International Journal of Multidisciplinary Research and Growth Evaluation www.allmultidisciplinaryjournal.

com

Sustainable Procurement in Multinational Corporations: A Conceptual Framework for

Aligning Business and Environmental Goals
Joseph Ozigi Basiru 1*, Chinelo Linda Ejiofor 2, Ekene Cynthia Onukwulu 3, Rita Uchenna Attah 4
1
S. C. C. Nigeria Limited, Nigeria
2
University of Hertfordshire Hatfield, United Kingdom
3
Kent Business School, University of Kent, UK
4
Independent Researcher, Bloomfield, NJ, USA

* Corresponding Author: Joseph Ozigi Basiru

Article Info Abstract

Sustainable procurement has become a critical focus for multinational corporations (MNCs)
seeking to align business objectives with environmental responsibility. This paper proposes a
ISSN (online): 2582-7138 conceptual framework for sustainable procurement that integrates environmental, social, and
Volume: 04 governance (ESG) principles with business strategies to achieve both economic and ecological
Issue: 01 goals. The framework emphasizes the importance of embedding sustainability into procurement
processes, ensuring that purchasing decisions contribute to long-term environmental
January-February 2023 stewardship while meeting organizational objectives. The paper explores key components of
Received: 23-12-2022 sustainable procurement, including supplier selection, lifecycle analysis, and the integration of
Accepted: 27-01-2023 sustainability criteria into procurement contracts. By incorporating sustainability metrics into
supplier evaluations, MNCs can drive supply chain transparency, encourage responsible
Page No: 774-787 sourcing, and promote ethical business practices. Additionally, the framework highlights the
role of technology in enhancing procurement efficiency through data-driven decision-making,
such as utilizing digital platforms and blockchain for traceability and accountability. A central
element of the framework is stakeholder collaboration, which is essential for aligning
procurement practices with broader corporate sustainability goals. Engaging suppliers,
customers, and local communities in the process fosters innovation and drives shared value,
enabling MNCs to balance profitability with environmental and social responsibility. The
framework also addresses the challenges of implementing sustainable procurement in complex
global supply chains, considering cultural, regulatory, and logistical factors that impact
decision-making. Case studies from leading MNCs are analyzed to demonstrate the practical
application of the conceptual framework, showcasing how organizations have successfully
integrated sustainable procurement practices. Findings reveal that organizations adopting
sustainable procurement strategies experience improved brand reputation, cost savings, and
enhanced risk management while contributing to global sustainability targets. This conceptual
framework serves as a strategic guide for MNCs aiming to harmonize business goals with
environmental stewardship. By leveraging sustainability as a core component of procurement,
companies can achieve competitive advantage while advancing global sustainability agendas.

DOI: https://doi.org/10.54660/.IJMRGE.2023.4.1.774-787

Keywords: Sustainable Procurement, Multinational Corporations, Environmental Goals, Supplier Selection, ESG Principles, Supply Chain
Transparency, Technology, Stakeholder Collaboration, Corporate Sustainability

1. Introduction
Sustainability has become an increasingly important consideration in procurement practices within multinational corporations
(MNCs) as the global business landscape faces mounting pressure to address environmental, social, and governance (ESG)
concerns. As consumers and stakeholders demand greater corporate responsibility, companies are recognizing the need to adopt
sustainable practices across their operations, particularly in the procurement of goods and services.

