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Drivers of green procurement of an evaluation of the implementation of green procurement Bakery Sector in Ireland

Category: Education Paper Type: Dissertation & Thesis Writing Reference: MLA Words: 4350

        Studies show that there are multiple reasons as to why some sectors including the public sector engages in green procurement. According to Pembere (2016), drivers or enablers are factors that help companies integrate and execute green purchasing effectively. Yet, the presence of drivers is not adequate to support the implementation of green purchasing, but their absence can be an obstacle. Lehtinen (2012) posits that regulations on environmental factors can be a huge driver of green purchasing if the government formulates policies that are mandatory and easy to adapt. The government may enforce sector requirements such as food, construction and retailing to engage in green procurement given that also happen to be among the leading polluters (Butler & Keaveney, 2014).

        The benefit of formulating and enforcing environmental regulations that ensure green purchasing is that it forces individuals and groups along the supply chain to comply with the laws themselves or forfeit business partnerships (Lehtinen, 2012). The study by Sarhaye and Marendi (2017) discovered several drivers for utilizing green procurement some of which include: information sharing, employee training, strategic planning, adaption of environmental standards, supplier relationship, technology management, government regulation, government reward and incentives, customer concern, sustainability, economic improvement, safety standards, human wellbeing among others.

        When it comes to the public sector,Butler & Keaveney(2014) note that there are several enablers of GPP when considering the execution that are mandatory for purchasing to take place. However, the researchers note that most enablers presently remain external but this can change as external enablers can have significant impact on individuals, groups and organizations who can convert to be key drivers. Contrary to the private sector, the public sector has usually been under pressure to adhere with national and regional regulations and this remains the major driver for GPP Butler & Keaveney (2014). Lehtinen (2012) notes that there is a pledge within the public sector to conserve the enviornment and engage in sustainable growth and this can lead to enviornmental reputation of the local authority becoming a major driver as more public and private consumer consider the enviornmental footrpint of the goods and services they purchase. Butler and Keaveny (2014) note that the increased availability of enviornment-friendly commodities and services has increased green procurement across many sectors and departmens while the generalization of green criteria has in a way increased to give procurers insight of green comodities and services they want to include in their tenders.   

Barriers of green procurement of an evaluation of the implementation of green Sector in Ireland

        There are several barriers to the widespread and successful use of green procurement. Pembere (2016) study found that two of the leading barriers to the use of green procurement are cultural adjustments and corporate priorities. The researcher discovered that most firms are unwilling to modify their business culture and practices unless they are faced with perception crisis (Pembere, 2016). This implies that the integration of green procurement may face inertia because of the need by some firms to change the status quo. Bag (2017) notes that firms need to evaluate their business setting and recognize challenges within their firms and the whole supply chain. The study by Gormly (2014) identified cost as a major deterrent of the use of green procurement yet some studies have concluded that green procurement is relatively cheaper and sustainable in the long-term (Bag, 2017) (Lehtinen, 2012).

        Butler and Keaveney (2014) study on public procurement found that the absence of information on the outcomes of the environment as a significant challenge, particularly on the products delivered, sourcing of suppliers and absence of clear guidelines on environmental matters. Coughlan (2015) study found the major obstacles to the integration of green purchasing within the public and private sectors to be insufficient technology, lack of clear advantages of the long-term and short-term use, inadequate training on the concepts of green procurement, lack of competence in sustainable matters, lack of commitment from the suppliers, lack of transparency within the supply chain, and the failure of firms to institutionalise environmental concerns in the corporate strategy.

        The study by Butler & Keaveney (2014) exploring the barriers to and drivers of green public procurement in attaining a more sustainable construction sector found that while some sections found green procurement a vital concept for businesses, opponents deemed it as insignificant  as expensive and one that increases the production cost to meet the economic and environmental requirements. They also add that the opponents of green procurement argue that it has a long lifecycle as firms evaluate the environmental of a product in its life stages, which may also be costly (Butler & Keaveney, 2014).

        The study by Mwirigi (2016) also found similar findings to Butler and Keaveney when she found that there is some extent of negative perception about green procurement being expensive for businesses in terms of time and money due to increased evaluation time for a product’s lifecycle and the increased money paid to suppliers who comply with the environmental regulations. However, the study findings by Lehtinen (2012) counters the negative associations of green procurement by noting that green procurement eliminates waste, improves the environments through a streamlined supply chain procurement and leads to sustainable procurement in the long-run.

