CIPS L3M5 Socially Responsible Procurement Assignment Sample UAE
Company reputation can be severely damaged if the organisation or one of its suppliers, neglects sustainability and corporate social responsibility. It’s a growing concern for many companies in today’s world where public opinion (and now governments) are looking out not just at how much money an organization spends but also what kind deeds they do behind closed doors-for their employees, customers etc. Against this backdrop organizations must align themselves with sustainable practices which will help maintain both trustworthiness while minimizing negative impacts on environment
This module is designed especially toward those working within procurement departments who need to recognize that it takes more than good business sense into account when being responsible about environmental issues. It looks at the point of view from a company’s perspective and what they can do to minimize negative impact to their reputation while maximizing positive publicity.
They must also take into account the company’s policies and its effect on sustainability. Some companies may prefer to supply sustainable products while others may not give any regard to this factor. This is something which varies from company to company and therefore affects environmental impacts for each, and it’s important that purchasing professionals recognise this (and act accordingly) as it will also help protect their own reputation and that of the company.
One way that companies try to minimize negative impacts on the environment is by choosing sustainable suppliers, who can produce or provide products which have minimal impact on the environment and will do so throughout the life cycle of their product, from production to disposal. By working with these sustainable suppliers companies are able to minimize their own impact on the environment.
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Assignment Brief 1: Explain the concept of sustainability and the practical implications for procurement and supply
Promoting and implementing sustainable techniques in procurement and supply can help businesses do their part to slow down or even reverse the destructive impacts of human development on the environment. Purchasing sustainable products means product manufacturers likely made a concerted effort to adopt environmentally sound practices, such as conducting water use assessments and striving for zero waste. Furthermore, promotion of sustainability could result in customers buying more sustainable products when compared with conventional ones which cost less; also creating opportunities for increased profit.
The social benefits can be significant when corporations make an effort in improving the conditions in its supply chains by enforcing codes of conduct and policies that build capacity in supplier factories and guarantee safe working
environments and fair wages — ensuring full worker participation in decision making processes . It creates a level playing field between businesses, suppliers and communities which are more inclined to adopt sustainable practices.
On the other hand, there are also risks of not complying with environmental regulations which could damage a company’s reputation. From an ethical standpoint, it is becoming increasingly more difficult for companies that promote sustainability to be seen as credible by stakeholders if they have not initiated any efforts to drive positive change.
What steps can businesses take to become sustainable?
The first step in the journey is to create a Sustainable Procurement Program (SPP) that maps out your companies objectives and maps out an overall roadmap for achieving these goals. Many times, companies may already have practices that they call “sustainability,” so it is important to understand what these are and whether they align with your overall SPP vision.
After companies have defined their objectives and created a roadmap, the next step is to communicate this plan internally and externally through stakeholder engagement initiatives such as supplier workshops and public commitments (press releases). This engagement helps build awareness .
Sustainability is the capacity to endure. It reflects the importance of ensuring that natural resources are available for future generations and that economic, social, and environmental systems can continue to function into the future.
Practically speaking, sustainable procurement means evaluating alternatives in order to make choices that have the lowest ecological footprint and have a positive impact on society. For example, choosing recycled paper products rather than those made from virgin timber fiber; or selecting Fair Trade certified coffee beans over conventionally grown beans.
When making decisions about what to buy, it’s important to consider all aspects of sustainability: environmental, social, and economic. By raising awareness and making informed choices, we can create a more sustainable world for everyone.
Assignment Brief 2: Explain the importance of Corporate Social Responsibility (CSR)
There are a few key reasons why corporate social responsibility is important. First, social, economic and cultural diversity are important for businesses to understand and tap into. Additionally, businesses that encourage positive impact on all stakeholders (including employees, customers, shareholders and the community) tend to be more successful in the long run. Finally, consumers are increasingly looking for companies that reflect their own personal values, so doing good is not only the right thing to do but can also help a company’s bottom line.
There are a number of reasons why Corporate Social Responsibility (CSR) is important, but one of the most important is that it encourages companies to have a positive impact on all their stakeholders. CSR policies can help improve relationships with customers, employees, suppliers, and the community at large.
Additionally, CSR can help companies manage their public image and create a positive perception among consumers. It can also improve employee morale and attract new employees who share the company’s values. Finally, CSR can help reduce costs by promoting sustainable practices.
