A Survey on the Impact of Green Procurement in the Cement Manufacturing Industry in Kenya.

TABLE OF CONTENT DECLARATIONi TABLE OF CONTENT…………………………………………………………. ……. ii-iii CHAPTER ONE: INTRODUCTION………………………………………………………….. 1 1. 1 Background of the Study1 1. 1. 1 The Kenyan Cement Industries3 1. 2 Statement of the Problem4 1. 3 Objectives of the Study5 1. 4 Significance of the Study5 1. 5 Justification for the Study6 1. 6 Scope of the study6 CHAPTER TWO: LITERATURE REVIEW7 2. 0 Introduction7 2. 1 The concept of green procurement7 2. 2 Appreciation of Green Procurement in the Cement Industry7 2. Green Procurement Practises in the Cement Industry9 2. 4 The Impact of Green Procurement on the Performance of the Organization10 2. 5. Conceptual framework11 CHAPTER THREE: RESEARCH METHODOLOGY13 3. 0 Introduction13 3. 1 Research Design13 3. 2 Target Population13 Table 3. 1: Target Population and Sample Size14 3. 3 Sampling and Sample techniques14 3. 4 Data Collection Instruments15 3. 5 Data Collection Procedure15 3. 6 Data Analysis15 REFERENCES17 APPENDICES20 Appendix I: Introduction Letter20

Appendix II: Research Questionnaire21 Appendix III: Budget26 Appendix IV: Time Schedule27 CHAPTER ONE: INTRODUCTION 1. 1 Background of the Study Environmental issues have become a subject of critical concern for businesses in recent years worldwide. Environmental obligations have grown substantially as society becomes more conscious of its environment. Legislation relating to the environment is increasing in number, and companies have to be environmentally responsible by taking a proactive stance on voluntary initiatives.

Therefore, it is essential that they deliver reasonably priced quality goods and services in desired time frame. Porter and Vander Linde (1995) proved that properly designed environmental standards can trigger innovations that improve values, ultimately enhanced resource productivity that makes companies more competitive. Green procurement is an approach in which environmental impacts play an important role in procurement decisions, with procurement officers concerned about more than just price and quality.

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For example, rather than having people submit purchase orders and requests on paper, the procurement office might switch to electronic methods of communication so that paper is not wasted. The office might also engage in environmentally friendly activities like reducing energy usage, keeping plants around the office to improve air quality, or buying carbon offsets to compensate for office energy usage. During the procurement process, green procurement involves seeking out products which are manufactured sustainably (Williams, 2000).

On a simple level, green procurement can push companies to seek out office supplies made from environmental products, or products made by companies which are committed to environmental stewardship. The office might also demand minimal packaging on the products it orders, look for products moved with bio-diesel, seek out manufacturing facilities which bear environmental certifications, or indicate to potential vendors that it would prefer products from companies which are committed to minimizing waste and benefiting the environment.

Procuring products which are environmentally responsible can be a challenging occupation both in the organization and the procurement officers. Going green can make your products more attractive to big buyers and consumers, reduce waste disposal and operating costs, and help you comply with increasingly stringent environmental regulations (Alsop and Post, 1995). On the other hand building environmental concerns into procurement might seem only to add to your costs, force you to buy products of inferior quality and cost you time and effort.

There are a number of obstacles for implementing green procurement programs and this include, lack of readily available environmental friendly products, zero or expensive environmental alternatives, inaccurate studies, lack of organizational support and inaccurate or unsupported environmental claims by the manufacturers and suppliers. Others are legislation, organizational policies, and directives, environmental management systems or multi – lateral agreements often require organizations to implement a green procurement program (Worrell, Martin, Hendriks and Meida, 2001).

Labeling and certification requirements vary, so a green procurement officer may think that he or she is doing the right thing by procuring a product which bears a “green” label and later learn that the product is not more environmentally responsible than that of a competitor, even though it is more expensive. Good procurement officers will investigate their sources with care, taking the time to confirm that the claims made by a company are accurate and comparing data from different sources to see which vendor is the best (Alsop and Post, 1995).