        The study by Gormly (2014) indicates that there are incredible pressures from government agencies and pressure groups on manufacturing firms to redirect focus of the firm towards environmental, social and economic scopes while selecting contractors and suppliers. Thus, it is crucial to actively strategize and establish a vigorous and elaborate supplier network that is able to create opportunities for innovating newer products and services that are sustainable for the firm (Gormly, 2014). But as Bag (2017) notes, most actions are influenced by corporate pressures, culture and business strategies.

          However, institutional or firm pressures directly impact green procurement practices and more green procurement. The study by Butler and Keaveney (2014) that used a survey to determine the GPP practice found three major barriers identified by public authorities when using green procurement and they are: perception of increased costs when compared with traditional substitutes, lack of resource and promotion policies for GPP, and lack of GPP tools and training. The study by Bag (2017) also found that lack of competence and insight in environmental issues and developing environmental criteria to be major obstacles to effective green procurement.

            From the survey conducted by Bag (2014) it is apparent there seems to be inadequate insight on the topic of green public procurement that creates a major challenge on the understanding and execution of green public procurement practices. Bag (2014) also discovered that lack of resources such adequate technologies and skilled human capital contribute to the successful implementation of green procurement and this entails a considerable amount of increased employment that can be time and cost consuming causing strain in some business divisions. Butler and Keaveney (2014) also fund that heightened costs and slow return on investment to be economic demerits to green purchasing.

            According to Smith (2008) one of the major obstacles to attaining sustainable procurement presently is lack of coherent corporate processes, systems and models. The researchers notes that this is because firms need supply chain visibility and superior procurement control and there is no need for a firm establishing strong procurement strategies intended for corporate sustainability towork with employees who avoid procurement controls so that the firm has no way of tracking or measuring the benefits of sustainability (Smith, 2008). Moreover, procurement best practices are relatively new and there are les sustainable accreditations besides the ones found n the food sector that makes it easy for firms to vet the reliability of likely suppliers and contractors (Smith, 2008). Thus, the burden is on the firm to establish its own standards, policies and expectations.

            Lehtinen (2012) notes that some of the obstacles of implementing green procurement as perception that green procurement is expensive, lack of resources, lack of support from higher authorities, lack of awareness about the potential benefit of green procurement and conflict between organisational objectives and green procurement use. As regards to the high cost of implementing green procurement, most respondents notes that the hefty initial capital cost of greener products and services were most significant in deterring the use of green procurement. Butler and Keaveney (2014) also note that barriers such as lack of green products and services in some sectors, the resistance to change procurement processes and lack of metrics to measure return on investment, and lack of methods to compare environmental credentials of greener products and services. According to Lehtinen (2012), the least influential obstacles to green procurement were lack of government support and lack of training on green procurement.

            Consumer pressure is actually recognized as one of the most important drivers for products which are more environment-friendly. And during the recent ten years, increasing attention on complex public procurement has emerged as a significant factor in that pressure. Green Procurement is simplified as the approach utilized by Public Authorities for integrating environmental criteria into different stages of their process of procurement. Thus, it encourages the spread of a diversity of environmental techniques along with the development of environmentally stable products by choosing and seeking solutions and outcomes which have minimal effect on the environment during their lifecycle. It can be said that other related terms include Eco-Procurement, Green Purchasing, Environmental Product Procurement, Sustainable Public Procurement, and Environmental Responsible Public Procurement.

            There are various sensible reasons for the rising attention on GPP or Green Public Procurement. First one is that a high volume of public procurement makes it significant for the existing economy. In the member countries of OECD, governmental consumption seems to range to 25 from 8 percent with 15 percent being the average. Meanwhile, in Norway, 19 percent of GDP was represented by public procurement. Therefore, requests directly from the governmental bodies for solutions which are more environment-friendly can be neglected by the suppliers who are working in the market (Mosgaard).

