Introduction
Green Procurement
Green procurement has been recognized as an effective means of reducing unwanted environmental effects related to production, distribution, and consumption of products around the world since the 1980s (Emmett and Vivek, 2010). It is a concept that has drawn heated debates among business owners and other stakeholders. According to Worthington (2009) “There is no single definition of sustainable procurement-not least because sustainability is a contested concept-and applications vary across organizational hierarchy and sector”.
However, Farahani (2009) thinks otherwise and gives a definition by explaining that “green procurement, also known as sustainable procurement is a spending and investment process typically associated with public policy, although it is equally applicable to the private sector”. The topic, which is widely linked to the wider agenda of sustainable development, has in the recent past been a point of interest for many businesses, governments, organizations and other stakeholders.
The level of acceptability among businesses and organizations for a long time has widely varied with the industry and region a business is in. However, this is slowly changing as more countries take the issue up with importance and relevance to their economy and environment. According to Friend and Nicholas (2009), “There is a general acceptance in many countries that it involves a higher degree of collaboration and engagement between all parties in a supply chain”. As acceptability continues to grow in more industries, “many businesses have adopted a broad interpretation of sustainable procurement and have developed tools and techniques to support this engagement and collaboration” (Phyper and Paul, 2009).
Aim of the study
Perform an in-depth analysis of the development of green procurement in Hong Kong.
Objectives
- Explore the true situation of green procurement development among different industries and the different size of organizations in Hong Kong
- Research on their knowledge of green procurement
- Explore the genuine obstacles as well as incentives for the organizations to implement green procurement
- Investigate how the external factors such as globalization and CSR affect the organization to introduce the green procurement
- Analyze/forecast the future development of green procurement in Hong Kong
- Present recommendations on how to improve and accelerate the development of green procurement in Hong Kong
Purpose of research
The research which will form the basis of the dissertation is inspired by the continuous debates that exist on the role of green procurement in sustainable development. It is also inspired by the recent wave of pressure from environmentalists and other stakeholders to ensure that current developments and investments do not mean sacrifice the state of the environment in future. As a researcher, I believe that all organizations in all industries should be responsible for the negative environmental and social impacts resulting from their day-to-day procurement processes. Therefore, the recommendations at the end of this research will be based on what measures will have been proven significant in conserving the environment according to the study.
Literature review
Green procurement
According to Anderson and David (2009), “green procurement broadens the price and quality framework to take account of third-party consequences of procurement decisions, forming a “triple baseline” of external concerns which the procuring organization must fulfil”. The framework of ensuring green procurement is discussed with regard to the environment, social considerations and the economy.
“Environmental concerns are the dominant macro-level justification for sustainable procurement, born out of the growing 21st-century consensus that humanity is placing excessive demands on available resources through unsustainable but well-established consumption patterns” (Kane, 2009). Many authors and experts in the industry agree that green-procurement stands out in sustainable procurement. Justifications to pursue and invest in green procurement include the need to address climate change and mitigation of over-exploitation of all scarce resources.
Even though the ultimate green procurement is viewed as total avoidance of purchase, businesses realize that this is not realistic. Some of the green procurement examples include using renewably sourced timber for construction, serving organic food in workplace canteens and purchasing energy-saving light-bulbs, just to mention a few. Zhu (2007) advises that in order for companies to develop and sustain green procurement, they should have properly formulated guidelines and procedures. These procedures should then be adhered to during purchases to ensure environmentally responsible procurement.
Application in sustainable development
Green procurement is applicable at every level of the economy starting from the central government to the private sector. In the central government, its application is mainly in designing investments and formulating criteria for spending. Today, governments are more concerned about meeting the needs of the present while being sensitive to those of the future. Solutions are formulated to encourage development today while ensuring that development in the future is not sabotaged. “While broad-based green procurement strategies are most prominent in the European Union, it is increasingly becoming common in other regions, particularly the Asian region” (Lin, 2011).
Green procurement is also applicable in devolved and local government. Like Erdmenger (2003) explains “at market-level, sustainable procurement is typically instrumental; authorities seek to address policy through procurement”. Local bodies and government departments can adopt green procurement to address buying challenges. Solutions arising from green procurement will contribute to environmental and community goals. It is further applicable in areas where equality and diversity are sought.
