Question

Question 2 (Total 29 marks) Case Study of 'Green Procurement Since its beginnings in 1837, Procter & Gamble (P&G) has grown into a multinational corporation of over 11,000 employees. Today, the company has total worldwide sales of over $35 billion, with over 300 different brands in more than 150 countries. P&G brands include: Tide and Ariel laundry detergents; Charmin toilets tissues; Pampers nappies; Pringles potato snakes; Pert and Pantene shampoos; Dawn, Dreft and Fairy washing-up liquids; Whisper and Tampax feminine hygiene products; Hawaiian Punch and Punica beverages, and many more. The company's statement of purpose is to provide products of superior quality and value that improve the lives of the world's consumers'. This statement clearly recognizes the need to provide products that have superior performance, quality and value. Since the 1990's, P&G has been maintaining an Environmental Quality Policy. The policy has seven key principles: ► Ensure our products, packages, and operations are safe for our employees, consumers, and the environment. → Reduce or prevent the environmental impact of our products and packaging in their design, manufacture, distribution, use, and disposal, whenever possible. ► Meet and exceed the requirements of all environmental laws and regulations. ► Continually assess our environmental technology and programs, and monitor progress toward environmental goals. Provide our consumers, customers, employees, communities, public interest groups, and other with relevant and appropriate factual information about the environmental quality of P&G products, packaging, and operations. Ensure every employee understands and is responsible and accountable for incorporating environmental quality considerations in daily business activities. > Have operating policies, programs, and resources in place to implement our environmental quality policy (a) List SIX most appropriate considerations you perceive when P&G selects its suppliers. (b) Suggest how P&G can establish 'green procurement' from the supplier in order to fulfil the policy requirements of the company. Rubrics and Marking: Part (a): Totally 9 marks, 1.5 marks for each relevant and appropriate considerations. Part (b): Totally 20 marks, and 2.5 marks for each relevant and appropriate suggested actions.

Answer 1

1. The six appropriate considerations for selecting the suppliers that P&G should include are as follows-

A. Credible and environment friendly extraction of raw materials by the supplier.

B. Environmentally safe processing and storage of the materials.

C. Compliance to environmental laws pertaining to material handling.

D. Full disclosure of environmental impact of the operations by the supplier.

E. An environment impact management plan should be put in place by the supplier.

F. Employee training and sensitization for environmentally responsible behavior by the supplier.

2. P&G can establish green procurement through following actions-

A. P&G may require its suppliers to mandatorily put in place compensatory natural replenishment measures such as water treatment, afforestation etc. to minimize the negative impacts of its procurement on environment.

B. It can encourage the use of biodegradable materials in storage and primary packaging of raw materials by the suppliers.

C. It may encourage the use of renewable energy in material extraction, transportation and storage by its suppliers.

D. It can minimize the use of paper and physical documents for invoicing and ordering practices.

E. It can put in place a recycling condition for its suppliers of all the materials not procured due to quality considerations.

F. It can offer incentives to the suppliers who have obtained ISO14001 or other relevant certifications for environment management.