        In the purchased services and products, the indirect effect embodied is normally the major environmental effect which is caused by different public authorities. Demand for products which are environmental friendly from public actors might also serve to set an example for the whole private sector and develop markets for more viable services and products. It is also argued that demands of environment from public purchasers will educate the prevalent businesses and create a general awareness of issues concerned with sustainability. Ambitious goals have been announced by the European Commission for green procurement and a variety of nations have initiated their own programs for promoting Green Procurement.

            For most of the purchasing agents, they are presented with a trade-off by green procurement between price and environmental demands. Therefore, many seem to evade green products for having more money present for other tasks. In GPP, environmental demands can be associated with purchased services or products, or to potential competences, their systems of environmental management and competencies. However, the award criteria should be associated with the subject. Environmental demands can be increased at different procurement stages, to decision criteria from explicit demands in the final tender selection.

            According to the authors, there appears to be a need among both counties and municipalities for increased awareness about the environment. Both larger and smaller municipalities would benefit from developing and building environmental capabilities. Over the world, larger municipalities seem to be more active. However, the effectiveness of their practices can be debated. Additionally, a significant key to efficient green purchasing appears to be a more serious issue. It is suggested by authors that throughout the world, there is a need for spreading awareness about green procurement and studies on green procurement in terms of Ireland at substantially less than other areas (Blome, Hollos and Paulraj).

        According to Brammer & Walker, (2011), public bodies are treated as to remain constant or increase at a particular level which is easy to handle, so the human effect on social sites in private sector may be reduced. Moreover, it discussed with the factors that directly or indirectly involved to affect the public sectors organisations to check how the organisation respond to the conditions that are most closely to make possible the event for the organisation. Our information is too short to meet the requirement for the progress of private and public companies.

            The ultimate purpose of this study is to discuss these gaps in our information and companies requirements. Public sectors companies are the major element of the society which deals with the procurement of sustainability. These are the factors which give great impact to the situation of the market to overcome the connection with social media. The employee of Ireland adopts green procurement in their work. The analysis shows that public sector organisations are mostly involved in procurement sustainability. Public sector organisations regulate their policies to meet the requirement to procure sustainability (Brammer and Walker).

            In Australian public health care sector, the study examines the policies of enforcing green public procurement. According to the literature review, it provides a framework of green public procurement methodology that meets the challenges of the enforcement of the policies. The problem is related to the Analytical Hierarchy Process which is a major criterion to take the decisions of an organisation. Based on this analysis, the health procurement interviews are conducted to get the data and information about the analysis. The analysis shows that the problems are mostly connected with government, public issues and some other organisations.

            These problems arise due to a shortage of management support, lack of proper rules and regulations insufficient government support and lack of financial aid. Some challenges are selected in understanding the policies of the green procurement policy, supplier of green policy and purchasing from the supplier. The toughest challenges are related to top-level management which is critical and hard to understand. Whereas, the operational level management face challenges which are less important and simple and could be handled by the low-level management. Top-level management deals with the challenges to make the decisions in public health strategies on green procurement.

            Walker & Phillips, (2009) discussed the green procurement sustainability that gives stress to the objectives of supply and purchasing the material from the supplier to meet the social and economic needs of the organisations. Many countries used it as their ultimate agenda to follow, but fails due to the lack of information. This article also highlights the problems which are emerging with working sustainable procurement. The recommendations included the top-level management, who have to make decisions to meet the requirements of public and private sector. Different procurement themes were flourished as moving from environmental to social dimensions, innovation, supply and measurement issues etc (Walker and Phillips).

            The first one, is the environmental issues are discussed, which relates to converting it in according to the social and economical procurement research. Another innovation refers to the sustainability of the supply which can affect the innovation with the ethically followed with the consideration of supply measured. It deals with the effects of innovation that are connected with sustainability procurement. A supply chain is corporated with the CSR as it relates to the ethical behaviour of the organisation with the society.

            The research examines the arising issues in sustainability procurement with the help of group discussion and giving attention to the themes with the several implementations of the sustainability procurement in the environment. Moreover, the methodology gives clear messages about green public procurement to fulfils the needs of the method. Public procurement give awareness to the society members to behave ethically and socially to encourage the customers to use environment-friendly product which does not harm the public. On some ground, political parties may have interruptions to follow the policies. The implication of the policies may also give awareness to the public to deal with the sustainability and innovation of a well-planned system.  Some stakeholder like customers and employees can affect the decision making of top-level management, by influencing the regulated policies. Sustainable supply includes work of small-medium enterprises, tutorial for the supplier, identifying the sustainable supply risk and innovation in the supply market.

