Sustainable Procurement: The Requisite International Business Strategy

Abstract

This paper explores the foundation, concept, benefits and mechanisms for implementing sustainable procurement. To achieve the purpose of this research, the author reviewed the key findings of relevant studies and observed them in the context of the current turbulent global geopolitical, economic, social and environmental circumstances. The author claims that sustainable procurement influences the extent and benefits of sustainability implementation in the whole supply chain. Successfully encouraging suppliers to implement sustainability aspects into their production or service activities/processes accelerates a company’s enforcement of sustainability into the whole supply chain, which triggers positive impacts on its value chain creation. Considering the higher stringency of international regulation on sustainability compliance, the positive impacts of sustainability implementation in procurement and supply chain contribute to a company’s higher global competitiveness. Additionally, sustainable procurement shows a company’s adherence to social responsibility for current global challenges. This research implies that sustainable procurement is a requisite international business strategy