report green procurement
TRANSCRIPT
THE EFFECTS OF GREEN PROCUREMENT POLICY ON THE
PERFORMANCE OF SUGAR MANUFACTURERS
(A CASE OF MUMIAS SUGAR COMPANY)
BY
JOAN MWAYA
KCA/09/01072
A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
BACHELORS DEGREE IN COMMERCE OF THE KCA
UNIVERSITY, KISUMU CAMPUS
JUNE, 2012
DECLARATION
Declaration by the student
This research project report is my original work and has not been presented for any award of
diploma or degree in any other college or university
Joan Mwaya
REG: KCA/09/01072
Sign……………………….. Date……………………
Declaration by Supervisor
This research project report has been submitted for examination with my approval as the
candidate supervisor.
Sign………………….. Date……………………..
Supervisor
Declaration by the Principal
This research project report has been submitted for examination with my approval as the
principal of KCA University, Kisumu Campus
Sign…………………… Date…………………………..
ii
DEDICATION
This work is dedicated to the almighty God through whose guidance I did manage to
successfully complete this research project report.
iii
ACKNOWLEDGEMENT
I highly appreciate the effort of my lectures and especially my supervisor for the guidance they
gave me throughout my course.
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ABSTRACT
The purpose of the study was to investigate the effects of green procurement on the performance of sugar manufacturers with reference to Mumias Sugar Company. The objectives of the study included to find out the effects of green teams on the performance of Mumias Sugar Company; to determine the effects of green packaging on the performance of Mumias Sugar Company and to establish the effects of eco labeling on the performance of Mumias Sugar Company. The study will be of significance to the general management of Mumias sugar company in that it would enable the management acquire the strategies and establish the procurement policies aimed at creating friendly business environment and the general profitability of the of the organization in their future prospects. The study will also help the company ease the increasing regulatory pressure from government and public demand for a better environment and the general impacts of social and environmental performance on financial performance. The study adopted a research survey design. The target population was 80 employees of Mumias Sugar Company. The sample size was drawn from the target population. The study used stratified sampling technique to draw the sample size. Here, the target group was divided into strata based on the departments. The sample size was then randomly selected where a sample size of 40 respondents was arrived at. The researcher used structured and unstructured questionnaires as data collection instruments. The research tool was checked for validity and reliability. For validity the researcher gave the questionnaires to the supervisor who gave a go ahead. For reliability, the researcher used test retest method to check its appropriateness. The instruments were administered by the researcher herself to the respondents. After the field work the raw data was checked, coded, verified to detect the missing values. It was analyzed using descriptive statistics, that is, frequencies and percentages. Tables and graphs were used to present the data. From the findings it can be deduced that green procurement teams increases profitability to a very large extent, enhances customer base to a very large extent and increases profitability to a very large extent. It can also be concluded that green packaging standards increase profitability to a very large extent, enhances customer base to a very large extent and increases market share to a very large extent. Eco labeling standards increase profitability to a very large extent enhances customer base to a very large extent and increases market share to a very large extent. The researcher would like to recommend to the management of Mumias Sugar Company to train all the staff on green concern and its benefits. They should recruit a professional environmentalist to be guide the organization on green awareness. They should do a thorough supplier analysis and only deal with suppliers who are environmentally friendly. They should strive to know the green needs of the consumers so that they will be able satisfied them by offering appropriate products. They should also do a competitor analysis so as to know their green objectives, strategies strengths and weaknesses as these are likely to hinder the achievement of their environmental plans. This will enable them to have better green strategies to make them more competitive. The study was on the effects of green procurement on the performance of Sugar Manufacturers. Other researchers should do studies to determine to influence of green procurement on the performance of service organizations.
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TABLE OF CONTENTS
TITLE……………………………………………………………………………………………..i
DECLARATION …………………………………………………………………………...…...ii
DEDICATION ……………………………………………………………………………….... iii
ACKNOWLEDGEMENT …………………………………………………………….……….iv
ABSTRACT………………………………………………………………………………...…….v
TABLE OF CONTENTS…………………………………………………….…………...…….vi
LIST OF TABLES …………………………………………………………………………..…vii
LIST OF FIGURES…………………………………………………………………….……...viii
LIST OF ABBREVIATIONS ……………………………………………………………..…...ix
DEFINITION OF TERMS……………………………………………………………….….….x
CHAPTER ONE
1.0 INTRODUCTION TO THE STUDY
1.1 Introduction …………………………………………………………………………… 1
1.2 Background of the study…….…………………………………....…….………………1
1.3 Statement of the problem…………..………………………………..………………….4
1.4 Objectives of the study ……………………………………....…………………………5
1.5 Research questions……………………………………………………………………...5
1.6 Significance of the study………………………………………………………………..5
1.7 Limitations of the study………………………………..……………………………….6
1.8 Scope of the study………………………………………………………………………6
1.9 Conceptual framework………………………………………………….…..…………..7
CHAPTER TWO
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2.0 LITERATURE REVIEW
2.1 Introduction………………………………………………………...…………………...8
2.2 Theoretical review………………………………………………..……..……..……….8
2.3 Critical review and gaps to be filled……………………………………………….….12
2.4 Summary………………...……………………....…………………………………….13
CHAPTER THREE
3.0 RESEARCH DESIGN AND METHODOLOGY
3.1 Introduction………………………………………………………….………………...14
3.2 Research design…………………………………………………..…………………...14
3.3 Target population……………………………………………………………………...14
3.4 Sampling design……………………………………………………………………….14
3.5 Data collection instruments and procedures…………………………………………..15
3.7 Data analysis and presentation………………………………………………………...15
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION
4.1 Introduction...............................................................................................................................
4.2 Presentation of Major Findings..............................................................................................
4.3 Summary of Data Analysis........................................................................................................
CHAPTER FIVE
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction.............................................................................................................................
5.2 Summary of Major Findings..............................................................................................
5.3 Conclusions...............................................................................................................................
5.4 Recommendations......................................................................................................................
5.5 Suggestions for further research..............................................................................................
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REFERENCES ……………………………………………………………………………….16
APPENDICES
Appendix 1: Letter of Authority
Appendix 2: Authorization letter
Appendix 3: Work plan
Appendix 4: Budget
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LIST OF TABLES
Table 4.1: Management level of employees.................................................................................
Table 4.2 Length of service of respondents.....................................................................................
Table 4.3 The effects of green procurement teams on the performance of Mumias Sugar
Company................................................................................................................
Table 4.4: The effects of green packaging on the performance of Mumias Sugar Company.....
Table 4.5: The effects of Ecolabelling on the performance of Mumias Sugar Company.............
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LIST OF FIGURES
Figure 1 Conceptual framework…………………………………………………………………..7
Figure 4.3: Management level of employees.................................................................................
Figure 4.4 Length of service of respondents.....................................................................................
Figure 4.3 The effects of green procurement teams on the performance of Mumias Sugar
Company................................................................................................................
Figure 4.4: The effects of green packaging on the performance of Mumias Sugar Company.....
Figure 4.5: The effects of Ecolabelling on the performance of Mumias Sugar Company.............