The United Nations defines sustainable development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Corporations can have a positive impact on this ideal by helping communities transition from unsustainable practices toward more sustainable ones. This often involves making changes in areas such as energy use, waste-reduction, pollution, and recycling. These changes can help companies reduce their operating costs while also creating a more sustainable community.
Citizenship, in general, is an important element of any organization’s responsibility to society. It entails the participation by individuals and organizations in their communities, including taking responsibility for work conditions, civic duties (such as participating in voting), and other aspects. Corporate citizenship specifically refers to corporate ownership or interest in engaging in public welfare obligations. Some view corporate citizenship simply as “doing well while doing right. As companies strive for profits today they must also consider all considerations pertaining to tomorrow, including the effects of their activities on communities and society.
The value of citizenship is largely defined by stakeholder expectations which are shaped by public policy, social trends, economic conditions, media coverage among other things. For example, business ethics are likely to affect stakeholders’ views of company citizenship more in some nations than others. The media also has a strong influence on stakeholder views of company citizenship. The increased focus by the media on the social responsibility practices of companies today is likely to affect stakeholder expectations in the future.
Corporate social responsibility is to be seen as an integral part of sustainable business development, with implications for both corporate and national strategies. It can boost shareholder value, contribute to local economic development and help build sustainable communities.
Assignment Brief 3: Describe the impact of environmental sustainability
There are a few different ways to think about environmental sustainability and its impact on business. One is the globalisation vs. green logistics debate. On one hand, businesses can globalise their operations in order to take advantage of cheaper labour and resources overseas. This can be damaging to the environment due to increased emissions from transport, and also because of the pollution caused by processing factories. Alternatively, businesses can focus on green logistics, which means creating more efficient supply chains that minimise waste and emissions.
Another way to think about it is public awareness vs. external pressure on organisations. In terms of public awareness, there has been a growing trend among consumers to seek out environmentally-friendly products or services. This has led to an increase in businesses offering green products and services, which is partly a response to pressure from customers. A more effective approach though, is public awareness combined with external pressure on business operations. The public are now well-informed about the environmental impact of their purchases, so organisations need to respond accordingly by increasing their focus on green logistics.
The final way to think about it is between the environment vs. society debate. This essentially boils down to human rights, with environmental issues being placed in direct conflict with social justice and equality. However, this has been increasingly seen as a false dichotomy by academics and politicians alike. In fact, research shows that improving people’s lives actually makes societies more sustainable, whereas economic growth at the expense of wellbeing can be damaging to the environment.
The globalisation vs greenhouse gas emissions debate has been particularly contested, with businesses increasingly basing their operations overseas in order to take advantage of cheaper labour and resources. However, this increases carbon emissions from transportation that reduces organisational efficiency and also because off-shoring often means a reliance on factories which pollute the environment.
Environmental sustainability is a concept that organizations are increasingly being made aware of. External pressure for organisations to be sustainable has increased tremendously in recent years, with audits and certifications becoming more common. What’s driving the increase is complex but it basically boils down to one thing changing attitudes towards what environment means.
Pushing organisations to be environmentally sustainable implies that sustainability binds electricity usage, production rate of waste, design expectations on aesthetic objects and many more attributes. So environmental sustainability isn’t just about conserving certain things or turning them into resources. It’s about creating the ability to interact with all parts of complex industrial networks.
There are many different perspectives on environmental sustainability and its impact on business, ranging from globalisation vs green logistics to public awareness vs external pressure. The most promising approach however seems to be between the environment vs society debate, which is about human rights, not just environmental issues. This puts social justice and equality in direct conflict with environmental degradation, whereas research shows that improving people’s lives actually makes societies more sustainable.
The impact of environmental sustainability is international legislation and agreements pertaining to issues such as land conservation, water conservation, pollution levels, greenhouse gas emissions.
Environmental sustainability is important for reducing our carbon footprint to limit the amount of greenhouse gases in the atmosphere. This will help reduce climate change around the world. It’s also important to study ways that we can reuse materials over and over again rather than continually create new products.
Assignment Brief 4: Explain the environmental impact of transportation and storage
Transportation and storage can have a serious environmental impact. Burning gasoline and diesel fuel in cars and trucks emits pollutants such as carbon monoxide, nitrogen oxides, and particulate matter into the atmosphere. These pollutants contribute to respiratory problems, heart disease, and numerous other health issues.
Noise pollution from transportation can be particularly harmful to human health and disrupt the natural environment. Low-frequency noise from large trucks and aircraft can cause physical pain, hypertension, tinnitus, disturbed sleep, anxiety disorders, hearing loss, cognitive impairment, and death.
