Going Local or Ecological ? - Comparative Research in Environmental Supply Chain Management ( ESCM ) Focusing on HSE and CSR in Sweden and in Japan - Student : Supervisor :

Environmental Supply Chain Management (ESCM) has contributed to reducing environmental impacts through various approaches such as by increasing cooperation with suppliers and improving transportation efficiency. However, food scares caused by Bovine Spongiform Encephalophy (BSE) outbreaks that occurred in 1986 in beef (BSE Inquiry, 2003) and the uncertainty surrounding Genetically Modified Organisms (GMO) brought about considerable impacts in retailing business and resulted in a loss of consumer trust, which forced food retailers to reconsider their Supply Chain Management (SCM). In order to regain customer trust and to respond to increasing interests in Health, Safety and the Environment (HSE) and Corporate Social Responsibility (CSR) arising from food scares, some food retailers already started expanding the concept of ESCM to seek further sustainability. This research tries to show how food retailers enhance ESCM by adding HSE and CSR aspects. The main focus here is on practices related to the purchasing process of local and long-distance supply, especially fruit and vegetables. Two food retailers each in Sweden and in Japan are chosen as case studies to compare practices. The finding shows that food retailers in each country try to fulfill customer demand of HSE and CSR by taking different approaches. Concerning a product, the retailers in Sweden increase the portion of ecological products with KRAV labeling, while the retailers in Japan increase the portion of local supply. Another aspect was identified in how the retailers influence long-distance suppliers. While the food retailers in Sweden use SA8000 standard and checklists to assure suppliers’ practices, the food retailers in Japan have close contacts with retailers to help them to improve the quality of the products, working conditions and other social issues. Even though their approaches are different, the four companies all positively contribute to HSE and CSR. Additional activities to enhance ESCM found in this research are relocating distribution centers, reusing pallets and transport packaging, communicating with consumers, and composting. These activities to improve HSE and CSR related issues give food retailers competitiveness.