            There is a small point in the literature on ethical issues that explore the culture of sustainable procurement. System of sustainability and innovation can further be processed and required more request. The process succeeded to bring the range of different stakeholders to take an interest in sustainable procurement. The purpose of the procurement is to frame a network of practitioners and students who are related to the group. Economies of scale determine the corporate social responsibility in a way that, the business organisation do not feel an extra burden in the performance of social responsibility.

            Green procurement is purchasing method that takes its consideration to eliminate and reduce the hurdles in purchasing items and resolving the issues, promotion of recycling and improve the process of purchasing.  The study deals with the drivers that play an important role in improving the environmental performance of the organisations. In Malaysia, these drivers inspire the organisations to adopt the Green Procurement Process which helps the stakeholders as corporate social responsibility in the Malaysian manufacturing sector.

             The findings of this paper recommend that GPP is affected by the rules and regulations of the process. It shows that, the organisations deal highly with corporate social responsibility. It also assists the managers to make the policies with different drivers that are used to set directions for setting the reasonable policies that encourage firms to adopt green procurement process in purchasing. All these results of green purchasing pressurise the customers with the effect of green purchasing.  While the supply chain is connected with the effective means of expanding with the initiative, especially when the customer required technical assistance, the customer pressure and the concern of one market is most likely to spread the chain supply rapidly to the different parts of the globe to change the technology products. 

            The results show that rules and regulations are one of the most important in green purchasing.  This enforces that the policymakers set up reasonable policies and to encourage the organisations to adopt the methodology of purchasing activities. All that regulations entails that a link is between the green purchasing and business objectives. For commercial success, organisations sold business opportunity to get a route rather than an ethical obligation.

            In the globalisation business, the attention towards green purchasing arise the questions about how to integrate the environmental concern with business operations and the strategies of the organisation. Business organisations use effective integration to improve the role of their business ion the market which have an impact on society. Green purchasing is considered as an effective way to reduce pollution from the environment. By the reduction of pollution, the cost of corporate social responsibility and recycling the product life give great impact to the position of the business organisation.

        This is an effective effort by green purchasing to get certified by the top authority as an environment-friendly manufacturing unit in society. This study discusses the drivers who are more suitable for the stakeholder to protect them from environmental issues. Moreover, the companies working with corporate social responsibility and green purchasing also have the sense to get high-profit margin and ignore the factors of social responsibility which may cause a distraction in the process of green purchasing, which indicates that the firms are affected with short term plan rather than a long term plan. The studies show that management may approve the important environmental problems with translating the specific changes in the way which organisation work out.

        According to the Uyarra and Yeow, (2014), the weather change with the effect of natural climate. Different researchers have to understand the role of green purchasing in the changing of climate. The literature examined both the aspects of the study which are necessary to implement in sustainability of the policies. In understudied countries, the green procurement effects management professionalism and groups work in the organisation.

        More deeply about the study of green procurement, the results are much wide in term of sustainability. Environmental assistance groups have a positive impact on the enforcement of green procurement without having a significant impact on statical data of the organisations. Previous studies discuss the benefits and impacts of researchers work to make the policies which are not usually adopted by the green procurement policies. This study represents the suggestions that the relation between product and service is traditional which expect that the marginal cost tends to decrease. In alternate to this policy, researchers might be to put the different values in the purchase of the green product. Although the traditional method is the best quality for the best price is starting to expand the product lifecycle as purchasing irrationally (Uyarra, Edler and Garcia-Estevez).   

2.3 Conceptual frameworks of an evaluation of the implementation of green procurement Bakery Sector in Ireland
2.3.1 Organizational decision-making theory
of an evaluation of the implementation of green procurement Bakery Sector in Ireland

        Based on the organizational decision-making theory, there are several angles that shape an organization’s decisions, but the common element is the ultimate wellbeing and security of the organization that enable it to meet its objectives (Turpin & Marais, 2004). For instance, an organization can apply an incrementalism view that entails systematic processes of incremental action that keep the strategy open to modifications and adjustments for improvement, the organisational procedures view that seeks to elaborate decisions based on the output of standard procedures proposed by different organizational units, and the multiple perspective approach that considers all possible perspectives to a situation as well as the solutions (Turpin & Marais, 2004). 