Storage of hazardous materials such as oil and chemicals can lead to spills that contaminate soil and water supplies. Accidents involving transportation vehicles can cause injuries or fatalities as well as damage to homes, natural habitats, and other property.
The good news is that sustainable transportation techniques can reduce both environmental impact and health risks. Bird-friendly transportation design provides noise barriers to minimize low-frequency noise pollution. Electric cars are much quieter than gasoline or diesel engine vehicles. Solar panels on roofs of buildings provide shade from the sun, reducing heat pollution and urban heat islands. If drivers must transport hazardous materials, they can avoid spilling by storing them in more stable containers.
Transportation also enables people to reduce their carbon footprint by using public transit or telecommuting instead of driving long distances. The website EarthShare lists many other transportation-related environmental benefits .
Large infrastructure projects such as highways and parking lots necessitate the removal of a few acres of flora and fauna, and in some cases hundredths of miles. Parking lots eat up over 150 acres each over their lifetime even with just one stall per acre. A small spot on a freeway can take half an acre for an intersection.
It is clear that the construction of a new petroleum pipeline will have an effect on our environment. In this article, we explore the various consequences of such an impact, providing sources for each matter.
Visual intrusion – There are areas that would be at risk from increased traffic and noise pollution, including neighborhoods in Niles and Morton Grove.
Noise pollution- The proposed route for this pipeline goes near many residential houses in area towns. It has been noted that if the vibrations from construction interfere with nearby properties being built or being lived in already, it can cause structural damage to both building (walls) and plumbing (such as valves). Current residents also judge such noises to be unbearably noisy.
The environmental impact of transportation and storage is significant. Transporting oil by pipelines has the lowest environmental impact, while transporting oil by truck has the highest. Storage of oil also has a significant environmental impact, due to the risk of accidental spills.
The risks associated with transporting and storing oil can be reduced through measures such as using recommended safety practices, employing spill response teams, and building leak-detection systems.
Vibration from transport also contributes to environmental damage. Vibration caused by large trucks travelling over rough roads can cause severe damage to pipelines and other infrastructure.
Assignment Brief 5: Explain the role of government in promoting environmental sustainability
Sustainability refers to the concept of meeting our needs without not compromising the ability of future generations to meet theirs. One way that governments promote sustainable practices is by adopting concepts such as proactive land-use planning and environmental conservation. Progressive government policies can also include programs which incentivize homeowners to reduce their utility bills by taking steps like installing solar panels on their rooftops instead of relying on fossil fuels for their electricity.
The threat that human activity poses to ecosystems has led many to recognize the need to reduce greenhouse gas emissions in order to mitigate climate change. In response, many nations around the world have adopted strategies such as carbon taxes that incentivize companies and individuals to conserve energy and adopt clean sources of power like solar panels.
Environmental Impact- The effects of human activity on the environment are commonly categorized as either global climate change, local pollution, or depletion of natural resources. Factors that are leading to environmental degradation include deforestation, use of fossil fuels and other non-renewable energy sources, overconsumption of fresh water aquifers and fertilizers, intensive livestock farming practices resulting in substantial air and water pollution. Governments have adopted green legislation for more progressive environmental protection measures which have had varying degrees of success at alleviating some forms of environmental crimes against nature.
Energy Efficiency Together with the way employers treat the issue of green energy alternatives to fossil fuels companies can also take into consideration their own approach to these issues through an increase of enthusiasm for environmental policies. Many small business owners say that they need to be more aggressive when it comes to becoming energy-efficient because it is in their best interest financially.
The government needs to take an active role in promoting sustainability – it’s not just a question of greener modes of transport, more environmentally-friendly buildings and homes, and reducing emissions. Doing these things will require significant changes which must be driven by those who understand them best – those with the power to make those changes happen.
One of our most important tasks as citizens is to pressure the government into taking environmental responsibility seriously. For example, we need widespread public consent for green taxes on polluting package goods such as plastic packaging and fossil fuels.
Governments should also invest heavily in green technology. We can think of this as borrowing from future generations – then we’ll see some return on that investment when these technologies really start making a difference.
Environmental Protection- The development of eco-friendly building materials can substantially reduce our impact on the environment. This is especially true when it comes to the construction industry, which is one of the biggest contributors to climate change worldwide.
