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Greening the Supply Chain Through CSR: A Model for Assessing Sustainability Using Fuzzy-Based PPP Approach

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Sustainable Supply Chains: Strategies, Issues, and Models

Abstract

Climate change and global warming have hit the boardrooms of corporations more than ever before. Sustainability indices have become important criteria in today’s parlance to assess the risk of investing or collaborating with any company as part of their supply chain strategy. Many international firms provide these indices used by corporations to assess sustainability and collaborate. In a competing scenario, there is a need for companies in developing economies like India to be on par with their counterparts across the world by obtaining good sustainability scores. Towards this, one of the measures the Government in India has taken is mandating transparency in Corporate Social Responsibility (CSR) reporting through The Companies Act 2013. Since then large amounts of money that have been spent in specific areas have been reported towards achieving the societal needs and as part of that towards greening the supply chain. Using data obtained from the annual reports of NIFTY indexed companies, this paper develops a fuzzy-logic-based model to obtain a sustainability score for companies. The inputs used in the model deal with the triple bottom line criteria—Profit, People and Planet (PPP). Using fuzzy logic, rules have been created that define sustainability. This chapter also discusses the patterns in the sustainability scores obtained with respect to the NIFTY indexed companies.

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Correspondence to M. S. Sai Vinod .

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This work is an offering of respect and love to the Revered Founder Chancellor of Sri Sathya Sai Institute of Higher Learning—Bhagawan Sri Sathya Sai Baba.

Appendices

Annexure 1: PPP Orientation and Sustainability Scores of NIFTY Indexed Companies for 2014–15 to 2015–16

Company name

Profit oriented

People oriented

Planet oriented

Sustainability

Adani Ports and Special Economic Zone Ltd.

0.4049

0.4014

0.5333

0.4343

Ambuja Cements Ltd.

0.3509

0.5458

0.3890

0.4163

Asian Paints Ltd.

0.3967

0.5851

0.4114

0.5635

Aurobindo Pharma Ltd.

0.4673

0.5358

0.4167

0.6805

Axis Bank Ltd.

0.4278

0.3990

0.4870

0.4392

Bajaj Auto Ltd.

0.2572

0.3135

0.6875

0.5762

Bajaj Finance Ltd.

0.2808

0.7279

0.2500

0.5000

Bharat Petroleum Corporation Ltd.

0.4088

0.4453

0.5632

0.7058

Bharti Airtel Ltd.

0.5333

0.4271

0.3838

0.4808

Bharti Infratel Ltd.

0.2857

0.2509

0.7497

0.5000

Bosch Ltd.

0.3688

0.6185

0.2500

0.4403

Cipla Ltd.

0.3794

0.4931

0.3750

0.4181

Coal India Ltd.

0.2465

0.4546

0.5454

0.5000

Dr. Reddy’s Laboratories Ltd.

0.4082

0.5118

0.3750

0.4730

Eicher Motors Ltd.

0.5000

0.5000

0.2500

0.5000

GAIL (India) Ltd.

0.2493

0.2575

0.7500

0.5000

HCL Technologies Ltd.

0.4470

0.5030

0.3701

0.5779

HDFC Bank Ltd.

0.4746

0.5154

0.2500

0.5000

Hero MotoCorp Ltd.

0.3282

0.6609

0.2500

0.5880

Hindalco Industries Ltd.

0.3776

0.3957

0.4119

0.4073

Hindustan Petroleum Corporation Ltd.

0.3333

0.3337

0.6663

0.5972

Hindustan Unilever Ltd.

0.4592

0.4026

0.3898

0.4205

Housing Development Finance Corporation Ltd.

0.2658

0.2602

0.7500

0.5000

I T C Ltd.

0.4203

0.4085

0.4720

0.4335

ICICI Bank Ltd.

0.5178

0.3960

0.3750

0.4169

Indiabulls Housing Finance Ltd.

0.3893

0.5941

0.2500

0.5871

Indian Oil Corporation Ltd.

0.4210

0.4521

0.4771

0.5248

IndusInd Bank Ltd.

0.4391

0.4758

0.4657

0.5840

Infosys Ltd.

0.2602

0.2499

0.7500

0.5000

Kotak Mahindra Bank Ltd.

0.4209

0.4476

0.3750

0.4779

Larsen & Toubro Ltd.

0.3562

0.5837

0.3478

0.4078

Lupin Ltd.

0.4602

0.4791

0.3780

0.5762

Mahindra & Mahindra Ltd.

0.3924

0.3920

0.4531

0.4046

Maruti Suzuki India Ltd.

0.4747

0.5035

0.2808

0.5443

NTPC Ltd.

0.3465

0.6337

0.2500

0.5372

Oil & Natural Gas Corporation Ltd.

0.3797

0.3861

0.3612

0.3841

Power Grid Corporation of India Ltd.

0.2634

0.5852

0.3981

0.6148

Reliance Industries Ltd.

0.4299

0.3794

0.3887

0.3940

State Bank of India

0.2531

0.2510

0.7500

0.5000

Sun Pharmaceutical Industries Ltd.

