Before an organization can go green, it has to want to go green. So, why should an organization want to be green? Below are five benefits of becoming a green procurement organization:
- Brand Image: An organization that has gone green is seen as a good corporate citizen. This increases its image in the eyes of the public.
- Customer Satisfaction: An organization that goes green in response to customer concerns increases its levels of customer satisfaction, a key point in customer retention.
- Reduced Risk: Not only is any company that does not go green risking a run in with the law by failing to comply with green regulations, which are multiplying at the rate of Fibonacci’s rabbits around the world, but it is also maintaining more liability than it needs to. Hazardous chemicals are just accidents, and lawsuits, waiting to happen. With green purchasing, you can offset financial and environmental risk, rather than just inheriting it from your suppliers.
- Cost Reduction: Going green doesn’t cost more. Most of the time it actually saves money, especially when the new products use less energy, generate less waste, and last longer. Plus, sometimes green products work better than their toxic counterparts! Going green can reduce the following costs, among others:
• hazardous material management costs
• operational costs
• repair and replacement costs
• disposal costs
• health & safety costs (which often come in the form of liability insurance and expensive settlements)
- Increased Shareholder Value: A better brand with happy customers who keep coming back and drive up sales while costs keep falling results in significant ROI and EPS, and this makes investors as giddy as school-girls – which is every company’s #1 goal, whether they admit to it or not.
Furthermore, when you consider that a study from the Center for Advanced Purchasing Studies by Craig R. Carter and Marianne M. Jennings found that increased corporate social responsibility is generally correlated with higher revenues, healthier and safer work environments, and improved relationships with customers and suppliers, how can you go wrong?
More information about Green Procurement can be found on Iasta’s eSourcing Wiki.