International Letters of Social and Humanistic Sciences Online: 2014-04-19

ISSN: 2300-2697, Vol. 26, pp 148-156

doi:10.18052/www.scipress.com/ILSHS.26.148
© 2014 SciPress Ltd., Switzerland

Sustainable Logistics and Business

Competitiveness

Ioan Constantin Dima1, Janusz Grabara2, Vladimir Modrak3

1University Valahia of Târgovişte, 35 Lt. Stanciu Ion Street, 130105, Târgovişte, Romania
2Czestochowa University of Technology, 69 gen. J. H. Dąbrowskiego St., Częstochowa, Poland
3Technical University of Košice, Bayerova 1, 08001, Prešov, Slovakia
E-mail address: [email protected]

ABSTRACT
Competitiveness, from the point of view of the company, can be defined as the ability to provide
products and services in the same, or a more efficient way, than competitors do. The competitiveness
of companies is, of course influenced by many factors, until recently, it was mainly the quality and price
of goods or services. For some time, often appear another important factor for consumer, when choosing
goods, it is the ratio of the principles of sustainable development. Due to the assumptions of companies
steady growth, and taking into account the limited amount of available resources, we should mention
the assumptions of sustainable development. It promotes activities, that seek to meet the needs of our
generation, not crossed the needs of future generations. At the microeconomic level, the equivalent of
sustainable development is the idea of socially responsible business. Companies that decide to
implement its business principles of sustainable development, they are forced to accept the principle of
socialized business.

Keywords: business; logistics; competitiveness; corporate social responsibility; benefits

1. INTRODUCTION

One of the main goals of sustainable development and corporate social responsibility,
while creating a marketing strategy, is to take into account not only the needs of the
organization, but also a group of entities, that operate in its environment (ie, shareholders,
borrowers, local community). In the name of these principles, business organization target
should be to maximize the company's value, however, with a balance in meeting the needs of
all stakeholders. This requires integrated actions of economic, social and ecological (Biznes
społecznie odpowiedzialny w Polsce). A. Carroll and J. Elkington described CSR as “the
responsibility oforganizations to provide more than economic returns to shareholders” (Babin
& Nicholson, 2012, p. 5).
According to one definition "socially responsible behavior includes all voluntary action
of companies, that are focused on socially important problems (eg, protection and preservation
of the environment and the basics of life) and in the planning horizon, are not focused on
achieving profits, but means giving maximum profitability in the medium- and long term
scale”.

This is an open access article under the CC-BY 4.0 license (https://creativecommons.org/licenses/by/4.0/)
 International Letters of Social and Humanistic Sciences Vol. 26 149

In the literature, corporate social responsibility is represented in three aspects of meaning:

• This is to take into account the interests of all reference groups in making decisions by
the company,
• This is compensation by the management of the public, or the environment, act contrary
to their interests,
• This is the emergence of profit, which allows to conduct or support for social action.
According to the idea of corporate social responsibility, company in its business
operations, developed strategies and everyday decisions, should take into account the
environmental, ethical and social aspects. It is about the social responsibility of enterprises for
the consequences of its actions, which have a direct or indirect impact on the environment (co-
workers, local communities and the environment). In a broader approach to this problem, you
can even take, that actually are all the stakeholders of the company, as at present, in a globalized
world interconnections are getting stronger (Ślusarczyk, 2013, p. 5).
Therefore, all stakeholders have expectations for the company, which it tries to meet,
what's more, the behavior and decisions of these groups have an impact on the achievement of
the objectives set by the company.

2. THE USE OF CORPORATE SOCIAL RESPONSIBILITY IN BUSINESS

Socially responsible behavior is due to the understanding of social expectations. This is

an absolutely new approach to doing business, here, financial gain does not count only, it is
also important for the action of the environmet (Grabara, Kolcun & Kot, 2014; Grabara &
Bosun, 2014; Modrak & Bosun, 2014).
Thus, the responsible management strategy is to build a competitive advantage in the
marketplace, which is based on providing lasting value for both, shareholders and stakeholders.
This strategy is aimed at improving the company's image in the eyes of all stakeholders. This
results in a greater interest from investors, and allows for greater internal coordination. By
identifying needlessly incurred costs, it allows for its reduction. The aim of this strategy is also
to determine the effect of local communities and more effective cooperation with them.
Corporate responsibility is a commitment on the part of businesses to sustainable development,
namely respect for economics, ethics and ecology (Bajdor & Grabara, 2014).
Each company can have one of four basic types of attitudes, towards their social
obligations. They differ in the scope of socially responsible practices. If the company does not
take into account the consequences of their action, and even tries to disguise its negative impact
on the environment, society adopts an attitude of resistance. Extremely different attitude is an
attitude of social contribution. We can talk about it if the company itself, is actively seeking to
assert their social utility and promote all kinds of social activities (Manga, Cotoc & Traistaru,
2013).
Sustainability in business is often treated as a source of constraints, that are introduced
by environmental and social regulations. They are treated as obstacles, because their
performance adds to the cost and inconvenience of doing business. In this perspective, only by
worsening business performance, environment can be improved. On the other hand the "cost
of adaptation to environmental regulations can be minimized or even eliminated, through
innovation, that generate other competitive advantages” (Porter & Class van der Linde, 1995,
p. 101). This is not only a theory. There are many companies creating innovation, eliminating
the harmful technologies. A good example is Germany, in the case of the early adopters of the