Companies which engage in green procurement processes may be eligible for environmental certification, formal recognition from the government, and other perks. Projecting a sustainable image can also be a valuable marketing tool which a company may use to get an edge on the competition. Environmental advocates also point out that as more and more companies demand green procurement, the market for environmentally sustainable products expands, making them cheaper and easier to obtain.

These advocates hope to see green procurement becoming the norm, rather than an unusual event (Worrell, Martin, Hendriks and Meida, 2001). 1. 1. 1 The Kenyan Cement Industries The major cement manufacturing industries in Kenya are, the East African Portland Cement and Bamburi Cement. Bamburi Cement Ltd. was founded in 1951 by Felix Mandl – a director of Cementia Holding A. G. Zurich. Cementia later went into partnership with Blue Circle PLC (UK). In 1989, Lafarge, the world’s largest building materials group, acquired Cementia, and thus became an equal shareholder with Blue Circle.

Lafarge bought Blue Circle in 2001 to become the largest building materials company in the world and Bamburi Cement Limited principle shareholder. Bamburi Cement is the largest cement manufacturing company in the region and its Mombasa plant is the second largest cement plant in sub-Saharan Africa. It is also one of the largest manufacturing export earners in Kenya, exporting 28 per cent of its production in 1998. Export markets include Reunion, Uganda and Mayotte (Coito, 2004).

The East African Portland Cement Company (EAPCC) started as a trading company importing cement mainly from England for early construction work in East Africa. It was formed by Blue Circle Industries United Kingdom. The name Portland was given due to the resemblance in color of set cement to the Portland stone that was mined on the Isle of Portland in Dorset, England. For more than 70 years, East African Portland Cement Company has been Kenya’s leading cement manufacturer. By providing the ‘lifeblood’ of the country’s construction industry, the company has played a central role in nation building.

The EAPCC has greatly expanded its production capacity with the introduction of Mill No. 5 and at present produces over 1. 3 million tonnes of cement per annum (Detwiler and Tennis, 1996). 1. 2 Statement of the Problem Sustainability in procurement is a growing business and social phenomenon, as organizations around the world attempt to align their operations with their sustainability priorities, whether to source ethically, reduce their environmental effect or to support their host communities.

All kinds of organizations are being swept up in these developments, including local and central governments, public sector institutions, non-profit organizations and businesses large and small. This naturally has a cascading effect on suppliers who need to anticipate these marketplace changes in order to meet the evolving requirements of their clients (Alsop and Pos, 1995). The Kenyan cement industry has not been left behind either.

Through the Kyoto protocol, the government has set up policies and regulations which must be adhered to by the players in the industries including cement manufacturing industries. The process of cement manufacturing involves a long process and combinations of materials whose by – products are released into the environment. This poses a great challenge and threat to environmental sustainability especially to the people around the factories and the workers in the industries (Terra, 2007).

According to Coito, (2004), through the Kyoto protocol, the government has set up standards for environmental sustainability practises to ensure that the operations of the industries do not interfere with the environment around them, however, due to the nature of the cement manufacturing industries, they pose a greater risk to the environment and this calls for a critical understanding on how the practice of green procurement is carried out in these industries. As the gap between green procurement and the work activities of institutions continue to widen significantly it poses a major challenge to the sustainability of the environment.

The researchers have been motivated to carry out this research in order to reduce this disparity by encouraging the society to learn on the impact of the green procurement. Through green procurement the end products of an organization are environmentally friendly to the consumers, the cost of production is reduced hence higher profits to the organization and cheaper prices to the consumers, the products are of high quality and the consumers of such products are satisfied, however due to the `nature of the cement production, his becomes a big challenge to the organizations and therefore it calls for a critical understanding on how the practise is carried out in these industries and how it affects their products. The study intends to find answers to the following questions; do the cement manufacturing industries practise green procurement? What is the impact of green procurement on the organizational performance? 1. 3 Objectives of the Study The objectives of this study include; i.