Assignment Brief 6: Identify procurement and supply processes and practices that the organisation may adopt to support CSR
There are a few ways that an organisation can design their procurement processes to deliver positive social outcomes. One way is to support CSR initiatives by specifically sourcing goods and services from companies that have a proven track record of ethical and sustainable practices. Another way is to create social procurement policies that require suppliers to meet certain social and environmental criteria, such as minimum labour standards, greenhouse gas emissions reductions, or sustainable resource management. Lastly, organisations can establish public-private partnerships with social enterprises whose mission is to generate positive social outcomes.
Sustainable procurement is about using the organisation’s buying power to create positive social outcomes, investing in communities and reducing
environmental impact, all while managing risks. It is about creating a positive return on investment (ROI).
Organisations continue to be held accountable for their negative impacts on society and the environment under an increasingly complex web of local and international regulations, such as the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, International Labour.
To support CSR, the organisation should identify procurement and supply processes that the organisation may adopt to support CSR. The organisation will need to provide information on how much it supports CRT in its business model in order for suppliers to determine what percentage of sales they are willing to donate.
Alternatively an organisation can create a charitable foundation through which customers provide donations in lieu of paying regular prices for goods and services offered by the organization – customers will receive access or savings on products when they contribute money via this method. Once again the customer must have contributed financially according to donation target amounts in order to qualify for access or savings.
For public-private partnerships, an organisation should select a social enterprise that has the capacity to meet the needs of its customers. The organization can create a request for proposal (RFP) process where the social enterprise develops the proposal in response to requirements included in the RFP document.
Adoption of sustainable practices, standards and specifications in the supply chain is one way to help conserve natural resources.
Whenever a product is manufactured it takes up raw materials from the environment. Depending on where those raw materials come from, they can be more or less likely to cause environmental damage.
The most effective way to conserve natural resources like metal ores is by using items such as additive-less steel (steel free of metals like zinc or chrome).
Not only does additive-less steel help conserve natural resources, it also minimizes the risk of accidents during manufacturing that may harm workers or release toxic chemicals into the environment.
The production process for additive-less steel is not widely used in the industry, so it may be difficult for an organisation to source products made with additive-less steel. However, if an organisation is able to find suppliers that can meet their needs by using this process, they should focus on buying products manufactured with additive-less steel.
Assignment Brief 7: Describe the triple bottom line concept and how it should apply to procurement and supply
Triple bottom line (or 3BL) is the idea of looking at business, not just in terms of profitability, but also social and environmental factors. From its origin in 1973 with John Elkington’s The Structure of Social Change, triple bottom line has become an accepted framework for guiding corporate decision-making. TBL extends beyond considerations that are taken into account when thinking about traditional economic functions such as ‘the maximization of company growth’ by also integrating non-financial goals.
Only since the mid-1990s, however, has TBL gained currency with business managers. ‘The term has emerged as a way of describing an increasing number of initiatives that seek to balance economic, social and environmental concerns.’ At the same time it represents new opportunities for businesses.
The triple bottom line concept puts people, planet and profit into three different categories. Individual organizations are concerned with all three.
People meaning the interests of stakeholders within an organization, Planet meaning how well the business respects environmental impact, and Profit being synonymous to financial sustainability. All three pillars should be present for a successful company engaging in good Corporate Social Responsibility practices whether it is one pillar or all three that is most emphasized will depend on the industry involved.
- 1.People: A company should be accountable for its treatment of its workforce and the communities where it operates, such as protecting workers from abuse, health hazards and hazardous working conditions or treating them fairly for their work.
- 2.Profit: Provide shareholders with a reasonable return on investment with good financial soundness and strong liquidity and access to funds when needed through adequate capitalization and robust accounting policies and practices. Good fiduciary responsibility creates shareholder value by ensuring that decisions are made in the interest of all stakeholders, especially those who put their financial resources into share ownership.
- 3.Planet: It’s imperative to make responsible business decisions which produce only minimal effects on our shared natural resources like rivers, air quality, wildlife habitats and water. A company should identify these impacts and where possible, find ways to reduce their environmental footprint as well as participating in community efforts to reduce environmental impacts that go beyond its operations.
While TBL is often used in the context of commercial enterprise, it can also be applied to non-profit organizations or private individuals. The UK charity WRAP (Waste & Resources Action Programme) use this approach to guide their work. Their primary purpose is to help individuals and organizations not only save money but also make positive environmental changes through reducing the amount of waste they produce.