Most significantly, “green procurement helps local governments improve sustainability and reduce environmental impacts through developed toolkits such as the one by California Sustainability Alliance” (United States Transportation Security Administration, 2008). This enables them to create green jobs, reduce environmental damage and save money. However, for these benefits to be realized, procurement organizations must take a broad approach to green purchasing, reflect on localized economics and cross-cut green procurement targets.
Another area of application is the private sector. According to Sarkis and Qinghua (2010), “its proponents aspire to see its application across all areas of the economy”. The same author explains that influencing its application in the private sector is not straightforward. “This means that the private companies themselves have to be self-motivated to embrace the best practices in procurement, those that promote sustainability” (Kane, 2009). Application in the private sector is possible through shareholder pressure, a willing management and enlightened leadership among other principles. The government can influence the application of green procurement in the private sector indirectly through its purchasing power that presents a persuasive environment to them.
Approaches to green procurement
While there are no clearly defined structures under which green procurement should be implemented, there are two most plausible approaches. The first one is the product-based approach. This is where an organization begins by assessing their environmental credentials through its products’ movement and then moves ahead to assess that of their suppliers. This strategy is mostly applicable to those businesses who are want to use the process as a measure of the impact of a product for marketing purposes. It is also effective for those companies that want a vivid understanding of their suppliers and their processes.
The second approach is supplier-based where “an organization may analyze the CSR (Corporate social responsibility) management systems of a supplier and whether its practices conform with the law and with the CSR standards of “buying” organizations” (Esty and Simmons, 2011). This approach is used when an organization wants to measure the amount of environmental and social risks they are exposed to by their suppliers. If implemented correctly, it is an effective way to establish if a company’s suppliers meet its environmental standards.
Role of CSR
Asian Development Bank (2005) defines CSR as a “built-in, self-regulating mechanism, whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms”. CSR activities affect investors, management, employees, consumers, communities, the environment, and other stakeholders. All these stakeholders play different roles to ensure CSR initiatives benefit each of them equally.
The right CSR initiatives in different regions are ensured through laws and regulations, awareness and training corporations on how they can benefit from CSR. Benefits are spread across all stakeholders and include supported development in communities, allowing employees a chance to participate in beneficial activities to the communities, building a reputation for a business and its brands, as well as support for government-initiated development activities and plans. Major challenges for corporations in their efforts to implement CSR include lack of finances, resistance by communities, lack of support by governments, and legal challenges that arise as a result of being involved in different community activities.
“Procurement businesses are beginning to include aspects of corporate social responsibility into their projects, but it is arguable that the role of CSR is still not clear” (Jonker, 2006). Every stakeholder has a role to play to enable the industry mature in its implementation of CSR. Investors have to be willing to input more finances to support CSR initiatives. Communities play a significant role in helping procurement companies identify social needs that need to be addressed. Clients play a role by putting pressure on procurement companies, as well every business that has a procurement department to do business responsibly.
Supply chain management
The concept of supply chain management resulted from increased competition in the grocery industry due to recession. Supply chain an industry body ensuring maximum responsiveness to consumer demands and minimizing costs in the supply chain. Through supply chain management, customers can be served better and faster. A relationship between customers and trading partners ensures that they are served at a minimum cost. “Advanced technology, infrastructure, business structures and competition calls for the most effective way of serving customers by delivering the right products, at the right time, and at the right costs” (Organization for Economic Co-operation and Development, 2000).
For supply chain management to benefit both businesses and consumers, there are prerequisites that have to be in place to ensure its effectiveness and efficiency. The most important and main focus areas are product replenishment, category management and enabling technologies (McNail, James and George, 2011). Category management enhances supply chain efficiency by addressing infrastructure concerns. Effective supply chain management is only possible if there is an effective and efficient infrastructure system in place. Infrastructure determines how accessible goods and services are, as well as the level of interaction between consumers, manufacturers and the rest of the supply chain.