To establish the extent to which the procurement staff within the cement manufacturing industries appreciate the concept of green procurement. ii. To investigate how green procurement is carried out by the procurement officers in cement manufacturing industries. iii. To establish the impact of green procurement on the performance of the organizations. 1. 4 Significance of the Study The Procurement officers The study will enable the procurers to appreciate green procurement as a current practise which must be given keen attention and carried in a way that ensures environmental sustainability.

The procurers will find this study important especially those who do not have the green procurement competence and hence seek for further information to enable them execute the practise without difficulties. Organizations’ management Through this study, the managers will be enlightened on the impact of green procurement its benefits and impacts to the organizations and the law, so as to plan and incorporate it in the organizations’ plans. This will ensure that such organizations carry out their procurement process in a way which shows concern for environmental sustainability.

The Government The study will help the government in evaluating the practise of green procurement in the industries, whether the cement industries are adhering to the set regulations and rules. This will be a benchmark for the government to assess the set down rules and the level of compliance by the industries. The Academicians This study will form a basis for further studies on green procurement and add onto the existing literature on procurement and environmental sustainability. 1. 5 Justification for the Study

In the cement manufacturing process in the industry, the product goes through various stages before the production of the final product. Throughout the product life cycle (PLC), the industry has many potential environmental impacts and it must deal with restoring exhausted limestone quarries, minimizing wastes, reducing emission of carbon dioxide and impacts from dust and traffic or other air pollutants such as NOx and SOx which are mainly emitted in process of energy consumption in baking of cement. Therefore, the industry must provide a mechanism of dealing with the waste in a responsible and acceptable manner.

This is why the researchers have come up with this study so as to assess how the cement industries apply the green procurement policies regardless of the type of operations they carry out. 1. 6 Scope of the study The study will focus on the impact of green procurement on the cement manufacturing industries. It will be carried out in Blue Triangle and Bamburi cement – Athi River. The study will target the procurement departments within the two organizations. The respondents for the study will be drawn from the employees working in those departments. CHAPTER TWO: LITERATURE REVIEW 2. 0 Introduction

The chapter reviews the literature related to green procurement, its importance and impact on the organization that carry out the process. 2. 1 The concept of green procurement Green Procurement can be stated as the procurement of products and services which are environmentally friendly. The products or services procured should have a lower impact on the environment over their whole life cycle than the standard equivalent. It involves the integration of environmental issues, such as pollution prevention and reduction of waste into procurement decisions along with traditional factors such as price, performance and quality (Williams, 2000).

Green Procurement entails practices which encourage suppliers to safeguard the environment by producing goods or offering services that do not harm the environment or lead to heavy use of resources such as energy when being used (Williams, 2000). These practices include; use of products made using recycled materials, use of energy efficient or low energy-consuming products, procuring products that use alternative fuel for example solar, bio-diesel, and ethanol, use of bio-degradable materials and use of non-ozone layer depleting substances (Perry and Singh, 2002). . 2 Appreciation of Green Procurement in the Cement Industry Sustainable procurement is a growing global trend. Increasingly businesses, governments, non-profit and other organizations are integrating social and environmental objectives into the procurement process as a means to reduce their environmental effects, leverage social benefits and foster a sustainable economy for example green procurement has increased in North America (US, Canada and Mexico) in the last three years, as reported in the 2007 and 2008 Eco – Markets studies, (Terra, 2007).

In Europe, membership of the Buy-It-Green Network has seen its membership of government procurers more than double from 1997 to 2001 and more than triple since 2001. This is an indicator of the growth in green procurement within Europe’s government sector. A 2005 survey of 25 EU member states was conducted in which government procurement agencies were assessed to determine the effectiveness of their green procurement programs. The study evaluated 1,099 tender documents and surveyed 865 procurers and found that while 67% identified themselves as green procurers, only 37% had green procurement programs in place (Terra, 2007).

