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VAAL UNIVERSITY OF TECHNOLOGY (SOUTH AFRICA)
Faculty : Management Sciences
Department : Marketing, Retail Business and Sport Management
Course name : Retail Business Management
Topic :How retail operations affect and contribute to climatic change and
sustainability issues . The different ways and approaches retailers can adopt to
impact of their operations on the environment and how they can promote
sustainable behaviours.
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Table of Contents
INTRODUCTION 3
THE SOCIAL SUSTAINABILITY ISSUES 3
THE PRODUCT MANUFACTURING ISSUES 7
THE PRODUCT PACKAGING AND INVENTORY MANAGEMENT ISSUES 8
THE LOGISTICS AND TRANSPORTATION 9
WASTE DISPOSAL 10
HOW RETAILERS CAN ENCOURAGE SUSTAINABILITY………………………………………………………………………11
CONCLUSION……………………………………………………………………………………………………………………………………13
REFERENCES…………………………………………………………………………………………………………………………………….14
Introduction
According to Smith (2007) the impact and contribution of retail operations to climate
change will continue to dominate retailers' sustainability concerns because of the
increased focus on the transportation emissions of consumers traveling to the stores,
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retail activities contribute to climate change and may encourage more online
shopping and home delivery (and possibly the use of more environmentally friendly
vehicles in retail logistics).
Global supply chains could become stretched as a result of climate change, which
could jeopardize food security (exacerbated by other factors, e.g. world population
growth, increase of non-food crops for bio-fuels)
Increased monitoring of water use in areas where goods are obtained from poor
nations and pressure to respect the water rights of indigenous people a rise in
seasonal, regional food preferences, maybe coupled by a rise in the accessibility of
vegetables grown on one's own property.
Reduced reliance on foreign suppliers, especially when there are more
environmentally friendly options available, notably for air freight (exacerbated by
other factors such as higher oil prices)
Retailers' attempts to promote social sustainability have a big effect on their ability to
function. Inadequate social development can also obstruct the functioning and
expansion of businesses. Examples include poverty, inequality, and a weak legal
system (Ricee, 2020).
Social sustainability issues:
According to Unnikrishnan ( 2022) Child labor, poverty, and disease in developing
countries are some of the primary problems connected to social sustainability. There
are obviously important challenges at hand that society as a whole needs to
address. Paying fair wages, conducting thorough supplier audits to prevent child
labor, respect workers' employment rights, and address health and safety issues,
providing healthcare and educational benefits to employees and their families, and
funding initiatives for nearby communities where the retailer and its suppliers are
based are all ways that retailers can help improve social sustainability (Goworek &
McGoldrick, 2015).
Retailers' use of local initiatives to advertise their goods was discussed. If a store
tries to capitalize on a customer's or the media's support for a philanthropic cause,
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they risk facing backlash from both groups. Retailers' assistance might be beneficial
to the nearby communities of their suppliers.
Retailers might choose to purchase from brands and suppliers who have robust
social sustainability policies as part of their CSR plans. The Ethical Trading Initiative
(ETI), an organization that promotes respect for workers globally, is one that urges
businesses to buy more socially responsible items (ETI, 2014). The ETI is a coalition
of merchants, brands, trade unions, and NGOs that can assist member organizations
by offering guidance on adopting a code of labor practice to enable them to acquire
goods that are socially responsible (Sivaraman, 2020).
Human rights
Retailers must exercise due diligence to avoid violating the rights of others,
which includes resolving any adverse effects on human rights caused by their
operations. They must also follow international laws and refrain from acting in
a way that would have a negative effect on human rights or contribute to such
an effect.
Retailers can voluntarily and effectively support human rights by making a
contribution. To encourage group action, they might for instance, invest in
communities and public policy advocacy, foster a diverse and inclusive
workplace culture or involve employees and the community in their efforts.
While it is encouraged to take these kinds of steps in favour of human rights,
they do not substitute for nor do they offset respect for human rights.
Labour and Decent Work
Businesses and retailers can demonstrate respect for workers' rights and
advance decent work by committing to ambitious goals to better the lives of
employees and taking action to put policies into reality, especially in their
supply chains. Companies must increase their attention to human rights in
order to recognize, stop, lessen, and account for all adverse effects on
workers in their operations and value chains. By doing this, we may address