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LIST OF ABBREVIATION AND ACRONYMS
GDP: Growth Domestic Product
USA: United States
GPP: Green Public
UNEP: United Nations Environmental Program
EU: European Union
OECD: Organization for Economic Cooperation and Development
TRA: Theory of Reasoned Action
ICLEI: International Council for Local Environmental Initiatives
CSR: Corporate Social Responsibility
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OPERATIONAL DEFINITION OF TERMS
Green Procurement: The purchasing of products or services which do not have a negative
impact on the environment throughout their life cycle
Efficiency Delivery without wasting time or resources
Green teams A team constituted by the management to ensure that the green
Green Packaging standards: Standards set by manufacturers to ensure Suppliers cutting down
on waste by choosing more sustainable ways to package their products,
including less plastic and less packaging.
Eco labeling Standards Environmental performance certification and labeling which certifies
that a particular green standard has been met.
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CHAPTER ONE
INTRODUCTION TO THE STUDY
1.1 Introduction
This chapter handles the background of the study, statement of the problem, research objectives,
research questions, significance of the study, limitations of the study and scope of the study.
1.2 Background of the Study
Environmentally responsible or 'green' procurement is the selection of products and services that
minimize environmental impacts. It requires a company or organization to carry out an
assessment of the environmental consequences of a product at all the various stages of its
lifecycle. This means considering the costs of securing raw materials, and manufacturing,
transporting, storing, handling, using and disposing of the product. Green procurement is rooted
in the principle of pollution prevention, which strives to eliminate or to reduce risks to human
health and the environment. It means evaluating purchases based on a variety of criteria, ranging
from the necessity of the purchase in the first place to the options available for its eventual
disposal. Green products are generally produced in a manner that consumes less natural
resources or uses them more sustainably, as with sustainable forestry. 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 procurement can also offer cost savings. In
particular, buying 'green' usually involves products that are easily recycled, last longer or
produce less waste. Money is therefore saved on waste disposal. In addition, green products
generally require fewer resources to manufacture and operate, so savings can be made on energy,
water, fuel and other natural resources (Ryan, 2001).
Many organizations worldwide are making an effort to purchase products and services that are
less harmful to local and global environments. Both public and private sector organizations are
implementing purchasing practices that include environmental (and social) considerations—
green procurement. These activities are part of a broader movement toward more sustainable
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forms of production and consumption. Internationally, government procurement markets in 1997
accounted for 5–18% of GDP within OECD member countries. Governments are realizing the
benefits of green procurement practices such as cost savings from reduced energy consumption,
resource use, and material management. They also reap more qualitative benefits such as
improved image and achieving policy/program objectives. Despite differences in emphasis,
green procurement activities in both the public and private sectors take four main approaches:
Procuring eco-labeled products or services, In-house product/service evaluations, third-party
product/service evaluations, Supply chain initiatives. These approaches are often initiated within
administrative, procurement, environmental or operational departments of private firms. Green
procurement activities often rely on established product standards, labels and certifications that
declare the environmental attributes or performance of the product (Avery, 1995).
In United States (US), leading private sector organizations have demonstrated significant
movement towards greening procurement practices. Many private firms are working to improve
the environmental performance of their operations and products and green procurement has been
a logical extension of this work. Private sector organizations have in the last two decades
adopted green procurement practices for specific products recycled-content office paper,
renewable energy, paints, cleaners among others, but are also looking at the materials, substances
and chemicals they purchase that go into the products and services they provide. This supply
chain approach looks beyond the company’s “gates” in an ongoing effort to reduce costs and risk
(Barry, 1996).
While the western countries are leading users of Green Public Procurement (GPP), some
developing countries are also starting to adopt policies to implement it. Various studies have
been conducted concerning the GPP implementation in the developed world, particular EU
members. According to Classon and Waara (2006) EU takes a process view in its
implementation. That is government takes into consideration the environmental impact in each of
its procurement process – in technical specification, in technical specifications, in selection
criteria, in the awards of contracts, and in contract performance clauses. Government usually
adopt policies considering the life cycle cost of a product, giving price preferences to green
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products ( recycled products, energy-using devices, organic products, alternative fuels, clean
electricity) and encouraging less-polluting manufacturing technologies, setting aside for greener
products and providing information provision and training (Marron, 2003).
In Africa, driven by bottom-line performance of green procurement in the western countries,
leading industrial firms see green procurement as a logical part of effective purchasing and
supply chain management practices. Private companies often use in-house and third-party
evaluations to make informed green procurement decisions. Private businesses however are
reluctant to establish green procurement activities unless there are clearly demonstrated business
benefits for themselves and/or their customers. The prevalent Supplier positioning Model needs a
revision to support Green procurement. A practical model is proposed which incorporates the
three (Environmental, Economical, and Social) dimensions of sustainability for 2008 to supply
positioning. Before deciding on a course of action, it presents the various entrepreneur profiles
classification from recent research. This leads us to explore the resulting framework of
opportunities for Entrepreneurs to enter the “Green” Supplier Market of Goods and Services and
to offer solutions that are economically viable and adapted to the environment, and to social
progress (International Chamber of Commerce, 2010).
It is now a trend in business for companies specifically the manufacturing companies to adopt
green procurement policy as a strategy for environmental conservation. The reasons for
companies to be involved in this policy are various. Some are due to the increasing regulatory
pressure from government and public demand for a better environment UNEP (2002) others
concern with the impacts of social and environmental performance on financial performance. It
is argued by some that integrating green procurement policy into business is an approach to
achieve corporate competitive advantages (Porter, 1998). Within the European Union, European
Commission sees environment protection as its central policy goals. It lays out the major legal
framework in several EU directives and regulations during 2004 and 2006. EU requires that
environment protection be integrated to other policies and activities. The Commission has urged
the member states to make better use of government procurement to green the market and to
promote sustainable objective (Hamner, 1996).
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1.3 Statement of the problem
Lee (2008) leading companies are using life-cycle assessment and material tracking tools to
identify materials, substances and chemicals in their products that pose significant
environmental, health and safety risks and re-design their products to reduce or eliminate such
materials. As such, green procurement is seen as a means towards improving their products and
operations from environmental perspective to reduce risk, total cost of ownership and improve
supply chain performance. While increasing amount of research is valuable for us to understand
the implementation of green procurement policy, several weaknesses have been revealed along
this journey. For instance, many studies have suffered low response rates, and non-responses due
to lack of knowledge on this policy. As such the policy has suffered a draw back in a number of
African organizations. However, many developing countries have come to use green
procurement policy as a tool to protect the environment and resource. Some companies still lack
the full knowledge on the credibility of this policy. For it to have a significant multiplier effect, a
number of proposals have been brought up by various groups, for instance, the organization will
need to commit the resources necessary to engage suppliers in sustained dialogue and education.
The purchasing department will need to become a centre of excellence in ‘train the trainer’ for
environmental management (Kotchen and Reiling, 2000). As such, the study intends to
investigate the roles of green procurement on the efficient service delivery with reference to
Mumias Sugar Company.