0.2593

0.6475

0.2500

0.5000

Tata Consultancy Services Ltd.

0.4806

0.4409

0.3718

0.4860

Tata Motors Ltd.

0.3946

0.4035

0.3941

0.4105

Tata Steel Ltd.

0.3749

0.4488

0.3795

0.4060

Tech Mahindra Ltd.

0.5534

0.3531

0.3870

0.4499

UltraTech Cement Ltd.

0.3810

0.4077

0.4615

0.4269

UPL Ltd.

0.4432

0.3985

0.4403

0.4231

Vedanta Ltd.

0.4230

0.3741

0.3952

0.3978

Wipro Ltd.

0.4405

0.4165

0.4646

0.4416

Yes Bank Ltd.

0.4429

0.4662

0.5345

0.6185

Zee Entertainment Enterprises Ltd.

0.4729

0.4433

0.4083

0.4940

Annexure 2: PPP Orientation and Sustainability Scores of NIFTY Indexed Companies from 2015–16 to 2016–17

Company name

Profit oriented

People oriented

Planet oriented

Sustainability

Adani Ports and Special Economic Zone Ltd.

0.5015

0.4207

0.3750

0.4545

Ambuja Cements Ltd.

0.3880

0.3948

0.4168

0.3969

Asian Paints Ltd.

0.4279

0.4846

0.3750

0.5198

Aurobindo Pharma Ltd.

0.3029

0.2516

0.7498

0.5000

Axis Bank Ltd.

0.5232

0.3826

0.4097

0.4466

Bajaj Auto Ltd.

0.3813

0.3165

0.6179

0.4855

Bajaj Finance Ltd.

0.3190

0.2507

0.6906

0.5765

Bharat Petroleum Corporation Ltd.

0.5907

0.2895

0.2500

0.4353

Bharti Airtel Ltd.

0.4759

0.2731

0.4258

0.3962

Bharti Infratel Ltd.

0.5094

0.3449

0.4369

0.4764

Bosch Ltd.

0.3929

0.4504

0.5588

0.6079

Cipla Ltd.

0.4772

0.3745

0.3750

0.3864

Coal India Ltd.

0.2400

0.5199

0.4698

0.5000

Dr. Reddy’s Laboratories Ltd.

0.3927

0.4008

0.4330

0.4076

Eicher Motors Ltd.

0.5729

0.4194

0.2500

0.5102

GAIL (India) Ltd.

0.3746

0.3850

0.3615

0.3817

HCL Technologies Ltd.

0.2644

0.4892

0.5107

0.5000

HDFC Bank Ltd.

0.3291

0.3341

0.5016

0.3853

Hero MotoCorp Ltd.

0.4697

0.4481

0.4038

0.5040

Hindalco Industries Ltd.

0.3615

0.3811

0.4000

0.3863

Hindustan Petroleum Corporation Ltd.

0.5624

0.3998

0.2500

0.5995

Hindustan Unilever Ltd.

0.4542

0.4143

0.4416

0.4402

Housing Development Finance Corporation Ltd.

0.4151

0.5685

0.2577

0.5258

I T C Ltd.

0.4622

0.4117

0.4360

0.4394

ICICI Bank Ltd.

0.3892

0.4041

0.4330

0.4131

Indiabulls Housing Finance Ltd.

0.2731

0.2474

0.7500

0.4944

Indian Oil Corporation Ltd.

0.5230

0.4341

0.4304

0.5480

IndusInd Bank Ltd.

0.5432

0.4238

0.3745

0.4842

Infosys Ltd.

0.2700

0.2538

0.7500

0.5000

Kotak Mahindra Bank Ltd.

0.3709

0.4277

0.3746

0.3970

Larsen & Toubro Ltd.

0.2588

0.2500

0.6850

0.4880

Lupin Ltd.

0.5360

0.3756

0.4028

0.4462

Mahindra & Mahindra Ltd.

0.4079

0.3927

0.3963

0.4006

Maruti Suzuki India Ltd.

0.4728

0.4158

0.4265

0.4478

NTPC Ltd.

0.3570

0.3729

0.4391

0.3771

Oil & Natural Gas Corporation Ltd.

0.2545

0.2515

0.7500

0.5000

Power Grid Corporation of India Ltd.

0.4522

0.4416

0.3750

0.4768

Reliance Industries Ltd.

0.4779

0.3943

0.3897

0.4101

State Bank of India

0.5998

0.2497

0.3996

0.5000

Sun Pharmaceutical Industries Ltd.

0.3814

0.2281

0.5637

0.4294

Tata Consultancy Services Ltd.

0.2831

0.2519

0.7450

0.5000

Tata Motors Ltd.

0.3922

0.4794

0.4559

0.4969

Tata Steel Ltd.

0.3694

0.3901

0.4147

0.3992

Tech Mahindra Ltd.

0.5773

0.3951

0.2925

0.5382

UltraTech Cement Ltd.

0.3860

0.4023

0.4503

0.4180

UPL Ltd.

0.2332

0.6041

0.3941

0.4457

Vedanta Ltd.

0.2593

0.6794

0.2500

0.5000

Wipro Ltd.