Category management gives it an exceptional success by optimizing introductions, assortments and promotions. Efficient customer response is not just about timely delivery but also about ensuring quality deliveries in appropriate packaging. Optimizing assortments and promotions give consumers quality and a variety to give each one of them exactly what they want.
The second prerequisite is the product replenishment. Product replenishment focuses its attention on integrated supplies, automated store ordering, continuous replenishment and a synchronized production. It is also the element of the supply chain which ensures reliable operations through cross-docking and other available systems. Suppliers and consumers rely on these elements to have correct deliveries made at the right time and in correct quantities.
There are different paths identified in supply chains from the manufacturer to the consumer. “The aim of product replenishment is to integrate the different paths to a logistic chain which will create one effective and efficient route to ensure the consumer is constantly reached” (Humphreys, Shiu and Chan, 2001). Several logistical methods such as cross-docking and order support systems make it possible and fulfil the product replenishment prerequisite for the supply chain to work.
The last prerequisite is enabling technologies. They include electronic fund transfer, electronic data interchange, activity-based costing and item coding, and database maintenance. Technologies such as the electronic data interchange allow everyone on the supply chain to minimize their inventories by reducing order processing time (Humphreys, Shiu and Chan, 2001). They allow a direct connection between different parties on the chain without a need for physical interaction. Different parties can receive messages which were left while they were offline and this keeps the communication going.
Information technology has made it easier for the supply chain to communicate and deliver on time, which is the whole essence of the chain. Enabling technologies have made it easier to deal with logistical problems which become bigger as markets become more global. Database management makes it easy for suppliers to trace their products while electronic fund transfers make payment convenient and safer. Other prerequisites include demand management and supply management. Demand management makes it possible to manage forecasted demand while supply management is the process and method of modern buying (Organization for Economic Co-operation and Development, 2003).
Overview of government green procurement in Hong Kong
Public sector
Procurement in the public sector adopts principles recommended by a study of the development of environmentally responsible product specifications and review on market availability carried out in the year 2000. There are marketing schemes in tender valuations during the purchase of stationeries and paper products (Ho, 2006).
Environmentally preferable products are given priority during government procurements. These include recycled paper, water-based paints, ultra-low sulphur diesel and rechargeable batteries, just to mention a few. The tables below show the state of green purchasing in Hong Kong by the government in the period between 2002 to 2004.
Table 1. Green purchasing by the Government Logistics Department (GLD) between 2002 and 2004.
Table 2: Recycled paper purchased by GLD.
Private sector
Green procurement in the private sector is purely on a voluntary basis. There are no laws or regulations obligating businesses to adopt green procurement strategies. The scope of green procurement in private businesses is dependent on the company’s policies, the cost of environmentally preferable products and measures, as well as the commitment of management (Chan, 2008). It is also highly dependent on customers’ demands and the company’s response to them. Public pressure has in the recent past played a significant role in the company’s policies, especially those that touch on the environment.
It is also notable that private companies are more driven by the benefits they gain from initiatives. “Organizations practising sustainable procurement meet their needs for goods, services, utilities and works not on a private cost-benefit analysis, but with a view to maximizing net benefits for themselves and the wider world” (Lee, 2009). This may result in resistance to good policies and measures that do not offer them any benefits.
However, from studies carried out in the past, it is evident that sustainable development and a preserved environment benefit every business regardless of the industry they have invested in. It is for this reason that the private sector should be equally aggressive in researching on and establishing measures that promote sustainable development. “In doing so they must incorporate extrinsic cost considerations into decisions alongside the conventional procurement criteria of price and quality, although in practice the sustainable impacts of a potential supplier’s approach are often assessed as a form of quality consideration” (Organization for Economic Co-operation and Development, 2010).
The private sector can be encouraged to get involved through performance measures used to compare the cost of implementing green procurement and what the cost of ignoring it. By accurately measuring the extent to which the economy and environment have been impacted by the existence or lack of green procurement processes, it is possible to evaluate the value of their investments and their effectiveness. If the benefits are not felt, the cost of investment becomes more than the benefits accrued. In this case, the model is failing and maybe there would be a need to restructure how legislation and processes are developed. The evaluations play an important role in the decision making processes over future developments.
