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.. Supervisor Declaration by the Principal

Date..

This research project report has been submitted for examination with my approval as the principal of KCA University, Kisumu Campus

Sign

Date..

DEDICATION
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This work is dedicated to the almighty God through whose guidance I did manage to successfully complete this research project report.

ACKNOWLEDGEMENT

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I highly appreciate the effort of my lectures and especially my supervisor for the guidance they gave me throughout my course.

ABSTRACT

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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.

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 study6 1.9 Conceptual framework.....7 CHAPTER TWO 2.0 LITERATURE REVIEW 2.1 Introduction......8 2.2 Theoretical review.......8
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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.............................................................................................. REFERENCES .16 APPENDICES
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Appendix 1: Letter of Authority Appendix 2: Authorization letter Appendix 3: Work plan Appendix 4: Budget

LIST OF TABLES

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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.............

LIST OF FIGURES Figure 1 Conceptual framework..7

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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.............

LIST OF ABBREVIATION AND ACRONYMS GDP: Growth Domestic Product USA: United States GPP: Green Public
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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

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
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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) considerationsgreen procurement. These activities are part of a broader movement toward more sustainable forms of production and consumption. Internationally, government procurement markets in 1997 accounted
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for 518% 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 companys 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 products ( recycled products, energyusing 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).

1.3 Statement of the problem

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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.

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
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To find out the effects of green teams on the performance of Mumias Sugar Company To determine the effects of green packaging standards on the performance of Mumias Sugar Company

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To establish the effects of eco labeling standards on the performance of Mumias Sugar Company

1.5 Research Questions

i. ii.

What are the effects of green teams on the performance of Mumias Sugar Company? In what ways does green packaging standards affect the performance of Mumias Sugar Company?

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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.

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.

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

Green procurement teams

Green Packaging Standards

Performance
Eco labeling Standards

Independent variables

Dependent variable

Figure 1: The effects of green procurement on the performance of sugar manufacturers Source: Author (2012)

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 stakeholders as interdependent actors within a network. In this paper we analyze and synthesis both sets of literature and produce
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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 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
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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 Hkansson, 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. Hkansson 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; Hkansson and Lundgren, 1997). As Araujo and Harrison (2002) point out, historical sociologists and economic 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,
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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 companys 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 companys 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 companys 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 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
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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 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
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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. 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 responsibility (MBDC, 2008)
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Institutes strategies for social

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; False claims of environmental benefit; and Claims of environmental benefits that detract con sumers from considering a products 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

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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 consumers attitudes and subjective norm towards environmental issues can influence their behavior and action towards green purchasing. This theory includes consumers 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 humans 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 Kongs 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 consumers 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:

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Environmental concern: Environmental concern can be known as affective traits that can signify an individuals 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 Kongs 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:

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Perceived effectiveness of environmental behavior: Perceived effectiveness of environmental behavior is related to a persons perception that if each individuals involves himself in proenvironmental 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 ones 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. If a product is labeled "recycled content," the rest of the product material might have come from excess or damaged items
17

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. 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
18

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, nonprofits 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, fairtrade, 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 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
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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 suppliers 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 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 suppliers behavior. In many cases it will be necessary for the buyer to make Green Purchasing and Supplier Behavior 37 the business case for environmental
20

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).

CHAPTER THREE RESEARCH DESIGN AND METHODOLOGY

21

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 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
22

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 easy to construct, does not involve techniques, can be used to represent qualitative and quantitative values of any given value.

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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 Top level Mid level Operational staff Total 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 Frequency 5 7 26 38 Percentage 13% 18% 69% 100

2% 0
T level op

5% 0 3% 0

Midlev el O pera tiona S ff l ta

Figure 4.0.1: Level of Management of respondents

24

Source: Research Data(2012) Table 4.6 Length of service of respondents Length Below 1 year 2 - 3 Years 4 5 Years 6 Years & above Total 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 Frequency 2 7 15 14 38 Percentage 5% 37% 39% 19% 100

5% 0 Percenta e g 4% 0 3% 0 2% 0 1% 0 0 % B elow1 2- 3Yea 4 5Yea 6Y rs& rs rs ea yea r a bove L thof servic eng e B elow1yea r 2- 3Yea rs 4 5Yea rs 6Yea & a e rs bov

Figure 4.2: Length of Service of respondents

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Source: Research Data (2012) Table 4.7: The effects of green procurement teams on the performance of Mumias Sugar Company. Responses Influence Cuts costs Enhances Customer base Increases profitability Source: Research Data (2012) 38 100% A Frequency % 20 19 53% 50% B Frequency % 10 10 26% 26% C Frequency % 7 7 D Frequency % 16% 21% 18% 2

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Increas ed s tudents enrolm ent Im proved g ender balance Increas ed refund balance A B C D

Percentag e

Leng of s th ervic e

Figure 4.3: : The effects of green procurement teams on the performance of Mumias Sugar Company. . Source: Research Data (2012)
26

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. Responses Influence A Frequency % Increases profitability Enhances Customer base Increases Market share Source: Research Data (2012) 12 32% 25 66% 1 2% 30 79% 8 21% 38 B Frequency % C Frequency % D Frequency % -

100% -

27

100% 90%

Percentag e

80% 70% 60% 50% 40% 30% 20% 10% 0%

Les s s tudents dropout Increas ed s tudent enrolm ent Im proved fees paym ent A B C D

L th of service eng

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.