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standards of recycling, the company has given many chances to get ahead of noduleas already
developed products with fewer pack. That kind of products are manufactured at a lower cost
and the demand for them is growing.
On the other hand, these regulations produce pressure that motivates companies to
innovation and creative thinking. This causes an increase in resource productivity and reduces
costs thus improving performance. The impact on the company's results may be negative or
positive, it is related to the relative weight of the costs of adjustment and resource productivity.
Often, the usual practice is, that companies use environmental regulations to gain a competitive
advantage (Magnuszewski, 2012, p. 3).
Not all regulations have a positive effect on business and the economy. According to a
study by Michael Porter's, environmental and social regulations, which can be a force for
innovation and competitiveness, are often not appropriate. Because instead set goals that
companies should achieve, they require specific solutions. Not in all cases, these solutions are
beneficial to businesses, so a better solution is to set goals that businesses can achieve, executes
them in the most convenient way. Another factor, negatively affecting business innovation in
solving environmental and social problems is too big uncertainty about legislation (Porter &
Class van der Linde, 1995, p. 103).
Innovation-friendly regulations should meet several conditions. First of all, the
regulations should be realistic, and the innovation process stable and predictable. Particular
emphasis should be placed on results, rather than the use of specific technologies. For more
demanding regulations, it is necessary to introduce the so-called transitional periods.
Adjustments should be made in paralel, with other countries or just before them. With these
conditions, the company and economy can be more environmentally friendly and the public,
as well as more competitive.
Thanks to a number of global trends, related to sustainable, business transformation is
needed. Poland has also faced these challenges, because the regulations and standards in the
field of sustainable development are becoming increasingly common. More and more
companies are also introducing integrated reporting on sustainable development and corporate
social responsibility. Undoubtedly it has an impact on consumer pressure, but it 's starting to
see benefits of this business. More and more companies are promoting so 'green economy', and
try to adapt new standards of operations, in accordance with the principles of sustainable
development (Tabără, 2012; Hristea & Colhon, 2012; Vlăduţescu, 2014). Extremely fast
consumer awareness is changing, 86 % of global consumers believe that the interests of society
are as important as business, and therefore, they are increasingly turning to the ecological and
socially responsible products.
For many companies, their value depends largely on intangible factors, the brand and
reputation. Companies are building their reputations long, and fight for the customers trust, but
these are the values, that can be very Fast and easy to lose. The introduction of the concept of
sustainable development in the company's image, is not an easy task, but it can bring significant
benefits (Grecu & Păun, 2013; Frunză, 2014).
In addition to the competitors, business partners, investors and customers with whom
company must count, now have to take into account the local communities, non-governmental
organizations and employees. Therefore, the complexity of the business environment continues
to grow, requires the use of mechanisms for cooperation and social participation. The ideas of
sustainable development require actions that integrate areas: environmental, social and
economic. Multisectoral cooperation can, thus bring benefits to all stakeholders.
Despite the widespread belief that CSR adds value to the image of the company, strong
competitive pressure, still means, that many companies are settled on their activities only

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through the prism of the interests of shareholders. This trend is particularly evident in the case
of Anglo-Saxon, in which the greatest emphasis is placed on ensuring the growth of profit,
which satisfies the shareholders.
As any new concept, the concept of corporate social responsibility is still very
controversial (Colhon, 2012; Sonderling, 2012; Vlăduţescu, 2013). It has both its supporters
and opponents. Proponents of this idea argue here, that the company is primarily a social sub-
system, which its stability gains through the ability to "absorb" in the needs and expectations
of stakeholders, and social responsibility is a concept which corresponds, by creating order, as
well as facilitating dialogue. Moreover, each company is responsible for their actions and
decisions, as they affect the dimension of economic, legal and social. According to opponents
of the primary objective of the company is profit-making and multiplying its equity capital. So
it should focus its attention on economic, rather than the activity of the resulting moral grounds
(Sokołowska, 2009, p. 23).
Here are the arguments for and against the concept of corporate social responsibility.
Arguments in favor of the concept of corporate social responsibility (Griffin, 2004, p. 121):
• Due to the fact that companies, through its activities, pose problems or risks to the
environment, should also help in solving them,
• Companies also are citizens in our society,
• Most companies are in possession of the necessary resources to solve problems,
• Companies in the same way, as the government or the general public, are partners in
our society.
The arguments against the concept of corporate social responsibility are as follows:
• Due to the fact that companies do not have experience or any skills, that are needed in
the management of social programs,
• According to some, companies by engaging in social programs, have too much power.
• Conflict of interest is possible,
• The main objective of the company is to generate economic profit for owners.
Companies, carrying out their activities taking into account the principles of social
responsibility, can achieve a wide variety of benefits. They are divided into internal, ie those
of the internal environment of the company, and the ones that relate to the relationships within
a company, for example, among employees (Vlăduţescu & Ciupercă, 2013; Avram & Traistaru,
2014). A socially responsible company, also, bring benefits for society. Of course, the scale is
dependent on the scope of activities that the company undertakes in the framework of
sustainable development. The business benefits are as follows (Hohnen & Potts, 2007, p. 23):
• The increased interest of investors - the company taking into account the social
dimension of their activities, is more likely to obtain financing, because lenders prefer to
work with companies, that are managed in a transparent manner and responsibly build
their image, also ensuring a good relationship with the environment. Important is of
course, also a good financial results, but often the financial credibility of the company
depends upon the social credibility,
• Increased loyalty of stakeholders and consumers - due to the increasing awareness of
consumers, the choice of goods or services does not imply they base their choice only on
offered price, but quality of goods is also important company image. Customers
increasingly want to wake positive associations with the product, which is obviously
related to the observance by the principles of social responsibility.

