Uzovi 2017
Uzovi 2017
Uzovi 2017
MANAGING ENVIRONMENTAL
COMPONENT OF SUSTAINABLE
DEVELOPMENT IN TRADE SECTOR
OF SERBIA
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
ABSTRACT
141
142 Sreten C¡ uzovic¡ and Svetlana Sokolov Mladenovic¡
INTRODUCTION
the principles of “polluter pays” and “consumer pays for the use
of natural energy sources and raw materials.” These principles
have a major impact on solving environmental problems, which
further affects business modernization and innovation, both in the
field of environmental protection and in companies from all
spheres of the economy.
Trade, particularly retail, is an important segment of an econ-
omy. It is in direct contact with consumers, which represent its
starting and ending point. At the same time, in modern business
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
Author(s) Definition
Costanza and Patten (1995, p. 193) “The main idea of sustainability is simple:
sustainable system is one that survives and
subsists.”
United Nations Environment “Sustainable development depends on the
Programme Finance Initiative (1997) positive interaction between economic and social
development and protection of the environment,
i.e. balance of interests of present and future
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
generations.”
Parris and Kates (2003, p. 581) “Sustainable development involves meeting basic
human needs, while reducing hunger and poverty
and preserving the eco-system.”
Ehrenfeld (2005, pp. 24 25) “Sustainability provides an opportunity for all
forms of life. For people, it is the survival and
maintenance, as well as a sense of dignity…
Finally, sustainability requires responsible, ethical
choices everywhere in daily life.”
United Nations General Assembly “Sustainable development with its economic,
(2005, p. 2) environmental, and social component is a key
element of United Nations.”
Lozano (2008, p. 8) “In order to achieve sustainable development, a
holistic, continuous, and interactive relationship
between economic, environmental, and social
aspects is needed, and that every decision has its
implications on all these aspects today and in the
future.”
Social/People Economic/Profit
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
Environmental/Planet
Source: Authors.
Sustainable retailing
transportation
Source: Authors.
Rank Company Country Revenue in 2015 Economic Component Environmental Component of Social Component of
(in millions $) of Sustainable Sustainable Development Sustainable Development
Developm ent
149
Source: Authors’ analysis is based on ALDI Corporate Responsibility Policy, 2015; Amazon.com, Inc. Sustainability Report 2015; Carrefour 2014 Annual Activity and Sustainability Report; Corporate
Social Responsibility Report 2015; Costco Corporate Sustainability Report 2015; Deloitte Touche Tohmatsu Limited. Global Powers of Retailing 2017; Home Depot Sustainability Report 2015; Kroger
Sustainability Report 2016; Wal-Mart 2016 Global Responsibility Report; Target Corporate Responsibility Report 2015.
150 Sreten C¡ uzovic¡ and Svetlana Sokolov Mladenovic¡
1
ment system) quality standards in 1996. ISO further improved
this standard in 2004 with the adoption of ISO 14001:2004 and
ISO 14004:2004 standards. 14001:2004 standard defines EMS
while identifying and controlling environmental impact on activi-
ties, products, and services, improving EMS performance, and
implementing a systemic approach to EMS. ISO 14004:2004 stan-
dard is a kind of general guideline for EMS implementation, pro-
viding guidelines for the implementation of EMS elements and
principles and specifying the requirements for each EMS system
(ISO 14000 Environmental management).
Jeopardizing the living and working environment leads to
convergence of trade and ecology. On this basis, the so-called
eco-trade and eco-marketing come into focus. Under such circum-
stances, the environmental movement (the so-called Green) comes
into play, with their initiatives and proposals that, in addition to
manufacturers and trade, the state should also get involved with
the issue of protection of living and working environment. In this
regard, it is understood that producers, trade, and consumers can-
not avoid environmental responsibility. Eco-quality, eco-packaging,
eco-product, packaging recycling, and reduction in environmental
pollution are binding elements of trading pillars’ business policy.