28

Table 4.10:

The effects of Ecolabelling standards on the performance of Mumias Sugar Company.

Responses Influence A Frequency % Increases profitability Enhances customer base Increases market share Source: Research Data (2012) 38 100% 25 66% 12 32% 1 2% 12 32% B Frequency % 25 66% C Frequency % 1 D Frequency % -

2% -

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

D evelopm of ent up to date cours es Im proved equipm ents Introduction of IC T

Percentag e

Leng of s th ervic e

Figure 4.5: : The effects of Ecolabelling standards on the performance of Mumias Sugar Company.
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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 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
30

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 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

31

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 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
32

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.

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
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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.

34

APPENDICES

APPENDIX1

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?

35

Below 1 year

2-3 years

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 F %

A F %

N F %

D F %

SD F %

Increases Profitability Enhances customer

36

base Increases Market 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 F %

A F %

N F %

D F %

SD F %

37

Increases profitability 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

N
38

SD

F Increases profitability Enhances Customer base Increases market share

Source: Author (2012)

5b If there is any other effect, list it below

39

APPENDIX B WORK PLAN

Activities

Apr 1st- 15th April 16th-30th 2012 2012

May 1st-15th 2012

May16th-30th 2012

Preparation writing proposal of

and the

Collecting data

Analysis of data

40

Writing presenting final report

and the

Source: Researcher (2012)

REFERENCES Atkinson Giles, (2000), Measuring Corporate Sustainability, Journal of Environmental Planning and Management, 43 (2): 235-252, Carfax Publishing, part of the Taylor & Francis Group published. Abnor I., Bjerke B., 1997, Methodology for creating business knowledge, Sage publications, Newbury Park, CA Allen, R.E. (1995) Foreword, in T. Graedel and B. Allenby (eds.), Industrial Ecology (Englewood Cliffs, NJ: Prentice Hall). Avery, S. (1995) Buyers Go Green: Slowly, Purchasing 119.4: 43-45. kk(Lee, J 2008).) Buyers Start to Spread the Green Message, Purchasing and Supply Management (February 1996): 21-23.
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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, (New York: McGraw-Hill): 71-93. Bouwer, M, Jonk M, Berman T, Bersani R., Lusser H, Nappa V, Nissinen A, Parikka K, Brammer, S., & Walker, H. (2007). Sustainable Procurement Practice in the Public Sector: An International Comparative Study. [ Carlsson Lina, and Waara, Fredrik (2006). Environmental Concerns in Swedish Local Government Procurement. In: K.V. Thai and G. Piga (Editors), Advancing public procurement. PrAcademics Press, Boca Raton, USA. Cao, Fuguo (2002). The Appropriate Use of Government Procurement Bidding. Beijing: Enterprise Management Publisher. China Green Procurement May Be a Double-edged Sword. (2006, November 24), China Youth Paper http://yesky.n169.com Chou, Bill K. P. (2006). Challenges for Chinas Reform of Government Procurement. Journal of Contemporary China, 15 (48): 533-549. European Commission (No Date). International Policy Framework Charter, M., A. Kielkiewicz-Young, A.Young and A. Hughes (2001) Supply Chain Strategy and Evaluation (London: Centre for Sustainable Design, University College). McCrudden (2007 ) Socially Responsible Organisational Buying: Environmental Concern as a Noneconomic Buying Criterion, Journal of Marketing 58.8: 1-19 Hidson & Clement (2008). Implementation Guidelines for saving Products. Finance Ministry of Peoples Republic of China and the National Development and Reform Committee (2009). Finance Ministry and the National Development and Reform
42

Government Procurement of Energy-

Committee regarding Adjustment of Energy Saving Product Government 27 Procurement List Notice Green Consumption MBA Wisdom Encyclopedia Hamner, B. (1996) A Strategic Approach to ISO 14001, Corporate Environmental Strategy 4.3: 46-52. ICC (International Chamber of Commerce) (2010) Business Charter for Sustainable Development (Paris, France: ICC). KCIS (Kalundborg Centre for Industrial Symbiosis) (1996) Industrial Symbiosis: Exchange of Resources (Kalundborg, Denmark: KCIS).

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 ( ) 3. Level of education; a. Primary b. Secondary c. College d. University ( ) ( ) ( ) ( )

43

4. For how long have been working with Mumias Sugar Co. a. 1 3 years b. c. 4 6years 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? .......................................................................................................................................................... ............................................................................................................................................................... .........................................................................................................................................................
6 b. How effective is green packaging on the performance of Mumias Sugar Company?

a. Highly effective ( ) b. Effective ( )

44

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 ( ) ( ) ( )

45

APPENDIX 3 BUDGET ITEM Stationery DESCRIPTION Pens Typing & binding Printing Binding materials Internet Travels Miscellaneous Expenses Total 10,500.00 500.00 3,000.00 2,000.00 PRICE (KSHS) 5,000.00

46