The term can also be used to refer to a methodological approach for assuring the integration of social, environmental and economic objectives in urban planning through public participation. It is particularly applied within federal, state or local government agencies which are required by law to follow minimum standards for considering the environmental impacts of their actions.
Reality Mining is used to describe the collection of information about people’s activities, movements and responses to their everyday environment. The data acquired during these observations can be used to improve products or create new services for customers.
TBL-based business models are now emerging as an effective way for companies to reach out across extended value networks in order to provide innovative products and services. These companies view themselves as having a shared role in addressing social and environmental issues, instead of only focusing on maximizing financial value.
While TBL is relatively new to business it has been practiced for millennia by indigenous people who lived in close relationship with the land and their communities and shared resources. Because they were part of the communities they lived in, their focus was on sustainability and the long term. They did not want to deplete natural resources or abuse their families.
The TBL framework provides businesses with the opportunity to view the world through a wider lens than just profit alone. It helps companies see that they can earn money by helping society achieve its goals.
Assignment Brief 8: Describe the key metrics that can be used to measure and report on sustainability
There are a number of factors that can be measured to see how environmentally sustainable a company or business is. The following metrics measure the three pillars of sustainability, which include environmental sustainability, economic sustenance and social inclusion.
Environmental Factors – Energy consumption per physical unit factors such as goods shipped, water consumption in liters from production units such as kgs or m3 water needed from wells for cooling towers.
The key metrics that can be used to measure and report on sustainability are social, environmental, and economic. Social indicators might include demographic trends, use of local labour, disadvantaged and/or vulnerable groups, or human rights performance. Environmental indicators might include greenhouse gas emissions, water use, or waste production. Economic indicators might include gross domestic product (GDP), employment levels, or foreign direct investment (FDI). Examples of social metrics include demographic trends (e.g., population size and growth, age distribution), greenhouse gas emissions (e.g., carbon dioxide emissions, methane emissions), and waste generation.
Economic metrics may include measures of GDP or per capita income.
Reporting on sustainability is important for organizations because it allows them to track their progress in meeting sustainable development goals. Additionally, reporting helps to raise awareness about sustainability issues and allows potential investors, consumers, and employees to evaluate a company’s sustainability performance.
Reports on sustainability from both public and private sector organizations emphasize the importance of understanding sustainable development as an opportunity for business success. In particular, reports highlight how companies can improve their environmental stewardship—both by reducing costs through reducing waste and energy use as well as increasing revenues through improving product and service quality.
There are a number of environmental factors that can be measured to see how environmentally sustainable a company or business is. The most impactful factors, however, often relate to energy consumption.
Assignment Brief 9: Describe the key methods that can be used to monitor CSR compliance
There are three key methods that can be used to monitor CSR compliance. They are KPIs, Supplier appraisals, and auditing/regulatory frameworks. Subsequently, it is important to have these measures in place to ensure you optimize performance.
KPIs serve as a “relative measure of success” for companies because they allow for the measurement of performance relative to an identified goal or objectives. These KPIs should align with areas that your company considers imperative whereas some organizations might chose more fundamental aspects such as sustainability and environment impact on resources or society.
When choosing KPIs, companies should consider what areas they want to monitor since defining the measurements in detail must be done prior to implementation.
Audits can be from due diligence surveys from an auditor to a specific company or at the end of a contract period for certain goods. Supplier appraisals can be done by plant visits or inspecting records of compliance against international standards, codes and law. This includes having a sound system for assessing the risks posed by business partners and key suppliers, monitoring potential activities that could contravene these requirements and taking appropriate measures when there are detected problems.
KPIs, Supplier appraisals, and auditing/regulatory frameworks are important in order to monitor CSR compliance.
These guidelines should be used in conjunction with your company’s business strategies and design of your products or services.
Supplier appraisals are evaluated in compliance audits to determine whether supplier management systems provide for reasonable assurance of conformance with CSR commitments. Other key methods for monitoring compliance include conducting discriminatory due diligence, examining supplier documents, and consulting third-party professional organizations.
When determining regulatory framework, it is important to consider the supply chain specifics in conjunction with local laws. It is also vital to make sure internal procedures are followed thoroughly in order for you company to remain compliant.
To ensure companies remain compliant, companies who have not yet established compliance measures will need to conduct a centralization of purchasing, establish written guidelines and policies that cover all relevant aspects including risk management, in order to monitor and enforce compliance. It is vital that a company ensures their supplier’s activities do not violate the law or the company’s own policies since this will affect reputation and liability within the supply chain.
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