Recent developments
Since the year 2000, the government of Hong Kong has placed a significant level of importance in green procurement by starting with the public sector through the Government Logistics Department (GLD) under Hong Kong Special Administrative Region (HKSAR). Through the department, the government has developed green specifications for products that it regularly procures. By placing these products in categories, the government is able to identify those that have green alternatives. Out of the 38 categories reached at by the GLD, 19 are considered to have “green” alternatives which the government gives preference. To understand these measures better, Zhu (2007) explains that “in implementing green purchasing within the HKSAR Government, the Stores Procurement Regulations (SPR) were amended in 2000”. The author explains further that the amendments were done “to require government departments to give consideration, as far as possible and where economically rational, to purchase products with improved recyclability, higher recycled content, greater energy efficiency and reduced use of toxic substances, amongst others” (Zhu, 2007).
In 2008, the country’s green purchases amounted to HK$ 1.76 billion, compared to the total procurement made which was worth HK$ 3.92 billion (Ho, Nicholas and Gilbert, 2010). A policy framework published in 2005 outlines the government’s plan for a period of 10 years beginning 2005 to 2014. In this plan, the government pledged to a green procurement policy that gives directions and guidelines on how government procurement should be done. The plan covers the process of selecting, purchasing and maximizing the use of environmentally friendly products and services. It outlines that preference should be given to those products whose usability is sustainable without compromising the environment. Following up on the plan, Ho, Nicholas and Gilbert (2010) report that “after a task force in economic challenges meeting in June 2009 and in the policy address 2009-10, the HIKSAR chief executive further announced that the government will expand the scope of green procurement and take the lead in making Hong Kong a green city through legislation”.
Methodology
Background
Primary data used in this research project will be collected from a survey conducted on 30 people from the sector. The survey will be conducted in cooperation with organizations and staff federations in the procurement industry. It will be aimed at informing the various discussions on green procurement, as well as its role in a sustainable environment, the economy and livelihoods of people in different economies, in this case, Hong Kong. Involving all people at different levels of professionalism in the sector, regardless of their race or religion, will ensure that the survey collects comprehensive information and all stakeholders in the industry are represented.
The initial findings of the data will be focused on these main questions;
- What are the genuine obstacles as well as incentives for the organizations to implement green procurement?
- What is the influence of external factors on the planning and implementation of green procurement in Hong Kong?
- Is green procurement a necessary trend or an optional development to organizations in Hong Kong?
The survey will target 30 participants. Such an average number will ensure that more views are represented and the data is not too much to sort out and.
Another source of information will be from an interview with 2 experts in the procurement industry, one from a company and one from a university procurement department. Participants will be chosen from their level of experience and understanding of professional development in procurement. The interviews will be aimed at understanding how the culture of green procurement is appreciated in Hong Kong organizations, by studying how they are able to ensure sustainability and minimal damage to the environment. The interviews will further discuss the need for green procurement development and training in Hong Kong organizations and its role in the region’s development.
The interviews will be used to further establish how this has been taken up in various levels of the region including in the government level, local level and the private sector. They will further be used to seek the experts’ opinion on how through regulations, the sector is being forced to establish green channels of doing business. The interviews will also be significant in discussing the role of respecting organizations internal environmental policies and how green procurement mechanisms can be used as a solution to different challenges facing environmental sustainability in Hong Kong.
Another significant topic of discussion with the interviewees will be stakeholders’ satisfaction and their role in ensuring quality in the sector. This topic will cover promotions and policy development, as well as how they are being addressed in the procurement sector. Process improvement will be analyzed to understand how by making effort to make a production system better, the procurement processes can achieve sustainability. Other important measures to be discussed in the interview will include the role of a good corporate culture, policy enrichment and effective implementation.
Data analysis and discussions will be written from the findings in different academic resources, the survey and the interview. It will review and classify findings from different statistics and the situation in Hong Kong as far as skill green procurement is concerned. It will also present statistics and information collected from the outlined sources to get a professional understanding of the topic. The findings will be used to structure an argument and different discussions. The industry’s position and capability to manage already in place will also be reviewed, discussed and evidence presented. The results will be interpreted and a more detailed examination given.
