to investigate the contribution of different flexibility dimensions on overall SCF.

Findings

After DEMATEL analysis, three major SCF dimensions were considered for SEM modeling. The result shows that product flexibility and physical distribution flexibility have favorable influence on the SCF, while the demand management flexibility adversely impacts overall SCF.

Practical implications

The approach adopted in the study can help firms to determine and exercise the flexibility dimensions of a particular supply chain. The DEMATEL and SEM offer a facilitation to explain the causal relationship between the different dimensions to take long-term decisions and address the uncertainty in the demand and supply side.

Originality/value

This paper has made an attempt to evaluate the supply chain flexibilities, prioritize them and evaluate the relationship amongst these flexibilities and the degree to which they affect or are affected by one another in the Indian personal hygiene industry.

The Relationship between Corporate Sustainability Disclosure and Firm Financial Performance in Johannesburg Stock Exchange (JSE) Listed Mining Companies

Whether corporate sustainability disclosure (CSD) affects profitability remains indistinct to many firms. This paper examines the relationship between corporate sustainability disclosure and return on investment. The sample of this study consisted of ten Johannesburg Stock Exchange (JSE)-listed mining companies, and the data was extracted from sustainability reports for a period of five years from 2010 to 2014. In this regard, data collection was undertaken by the adoption of a content analysis approach. A multi-regression analysis was used to analyze the relationship between environmental disclosure and return on investment. The same statistical mechanism was employed to determine the association involving social disclosure and return on investment. Results show that there is a negative relationship between environmental disclosure and return on investment. On the other hand, the research reveals that there is also a positive association between social disclosure and return on investment. This implies that an increase in corporate reporting of social issues results in heightened financial performance through an increase in return on investment. This study recommends the adoption of corporate social disclosure as it will encourage firms to be socially responsible, while also generating financial benefits. Further studies can be conducted about the change from voluntary corporate social disclosure to mandatory disclosure.

Motives, processes and practices of sustainable sourcing: a literature review

Purpose

This paper aims to attempt to examine pressures, incentives, processes and practices used for sustainable sourcing. Further, it also proposes a framework to provide a composite method for monitoring and controlling the sustainability aspects of supply management. This would enable suppliers to consider buyers’ requirements, translate these into suitable strategies, assess suppliers’ capabilities and also judge the impact of these strategies on suppliers.

Design/methodology/approach

This study opts for literature review as a method. In total, 150 research papers in peer-reviewed English language journals were reviewed to examine the pressures, incentives, processes and practices used for sustainable sourcing.

Findings

This study attempts to answer the “why”-, “what”- and “how”-related questions about sustainable sourcing. It is observed that research in sustainable sourcing is multileveled and involves various functional departments in a firm. It is diverse and fragmented and is more concentrated on certain geographic areas, industries and methodologies.

Practical implications

This study can be helpful to both researchers and practicing managers. It provides a snapshot of the work done on sustainable sourcing, which can be used as a base for research addressing specific aspects of sustainable sourcing or for building strategies related to sustainable sourcing.

Originality/value

This study takes the present reviews available in the literature forward and provides a generic view of sustainable sourcing and proposes a composite method for monitoring and controlling the sustainability aspects of supply management. It attempts to consolidate the diverse literature presently available on sustainable sourcing.

The adoption of sustainable practices: A supplier's perspective

Suppliers' adoption of sustainable practices plays a critical role for global companies to improve environmental performance. Based on the absorptive capacity theory, this study empirically explores how suppliers' knowledge bases and power relationships influence their adoption of sustainability practices. A longitudinal case study with eight suppliers has been conducted. We find that the adoption of leading sustainable practices requires a supplier's good knowledge base whereas a supplier can adopt imitating and toddling sustainable practices even if it has a limited knowledge base. Both the power of internal sustainability teams and external buyers enhance the effects of suppliers' knowledge bases on the adoption of sustainable practices. Suppliers choose the strategy used in adopting sustainable practices according to the configuration of internal and external power. The results enhance the current understandings of the mechanisms through which knowledge bases and power relationships affect the adoption of sustainable practices. The findings can also help global companies improve the effectiveness of their supplier development efforts and enhance the environmental performance of supply chains.

Sustainability orientation, supply chain integration, and SMEs performance: a causal analysis

Purpose

The pressure of globalization has raised social concerns related to the protection of the environment, forced companies to use sustainability as a strategic weapon to fulfill the legal obligations and achieve overall competitiveness. It is reported that small- and medium-sized enterprises (SMEs) are globally responsible for approximately 70 percent of the industrial pollution, justifying urgent attention to the operations of these businesses. The purpose of this paper is to analyze the impact of sustainability orientation (SO) and supply chain (SC) integration implemented by SMEs on their sustainable procurement (SP) and design. Moreover, this study examines how SMEs’ SP and design affect their environmental and cost performance (CP).

