Effects of green purchasing strategies on supplier behaviour

Abstract

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 behaviour. But if the motivation for green supply management is based on leadership commitment to sustainable development or the desire to promote sustainable development generally, then the question of impact on supplier behaviour 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 behaviour. In many cases it will be necessary for the buyer to make the business case for environmental management and to educate the supplier in methods for reducing environmental impacts. Organisations that seriously want to promote environmental sustainability will need to recognise that green purchasing is only a limited tool. For it to have a significant multiplier effect the organisation 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. © 2006 Springer-Verlag London Limited.