Participants
To collect comprehensive data and information, this study will be conducted on 32 participants. 30 will participate through questionnaires while the other 2 will be involved as interviewees. It will be open to employees of one of the leading procurement companies in Hong Kong. The survey will encourage participants from all categories and levels of the profession in the company to ensure equal representation. It will target 30 participants, a number that was decided on to ensure easy manageability of data.
Professionals in the area of procurement will account for 70% of the participants. Half of these are expected to have not less than 5 years of experience in the field. The remaining 30% of the participants will include those with experience in environmental matters, including those working for organizations that offer environmental solutions, government representatives in the environment department, and non-governmental organizations working to rehabilitate the environment. To ensure gender balance in the study, 50% of the participants will be female, while the remaining percentage will be male. There will be an age limit of 30 years to ensure information is only collected from experienced participants. The questionnaires will be accessible to the participants for a set period of time to ensure participants fill them at their own time without pressure.
Data collection will also include two interviews. The interviewees are expected to have a good understanding of procurement and the environmental aspects of procurement. They will be further expected to understand green trends in the procurement industry, especially in Hong Kong. Since the interviews will be used to discuss the existing trends, challenges and future solutions to environmental challenges in procurement, a long term experience in this area of study will be required. It is expected that an interview with the head of the procurement department of a university in Hong Kong will meet the expectation of the study. Another proposed interview will be with the procurement department of a sizeable property developer in Hong Kong.
Recruitment
Recruitment will be done by using social network and online forums to reach out to targeted participants. The snowball technique will also be used to reach the targeted number of participants required for the study. In this technique, people familiar with the study will be used to reach out to more people who will then be directed to the research’s weblink. For the interviews, the participants will be contacted on the phone by fetching their numbers from directories. All participants will be presented with adequate explanations and guidelines for the study. All participants will also be required to fill and sign a consent form agreeing to voluntary participation.
Data collection
The research methodology applied in this research project would be designed to achieve the set objectives of the paper. It will include the study of books, academic journals, online articles, past projects by different authors, government statistics and non-governmental bodies. To understand the background of the problem, literature relating to skill mix in the nursing sector will be reviewed. Primary data will be through interviews with experts and key stakeholders in the procurement industry.
Primary data collection will be done by administering questionnaires and doing interviews. Secondary data will be collected from past research projects, government and non-governmental statistics and other relevant sources. The questionnaires will be filled online and will be divided into three sections. The first section will be used to understand the participants’ understanding of green procurement. The second section will seek to understand the participants’ view of the current position of green procurement in Hong Kong. The third section will be used to understand their views on what needs to be changed and what should remain as it is, as well as the benefits of undertaking the suggested solutions.
Case design
The case design will be comprehensive and complete enough, to allow stakeholders to understand and utilize the information in decision-making easily, whether they were part of the research team or not. These stakeholders include consumers, manufacturers, logistics companies, distributors of various products, environmental bodies in the country, and the government of Hong Kong. Reviewing the case design will be critical to ensure its validity and applicability. Cross-comparing the case design and its outcome, with similar research projects conducted in the past, will help this research to highlight commonalities and identify areas where the results need to be strengthened. Data analysis tools and software will be beneficial when sorting out data and identifying patterns. As Vardeman and Jobe (2001) argue, “data analysis techniques can help gain greater insight into trends being investigated”.
Justification of the methods
Appreciative inquiry
“Appreciative inquiry is based on the assertion that problems are often the result of our own perspectives and perceptions of phenomena” (Vardeman and Jobe, 2001). The approach will be applicable when identifying what has worked well in the past and applying it in the current situation. This proved the most applicable methods when researching on the procurement sector’s development and strategic planning. The method will prove particularly relevant when gathering information that will help the sector develop its development plan.