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Objectives of the study
1.4 Objective of the study
The general objective of the study was to investigate the roles of green procurement on the
performance of sugar manufacturers, with reference to Mumias Sugar Company
Specific Objectives
i. To find out the effects of green teams on the performance of Mumias Sugar Company
ii. To determine the effects of green packaging standards on the performance of Mumias
Sugar Company
iii. To establish the effects of eco labeling standards on the performance of Mumias Sugar
Company
1.5 Research Questions
i. What are the effects of green teams on the performance of Mumias Sugar Company?
ii. In what ways does green packaging standards affect the performance of Mumias Sugar
Company?
iii. How does eco labeling standards affect the performance of Mumias Sugar Company?
1.6 Significance of the Study
The study will be of significance to the general management of Mumias sugar companyin that it
would enable the management acquire the strategies and establish the procurement policies
aimed at creating friendly business environment and the general profitability of the of the
organization in their future prospects. The study will also help the company ease the increasing
regulatory pressure from government and public demand for a better environment and the
general impacts of social and environmental performance on financial performance.
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1.7 Limitations.
Because of confidentiality, the respondents did not reveal some vital information. Some did not
return filled questionnaires while some might only partly filled. The researcher was not able to
prove the truthfulness of the information provided by the respondents. As such, the researcher
was forced to create extra time in educating the respondents on the importance of not only on the
company but the general public
1.8 Scope of the Study
The study determined the effects of green procurement on the performance of manufacturing
firms. The study was conducted within the premises of Mumias Sugar Company, where the
targeted group constituted the staff of the company. The study was conducted between the
months of June and July 2012. The concepts that were dealt with include green procurement
teams, green packaging standards and eco labeling standards.
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1.9 Conceptual Framework
This diagram shows the relationship between the dependent and independent variables whereby
the dependent variables are manipulated by the independent variables. Here the independent
variable is represented by green procurement teams, green packaging and whereas the dependent
variable is performance which comes through effective execution of green procurement
Independent variables Dependent variable
Figure 1: The effects of green procurement on the performance of sugar manufacturers
Source: Author (2012)
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Performance
Green procurement teams
Green Packaging Standards
Eco labeling Standards
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter addresses the literature review of the study. The literature review provides the
reader with an explanation of the theoretical rationale of the problem being studied as well as
what the researcher has already done and how findings relate to problems at hand. The purpose
of the literature review was to avoid unnecessary repetitions of the materials already done. The
following literature review includes research on the subject of green procurement. The literature on
green procurement discusses both the logistics of procurement and the economics behind it. The first
part of the literature review focuses on the literature that explains what makes a product green and
provides guidance on how to identify a green product. What makes a product green is understood by
comparatively examining the supply chain with and without green alternatives. Eco-labeling, a tool
used to identify green products is also discussed. The second part of the literature review examines
the economics of procurement and the argument in the literature of whether environmental
sustainability is worth a potentially higher product price, especially in the government context where
purchases are made with taxpayer dollars. The final part of this section is a jurisdictional scan
describing six different government organizations/jurisdictions that have implemented or are soon to
be implementing a green procurement policy.
2.2 Review of theoretical literature
Consumers and organizations are increasingly considering longer term sustainability issues when
they purchase or supply goods or services: “green buying” appears to be gaining momentum.
However, progress is slow and the percentage of green purchases has remained static at 2% for
the last two years. This paper suggests that a network approach to the drivers of green purchasing
and supply may provide a fruitful way of gaining a deeper understanding of the issues and of
moving towards a greener future for individuals and organizations alike. Currently two parallel
bodies of literature exist: consumer behaviour research investigating the values and behavioral
motivations of green (and non-green) individuals; and strategic business research analyzing the
differential responses of firms to a range of pressures to operate in a sustainable fashion.
However, there has been little attempt so far to view consumers, businesses and other
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stakeholders as interdependent actors within a network. In this paper we analyze and synthesis
both sets of literature and produce a network picture which shows the links and bond between
actors. We suggest that governments and business may find this (literally) joined up view of the
green debate particularly useful in understanding how to effect network change in such a way as
to nurture more sustainable organizations and, ultimately, societies.
Increasingly both consumers and organizations are considering buying green. As society as a
whole becomes more concerned with the natural environment, businesses have begun to modify
their behaviour in an attempt to integrate environmental attributes into their marketing and
purchasing strategies (Elkington, 1994; Mendleson & Polonsky, 1995; McDonald & Oates,
2006) and green supply is attracting particular interest among researchers and practitioners in
operations and supply chain management (Srivastava, 2007). Consumers, for their part, now
spend over £20bn on green goods and services (Co-operative Bank, 2002) ranging from transport
and tourism to ethical investments and environmentally friendly electricity. However many
organizations remain resistant to greening and only 2% of goods and services purchased in the
UK are sustainable: a figure which has not changed for 2 years (Keynote, 2005). Clearly there
are substantial barriers to green purchase and consumption which are not yet fully understood.
Currently two parallel bodies of literature exist: consumer behaviour research investigating the
values and behavioral motivations of green (and non-green) individuals; and strategic business
research analyzing the differential responses of firms to a range of external and internal pressures
to operate in a sustainable fashion. There has been little attempt so far to view consumers,
businesses and other
The purpose of this paper is to produce new insights by taking a network view of two interlinked
questions. On the one hand, what are the drivers that make people buy green and the barriers
which deter them? And on the other, what are the factors which help businesses deliver greener
goods and services and what are the pressures which hinder them. Whilst the forces which impel
individuals to purchase green or businesses to supply green may be theoretically easy to
understand (in the case of the former, personal concern for the future of our planet; and in the
latter, response to regulatory pressure), the barriers to such behaviour are often both complex and
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hard to hurdle. One reason for this is that the stakeholders in the green movement are many and
various: from the principle actors i.e. consumers, businesses and government to a range of other
stakeholders including NGOs, shareholders, activists, competitors, suppliers and individual
managers. We believe that understanding the barriers to green purchase and supply in terms of
network change processes may prove fruitful for a number of reasons. Firstly, research on
change processes in networks points out that networks are largely stable entities (Gadde and
Håkansson, 1992; Axelsson and Easton, 1992) and that creating change within networks require
all the network actors to respond or adapt to the changes in one way or another, whether seeking
to preserve the status quo or actively seeking to mobilise change. Interconnectedness and
interdependency amongst network actors implies that even a potentially disruptive change to the
system, such as a shift towards buying green by individual consumers requires change across
entire networks, including customers, distributors, suppliers, sub-suppliers, industrial bodies and
regulators. Hertz (1998) suggests that changes in one relationship causes sequential and
consecutive changes in other relationships. Accordingly, domino effects may occur, especially in
situations of high degrees of integration and complexity. The concept of domino effects further
supports the notion that network change is a gradual and evolutionary process. Håkansson and
Waluszewski (2002) also note that friction plays a significant role in network change processes
and suggest that path dependence may both restrict and facilitate the change process. Path
dependence implies that current events and actions bear the imprint of past events and actions
through the operation of social and material structures that act as the ‘carriers of history’ (ibid).
