Impact of green procurement practices in small and medium enterprises in Nairobi
Abstract
The impact of Green Procurement Practices (GPP) in small and medium enterprises involves
spending and the investment process typically associated with economic gain and environmental
friendly results at the end of the day. GPP among SME`s in Nairobi s is not as straightforward as
for governments because companies themselves have to be self-motivated to embrace
sustainability depending on their mission, vision and objectives. GPP is largely linked to the
wider agenda of sustainable development and SME`s practicing sustainable procurement to meet
their needs for goods, services, utilities; work not only on a cost benefit analysis, but with a view
to maximizing net benefits for themselves and the wider world market. In doing so, SME`s
incorporate acquired cost considerations into decisions alongside the procurement criteria of
price and quality, and also in the practice of the sustainable impacts of potential supplier`s
approach often assessed as a form of quality consideration. These considerations focus on all
areas of any organization in terms of the environmental, economic and social effects. The
researcher used the descriptive research design to determine the impact of green procurement
practices in Small and Medium Enterprises in Nairobi whereby it was found that; GPP is
embedded in the principle of pollution prevention, which strives to eliminate and or to reduce
risks to human health and the environment. This means evaluating purchases based on a variety
of criteria, ranging from the necessity of the purchase of the product from the first place to the
options available for its eventual disposal. Consumers, investors, shareholders and regulatory
agencies in SME`s are increasingly demanding that organizations behave in an environmentally
responsible manner. Therefore practicing green procurement practices demonstrates an
organization's commitment to considering and minimizing the environmental consequences of its
activities thus making both environmental and economic sense. The drivers influencing the
adoption of green procurement practices by the SMEs are government laws and regulations
requirement, changing customer demands and expectations, the company initiatives, global
purchase and production standards, employee initiatives and suppliers influence. Conclusions
made were green products are generally produced in a manner that consumes less natural
resources. They may involve less energy in their manufacture and may consume less energy
when being used, and they generally contain fewer hazardous or toxic materials. Green products
are also generally designed with the intention of reducing the amount of waste created and may
contain recycled material or use less packaging. Green procurement practices also offer cost
savings for the organization. Consequently, GPP has benefits for health and safety, both of
workplaces and of the wider community. Organizations that practice green procurement are
recognized as good corporate citizens, and have influence over other organizations around them.
Citation
Master Of Business Administration (MBA) Degree, School Of Business, University Of Nairobi, 2013Publisher
University of Nairobi, School of business