Case study design
According to Jupp and Roger (2006), “case studies are particularly useful in depicting a holistic portrayal of a client’s experiences and results regarding a program”. In order to implement any green initiatives, the sector will need to confirm the effectiveness of its programs and processes. This entails evaluating their strengths, weaknesses and threats. A case design in this research will include arranging a wide range of information from different sources and similar projects in the past from the procurement industry and other stakeholders. Comparing the results and patterns of the past project will then help this research make relevant conclusions and recommendations. The evaluation will include both straightforward comparison and in-depth analysis.
Interviews
Interviews are a brilliant way to pursue in-depth information about a project. They are particularly helpful when a case needs follow-up, and when answers are required from a particular person (Jupp and Roger, 2006). The best way to get information during interviews is to ask open-ended questions. Preparing for interviews will involve choosing settings with the least level of distraction, explaining the purpose of the interview to the interviewees, explaining the purpose of the interview to them, and recording it for reference purposes. This method of research will be beneficial when trying to understand the concept of green procurement, how it can be made better, and any other information that does not involve a large target group.
Questionnaires
Questionnaires will be the most convenient and easy way to collect data from a large population. They are easy to design, and since they do not require a lot of time, it is easy to have respondents to cooperate. Their disadvantages include the fact that they do not allow the researcher to examine complex issues. Since the target group in this research project will be 30 people, questionnaires are considered the most efficient way of gathering information and opinions from such a number of people.
Data analysis
Vardeman and Jobe (2001) define data analysis as “the process of inspecting, cleaning, transforming, and modelling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision-making”. Data analysis comprises of diverse techniques depending on the type of data, and expected outcomes. When conducting a study on a wide topic such as procurement, data mining is an indispensable technique since it involves discovering knowledge, as opposed to describing it.
“In any study focusing on attitudes and perception, the importance of primary data cannot be over-emphasized” (Vardeman and Jobe, 2001). In such a project, it is expected that at least 90% of the questionnaires distributed will be returned and filled correctly. Interviews will be scheduled early to guarantee enough time for preparation by participants. Secondary data will be extremely valuable and will be collected to augment the research. Before any data is collected, permission will be sought from different authorities such as the relevant ministries and organizations where participants work. An initial visit to these organizations will be crucial for introductory purpose, familiarization as well as seeking consent for the research project.
Data analysis tools and software will be beneficial when sorting out data and identifying patterns. As Jupp and Roger (2006) argue, “data analysis techniques can help virtually any research project gain greater insight into trends and insights in the area of study”. Available data analysis tools today include business intelligence platforms, online analytical processing, excel power, among many others. Answers to close-ended questions will be analyzed in percentages while others will be individually analyzed and discussed.
Material
Participants will be required to fill a three-part questionnaire. The questionnaires will be available both online and in hard copy to allow participants to fill them at their own time and comfort. There will be an available weblink where those who want to fill them online can access them. The questionnaires will be available for a considerable duration of time depending on when they are distributed or open for participation. Materials needed for this activity will include the questionnaires themselves, a weblink and detailed instructions of what is expected of the participants.
Interviews will be conducted on the phone and any information required from government officials will be accessed online, after consent from concerned authorities. Sample investigative questions in this survey will include having participants explain what they understand by green procurement, giving examples of experiences they have had themselves in green procurement-related initiatives. Financial resources required for the project are outlined in the budget available at the appendices.
Project time schedules
This research dissertation will be completed in a duration of 3 months
Ethical considerations
There will be a number of ethical issues expected to arise during the formulation of this research study. These issues are further expected to arise during the collection of data for the project. One of the most fundamental principles to be followed in this research project is voluntarism participation. The principle requires that no participant should be coerced to participate in a research or give false information. A participant must also give consent before their identity is revealed if there is a need to do so, although, for such a project, anonymity would be applied.
During a research project, ethics also demand that the process must not subject the respondents to any danger or harm, a factor that will be taken very seriously. A researcher is supposed to apply the principle of anonymity to protect them from the consequences of revealing the information they do. It is also the respondent’s right to be treated with respect and dignity during the study. These ethical issues are expected to be adhered to when this research project is being conducted.
