Evaluation of the Effectiveness of and the Extent to Which Large and Medium Logistics Organisations Report on Social Sustainability—The Case of South Africa

Abstract

Despite the importance of the logistics sector to the South African economy and the significant negative impact of the sector on South African society, little research has been conducted to determine the extent to which South African logistics companies report their social sustainability and the effectiveness of their social sustainability reporting. The objectives of this study were to determine the extent to which South African logistics companies report on social sustainability performance and to evaluate the effectiveness of social sustainability reporting practices of South African logistics companies. A documentary analysis of the sustainability information of the logistics companies was conducted using a control list and a judgment scale. A purposive sample of 50 companies was used. The majority of the companies in the sample are private companies that are not listed. Of the sample group, 20% are family-owned, and 16% of the companies are publicly listed in the Johannesburg Stock Exchange (JSE). The results indicate that social sustainability reporting by logistics companies is very low. The range of scores is from a minimum of 0% to a maximum of 57%. Only two companies attained a score above 50%. About 61% of the companies did not disclose any of the stated themes of social sustainability, while 25% of the companies disclosed the themes in narrative form, and 12.1% disclosed them relative to prior periods of disclosure by the companies. Only 1.4% disclosed themes relative to the targets set by the company, and 0.3% of the companies disclosed them relative to industry standards. Regarding the effectiveness of social sustainability reporting, nine companies (18%) had a score of 50% and above. Only 13 companies (26%) have a score of 40% or higher. This is indicative of the fact that, in general, road logistics companies are not effective in their reporting of social sustainability activities. We endeavour for the study to assist South African logistics companies in being aware of elements to consider when reporting on their social sustainability, as well as assist them in improving their reporting.