Integrating Environmental Criteria into Purchasing Decisions

The emerging concept of life-cycle thinking suggests that environmental concerns extend beyond an organisation's own boundaries, and that improvements in environmental performance can be gained through supply chain relationships. Using findings developed from a period of research on organisations in 1997, this chapter explores the factors motivating organisations to integrate environmental criteria into purchasing and supply decisions. B&Q, the leading do-it-yourself retailer, is perhaps the most well-known example of large-scale integration of environmental criteria into purchasing decisions. The chapter examines the value perceptions from applying or receiving supply chain pressure. Improving environmental performance has become an established goal in business. Organisations are confronted by two major challenges: to improve the quality of the environment; and to improve their competitive position in the marketplace. The influence of these characteristics on integrating environmental criteria into the supply chain is more obvious for some than others. The risk-based approach to managing supply chain issues is a common one.