Limitations
Limitations expected in the research exercise include language barriers since the procurement industry in Hong Kong employs a considerable number of foreigners. This is expected to make it a bit difficult to collect views for the study. Lack of cooperation from some respondents is expected to be a significant challenge, as well as fears that they may not give accurate answers or take too long to respond. Conducting a research project is an expensive activity and finances will be a challenge. These challenges will be addressed by conducting the survey in English which is the language in which this paper will be written and using translators for participants that do not understand English. There will also be comprehensive explanations about the scope of the research to respondents to ensure they understand the objectives of the study. Explanations and elaborations are aimed at minimizing resistance and enabling respondents to complete the task as fast as possible. There will be a proper costing and allocation of funds before the task commences to take care of any financial challenges that may arise.
Green procurement as a subject raises very many controversies. Many businesses disagree on key issues related to the topic, especially those that are not cost-effective enough for them. While many feel that its initiatives could help solve several environmental challenges in the procurement industry, they disagree on how policies should be formulated and who should govern the changes that arise. Businesses affected by this industry feel that key decisions and their implementations should be left to them. Government officials on the other hand feel that it’s their responsibility to foresee any decisions that affect the environment. Such controversies and debates could pose as a challenge during the research. Too much-contradicting information and opinions may make it hard for the paper to come up with a well-supported conclusion.
Expected outcome
For the proposed study, it is expected that it will be possible to identify the role of green procurement in Hong Kong. The survey will be focused on green procurement and how it allows contributes to sustainable development. It will focus on the role of green procurement on transferability of environmental benefits to other areas of the economy and knowledge among consumers, suppliers and other stakeholders in the industry. It will study the allocation of different skills in Hong Kong to ensure green procurement is well understood and appreciated in the region.
Through interviews conducted on experts in the area of procurement and information gathered from government and non-government sources, it is expected that it will be possible to fully understand the background of the topic and present a comprehensive argument. It is expected that from the information gathered, it will be possible to identify what stakeholders have done so far, what is working and what has failed. Such information will be vital for any country or city with ambitions of using green procurement to promote sustainable development.
This research is significant to every citizen of the city of Hong Kong. Every region recognizes that the quality of the environment determines its future. By ensuring proper environmental decisions are made, a city’s investments and developments in other sectors are bound to produce results. The research is also significant to the procurement industry and those who have invested in it, policymakers and other involved stakeholders. It is significant to the direction that procurement training and skill development takes in the organization. It is further expected that the results will help shape the way procurement and its role in sustainable development are viewed.
Green procurement as an only solution or diversification technique will be researched on and discussed. From the literature review, using green procurement as a diversification technique serves more benefits than using it as the only solution to sustainable development. Diversifying the skills and responsibilities of those in the industry allows them to do perform more responsibilities while being able to deliver in their core responsibilities. This argument will be further researched, evidence gathered and evidence presented on which among the two best applies in achieving sustainable development in Hong Kong.
In the process, the research will also establish practical guidelines for the city of Hong Kong to maximize the benefits of green procurement. There will be practical guidelines for stakeholders in the industry considering it as an option to ensuring sustainable and safe development for future years. Necessary resources and steps will also be established through a comprehensive literature review on the subject. It is expected that steps and guidelines gathered on the same will be relevant, comprehensive and viable enough for easy implementation. Professionalism in the
The research will further help understand the value of quality in skills in the context of green procurement. Quality of skills in the industry is a term that has different interpretations depending on the approach that a person takes. It is defined as the extent to which a product or service satisfies a person or a group. Quality in procurement is the process of meeting the expectations of manufacturers, distributors and consumers. Quality of procurement in many industries is viewed in terms of the degree to which the probability of an optimum process’s outcome is influenced by the care services given. In this industry, quality is judged based on various domains. These domains include effectiveness, capacity, safety, equity access, reliability and timeliness (Chan, 2001).
Through the research, it will be possible to give suggestions and recommendations on the best quality improvement models. There are various quality improvement models in procurement that have been developed to ensure that services and products availed to clients are up to standard and that they meet the expected quality level. In long-term business processes and policies, extra attention needs to be to ensure that implemented measures are efficient enough and relevant for a long period of time. Applicable quality improvement models in procurement include Quality Assurance, Total Quality Management, Performance Improvement and the ISO standards, among others.