In the period 1900-2004, the whole of Africa was responsible for 2. 5% of cumulative carbon dioxide emissions whilst the US accounted for 29. 5%. In 2007, India’s per capita carbon dioxide emissions were 1. 4 metric tonnes per annum against 19. 3 tonnes in the US. Although these gaps are narrowing, historic emissions are relevant because carbon dioxide remains in the atmosphere to exert a greenhouse effect for many decades. All assessments of vulnerability to climate change concur that the countries most seriously threatened are those which carry the least historical responsibility (Perry and Singh, 2002).

The Kyoto Protocol was negotiated in 1997 as a supplement to the Framework Convention on Climate Change and eventually ratified in February 2005. Richer countries, known as “Annex 1 countries”, are subject to legally binding targets for cutting greenhouse gas emissions. In aggregate, these seek a 5% reduction in the 1990 level of global emissions before the end of a first commitment period in 2012. However, the calculation excludes emissions from aviation and shipping and there has been no contribution from the US which refused to ratify the Protocol.

Furthermore, several countries, including Canada and Japan, have blatantly disregarded their Kyoto commitments (Terra, 2007). The poorest countries now find themselves in an impossible position. They unanimously favour continuity of the Kyoto Protocol as the only currently available means of binding the big polluting countries to their promises. But if they refuse to compromise, they may be accused of collapsing the UN process which is the only international forum in which poor countries have an equal voice (Tokyo, Worrell and Galitsky, 2004). . 3 Green Procurement Practises in the Cement Industry Suppliers are required to provide proof of their commitment to environmental protection. This may take the form of statements on the steps they are taking to reduce their impact on environment, or alternatively to demonstrate that they are not in breach of any statutory requirements relating to the environment. In addition, suppliers should consider the environmental impact of their products through the whole life cycle, from ‘cradle to grave’.

Today, environmental procurement is an increasingly important issue and decision-making tool for small and medium-sized enterprises (SMEs) in developing countries and economies in transition. It can be ignored by an enterprise only at peril to its long-term survival (Coito, 2004). Every product, process and service has an impact upon the environment. Using life cycle thinking can help our understanding of the types and degree of impacts and where they occur. Life cycle thinking can also provide information on how changes made in a particular stage of the life cycle affects impacts upstream or downstream.

For example, the highest impacts of cement products occur in the extraction of raw materials while for others it is during their use or disposal when higher environmental impacts occur. Taking a life cycle perspective can also illustrate the benefits of collecting and recycling packaging materials instead of sending them to landfill; the recycled can replace the need to use virgin materials (Detwiler and Tennis, 1996). On a simple level, green procurement can push companies to seek out office supplies made from environmental products, or products made by companies which are committed to environmental stewardship.

The office might also demand minimal packaging on the products it orders, look for products moved with bio-diesel, seek out manufacturing facilities which bear environmental certifications, or indicate to potential vendors that it would prefer products from companies which are committed to minimizing waste and benefiting the environment (Roth et al, 2002). Before a green procurement program can be implemented, current procurement practices and policies must be reviewed and assessed.

A life cycle assessment of the environmental impacts of products or services is required and a set of environmental criteria against which procurement and contract decisions are made has to be developed. The outcome is a regularly reviewed green procurement policy that is integrated into other organisational plans, programs, and policies. A green procurement policy includes date-stamped priorities and targets, the assignment of responsibilities and accountability and a communication and promotion plan (Roth et al, 2002). 2. The Impact of Green Procurement on the Performance of the Organization The environmental impacts over the life cycle of products are a simple concept to understand. Essentially the diverse environmental impacts such as greenhouse gas emissions, water use, air pollution, non renewable resource material use, chemical emissions and waste amounts are measures along the life of a product through a quantification methodology and accumulated. This quantification allows the results to visually represented delivering guidance for procurers that seek to compare different products (Nik et al, 2008).