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With MNCs operating on a global scale, they encounter the implementing such a framework, companies can contribute
complex challenge of balancing business goals with to broader global sustainability goals while enhancing their
environmental sustainability, particularly when managing own business performance and reputation (Akter, et al., 2021,
diverse and geographically dispersed supply chains Okpeh & Ochefu, 2010).
(Adewusi, Chiekezie & Eyo-Udo, 2022, Pereira & Frazzon,
2021). Procurement functions, which involve sourcing raw 2. Literature Review
materials, components, and finished products, are at the heart Sustainable procurement is a critical aspect of corporate
of this challenge, as they often entail significant sustainability strategies, especially within multinational
environmental impacts such as resource consumption, waste corporations (MNCs). It refers to the process of acquiring
generation, and carbon emissions. goods and services in a way that considers both the
The primary issue facing MNCs today is the alignment of environmental impact and the social responsibility of the
business objectives with environmental sustainability in their supply chain. The concept has evolved significantly over
procurement processes. While the goal of business growth time, as businesses have moved beyond traditional
and profitability remains a priority, the increasing focus on procurement practices focused solely on cost and efficiency
sustainability means that companies must integrate to embrace practices that prioritize long-term environmental
environmental considerations into their sourcing decisions. and social goals (Henke & Jacques Bughin, 2016, Onukwulu,
This alignment often involves navigating conflicting et al., 2021). The increasing global emphasis on
pressures, such as the need for cost-efficiency, product environmental and social issues has catalyzed the
quality, and timely delivery, while also minimizing development of sustainable procurement, as companies now
environmental harm (Okafor, et al., 2023, Okogwu, et al., recognize the need to contribute positively to the planet and
2023, Onukwulu, Agho & Eyo-Udo, 2023). The challenge is society while maintaining their financial viability. The
compounded by the complexity of managing global supply principles of sustainable procurement include reducing
chains, where suppliers may vary in their commitment to environmental harm, promoting ethical sourcing, and
sustainability practices and where regulatory frameworks enhancing social value, all while maintaining the efficiency
across different regions may differ significantly. and profitability of procurement operations.
This study aims to develop a conceptual framework to guide Environmental, Social, and Governance (ESG) principles
MNCs in integrating sustainability into procurement play a pivotal role in shaping sustainable procurement
practices while achieving both business and environmental practices. ESG factors are increasingly viewed as essential
goals. The framework will serve as a tool to assist components of business operations, with companies under
organizations in making informed decisions that balance growing pressure to demonstrate their commitment to
profitability with sustainability, allowing for long-term value sustainability and corporate responsibility. These principles
creation. By outlining key principles and strategies for influence procurement strategies by encouraging the
sustainable procurement, the framework will help MNCs adoption of practices that minimize negative environmental
address the inherent challenges in adopting sustainable impacts, promote fair labor practices, and ensure ethical
practices while ensuring they maintain operational efficiency business conduct throughout the supply chain (Abuza, 2017,
and competitiveness (Deep, et al., 2022, Silwimba, 2019, Ojebode & Onekutu, 2021). ESG considerations impact
Whitehead, 2017). procurement decisions such as supplier selection, product
The relevance of this framework extends across various lifecycle management, and waste reduction. Companies are
industries, including manufacturing, retail, energy, and also expected to incorporate transparency, accountability,
technology, where procurement functions are critical to the and ethical practices in their procurement functions, aligning
organization’s overall sustainability strategy. The framework their sourcing decisions with broader global sustainability
has significant implications for global supply chains, offering goals. Figure 1shows The Flow of Sustainability
insights into how MNCs can build resilient, ethical, and Requirements Across Three Tiers in a Supply Network by
environmentally responsible supply networks. By Villena, 2019.

Fig 1: The Flow of Sustainability Requirements Across Three Tiers in a Supply Network (Villena, 2019)

PRO: Procurement; OP/RD: Operations and R&D, MK/S: goods and services that have a reduced environmental impact
Marketing and Sales; EH&S: Environmental, Health and throughout their lifecycle, including raw material extraction,
Safety; HR: Human resources External stakeholders pressure production, distribution, and disposal. Ethical sourcing, on
the MNC for environmental and social sustainability the other hand, ensures that suppliers adhere to human rights
Incorporating sustainability into procurement strategies and fair labor practices. Both approaches are integral to
involves adopting approaches such as green procurement and sustainable procurement, as they promote not only
ethical sourcing. Green procurement focuses on acquiring environmental responsibility but also social equity

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(Gidiagba, et al., 2023, Ihemereze, et al., 2023, Onukwulu, analytics allows businesses to forecast trends and make
Agho & Eyo-Udo, 2023). Many organizations also engage in informed decisions based on data-driven insights, leading to
fair trade practices and seek suppliers that demonstrate a more sustainable choices in supplier selection and product
commitment to sustainable development, ensuring that their sourcing. Blockchain technology, with its ability to provide
supply chains contribute positively to social and economic transparent, immutable records of transactions, is particularly
growth in the regions where they operate. useful in verifying the sustainability claims of suppliers and
Technology plays an increasingly important role in ensuring that ethical sourcing practices are followed across
enhancing sustainable procurement practices. Digital tools, global supply chains (Chan, 2020, Sandilya & Varghese,
data analytics, and blockchain technology are revolutionizing 2016). By leveraging these technologies, MNCs can gain
the way companies manage and track their supply chains, greater visibility into their procurement processes, which
offering new opportunities to enhance procurement helps identify inefficiencies, monitor supplier compliance
transparency, efficiency, and accountability. Digital tools with sustainability standards, and enhance overall supply
such as procurement software enable companies to analyze chain transparency. The changing contact between the
large volumes of data, making it easier to assess supplier procurer and supplier during the PP process showing the
sustainability performance, track carbon footprints, and different stages from preparation to utilisation presented by
optimize procurement decisions (Adewusi, Chiekezie & Eyo- Witjes & Lozano, 2016, is shown in figure 2.
Udo, 2023, Ogbu, et al., 2023, Uwaoma, et al., 2023). Data