However, the state should have regulations to force the participants
in the market chain to care about ecology. Viewed through the
prism of economic policy, it is operationalized through the
152 Sreten C¡ uzovic¡ and Svetlana Sokolov Mladenovic¡
METHODOLOGY RESEARCH
during the global financial and economic crisis, with its spillover
effect on the Serbian economy. When it comes to the trade sector,
as part of the overall Serbian economy, it is important that its
development in the last 15 years has been more intense in relation
to the overall economic development of Serbia (C¡ uzovic¡ &
Sokolov Mladenovic¡, 2016). Gross domestic product (GDP) of the
Republic of Serbia in the last 15-year period had an average
growth rate of 3.0% per year. From 2007 to 2015, the growth
rate slowed down significantly (0.6% on average per year)
(Lovreta, Petkovic¡, Bogetic¡, & Stojkovic¡, 2016).
In the period after 2000, trade sector was dynamically develop-
ing. Despite the large number of barriers to development, it can be
concluded that trade significantly improved over the last 15 years.
High growth rates, particularly in the period from 2002 to 2007,
can be seen in Fig. 3.
High growth rates in the first years of the 21st century are
largely the result of a low starting base, since the Serbian trade
during the 1990s was largely destroyed and structurally regres-
sing. In addition, much of the trade was coming back from gray
channels where it once was, so that the annual growth rate of
over 20% or even 36% was not realistic. In any case, 2007
recorded very high growth rates in trade. This period was marked
by the introduction of modern trade formats on the Serbian mar-
ket, which significantly increased the number of modern super-
markets and hypermarkets in large urban areas, with the
Managing Environmental Component of Sustainable Development 155
Fig. 3. GDP Growth Rate of Serbian Trade in the Period 2002 2014.
12.00
10.50 10.40
8.00
7.20
6.60
5.90
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
6.00
4.00
2.00
-
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
Source: Authors’ calculation based on Statistical Office of the Republic of Serbia, 2005 2014.
companies in total
Source: Authors’s calculation based on Statistical Office of the Republic of Serbia, 2005-2014.
Source: Authors’ calculation based on Statistical Office of the Republic of Serbia, 2005 2014.
SRPS ISO 9001 (Quality Management 2,733 1,790 3,228 2,750 2,366
System QMS)
SRPS ISO 14001 (Environmental 298 318 573 736 762
Management System EMS)
SRPS EN ISO 22000 (Food Safety 26 116 145 172 193
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
Management System)
SRPS ISO/TS 16949 (ISO 9001 in 10 11 15 18 26
automotive industry)
SRPS ISO/IEC 27001 (Information 3 8 9 25 43
Security Management System)
Source: Authors’s calculation based on Strategy for the Improvement of Quality Infrastructure in the
Republic of Serbia 2015-2020, Official Gazette of RS, 93/15.
ISO 14001
Trade 11 26 44 96 537
Total industrial sector 216 269 489 831 4,950
Share of trade sector in the total number of 51 97 90 115 108
certificates
ISO 9001
Trade 264 210 397 473 1,186
Total industrial sector 1,786 1,240 2,490 2,831 15,933
Share of trade sector in the total number of 148 169 159 167 74
certificates
looks at the period from 2010 to 2014, the share of trade in the
total number of ISO 9001 certificates was significant, with 16.9%
in 2011, 15.9% in 2012, and 16.7% in 2013. A bit worse share
of Serbian trade was noted with respect to the number of ISO
14001 certificates in the total number of certificates in the indus-
trial sector. Thus, in 2011, its share was 5.1%, while the signifi-
cantly higher share was recorded in 2013 and 2014 (11.5% and
10.8%).
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
Source: Authors’s calculation based on Business Registers Agency (2016). Retrieved from http://pre-
traga2.apr.gov.rs/ObjedinjenePretrage/Search/Search, http://mtt.gov.rs/informacije/baza-trgovackih-
preduzeca-i-preduzetnika/ (18 February 2017).