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• Better relationships with the community and local authorities - where the company
participates in the life of the local community, and undertake certain social investment,
has a chance of working, as well as conflict-free operation. Proceedings of the corporate
social responsibility allow her to gain the favor of the local population and to win favor
with the authorities.
• Increase operational efficiency and cut costs - in the case of Polish companies, CSR gives
them the opportunity to build positions in global markets, as an increasing number of
companies act in accordance with the social responsibility of business is a key factor in
choosing partners.
• A higher level of organizational culture - the higher standards of behavior towards
stakeholders and other members of the company, thus avoiding the so-called the cost of
"bad partnership". Corporate culture is therefore based on trust, accountability and
transparency.
• A positive image of the company among employees - ie. Nonfinancial motivation of
employees, achieved by respecting the principles of corporate social responsibility codes
of ethical, social programs or care about the image of the company. If workers perceive
that the company is working to solve the essential, also for their, social problems, with a
greater appreciation they relate to its functioning.
• Acquiring and retaining the best employees - the better the image of the company and
the more trust have for the employees and customers, the greater the attractiveness of the
labor market. Thus, the company manages to retain the best professionals, as well as
attract new ones.
• Improving innovation, competitiveness and market position - corporate social
responsibility should be understood as an extension of more opportunities than risk
avoidance. The use of new opportunities and ideas, provides an opportunity for new
innovative solutions.
• Ability to build effective and efficient supply chain and partner relationships - every
business is vulnerable to being the weakest link in the supply chain. However, companies
with similar views can build long-term business relationships, by improving the standard
and thus reduce the risk. Large companies can, however, affect small businesses,
convincing them to implement CSR.
• Increased ability to respond to changes in the market - the company through dialogue
with stakeholders and tracking market situation, is better able to respond to any changes
and quickly adapt to them. More and more companies use the CSR as the "radar" to detect
the changing trends in the marketplace (Modrak & Dima, 2010; Dima & Vlăduţescu,
2012).
Sustainable competitiveness should be understood as a remedy for the so-called. "Cancer
myopia". Sustainable competitiveness is more than a strategy to protect the environment, it
means achieving competitive advantage today without detriment to future competitiveness.
The competitiveness itself involves doing something better than anyone else, showing their
strengths and talents.

3. CONCLUSIONS

From a business perspective, sustainable competitiveness means much more than

achieving material benefits. It is about maintaining a competitive edge, through continuous
improvements and innovations that will distinguish company from the competition. When it

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comes to the perception of the competitiveness from the perspective of it, is the best possible
management of their resources (land, capital, knowledge) and competence (skills,
infrastructure). The sustainable competitiveness in terms of increased benefits, after a certain
commitment, companies will be able to draw. It is also important to improve the shortcomings
in order to achieve greater prosperity, higher living standards and social development.
People often ask how we can strive for sustainable competitiveness. Is important here the
cooperation of enterprises and nations. Thus enterprises generate wealth and the state must
provide adequate protection of the environment. However, if they can pull together, they will
achieve more. For its part, the companies should provide to its business principles of
sustainable development, however, in return, should receive support from the state. The
government should provide a stable and long-term investments in resources that are necessary
for the enterprise; getting a proper education and skills in the field of environmental protection.
The rules should encourage companies, operating in accordance with the principles of
sustainable development, and severely punish corruption and other offenses companies. The
rules should be effectively implemented and enforced, should be capable of fair competition.
Not only the company, but also the state should take appropriate steps to give a chance to the
company, to gradual introduction to the principles of sustainable development activities. This
seems obvious, but when it comes to a choice between short term and long-term profits, many
politicians opting for the first. And therein lies the biggest problem. Sustainable development
assumes, at present, sacrifices to achieve long-term improvements in the future. Even if the
short-term gains are achieved, there is a risk that they may threaten the competitiveness and
prosperity of future generations.

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( Received 12 April 2014; accepted 18 April 2014 )