Green procurement policies and programs can reduce expenditure and waste; increase resource efficiency; and influence production, markets, prices, available services and organisational behaviour. They can also assist countries in meeting multi-lateral requirements such as the Kyoto Protocol and Rotterdam Convention. International Standards Organisation and other bodies have established guidelines for green procurement programs (Tokyo, Worrell and Galitsky, 2004). Environmental procurement reduces your costs.

Some costs in procurement are visible: price; transport; etc. Others are “invisible”: losses due to inefficient use of resources; product liability; and the like. Environmental procurement can help reduce overall costs for the short, medium and long term by introducing a life-cycle perspective. Compliance with regulations – environmental procurement helps you meet regulations. Adopting the approach at an early stage can help your enterprise meet progressively stricter environmental regulations at a lower overall cost.

Environmental procurement can help you keep pace with consumers’ preferences. The demand for environmentally safe products is being increasingly felt in developing countries and transition economies as well as in developed countries (Worrell, Martin, Hendriks and Meida, 2001). In sum environmental procurement improves your overall competitiveness. Applying environmental procurement can improve your enterprise’s strategic position in the market, whether domestic or international. Green procurement steams from pollution prevention principles and activities.

Also known as green or environmental purchasing, green procurement compares price, technology, quality and the environmental impact of the product, service or contract. Green procurement policies are applicable to all organisations, regardless of size. Green procurement programs may be as simple as procuring renewable energy or recycled office paper or more involved such as setting environmental requirements for suppliers and contractors (Tokyo, Worrell and Galitsky, 2004). 2. 5. Conceptual framework Figure 1. 1: Conceptual framework Dependent variable Independent variables

Green procurement is a fundamental environmental concern that every procurement officer is required to embrace so as to be able procure goods and service that are environmental friendly or procure from suppliers who are environmental conscious about the effect of their products on the environmental sustainability. Appreciation of green procurement by the procurement officers helps in studying the environment under which the organizations operates and therefore buying their products from suppliers who show concern for the environmental well being.

The process of green procurement in the industry takes many different forms but the most important is how it is done in the cement industry. The procurement officer in a cement industry must be able to buy products which are acceptable to environment due to the nature of the cement industry; the products bought should be able to reduce its effect on the environment. Green procurement has several impacts on the performance of the procurement officers; they are able to purchase goods which promote environment sustainability to the people around them hence promoting a positive social cohabitation and reputation of the organization.

Green procurement directly affects the end product i. e. the final product becomes competitive in the market. This greatly improves the performance of the procurement officers in the organization. CHAPTER THREE: RESEARCH METHODOLOGY 3. 0 Introduction This chapter presents the various steps that will facilitate the execution of the study to satisfy the objectives of this study. These steps include the research design, population of interest, sampling and sampling techniques, data collection instruments and procedures and data analysis. 3. 1 Research Design

The design of this study is based on survey research of cement industries in Kenya, which will be used mainly because the design is useful in describing the characteristics of a large population. The research design allows the use of various methods of data collection like questionnaire, interview methods and observation guides. 3. 2 Target Population The study will target two cement industries that East African Portland Cement (EAPC) and Bamburi Cement (BC). The respondent will be drawn from the top management and the procurement department from these organizations as shown in table 3. below. Table 3. 1: Target Population and Sample Size Target PopulationPopulation EstimateSample SizePercentage (%) Top Management (CEO or MD) from BC1 1100 Top Management ( CEO or MD) from EAPC1 1100 Procurement Manager (BC)11100 Procurement Manager (EAPC) 11100 Procurement department (BC) 501020 Procurement department (EAPC) 501020 Total1042423 Source: Authors 2011 According to Table 3. 1 the target population of the study includes the procurement department (100 officers) and the management (4) therefore the total target population is 104 respondents.