Design/methodology/approach

The authors develop a comprehensive model to test the relationships among SC, SC integration, SP, sustainable design (SD), environmental performance (EP) and CP at the SMEs level. The authors investigate the relationships of the mentoned factors by a data set that is collected from 358 Indian manufacturing SMEs.

Findings

The results indicate that in the SMEs’ context: SO positively influences both SP and SD; external integration positively affects SP; internal integration positively affects SD; SP positively influences EP and has not impact on CP; and SD positively influences both EP and CP.

Originality/value

This study provides a broad view of the relation between driving factors that may direct SMEs toward a better sustainability performance and offers practical managerial insights into these important business entities.

Benchmarking self-declared social sustainability initiatives in cocoa sourcing

Purpose

The purpose of this paper is to examine the self-declared sustainability initiatives of the world’s four largest chocolate manufacturers (Ferrero, Mars, Mondelez and Nestlé) and the measures they take to tackle social problems within the context of establishing sustainable sourcing of cocoa in Ghana and the Ivory Coast. Global cocoa supply chains are under continuous media and public scrutiny. Recent incidents of malpractice in supply chain management have left global chocolatiers vulnerable in terms of how they deal with social issues across their global supply chain networks. Critics have argued that there is a lack of consistency and transparency between what companies say and do in upholding sustainable practices across their supply chains.

Design/methodology/approach

The authors draw from the sustainable supply chain literature to develop our theoretical parameters and undertake a case-based analysis of the existing sustainability practices of these chocolatiers. Using the insights from this analysis, the authors propose a conceptual framework for a rigorous comparative assessment of self-declared sustainable sourcing initiatives of global agricultural supply chains. The methodology is qualitative and the research method is a secondary-data case study.

Findings

Four main parameters were identified and used to compare self-declared initiatives, namely: social sustainability certification from respectable bodies; code of conduct for suppliers; partnerships with the primary supply chain stakeholders; and supplier collaboration programme and improvement initiatives. The case companies chosen have implemented several initiatives, but the most prominent seem to indicate the reliance on third-party certification. Not all companies adopted a supplier code of conduct. The partnerships and collaboration programmes with different associations are presented as efficient for companies as well as farmers. Improvements in the conditions of farmers are advocated as a key result.

Research limitations/implications

This paper is based on self-declared secondary data. Subsequently, it is possible that the case companies did not document some practices; or that companies do not do what they claim.

Practical implications

This paper provides a comprehensive framework for agricultural businesses to compare their sustainability efforts and improve the performance of their supply chains, particularly those who belong to the cocoa supply chains. The proposed framework allows an assessment of initiatives at policy, strategic, tactical and operational levels to improve social sustainability of supply chains.

Social implications

This paper may help companies to think more clearly about greater transparency and provide the impetus for dealing more effectively with serious social issues in agricultural supply chains such as: child labour, child trafficking, modern slavery, etc. It may also instruct consumers to better understand what companies do as part of their sustainability agenda, alongside the communication of other features of their products, such as quality.

Originality/value

The framework adds value by providing a novel way to systematically compile and analyse data around self-declared sustainable initiatives. Actors within agricultural supply chains can use the framework to assess and drive their sustainability efforts and practices, leading to ways to improve the social performance of their global supply chains.

Sustainability performance assessment of an aircraft manufacturing firm

Purpose

The purpose of this paper is to develop a composite index (CI) to evaluate the sustainability performance of an aircraft manufacturing firm using Fuzzy Best Worst Multi Criteria (FBWM) decision-making approach. It identifies a wide range of sub-dimensions and their attributes to measure sustainability in a multi-echelon supply chain.

Design/methodology/approach

FBWM, a hybrid multi-criteria decision making method, relies on multiple sub-dimensions and attributes for assessment of sustainability. Sub-dimensions and attributes are identified from a detailed literature review and inputs from 17 experts. The weights are evaluated using best worst method (BWM). Quantitative measurements are very difficult for attributes like living conditions, noise emission, etc., so the performance of attributes are assessed using Fuzzy logic. The proposed methodology is validated with the case study of a single unit of an Indian aircraft manufacturing firm.

Findings

Economic concerns emerge as the most influential dimension of sustainability in the aerospace sector. The results reveal that the firm considered in the case study is “Very Sustainable.” Firm’s performance ratings are excellent in three out of 79 attributes considered for the study. Further, 24 weaker (least performing) attributes are identified with the help of fuzzy performance index. These require managerial action for improvements.

Research limitations/implications

The present study is based on inputs from a small group of managers in a single firm in India. It can be extended to a large group of executives in other firms like Boeing, Airbus, etc. for testing the validity of the proposed methodology and generalization of the findings.

Practical implications

Managers, consultants and audit agencies can use the proposed CI developed in this paper for evaluating the sustainability performance of a firm. It assists managers to identify weaker attributes for which they may plan and prioritize their activities for improvements.

Originality/value

To the best of the authors’ knowledge, this is the first paper to measure sustainability in an aircraft manufacturing firm. The paper proposes a novel framework based on fuzzy BWM, for assessing sustainability performance.