160 Sreten C¡ uzovic¡ and Svetlana Sokolov Mladenovic¡
trade caring for its consumers, following world trends, and intro-
ducing innovation in all business segments. This international
retail chain, which operates on three continents, in nine countries,
through more than 3,500 stores, with 160,000 employees, has
almost a century of tradition in the field of sales of food products,
and brings Serbia a change in the sale of consumer goods. Since
then, Maxi is intensively expanding its product range, raising
quality, improving formulation and design. As part of its business,
Delhaize nurtures sustainable business, with emphasis on sustain-
able private label products, diversity and development of employ-
ees, healthy lifestyle, and taking care of nature. When talking
about sustainable private label products, it is important that they
do not compromise sources of raw materials, so Delhaize Serbia
has focused on globally threatened supply chains, such as palm
oil, fish, and wood fibers. It is also important that all food sold
under private brand is healthy and properly labeled, and to
respect the highest safety standards of production and occupa-
tional safety. Caring for nature is woven into Delhaize Serbia busi-
ness. Energy savings measures are implemented daily (closing the
cabinets, energy-saving lighting, monitoring), from recycling waste
generated during operation, even consumer packaging waste, to
the introduction of fuel-efficient trucks into fleet. The impact on
global warming and pollution of nature are carefully monitored
and reduced every day. These aspects confirm that this is a
Managing Environmental Component of Sustainable Development 161
DIS (http://www.dis.rs/drustvena-odgovornost/donacije-i-ula-
ganja.php), Serbian trading company, has been operating since
1991, first in wholesale operations, and from 2006, in retail activi-
ties as well. The company creates competitive advantage based on
rapid and cheap transportation, high productivity, good organiza-
tion, computerization, and time saving, as evidenced by the fact
that 70% of customers (in the field of wholesale) order goods over
the Internet. The company is trying to offer consumers a diverse
range of products in its retail outlets (supermarkets), as well as
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
products under DOBRO, its own trademark. So, its business pol-
icy orientation is dominated by trademark products.
Univerexport (http://www.univerexport.rs/sr/drustvena-odgo-
vornost) was founded in 1990 as a small family business with four
employees, with an orientation to trade as the main activity.
Today, Univerexport group is the largest domestic retail chain
with over 120 retail outlets, 2,500 employees, more than 600
brands, its own production, consumer favorite on-line ordering
service, eLAKOLIJE, with free shipping, its farm Bac^ka, recogniz-
able quality of services, and reasonable prices. Through rational
use of energy and natural resources, support to the recycling pro-
cess, quality certification, product safety laboratory analyses, as
well as numerous projects, Univerexport contributes to environ-
mental policy. Numerous projects in the field of corporate social
responsibility and environmental protection have become part of
Univerexport’s business policy. With “Alter Eko Logika,” a non-
profit organization from Novi Sad, it realized a project focused on
the collection of portable batteries, their proper storage, and sub-
sequent recycling in order to raise environmental awareness
among citizens. From the beginning of 2011, consumers put their
batteries in specially marked and prepared boxes in the largest
Univerexport facilities, thus contributing to this project. Under the
slogan “Let’s plant, not cut,” consumers recognized the impor-
tance of the project, whose objective was to donate Christmas
trees for the purpose of greening of public spaces in municipalities
164 Sreten C¡ uzovic¡ and Svetlana Sokolov Mladenovic¡
CONCLUSION
NOTE
ACKNOWLEDGMENTS
The paper is part of the research within the Project No. 179081,
Downloaded by Universite de Sherbrooke At 21:43 21 February 2018 (PT)
REFERENCES
2017.
http://www.dis.rs/drustvena-odgovornost/donacije-i-ulaganja.php
http://www.idea.rs/Zajednica/Drustvena-odgovornost
http://www.iso.org/iso/home/standards/management-standards/
iso_9000.htm Accessed on February 11, 2017.
http://www.kvalitet.org.rs/standardi
http://www.pks.rs/PrivredaSrbije.aspx?id=21&p=0&
http://www.univerexport.rs/sr/drustvena-odgovornost
https://www.maxi.rs/odrzivo-poslovanje
Managing Environmental Component of Sustainable Development 171
https://www.metro.rs/press
ISO 14000 - Environmental management. Retrived from http://
www.iso.org/iso/home/standards/management-standards/
iso14000.htm. Accessed on February 10, 2017.
Jones, P., Comfort, D., & Eastwood, I. (2005). Retailers and sus-
tainable development in the UK. International Journal of Retail &
Distribution Management, 33(3), 207 214.
www.unepfi.org/fileadmin/statements/fi/fi_statement_en.pdf.
Accessed on February 10, 2017.
2017.
Wiese, A. Kellner, J., Lietke, B., Toporowski, W., & Zielke, S.
(2012). Sustainability in retailing A summative content analysis.
International Journal of Retail & Distribution Management,
40(4), 318 335.