Under the management category the study will target the top management of the organizations – the CEO or MD (2) or the representative because they are the ones who make decision on policies regarding the operations of the organization and the procurement managers or their deputies (2). 3. 3 Sampling and Sample techniques A sample is a smaller group or sub-group obtained from the accessible population (Mugenda and Mugenda, 1999). This subgroup is carefully selected to be representative of the whole population with the relevant characteristics.

The total sample size for this study is 24 (n=24) as shown in table 3. 1 above. The sample size is convenient to handle due to time constrains. The sampling technique to be used is simple random to pick respondent for the study from the target population. 3. 4 Data Collection Instruments These are the data collection instruments to be used in the process of data collection. They will be questionnaires and this will be used to collect data from all the respondents. The questionnaires, will be used for the following reasons: a) can reach a large number of respondents within a short ime, b) gives the respondents adequate time to respond to the items, c) offers a sense of security (confidentiality) to the respondents, and d) tends to be objective since no bias resulting from the personal characteristics (as in interview). There will be two sets of questionnaires which will have a number of sub-sections that will be sub-divided based on the major research objectives or questions except the first sub-section (section A) that is meant to capture the demographic characteristics of the participants like sex, marital status, age, working experience, and level of education. 3. Data Collection Procedure The authority to conduct the study in the organizations will be obtained from the management through a personal letter of request from the researchers and an introduction letter from the department to show that these are genuine students from the University of Nairobi. The selected respondents will be given the questionnaires to fill. The researchers will then pick them thereafter at an agreed time. The researchers will make sure that they observe all the ethical consideration in the research and the respondents will be assured of confidentiality 3. 6 Data Analysis

The collected data will be analyzed using quantitative and qualitative methods. The qualitative data will be organized and then coded accordingly using statistical package for social sciences (SPSS) and Excel. Descriptive analysis such as frequencies, mean and percentages will be used to present the data in form of tables and graphs. This will involve coding both open and closed ended items in order to run simple descriptive analyses to get reports on data status. The study has three objectives. The questionnaire has been designed according to these objectives and it contains both open and closed ended questions.

The close ended questions have been rated using the likert scale where the respondents will be required to select the answers from the ones given in the questionnaire while the open end will require the respondents to give their own views depending on the questions asked. After that data collection it will be in a qualitative form. This will be quantified by coding the data using SPSS to generate tables, graphs, charts for interpretation. The data analysis will be done according to the objectives of the study from where conclusions will be made for each objective. REFERENCES Alsop, P. A. and J. W. Post. 995. The Cement Plant Operations Handbook, (First edition). Tradeship Publications Ltd. , Dorking: UK. Blumenthal, M. 2004. Scrap Tires Fuel U. S. Cement Industry. Cement Americas July 2004. Boustead I. 2001. Who Gets the Credit? Association of Plastics Manufacturers in Europe, Brussels. Coito, F. 2004 (draft). Industrial Case Study: The Cement Industry. Prepared by KEMA Xenergy with assistance from Lawrence Berkeley National Laboratory. Oakland, Calif. Detwiler, R. J. , and P. D. Tennis. 1996. The Use of Limestone in Portland cement: A State-of-the- Art Review. Skokie, Ill: Portland cements Association.

Goh, Eng Ann, Zailani, Suhaiza, & Wahid, Nabsiah Abd. (2006). A study on the impact of environmental management system (EMS) certification towards firms’ performance in Malaysia. Management of Environmental Quality: An International Journal. Kaantee, U. , Zevenhoven, R. , Backman, R. & Hupa, M.. (2002). Cement manufacturing using alternative fuels and the advantages of process modeling. Presented at R’2002 Recovery, Recycling, Re-integration, Geneva. Kitazawa, S. & Sarkis, J.. (2000). The relationship between ISO 14001 and continuous source reduction programs. International Journal of Operations and Production Management, 20(2), 225-248.