Path dependence further implies that changes follow a path or trajectory and that the ordering in
which changes happen affects their sequence and temporal unfolding (Tilly, 1994). The path
implies that future decisions and actions are constrained although they are not predetermined or
fatal. Others have pointed out that path dependent processes combine general processes with
elements of chance,making them inherently unpredictable (Araujo and Harrison, 2002). Whilst
actors may choose to alter a historical path by breaking with the path, jumping on another path,
or shaping a new one, all actions are past dependent. A useful analogy may be that of a large ship
on an ocean, which often needs several miles to change its path but can do so if it must. Path
dependence affects whole technological systems (e.g. Lundgren, 1995; Håkansson and
Lundgren, 1997). As Araujo and Harrison (2002) point out, historical sociologists and economic
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historians oftenfocus on conjunctures arising from the temporal intersection of different
trajectories. In fact, innovations that are discontinuous or disruptive (Linton, 2002) often involve
companies shifting from one technological path or learning curve to a more attractive one (Dosi,
1982; Nelson and Winter, 1977). Firms may decide to jump on a trajectory created by
bandwagon effects and pursue the ‘technological corridor’ (Georghiou et al, 1986) offered by the
trajectory. Hence, historical paths and trajectories impact on the past, present and future.
Therefore, change in networks tends not to happen overnight, but rather finds its way into parts
of the network in an evolutionary manner. The trend towards ‘buying green’ - a radical, and
potentially disruptive, innovation - is likely to find its way into networks through pressures that
stem from various parts of the networks. Some of these may be internal (endogenous), whilst
others may be external (exogenous). Given the many actors having to respond and adapt to these
changes, the process is likely to meet many obstacles along its way as some actors inevitably will
resist change as it disrupts their position in the network: not all actors will choose to pursue the
new trajectory, although more may follow the early adopters and promoters of the trend, so over
time more actors may jump on the bandwagon and a domino effect may take place
2.2.1 Green procurement teams Team
In November 2007 the company announced the formation of the green Team. Invited by the CEO to
take part, the team is made up of 22 experts in the field whose goal is to identify greenhouse gas
(GHG) reduction policies and actions that will bridge the gap to help the company to meet its
millennium goals reduction targets. In July 2008 the green team released its recommendations. One
of these recommendations was to amend the procurement portion of the company’s core policy to
incorporate the triple bottom line and to incorporate life cycle costing into contracts and purchases,
sending a signal to industry about the company’s changed procurement focus. This is a significant
development because the recommendations from the green team will be taken very seriously by the
company. The CEO has acknowledged that the opinions of these experts are to be respected. These
developments indicate company’s support for green procurement.
Over the past decades, procurement departments in both the public and private sector have
experienced increasing demands to integrate environmental criteria in their procurement
activities. These expectations come from various stakeholders, such as businesses, consumers
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and NGOs, but also from political initiatives and emerging policies. The potential for green
sorcing as a policy instrument and as an important tool within the concept of sustainable
development has become increasingly recognized over recent years. Parallel to this, political
support for green procurement has been manifested at international, EU and national level.
Driven by this support, green procurement practices began to take form, resulting in a variety of
policies and initiatives, and giving a different status to green procurement and purchasing in
different countries. A wealth of literature reporting on green procurement and its incentives and
obstacles exists. Increasingly, both private and public organizations face growing attention from
their stakeholders with regard to their social performance. This attention focuses not only on the
treatment of employees and the communities in which the organizations themselves operate, but
also increasingly on the social profile of their suppliers. The role of businesses in the context of
sustainable development is changing. The idea that companies have both environmental and
social responsibilities has existed for a long time. The most recent interpretation of this idea,
Social Responsibility (SR), has been triggered by increasing stakeholder awareness and interest
in the social, environmental, and ethical consequences of corporate practices in several tiers of
the supply chain. Even public organizations are now experiencing scrutiny from the public. Over
time, this attention has compelled public organizations to incorporate non-economic criteria into
their procurement and purchasing practices. This is usually referred to as Socially Responsible
Purchasing (SRP).
An abundance of literature sources investigate incentives for organizations to engage in SR
activities. However, a connection to purchasing is still lacking in the literature on SR.
Furthermore, the upcoming international standard on SR, ISO 26000, contains limited guidance
on SRP, but defines the concept of sustainable procurement. So far, limited knowledge and
practical experience exist, and little has been studied regarding the incorporation of social
aspects into procurement activities by both businesses and public organizations. The literature
indicates that initiatives to systematically implement social responsibility in purchasing are fairly
new. However, attempts to integrate social considerations are taking place in both private and
public organizations. Among authorities, practices so far have been found to be quite limited.
The extent of deployment and integration of policies and codes regarding social responsibility in
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the private sector has been found to differ significantly from organization to organization.
However, some progress was detected – the rate at which social requirements are integrated in
procurement has been found to be higher than for corresponding environmental requirements.
There is considerable confidence that the use of green procurement can have a significant impact
in extending markets for more sustainable goods and services. The aggregated public and private
purchase expenditure is substantial, which makes it an important driver for the introduction of
greener products to the market, but also for greater adoption of product and process
improvements with regard to environmental performance. Hence, the potential positive
environmental effects of green procurement – for both the public and private sector – may be
considerable. Documented experiences so far come mainly from the public sector, but there are
numerous indications that the potential environmental gains from green procurement as a whole
are impressive. The extent and content of sustainable activity in private and public organizations
are changing, acting as both incentives and obstacles in their work. The most commonly
Reported incentives and obstacles in green procurement and SRP are summarized. Many private
organizations experience close attention to their actions from a number of stakeholders,
including customers, the media, governments and investors. In most cases the focus is on the
lack of possibilities to control social and ethical performance in the supply chain.
2.2.2 Green packaging Standards and Performance
Manufacturers should choose suppliers who practice green packaging. They set standards to achieve
this. One way products are made greener is through the components that producers choose to use for
products in the plan/source/produce stages of the supply chain. In addition, the process of delivering
the product to the consumer has an embodied energy use that could be decrease with less distance
travelled. Like choosing locally grown food, consumers should be conscious of how far products
have travelled when they are making green procurement decisions. Suppliers can cut down
significantly on waste by choosing more sustainable ways to package their products, including less
plastic and less packaging. Finally, at the reverse logistics stage of the supply chain a producer take
back program could stop excess waste in the landfills and possibly stop hazardous material exposure
from products that are improperly disposed of, for example computers with high levels of mercury.
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McDonough and Braungart have a company called MBDC that has developed a certification process
to identify “environmentally-intelligent design” (MBDC, 2008). Companies can pay MBDC to
certify their products as “cradle to cradle”. Cradle to cradle certification means to create the product
the company: Uses environmentally safe and healthy materials; Designs for material reutilization,
such as recycling or composting; Uses renewable energy and energy efficiency; Efficiently uses
water and ensures maximum water quality associated with production; and Institutes strategies for
social responsibility (MBDC, 2008)
Some “cradle to cradle” manufacturers have “environmental partnerships” to help consumers take
their product to the next phase of its lifecycle – whether that is reselling or refurbishing, donating to
charity or recycling. This extended producer responsibility component is an interesting practical
application of the cradle to cradle model. However, the reverse logistics portion of the equation
should consider the potential trade-off between the positive nature of recycling a product and the
energy required to transport that product back to the manufacturer. This is something that could be
considered by the MOE green procurement program. Each alternative is complex but MOE should
recognize the factors that make up these alternatives and consider researching each further if an
extended producer responsibility program is pursued. For example, the physical proximity of a
building to a recycling depot may make recycling a more sustainable option than returning the
product back to a manufacturer.
