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.