THE INFLUENCE OF GREEN PROCUREMENT PRACTICES ON ORGANISATION PERFORMANCE IN MANUFACTURING SECTOR

Abstract

The study assesses green procurement practices on organizational performance in steel manufacturing sector taking a case study of Lodhia Steel Company in Arusha. Specific objectives were to examine contribution of organizational efforts towards green Procurement practices, to find out the effect of failure to implement Green procurement in Lodhia Steel Company and to investigate the factors hindering the adoption of green procurement at Lodhia Steel Company Study adopted qualitative methods research approch and case study design. Targeted population was suppliers at Lodhia Steel Company; where by 50 suppliers were sampled. The study used structured questionnaire during data collection. Data were analyzed using Descriptive and a linear regression model. Study revealed that Lodhia Company has ability in applying policy statement of green procurement as its efforts towards green procurement adoption. Also, the company give suppliers training on matters of green procurement. Company found to provide sufficient resources for green procurement. Environment pollution and degradation and decrease compliance with environmental laws are the huge effect of failure to implement Green procurement. Also increase environmental expenses, misuse of natural resources and decrease quality of environmentally friendly supplies was found to be the effect of failure to implement Green procurement. Moreover, study revealed that cost of the procedure affects adoption of Green Procurement. Also, top management support affects Adoption of Green Procurement. Major conclusions from the study imply that Lodhia Company has a lot of contribution on efforts towards green Procurement practices. Also, there are effects associates with failure of implement green procurement practises; these include mass production of harmful products which adversely harm environment, human and animals’ health. It is recommended that, Lodhia Company should consider green procurement as a critical investment and set aside adequate financial resources in its budgeting process. Lodhia company top management should also support the use of green products and services.