2.2.3 Eco labeling Standards and Performance
In order to purchase green products staff must be able to identify them. The concept of eco-labelling
is explained as a means to identify products. As environmentally sustainable purchasing becomes
more popular, the number of products advertised as green products is bound to increase. Swanson et
al. (2004) note that one of the challenges to green purchasing is the variety of factors to consider
when distinguishing or choosing environmentally preferable products. This challenge is increased
when “green washing” techniques are used by manufacturers. Green washing is defined as the “act of
misleading consumers regarding the environmental practices of a company or the environmental
benefits of a product or service” (Terra Choice Environmental, 2007). Listed below are several green
washing practices consumers need to be wary of: Unsubstantiated environmental claims; Vague or
misleading environmental claims; Promotion of immaterial or negligible environmental benefits;
14
False claims of environmental benefit; and Claims of environmental benefits that detract con sumers
from considering a product’s or a class of products significant environmental hazards (Terra Choice,
2007). Procurement staffs need to remain vigilant to avoid being misled by green washing. Eco-
labeling is a voluntary method of environmental performance certification and labeling which
certifies that a particular green standard has been met. Some of the
15
Environmental Purchasing Guidebooks provide lists of different eco-labels (US EPA, n.d.; Resort
Municipality of Whistler, 2006). For the purposes of this report, only the eco-labels related to office
products are listed below in Figure 2. A brief description of some common eco-labels is listed below
and can be found in Appendix 6 of the Whistler Sustainable Purchasing Guide (Resort Municipality
of Whistler, 2006) and on the website ecolablling.org. MOE staff can use these recognizable symbols
to identify green products.
Theory of Reasoned Action (TRA) was established by Fishbein and Ajzen (1975) is used to
argue that consumer’s attitudes and subjective norm towards environmental issues can influence
their behavior and action towards green purchasing. This theory includes consumer’s attitudes
how these attitudes are formed and how other people could influence their behavior. This theory
is also being used by many researchers from different fields in order to analyze human’s
behavior. Relating to marketing researches, TRA is used to explore purchasing intention or
behavior of consumers (Mostafa, 2007; Cheah, 2009).
The identified antecedents towards green purchasing are tested through these hypotheses. Social
influence: The social dynamic in which individual associate with other people by presenting
similar qualities is identified as homophily (Ryan, 2001). In different words, it can be known as
situations that an individual shares the same values, thoughts and beliefs as the person that they
are communicating with. In a study done by Chen-Yu and Seock (2002), they had found that
conformity by peers is an important factor for purchasing certain clothing among adolescents.
The same result was obtained by Lee (2008) in which the peer influence was the most important
factor for Hong Kong’s adolescents green purchasing behavior compare to other factors.
Environmental attitude: Lee (2008) stated that environmental attitude refers to the individuals
value judgment and it taps the individuals cognitive assessment of the value of environmental
protection. Some studies have identified a positive relationship between environmental attitude
and environmental behavior (Kotchen and Reiling, 2000). To date, a study was done by Mostafa
(2007) among Egyptian consumers and he has found that consumer’s attitude towards green
purchase can influence their green purchase intention and directly affects their actual green
purchase behavior. Referring to this, it can be posited that:
16
Environmental concern: Environmental concern can be known as affective traits that can signify
an individual’s worries, consideration, likings and dislikes about the environment. Few studies
were done on environmental concern. Mostafa (2007) has indicated in his study that
environmental concern would be an essential factor for marketers as they can easily target
environmentally conscious consumers. High level of environmental concern is expected due to
the health issues (Said et al ., 2003 ). Meanwhile, young consumer in Hong Kong believes that
environmental concern is the 2nd top predictor of green purchasing behavior (Lee, 2008). By
referencing the existing literature on environmental concern, it is hypothesized that:
Perceived seriousness of environmental problems: People in Asian countries rate environmental
problems as more severe than those who reside in Western countries (Lee, 2009). It is also
believed that media plays a major role in educating the seriousness of environmental problems to
consumers (Moser and Uzzell, 2003). Lee (2008) found that teenagers perceived the seriousness
of environmental problems as the least important factor in influencing the green purchasing
behavior. The reason behind this was known due to desensitization in which adolescents respond
negatively to repetitive exposures. However, the result might be different in different context of
study. Thus, the hypothesis for this variable is defined as:
Perceived environmental responsibility: Lai (2000) has reported that citizens in Hong Kong have
attained more environmental knowledge and thus they are really aware of the environmental
problems. However, their perceived environmental responsibilities were generally weak. Lai
(2000) has also identified that the consumers are looking for better policies to solve the
environmental problem and yet they are reluctant to get themselves engaged with those policies.
Additionally, the study done by Lee (2008) among Hong Kong’s young consumers revealed that
the perceived environmental responsibility factor was found to be the fourth important predictor
of green purchasing behavior. Thus, this study proposes that:
17
Perceived effectiveness of environmental behavior: Perceived effectiveness of environmental
behavior is related to a person’s perception that if each individual’s involves himself in pro-
environmental behaviors, he would contribute a lot to the environment. This perception might be
true and this factor was the fifth predictor of green purchasing behavior among young consumers
in Hong Kong (Lee, 2008). Lee (2008) further stressed the perception that one’s action could
make a difference is another important factor in influencing adolescent consumers’ decision to
buy green products or not. By this, the hypothesis is derived as:
Green procurement considers that all products and services have environmental impact and their
initiative is to reduce them to the minimum. Consumer purchases green products when their
prime requirement for quality, performance and easiness were achieved and when they realized
how a green product could facilitate to answer environmental tribulations. The knowledge gap or
skepticism towards the usage of green products would stop consumers in engaging themselves to
any buying decisions. Poor description about green claims would always put the green
consumers in question and this will lead to switching to better green products. According to
Renner (2002) consumers are requesting for more reliable information about the society and
ecological effect of the goods that they are purchasing besides the information that the product is
environmentally friendly. Companies which are improving indicates that they are revising their
policies and updating themselves with regards to the current environmental issues and fulfilling
the changing needs of green consumers.
Although there are no national targets for the procurement of products with recycled content
there a numerous bodies that seek to encourage this. Product labels are a means of identifying
products with recycled content but can be confusing because of the different recycling
terminology used. The list of definitions below may help with this issue. Recycled-content
products are made from materials that would otherwise have been discarded. Items in this
category are made totally or partially from material destined for disposal or recovered from
industrial activities-like aluminum soda cans or newspaper. Recycled-content products also can
be items that are rebuilt or remanufactured from used products such as Multifunctional devices,
office furniture, toner cartridges or computers. Postconsumer content refers to material from
products that were used by consumers or businesses and would otherwise be discarded as waste.
18
If a product is labeled "recycled content," the rest of the product material might have come from
excess or damaged items generated during normal manufacturing processes-not collected
through a local recycling program. Recyclable products can be collected and remanufactured into
new products after they've been used. These products do not necessarily contain recycled
materials and only benefit the environment if people recycle them after use.
