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.