Kvist, S. , Pongracz, E. & Keiski, R. L.. (2005), ISO 14001 and waste minimization in metallurgy industry. Proceedings of the RESOPT closing seminar “Waste minimization and utilisation in Oulu region: Drivers and constraints, Oulu: Oulu University Press. Martin Perry & Sanjeev Singh. (2001). Corporate environmental responsibility: The potential and limits of voluntary initiatives. Technology, Business and Society Program Paper Number 3, April 2001. Geneva. Mugenda an Mugenda, A. G (1999) Research Methods: Quantitative and Qualitative Approaches: Nairobi: Acts Press Nik Ramli Nik Abdul Rashid, Nabsiah Abdul Wahid & Norizan Mat Saad. 2008). Expanding the scope of education for sustainable development among employees of organizations involved in the implementation of the environmental management system. The 12th UNESCO-Asia-Pacific Program of Educational Innovation for Development (APEID). Bangkok. Perry, M. & Singh, S.. (2002), Corporate environmental responsibility In: Utting, P. (Ed. ). The greening of business in developing countries: Rhetoric, reality, and prospects. London: Zed Press, 97-131. Porter, M. E. & van der Linde, C.. (1995). Green and competitive: Ending the stalemate. Harvard Business Review, 73(5), 120-129 Portland cements Association (PCA). 997. Blended Cement Potential Study. Skokie, Ill. : Portland cements Association. Roth, K. , F. Goldstein, and J. Kleinman. 2002. Energy Consumption by Office and Telecommunications Equipment in Commercial Buildings—Volume I: Energy Consumption Baseline. Washington, D. C. Tokyo. Worrell, E. , and C. Galitsky. 2004. Energy Efficiency Improvement and Cost Saving Opportunities for Cement Making: An ENERGY STAR Guide for Energy and Plant Managers. Berkeley, California: Lawrence Berkeley National Laboratory. United States Census. 2005d. 2002 Economic Census, Industry Series Reports: Semiconductor and Related Device Manufacturing.

Washington, D. C. : U. S. Census. Williams E. 2000. Global Production Chains and Sustainability: The Case of High-Purity Silicon and its Applications in Information Technology and Renewable Energy. United Nations University, APPENDICES Appendix I: Introduction Letter The Chief Executive Officer/ Managing Director East African Portland Cement/ Bamburi Cement P. O Box Athi River Dear Sir/Madam, RE: A SURVEY ON THE IMPACT GREEN PROCUREMENT IN THE CEMENT MANUFACTURING INDUSTRY IN KENYA. As mentioned above we are conducting as survey on the impact of green procurement in the cement industries in Kenya.

Your organization has been targeted for the study therefore, we are kindly requesting you to allow us obtain the relevant data. The respondents will be the CEO/MD or his representative and others will be picked from the procurement department. This study is being carried out as a requirement in partial fulfillment of the award of a degree in management research project – Bachelor of Commerce, University of Nairobi. A copy of this research will be submitted to you upon request. Your positive response will be highly appreciated. Thanking you in advance. Yours Faithfully, …………………………………………………… ……………………………………………………… ……………………………………………………… ……………………………………………………… Appendix II: Research Questionnaire We are students from the University of Nairobi. As part of the course work in our undergraduate program, we are carrying out a survey on the impact of green procurement in the cement industry in Kenya. We kindly request that you provide information as required by the questionnaire in the study. Any information that you will provide will be kept confidential and will be used only for the study and the results then availed to the interested parties afterwards. Part A: Demographic Information

Please put a tick (v) in the brackets next to the right response 1. Indicate your organization a) East African Portland Cement [ ] b) Bamburi Cement [ ] 2. Indicate your gender a)Male[ ] b)Female[ ] 3. Your Department, ………………………………………………………. 4. What is your job designation? ………………………………………………………… Part B: 1. Appreciation of Green Procurement Use the likert scale to answer the questions below. 1 – strongly agree (SA), 2 – agree (A), 3 – strongly disagree (SD), 4 – disagree (D), 5 – not sure (NS).