The Mumias sugar company board has always used its purchasing power to achieve policy goals,
ranging from the early protecting national industries against foreign competition to the modern
promotion of social equality. Appraisal of all activities undertaken by the Mumias Sugar
Company giving special attention to procedures used in procurement processes, preparing land
for cane and its environmental impact, effects of Mumias Sugar on the soil reserves, effects of
vehicle movements, the quality of drainage water in terms of salinity, effect of plastics, effect of
power supply, effects of steam supply, effects of sugar dust, Effects of non sugar dust, effects of
flue gases among others (Bergstrom, 1996). Green procurement policies have proven to be a
dedicated follower of political fashion. Historically, there have been consistent attempts to link
Green Procurement policies with the government policy of the day, in areas as diverse as
national industrial policy, reducing unemployment, improving employment conditions, support
for small businesses, local development, employment of disabled workers, and equal pay for men
and women, to mention only a few (Chen-Yu and Seock, 2002).
According to the Kenya National Environment Action Plan (NEAP) (1994) the Government
recognized the negative impacts on ecosystems emanating from economic and social
development programs that disregarded environmental sustainability especially from the
manufacturing firms. Following on this, establishment of appropriate policies and legal
guidelines as well as harmonization of the existing ones have been accomplished or is in the
process of development. The NEAP process introduced environmental assessments in the
country culminating into the enactment of the Policy on Environment and Development of
competitive policies in the manufacturing firms.
19
Cao, Fuguo (2002) Kenya Government's environmental policy aims at integrating environmental
aspects into national development plans. The broad objectives of the national environmental
policy include: Optimal use of natural land and water resources in improving the quality of
human environment, Sustainable use of natural resources to meet the needs of the present
generations while preserving their ability to meet the needs of future generations, Conservation
and management of the natural resources of Kenya including air, water, land, flora and fauna ,
Promotion of environmental conservation through the sustainable use of natural resources to
meet the needs of the present generations while preserving their ability to meet the needs of
future generations, Meeting national goals and international obligations by conserving bio-
diversity, arresting desertification, mitigating effects of disasters, protecting the ozone layer and
maintaining an ecological balance on earth.
Sustainable purchasing is a growing global trend. Increasingly businesses, governments, non-
profits and other organizations are integrating social and environmental objectives into the
purchasing process as a means to reduce their environmental footprint, leverage social benefits
and foster a sustainable economy. Increasingly businesses, governments, non-profits and other
organizations are integrating social and environmental objectives into the purchasing process as a
means to reduce their environmental footprint, leverage social benefits and foster a sustainable
economy. This paper reviews global trends and drivers for sustainable purchasing and multi-
lateral and regulatory developments that are advancing sustainability in the marketplace, and
provides details on two case studies in sustainable purchasing. It quantifies the trends in
environmental and social purchasing the latter with a focus on fair trade, diversity purchasing
and ethical sourcing (Lee, 2008).
Environmental considerations are typically ranked higher than social factors, though priority
environmental concerns have human health implications such as toxics. Indeed, the greening of
the supply chain was ranked as the number one supply chain issue for 2007. On the social side,
fair-trade, diversity purchasing and ethical sourcing are showing strong growth trends. The
ethical sourcing experience of large brands is starting to pay off in deep knowledge for how to
20
reward and motivate ethical considerations with suppliers going forward, including a focus on
supplier collaboration and capacity building (Mostafa 2007)
2.3 Review of critical literature and gaps to be filled
From the literature review, the assumption that green purchasing promotes better environmental
performance from suppliers is particularly questionable when suppliers are located in countries
or locations where environmental regulations are lax or unenforced. In such places there are few
or no other drivers for improved performance and usually very little information available to
suppliers about the competitive benefits of environmental management. Visiting manufacturing
companies would reveal numerous examples of companies that have changed their product
contents to meet Western buyer requirements, but the companies have not adopted
environmental management practices or in some cases have not even installed the policies. The
few instances we have seen of top management commitment to environmental performance have
been in companies where the Western buyers have engaged the management in serious dialogue
about the need for and benefits of environmental management (McCrudden, 2007). Even with
the buyer intentions and goals clear, it has been necessary for the buyers to provide numerous
examples of how environmental management has improved the profits of companies in
developing countries. Examples of Western companies saving money through environmental
management do not impress managers in developing countries. Fortunately, there are now many
published examples of environmental management success stories from developing countries,
and these can be used to enhance discussions with suppliers. But personal, repeated contact
appears to be critical in getting supplier interest, and the buyer may be the only source of
information available about environmental management strategies that can improve the
supplier’s business position (Hidson & Clement 2008).
2.4 Summary
Green supply management is becoming a major component of corporate environmental
management strategies. When the motivation for green supply management is for business
opportunity or to respond to external restraints, then buyers are not likely to be concerned about
the impact of the strategy on the suppliers’ environmental behavior. But if the motivation for
green supply management is based on leadership commitment to sustainable development or the
21
desire to promote sustainable development generally, then the question of impact on supplier
behavior becomes very important. The more directly the buyer is involved with the supplier, and
especially with the top management of suppliers, the more likely it is that buyer commitment to
sustainability will have an effect on the supplier’s behavior. In many cases it will be necessary
for the buyer to make Green Purchasing and Supplier Behavior 37 the business case for
environmental management and to educate the supplier in methods for reducing environmental
impacts. Organizations that seriously want to promote environmental sustainability will need to
recognize that green purchasing is only a limited tool. (International Chamber of Commerce,
1991).
22
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 Introduction
This chapter deals with design of the study, target population, sample and sampling procedure
data collection, validity and reliability of the research instrument and data analysis and
presentation.
3.2 Research Design
The research was done through a survey design; survey design requires the collection of
quantifiable information from the sample. The primary purpose of the study was to
determine the effects of green procurement on the performance of sugar manufacturers with
reference to Mumias Sugar Company.
3.3 Target Population
The study was conducted within the premises of Mumias Sugar Company. The study targets 80
employees of the company. This constituted employees of different job descriptions. This
encompassed the production department, administration and the general staffs.
3.4 Sampling design and sampling procedure
The study adopted stratified sampling technique where the population was divided into three
strata to draw individuals that constituted the sample size that will be used in the study.
Here, the target group will be divided into strata based on the departments. The individuals
will then be selected randomly from the different strata. This will be due to the fact that the
23
technique is suitable for a small population as in the study (Kodhari, 2004). The technique is
also simple and accurate in drawing the representative sample for the study. A sample size
of 40 respondents was drawn for the study.
3.5 Data collection instrument and procedures
Data was collected by the use of questionnaires. The questionnaires were administered by the
researcher herself to the respondents. The questionnaires comprised questions that are simple,
elaborate and open ended gave the respondents enough space to express their feelings, attitude
and opinions. According to Kothari (2004), a questionnaire is considered as the heart of the
survey operation. It consists of a number of questions printed in a definite order which
respondents are supposed to react to. The researcher collected a letter of introduction from the
administration, KCA University, and then sought permission from the Mumias Company
management to collect data. There after the questionnaires were distributed to the respective
respondents after which they were collected after one week from various individuals
3.5.1 Validity and Reliability.
Validity is the degree to which results obtained from the analysis of the data actually represent
the phenomenon under study. Reliability is the degree to which research method yield consistent
results after repeated trials. Therefore questionnaires were tested and re tested within a time lapse
of two weeks between the first and the second test with the initial conditions remaining constant
being applied to the other group to give similar results of desired outcomes. These instruments
were important in this study with the basic assumption that they would give desired information
and of high quality.