        Thus, when applied to the bakery situation, firms will try to integrate the green procurement concept to their operations if they think it can improve efficiency, if they think there is room for adjustments or if a unit such as the procurement and supply chain deemed that the application of green procurement would be beneficial to the company. Thus, this approach explains an organisation’s decision-making process based on risk-benefit analysis.  

2.3.2 Transaction cost analysis of an evaluation of the implementation of green procurement Bakery Sector in Ireland

        The transaction cost analysis theory argues that governance decisions as the formal and informal rule of engagement in firms (Mooi, 2013). Scholars have expanded the scope of this theory to include social contract and processes between companies and the consumer and company such as trust, partner selection, outsourcing and the new crowdsourcing phenomenon (Mooi, 2013). In this case, the transaction cost would be between the bakery companies and the individual consumers as well as the community that requires the application and use of green procurement and supply chain for environmental sustainability. Transaction cost terminology, governance are the formal and informal rules of exchange. Initial work using TCA focused mainly on the make- or-buy decision of rms and included topics such as whether rms should deploy their own sales force or use independent agents or whether components should be sourced or self-produced. Recent TCA work has expanded the scope of governance to include how buy decisions are sstructured using contracts or social processes such as trust, partner selection, or enforcement. Also, partner selection efforts, outsourcing, the use of crowd sourcing, and so on are governance and can consequently be explained using TCA. TCA aims to explain governance decisions. In transaction cost terminology, governance are the formal and informal rules of exchange. Initial work using TCA focused mainly on the make- or-buy decision of rms and included topics such as whether rms should deploy their own sales force or use independent agents or whether components should be sourced or self-produced. Recent TCA work has expanded the scope of governance to include how buy decisions are structured using contracts or social processes such as trust, partner selection, or enforcement. Also, partner selection efforts, outsourcing, the use of crowd sourcing, and so on are governance and can consequently be explained using TCA. Transaction cost analysis (TCA), also called transaction cost theory or transaction cost economics is a theory originating from economics. TCA aims to explain governance decisions. In transaction cost terminology, governance are the formal and informal rules of exchange. Initial work using TCA focused mainly on the make- or-buy decision of rms and included topics such as whether rms should deploy their own sales force or use independent agents or whether components should be sourced or self-produced. Recent TCA work has expanded the scope of governance to include how buy decisions are structured using contracts or social processes such as trust, partner selection, or enforcement. Also, partner selection efforts, outsourcing, the use of crowd sourcing, and so on are governance and can consequently be explained using TCA.

2.3.3 Stakeholder theory of an evaluation of the implementation of green procurement Bakery Sector in Ireland

        The stakeholder theory on the other hand, argues that companies are not only responsible to their shareholders but to any entity that is directly affected by the company operations (Laplume et al, 2008). Such stakeholders would be employees, community, consumers, government or the environment. In this case, the community, individual consumer, government and environment are directly affected by a bakery’s operations at different levels. But the environment is the most affected and green procurement measures are meant to protect the environment from the adverse effects of an uncontrolled supply chain.

References of Drivers of green procurement of an evaluation of the implementation of green procurement Bakery Sector in Ireland

Blome, Constantin, Daniel Hollos and Antony Paulraj. "Green procurement and green supplier development: antecedents and effects on supplier performance." International Journal of Production Research 52.1 (2014): 32-49.

Brammer, S. and H. Walker. "Sustainable procurement in the public sector: an international comparative study." International Journal of Operations & Production Management, 31.4 (2011): 452-476.

Mosgaard, Mette Alberg. "Improving the practices of green procurement of minor items." Journal of cleaner production 90 (2015): 264-274.

Uyarra, E., et al. "Barriers to innovation through public procurement: A supplier perspective." Technovation 34.10 (2014): 631-645.

Walker, H. and W Phillips. "Sustainable procurement: emerging issues." International Journal of Procurement Management, 2.1 (2009): 41.

 

 

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