State the extent to which you agree with the following statements based on your level of appreciation of green procurement in your organization. ActivitySAASDDNS It is important to think twice before buying supplies that are environmentally unsustainable Environmental procurement means systematically building environmental considerations into your day-to-day procurement decision-making and operations Its objective is to help you procure the most suitable and “environmentally preferable product” that meets your enterprise’s needs.

I appreciate the ISO standards which requires companies to incorporate environmental considerations into their procurement procedures It involves ensuring the improvement of the suppliers’ environmental performance Due to green procurement increasing number of products that are harmful to the environment (especially chemicals) have been banned by international conventions and treaties Harmful products and technologies, risks to the health of the environment and of the population Due to pressure from consumers, various countries have started to put forward restrictions on importing certain consumer goods

Any other, explain…………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………….. To what extent do you appreciate green procurement as part of your responsibilities in the organization. …………………………………………………………………………………………………………. 2. How Green Procurement is carried out in the Organization Please put a tick (v) in the brackets next to the right response a)Do you practise green procurement? Yes [ ] No [ ] b)If yes how do you do it? Explain, ……………………………………………….. ………………………………………………………………………………………………………………………… …………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………. 3. Use the likert scale to answer the questions below. 1 – strongly agree (SA), 2 – agree (A), 3 – strongly disagree (SD), 4 – disagree (D), 5 – not sure (NS).

State the extent to which you agree with the following statements based on the considerations during green procurement ConsiderationsSAADSDNS Procurement officers have to ask themselves questions such as whether a product is based on resources from environmentally sensitive bases (including regions with fragile ecosystems, rare woods or endangered animals). If a product has a percentage of recycled materials rather than relying on virgin materials. If the production process involves a high level of wastage.

Companies should look for products with reduced wastage levels achieved through use of more appropriate materials or better technologies. The life-cycle approach seeks solutions that reduce negative harmful impacts and costs to the environment. This can mean avoiding restricted or banned substances, non-degradable materials and packaging prone to leakages in transit. An analysis of purchased items can show what the critical needs are for the enterprise to operate international. Any other, please explain ……………………………………………………………….. …………………………………………………………………………………………………………………………………………………………………………………………… 4. Impact of Green Procurement on the Organization Use the likert scale to answer the questions below. 1 – strongly agree (SA), 2 – agree (A), 3 – strongly disagree (SD), 4 – disagree (D), 5 – not sure (NS). State the extent to which you agree with the following statements based on the impact of green procurement ImpactSAASDDNS Consider environmental issues in procurement to reduce total costs Makes your enterprise more competitive.

Building environmental concerns into procurement adds to your costs, force you to buy products of inferior quality and cost you time and effort Going green can make your products more attractive to big buyers and consumers reduce waste disposal and operating costs. Help you comply with increasingly stringent environmental regulations. Environmental procurement can help you keep pace with consumers’ preferences Applying environmental procurement can improve your enterprise’s strategic position in the market, whether domestic or international.

It encourages continuous improvement in products and services; Promotes sustainable development in the organization Any others, please explain,………………………………………………………………… ………………………………………………………………………………………………. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Thank you for your cooperation END Appendix III: Budget

ItemsAmount (Ksh. ) 1. Stationary (Photocopying papers and writing materials) 15,000 2. Telephone calls 5,000 3. Transport and movement 5,000 4. Binding and Photocopying 15,000 Total 40,000 Appendix IV: Time Schedule Time (Month/Activity)Jan 2011 Feb 2011 Mar 2011 Topic search and approval and material collection Pre-visiting the research area. Proposal writing and defense Data collection and analysis. Report writing and defense Final drafting and submission of the research paper

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