3.6 Data analysis methods
Immediately after the fields work, before the analysis, all the questionnaires were adequately
checked for reliability and verifications. Editing coding and tabulations was. Data was analyzed
using descriptive statistics. Bar graphs were used in data presentation, since they can be used to
present a huge data, are easy to construct, are attractive and easy to interprete while pie charts are
24
easy to construct, does not involve techniques, can be used to represent qualitative and
quantitative values of any given value.
CHAPTER FOUR
DATA ANALYSIS, PRESENTATION AND INTERPRETATION
4.1 Introduction
This chapter deals with the presentation of major findings and summary of data analysis
4.2 Presentation of findings
Table 4.5: Management level of employees
Management level Frequency Percentage
Top level 5 13%
Mid level 7 18%
Operational staff 26 69%
Total 38 100
Source: Research Data (2012)
The research findings indicate that 13% of the respondents were in top level management; 18%
were in mid level management and 69% were in the operational level. This is shown in figure
4.1
25
Figure 4.0.1: Level of Management of respondents
Source: Research Data(2012)
Table 4.6 Length of service of respondents
Length Frequency Percentage
Below 1 year 2 5%
2 - 3 Years 7 37%
4 – 5 Years 15 39%
6 Years & above 14 19%
Total 38 100
Source: Research Data (2012)
The research findings show that 5% of the respondents had been with Mumias Sugar Company
for below 1 year; 37% had been between 2 – 3 years; 39% had been with the company for
between 4 -5 years and 19% had been with the company for 6 years and above. This is an
indication that the bulk of the workers had been with the company long enough to know the
green procurement practices in the company and how it affects the performance of the company.
Illustration are given in figure 4.2
26
Figure 4.2: Length of Service of respondents
Source: Research Data (2012)
Table 4.7: The effects of green procurement teams on the performance of Mumias Sugar
Company.
Influence
Responses
A B C D
Frequency % Frequency % Frequency % Frequency %
Cuts costs 20 53% 10 26% 7 21% - -
Enhances
Customer
base
19 50% 10 26% 7 18% 2 16%
Increases
profitability
38 100% - - - - - -
Source: Research Data (2012)
27
Figure 4.3: : The effects of green procurement teams on the performance of Mumias Sugar
Company.
.
Source: Research Data (2012)
The first objective of the study was to find out the effects of green procurement teams on the
performance of Mumias Sugar Company. The findings indicate that 53% of the
respondents said that it cuts costs to a very large extent, 21% said it cuts costs to a
small extent. 50% of the respondents said that it enhances customer base to a very
large extent, 26% of them said that it enhances customer base to a large extent,
18% and 16% of them said that it enhances customer base to a small extent and to
a very small extent respectively. All the respondents said that it increases
profitability to a very large extent. From the findings it can be deduced that green
procurement teams increases profitability to a very large extent, enhances
customer base to a very large extent and increases profitability to a very large
extent.
Table 4.8 : The effects of green packaging standards on the performance of Mumias
Sugar Company.
28
Influence
Responses
A B C D
Frequency % Frequency % Frequency % Frequency %
Increases
profitability
38 100% - - - - - -
Enhances
Customer
base
30 79% 8 21% - - - -
Increases
Market
share
12 32% 25 66% 1 2% - -
Source: Research Data (2012)
29
Figure 4.4: Table 4.9 : The effects of green packaging standards on the performance of
Mumias Sugar Company.
The second objective was to determine the effects of green packaging standards on the
performance of Mumias Sugar Company. The findings indicate that 100% of the
respondents said that it increases profitability to a very large extent. 79% of the
respondents said that it enhances customer base to a very large extent, 21% of
them said that it enhances customer base to a large extent. 32% of the respondents
said that it increases market share to a very large extent.66% said that it increases
market share to a large extent. 2% of the respondents said that it increases market
share to a small extent. From the findings it can be deduced that green packaging
stadards increases profitability to a very large extent, enhances customer base to a
very large extent and increases market share to a very large extent. The
illustrations are in figure 4.5.
Table 4.10: The effects of Ecolabelling standards on the performance of Mumias Sugar
Company.
Influence
Responses
A B C D
Frequency % Frequency % Frequency % Frequency %
Increases
profitability
12 32% 25 66% 1 2% - -
Enhances
customer
25 66% 12 32% 1 2% - -
30
base
Increases
market
share
38 100% - - - - - -
Source: Research Data (2012)
Figure 4.5: : The effects of Ecolabelling standards on the performance of Mumias Sugar
Company.
Source: Research Data (2012)
The last objective was to determine the effects of eco labeling standards on the performance of
Mumias Sugar Company . The findings indicate that 32% of the respondents said that it increases
profitability to a very large extent. 66% said that it increases profitability to a large extent and
2% said it increases profitability to a small extent. 66% of the respondents said that it enhances
customer base to a very large extent, 32% of them said that it enhances customer base to a large
extent and 2% of them said that it enhances customer base to a small extent and . All the
respondents said that it increases market share to a very large extent. From the findings it can be
31
deduced that eco labelling standards increases profitability to a very large extent, enhances
customer base to a very large extent and increases market share to a very large extent.
4.3 Summary of data analysis
The first objective of the study was to find out the effects of green procurement teams on the
performance of Mumias Sugar Company. The findings indicate that 53% of the
respondents said that it cuts costs to a very large extent, 21% said it cuts costs to a
small extent. 50% of the respondents said that it enhances customer base to a very
large extent, 26% of them said that it enhances customer base to a large extent,
18% and 16% of them said that it enhances customer base to a small extent and to
a very small extent respectively. All the respondents said that it increases
profitability to a very large extent. From the findings it can be deduced that green
procurement teams increases profitability to a very large extent, enhances
customer base to a very large extent and increases profitability to a very large
extent.
The second objective was to determine the effects of green packaging standards on the
performance of Mumias Sugar Company. The findings indicate that 100% of the respondents
said that it increases profitability to a very large extent. 79% of the respondents said that it
enhances customer base to a very large extent, 21% of them said that it enhances customer base
to a large extent. 32% of the respondents said that it increases market share to a very large
extent.66% said that it increases market share to a large extent. 2% of the respondents said that it
increases market share to a small extent. From the findings it can be deduced that green
packaging standards increases profitability to a very large extent, enhances customer base to a
very large extent and increases market share to a very large extent.
The last objective was to determine the effects of eco labelling standards on the performance of
Mumias Sugar Company . The findings indicate that 32% of the respondents said that it increases
profitability to a very large extent. 66% said that it increases profitability to a large extent and 32
2% said it increases profitability to a small extent. 66% of the respondents said that it enhances
customer base to a very large extent, 32% of them said that it enhances customer base to a large
extent and 2% of them said that it enhances customer base to a small extent and . All the
respondents said that it increases market share to a very large extent. From the findings it can be
deduced that eco labeling standards increase profitability to a very large extent, enhances
customer base to a very large extent and increases market share to a very large extent.
