15th Panhellenic Logistics Conference & 1st Southeast European Congress on Supply Chain Management Lambros Lazuras1, Panagiotis Ketikidis1,2, Andreas Baresel‐Bofinger1 1South‐East European Research Centre (SEERC) 2CITY College, International Faculty of the University of Sheffield
Who’s your speaker Lambros Lazuras, PhD Chartered Psychologist, The British Psychological Society Research Associate, SEERC Lecturer in Psychology, CITY College International Faculty of the University
of Sheffield Research Interests
Social attitudes towards public health and energy policies
Acceptance and compliance with policies
Risk perception and decision‐making processes 18/11/2011
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Contents GSCM: A challenge for globalized markets Understanding the role and function of humans in the SC The role of the human factor in promoting GSCM The psychological perspective
A behavioural model for effective and sustainable GSCM strategy
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Current state of affairs Worldwide rising awareness of environmental aspects of
economic activity Environmental performance relates to the entire supply chain Growing framework of strict environmental regulations Companies implement practices to manage green issues along
their supply chain (Zhu and Sarkis, 2006; Zhu et al., 2008)
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Green Supply Chain Management GSCM: Management practices integrating environmental
aspects into the operation of the supply chain (Zhu et al., 2005) SCM policies, actions, and relationships formed in response to
environmental concerns Design, acquisition, production, distribution, use, reuse, and
disposal of the firm's goods and services (Zsidisin and Siferd, 2001)
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Greening the Supply Chain
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The importance of people in the SC • What’s important is the people involved in the entire SC • Even more so in GSCM adoption • A shift in paradigm: Can’t ‘green’ the SC, without ‘greening’ the people taking part in it
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Empirical evidence Human‐related impediments to GSCM adoption Values and commitment of employees (Hanna et al., 2000) Managerial support and practices (Zhu et al., 2008) Symbolic meaning vs. espoused values and long‐term
sustainability plan (Darnall et al., 2008) Cost implications (Luthra et al., 2011) 18/11/2011
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Promoting GSCM Perspectives to guide evidence‐based GSCM (Mollenkopf et al., 2010) Theory‐driven research Multi‐functional approach Systems approach that adds strategic insight Psychological perspective Theory‐driven Role and impact of the human factor in the entire SC
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Mindset and behaviour change
Engage all people involved in the entire SC
Increase participation in green development initiatives
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Bolster ‘green’ decision making
Promote internal motivation
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Psychological perspective of GSCM
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Understanding the problem Why do people fail to respond to climate change, adopt green
policies and eco‐friendly lifestyles? Limited cognition Optimism bias Social norms Sunk costs Limited behaviour (rebound effect) (Swim et al., 2011) 18/11/2011
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Limited cognition Do people understand the importance of GSCM
practices? Are they aware of the impact of green practices on the
environment? Do they see the ‘bigger picture’ in environmental and
economic sustainability?
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Optimism bias
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Optimism bias characteristics Discounting the risks of our behaviours and actions (Weinstein, 1980)
Discounting environmental risks (Pahl et al., 2005) ‘Our company will survive, even if we do not change our
outlook and practices’
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Social norms GSCM practices as a ‘fashion trend’ (Bofinger et al., 2011) Adopting GSCM or simply following others? Not enough for long‐term sustainable development Need to increase intrinsic motivation
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Sunk costs People are loss‐averse and do not like dispensing
their investments (Arkes & Hutzel, 2000) Sunk costs ≠ Investment in GSCM (AlKhidir & Zailani, 2009) Rational decision making: Invest in GSCM
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Finding the balance
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Limited behaviour Minimum effort (Darnall et al., 2008) Environmental practices are used for symbolic and
marketing reasons, and are not valid indicators of sustainability (Bansal & Clelland, 2004) Rebound effect (Gifford, 2011)
Is it enough to implement a waste management system and ignore other aspects of GSCM? 18/11/2011
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Changing the mindset 1/2 Affective, cognitive, and motivational process (Swim et al., 2011; Gifford, 2011)
Legislative context: still an external pressure!
Bending the rules
Minimum effort to adopt GSCM practices
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Changing the mindset 2/2 Training
Awareness raising
Decision‐making
Action planning
Customer engagement (Svensson & Wagner, 2011)
Swedish fast food: Knowing the environmental footprint of your dietary habits 18/11/2011
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The road ahead... Empirically assess the impact of changing mindsets and
behaviours on GSCM adoption Identify effective training strategies that will minimize
human‐related impediments to GSCM adoption Effectively engage all parties of the SC in green initiatives
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Summary Organizations and enterprises must consider their impact
on global warming and climate change Adopting GSCM practices will reduce the ecological
footprint of the entire SC The psychological perspective provides a better
understanding of the human factor in GSCM adoption
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