The research will be conducted with an understanding that green procurement is entrusted with a huge responsibility of improving the quality of life of a population. For regions and industries where procurement plays a more significant role than just ensuring the accessibility of goods and services, satisfaction is both paramount and critical. As more regions compete to have the best procurement processes in the world, several challenges and barriers are evident. Policy implementation has been a major obstacle for stakeholders who seek to invest in the industry. This is especially so when environmental matters come into place. The industry is strongly guarded by long policies and procedures of implementing even the smallest initiatives. The rate at which technological innovations and procedures become obsolete is also an issue of concern. As a result, small projects and initiatives which take too long to be implemented might end up being irrelevant by the time they are complete.
Available green procurement techniques include quality assurance which is involved with monitoring and evaluation procedures and techniques in a project to ensure that desired quality standards are met. It is applicable to ensure that goods and services at any level of the supply chain are up to the recommended standard. Important techniques in quality assurance include putting in place checking and monitoring measures. The process involves assessment of quality to identify outlying results so as to check if they indicate any inappropriate results.
Performance improvement is a significant technique easily applicable to green procurement to improve sustainability. Performance improvement is a concept that works towards continuous improvement and consistence in quality. It is more focused on instilling accuracy in a particular process rather than trying to single out the errors present (Chan and Lorett, 2008). It values the empowerment of individual processes through ensuring their capability to improve quality, organizational learning, awareness and being sensitive to the needs of those dependent on a process. This model encourages continuous improvement, identification and prevention of defects (Zhu, Joseph and Kee-hung, 2008a).
The research is further expected to help understand how organizations can be empowered to perform more through green procurement. When well equipped and trained, government and non-government organizations will be able to research on better processes. Organizations further need to be equipped to minimize wastage, a key pillar of green procurement. By implementing such initiatives, organizations that have not been able to utilize their procurement capabilities to improve on efficient will be able to do so.
The research is also expected to gather views and suggestions on the role of technology in the successful implementation of green procurement. Technology is important for effective management of key processes as the industry tries to implement and benefit from green solutions. “Technology influences management and workforce in any sector by analyzing production, resource impact, routine to non-routine operations, structure impact, industry impact and work impact as well” (Zhu, Joseph and Kee-hung, 2008b). It allows the stakeholders together with the workforce to match the resources available with technology, through different approaches. The management and leadership of organizations are able to run operations more easily changing techniques and processes to better and modern ones. Through such benefits, community green procurement can be taken to a level where it serves more purpose in different industries.
It is also important to note that green procurement features personnel administration, organizational management, industrial management and manpower management in procurement companies. People in an organization are a key determinant of how successfully designed measures are going to be and how long they will last. It is expected that these views will be discussed in the study. As the labour markets get more and more competitive and the need for talent becomes more obvious for optimum performance, human resource managers are facing major challenges as they try to get the best in the market, retain them and ensure they have consistent performance. The procurement industry has especially been hit by retention and staff relevance problem as a result of constantly changing needs in the field. Such challenges will automatically affect the way formulated policies and suggested solutions are implemented.
From the study, it will be possible to establish and discuss internal and external factors that influence the adoption and implementation of green procurement in Hong Kong. Internal factors to be discussed in the study include labour policies, training and support policy, shareholders and the labour market. External factors include government policies, legal factors, technology, social corporate responsibility and globalization as identified by Lin (2011). Since the procurement industry is a significant part of every region’s economy and involves external transactions, the behaviour of different economies has enormous effects on its operations. The role of economical changes and trend in how green procurement can be achieved will be discussed.
As Arimura, Nicole and Hajime (2011) argue, “successful industries are becoming more adaptable, resilient, quick to change directions, and customer-centred”. The procurement sector today is constantly changing and demands strategic planning and organization. Technological innovations such as Transport and Fleet Management Systems have made it easy for the sector to handle information related to skills, knowledge, training, trends and development. It is expected that through the interviews and study of different literature, it will be possible to confirm these arguments.
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