CHAPTER FIVE
SUMMMARY OF FINDINGS CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter handles the summary of major findings, conclusions, recommendations and
suggestions for further research
5.2 Summary of major findings
The first objective of the study was to find out the effects of green procurement teams on the
performance of Mumias Sugar Company. The findings indicate that 53% of the
respondents said that it cuts costs to a very large extent, 21% said it cuts costs to a
small extent. 50% of the respondents said that it enhances customer base to a very
33
large extent, 26% of them said that it enhances customer base to a large extent,
18% and 16% of them said that it enhances customer base to a small extent and to
a very small extent respectively. All the respondents said that it increases
profitability to a very large extent. From the findings it can be deduced that green
procurement teams increases profitability to a very large extent, enhances
customer base to a very large extent and increases profitability to a very large
extent.
The second objective was to determine the effects of green packaging standards on the
performance of Mumias Sugar Company. The findings indicate that 100% of the respondents
said that it increases profitability to a very large extent. 79% of the respondents said that it
enhances customer base to a very large extent, 21% of them said that it enhances customer base
to a large extent. 32% of the respondents said that it increases market share to a very large
extent.66% said that it increases market share to a large extent. 2% of the respondents said that it
increases market share to a small extent. From the findings it can be deduced that green
packaging standards increases profitability to a very large extent, enhances customer base to a
very large extent and increases market share to a very large extent.
The last objective was to determine the effects of eco labelling standards on the performance of
Mumias Sugar Company . The findings indicate that 32% of the respondents said that it increases
profitability to a very large extent. 66% said that it increases profitability to a large extent and
2% said it increases profitability to a small extent. 66% of the respondents said that it enhances
customer base to a very large extent, 32% of them said that it enhances customer base to a large
extent and 2% of them said that it enhances customer base to a small extent and . All the
respondents said that it increases market share to a very large extent. From the findings it can be
deduced that eco labelling standards increases profitability to a very large extent, enhances
customer base to a very large extent and increases market share to a very large extent.
34
5.3 Conclusions
From the findings it can be deduced that green procurement teams increases profitability to a
very large extent, enhances customer base to a very large extent and increases profitability to a
very large extent. It can also be concluded that green packaging standards increases profitability
to a very large extent, enhances customer base to a very large extent and increases market share
to a very large extent. Eco labeling standards increase profitability to a very large extent,
enhances customer base to a very large extent and increases market share to a very large extent.
5.4 Recommendations
The researcher would like to recommend to the management of Mumias Sugar Company to train
all the staff on green concern and its benefits. They should recruit a professional
environmentalist to be guide the organization on green awareness. They should do a thorough
supplier analysis and only deal with suppliers who are environmentally friendly. They should
strive to know the green needs of the consumers so that they will be able satisfied them by
offering appropriate products. They should also do a competitor analysis so as to know their
green objectives, strategies strengths and weaknesses as these are likely to hinder the
achievement of their environmental plans. This will enable them to have better green strategies
to make them more competitive.
5.6 Suggestions for further research
The study was on the effects of green procurement on the performance of Sugar Manufacturers.
Other researchers should do studies to determine to influence of green procurement on the
performance of service organizations.
35
APPENDICES
APPENDIX1
36
QUESTIONNAIRES
I am a student of Kenya institute of management doing a study on the effects of consumer needs
forecasting on the performance of financial institutions. Your contribution by filling the
questionnaire will greatly contribute to the success of this study. The information received will
only be used for academic purposes it will be treated with confidence.
Please answer the following questions.
1. In what management level are you?
Top Level
Mid level
Operational staff.
2. for how long have you worked for this organization?
Below 1 year
2-3 years
37
4-5 years
6 years above
Tick as appropriate
3a Psychological Needs forecasting affects the performance of financial institutions in the
following ways
response SA A N D SD
F % F % F % F % F %
Increases
Profitability
Enhances
customer
base
Increases
Market
38
share
Source: Author (2012)
3b If there is any other effect, list it below
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
4a Personal needs forecasting affects the performance of financial institutions in the
following ways
response SA A N D SD
F % F % F % F % F %
Increases
profitability
39
Enhances customer
base
Increases market
share
Source: Author (2012)
4b If there is any other effect, list it below
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
5a Social Needs forecasting affects the performance of financial institutions in the following
ways
response SA A N D SD40
F % F % F % F % F %
Increases
profitability
Enhances
Customer base
Increases market
share
Source: Author (2012)
5b If there is any other effect, list it below
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………
41
APPENDIX B
WORK PLAN
Activities Apr 1st- 15th
2012
April 16th-30th
2012
May 1st-15th
2012
May16th-30th
2012
Preparation and
writing of the
proposal
Collecting data
42
Analysis of data
Writing and
presenting the
final report
Source: Researcher (2012)
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Allen, R.E. (1995) ‘Foreword’, in T. Graedel and B. Allenby (eds.), Industrial Ecology
(Englewood Cliffs, NJ: Prentice Hall).
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Avery, S. (1995) ‘Buyers Go Green: Slowly’, Purchasing 119.4: 43-45.
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Management (February 1996): 21-23.
Bergstrom, R. (1996) ‘The Next “Quality” Job at Ford: Getting Green’, Automobile
Production 108.11: 54.
Chen-Yu and Seock (2002) ‘Environmental Leadership Plus Total Quality Equals
Continuous Improvement’, in J. Willig (ed.), Environmental Total Quality Management,
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APPENDICES
APPENDIX A: QUESTIONNAIRES
PART ONE: Demographics (please tick where necessary)
1. Name of the respondent (optional)
…………………………………………………………………………
2. Within which range does your age fall?
a) 20 – 30 ( )
b) 31 – 40 ( )
c) 41 – 50 ( )
d) 51 and above ( )45
3. Level of education;
a. Primary ( )
b. Secondary ( )
c. College ( )
d. University ( )
4. For how long have been working with Mumias Sugar Co.
a. 1 – 3 years ( )
b. 4 – 6years ( )
c. 7 – 9 years ( )
d. Above 10years ( )
PART TWO
5 a. What are the effects of green teams on the performance of Mumias Sugar Company?
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
5 b.How effective are green teams on the performance of Mumias Sugar Company?
a. Highly effective ( )
b. Effective ( )
c. Not effective ( )
d. Not sure ( )
6a . What are the effects of green packaging on the performance of Mumias Sugar company?
46
..........................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
6 b. How effective is green packaging on the performance of Mumias Sugar Company?
a. Highly effective ( )
b. Effective ( )
c. Not effective ( )
d. Not sure ( )
7a . What are the effects of Eco labelling on the performance of Mumias Sugar Company?
..........................................................................................................................................................
............................................................................................................................................................
............................................................................................................................................................
7b.How effective is Eco labeling on the performance of Mumias Sugar Company?
a. Highly effective ( )
b. Effective ( )
c. Not effective ( )
d. Not sure ( )
47
APPENDIX 3
BUDGET
ITEM DESCRIPTION PRICE (KSHS)
Stationery Pens
Typing & binding
Printing
Binding materials
5,000.00
Internet 500.00
Travels 3,000.00
Miscellaneous
Expenses
2,000.00
48
Total 10,500.00
49