0.4557

0.4213

0.4596

0.4527

Yes Bank Ltd.

0.4783

0.4146

0.4959

0.6045

Zee Entertainment Enterprises Ltd.

0.2819

0.2932

0.4277

0.3555

Annexure 3: PPP Orientation and Sustainability Scores of NIFTY Indexed Companies from 2016–17 to 2017–18

Company name

Profit oriented

People oriented

Planet oriented

Sustainability

Adani Ports and Special Economic Zone Ltd.

0.4850

0.4287

0.4467

0.4768

Ambuja Cements Ltd.

0.3738

0.3268

0.3616

0.3619

Asian Paints Ltd.

0.4242

0.3277

0.5754

0.5372

Aurobindo Pharma Ltd.

0.4152

0.3976

0.5203

0.4357

Axis Bank Ltd.

0.3925

0.3958

0.4170

0.4048

Bajaj Auto Ltd.

0.3691

0.3175

0.6298

0.4634

Bajaj Finance Ltd.

0.4829

0.4821

0.2500

0.5000

Bharat Petroleum Corporation Ltd.

0.4792

0.4908

0.2500

0.5000

Bharti Airtel Ltd.

0.2635

0.7498

0.2500

0.5000

Bharti Infratel Ltd.

0.5067

0.4385

0.3594

0.4971

Bosch Ltd.

0.2682

0.2507

0.7310

0.5000

Cipla Ltd.

0.3114

0.5093

0.4722

0.5556

Coal India Ltd.

0.3682

0.3341

0.3627

0.3589

Dr. Reddy’s Laboratories Ltd.

0.3737

0.3767

0.4310

0.3853

Eicher Motors Ltd.

0.3861

0.2643

0.6139

0.6361

GAIL (India) Ltd.

0.3794

0.3966

0.4327

0.4090

HCL Technologies Ltd.

0.4283

0.3410

0.3644

0.3698

HDFC Bank Ltd.

0.4221

0.5779

0.2500

0.5000

Hero MotoCorp Ltd.

0.2763

0.2504

0.7500

0.5000

Hindalco Industries Ltd.

0.5044

0.3934

0.4515

0.4813

Hindustan Petroleum Corporation Ltd.

0.5780

0.4141

0.3883

0.5880

Hindustan Unilever Ltd.

0.4138

0.4088

0.5604

0.4684

Housing Development Finance Corporation Ltd.

0.3888

0.4284

0.5569

0.4839

I T C Ltd.

0.4355

0.4046

0.4433

0.4241

ICICI Bank Ltd.

0.2520

0.2502

0.7500

0.5000

Indiabulls Housing Finance Ltd.

0.2941

0.7500

0.2500

0.4963

Indian Oil Corporation Ltd.

0.5575

0.4337

0.3975

0.5998

IndusInd Bank Ltd.

0.5633

0.3286

0.3318

0.4092

Infosys Ltd.

0.2673

0.2507

0.7234

0.5000

Kotak Mahindra Bank Ltd.

0.3960

0.2566

0.5851

0.6266

Larsen & Toubro Ltd.

0.4088

0.3977

0.3745

0.4094

Lupin Ltd.

0.4815

0.4104

0.4262

0.4453

Mahindra & Mahindra Ltd.

0.3899

0.3879

0.5259

0.4173

Maruti Suzuki India Ltd.

0.5379

0.4280

0.3462

0.5666

NTPC Ltd.

0.3846

0.3748

0.5567

0.4298

Oil & Natural Gas Corporation Ltd.

0.3867

0.4035

0.3676

0.3994

Power Grid Corporation of India Ltd.

0.3375

0.2506

0.6620

0.5641

Reliance Industries Ltd.

0.3869

0.3154

0.6127

0.5320

State Bank of India

0.4049

0.4015

0.3709

0.4129

Sun Pharmaceutical Industries Ltd.

0.3942

0.4406

0.3759

0.4195

Tata Consultancy Services Ltd.

0.2705

0.2506

0.7264

0.5000

Tata Motors Ltd.

0.3945

0.3790

0.4472

0.3993

Tata Steel Ltd.

0.3489

0.4293

0.5195

0.4356

Tech Mahindra Ltd.

0.4962

0.4187

0.4136

0.4619

UltraTech Cement Ltd.

0.2695

0.2509

0.7500

0.5000

UPL Ltd.

0.2819

0.2501

0.7500

0.5000

Vedanta Ltd.

0.5000

0.2502

0.5000

0.5000

Wipro Ltd.

0.4435

0.3968

0.3750

0.4101

Yes Bank Ltd.

0.5719

0.2507

0.3975

0.5938

Zee Entertainment Enterprises Ltd.

0.5000

0.5000

0.2500

0.5000

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Vinod, M.S.S., Ravishankar, U.S., Sivakumar, N. (2020). Greening the Supply Chain Through CSR: A Model for Assessing Sustainability Using Fuzzy-Based PPP Approach. In: Ramanathan, U., Ramanathan, R. (eds) Sustainable Supply Chains: Strategies, Issues, and Models. Springer, Cham. https://doi.org/10.1007/978-3-030-48876-5_4

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