Fig 2: The changing contact between the procurer and supplier during the PP process showing the different stages from preparation to
utilisation (Witjes & Lozano, 2016)

However, despite the many benefits of sustainable managing global supply chains makes it difficult to ensure
procurement, MNCs face several challenges and barriers in the traceability and sustainability of products at every stage
implementing these practices. One of the main challenges is of their lifecycle. MNCs often face challenges in monitoring
the cultural and regional differences that influence the environmental and social impacts of their supply chains,
procurement decisions. For instance, suppliers in different particularly when dealing with distant or remote suppliers.
regions may have varying levels of awareness and The need for sustainable products and materials may also lead
commitment to sustainability, and MNCs may face to higher costs or supply chain disruptions, particularly in
difficulties in aligning their sustainability objectives with industries where sourcing sustainable alternatives is difficult
local practices. Cultural factors also play a role in influencing or expensive (Ogunjobi, et al., 2023, Onukwulu, Agho &
stakeholder attitudes toward sustainability, as different Eyo-Udo, 2023, Uwaoma, et al., 2023). Moreover, achieving
countries have different environmental and social norms sustainability goals across diverse supply chains may require
(Calfa, et al., 2015, Olufemi-Phillips, et al., 2020). This can significant investment in infrastructure, staff training, and
create inconsistencies in procurement practices across technology, which can pose financial and operational
regions and complicate efforts to develop standardized challenges.
sustainability criteria. Despite these challenges, MNCs are increasingly recognizing
Regulatory constraints also present a significant challenge for the importance of integrating sustainability into their
MNCs seeking to implement sustainable procurement procurement practices. The growing importance of corporate
practices. Global supply chains must navigate a complex web social responsibility (CSR) and the increasing pressure from
of local, national, and international regulations, which can consumers, investors, and regulatory bodies to demonstrate
differ widely in terms of environmental standards, labor commitment to sustainability have led many organizations to
rights, and sustainability reporting requirements. In some take bold steps in aligning their procurement functions with
cases, the lack of stringent regulations in certain regions may environmental and social goals. Sustainable procurement is
lead to a "race to the bottom," where suppliers prioritize cost no longer viewed as a niche activity but as a fundamental part
over sustainability (Daraojimba, et al., 2023, Ihemereze, et of corporate strategy that can drive competitive advantage
al., 2023, Tula, et al., 2023). MNCs must also navigate the and long-term value creation (Grandhi, Patwa & Saleem,
challenge of balancing local regulatory compliance with 2021, Onukwulu, Agho & Eyo-Udo, 2022). The integration
global sustainability goals, ensuring that their procurement of sustainability into procurement functions helps businesses
practices align with both legal requirements and corporate reduce risks, improve their reputations, and increase their
values. resilience to environmental and social challenges. Rhodes, et
Logistical constraints also hinder the widespread adoption of al., 2014, presented SD framework as shown in figure 3.
sustainable procurement practices. The complexity of

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Fig 3: SD framework (Rhodes, et al., 2014).

In conclusion, sustainable procurement is a key component solutions for improved transparency and decision-making.
of corporate sustainability strategies, particularly for By doing so, MNCs can foster positive environmental and
multinational corporations operating in complex and diverse social impacts, enhance business competitiveness, and ensure
global markets. The principles of sustainable procurement, long-term success (Boda & Immaneni, 2019, Ross & Ross,
shaped by ESG considerations, help MNCs align their 2015). The key elements of this conceptual framework can be
business objectives with environmental and social goals. grouped into four areas: core components of sustainable
Through the adoption of green procurement, ethical sourcing, procurement, stakeholder collaboration, technological
and technological innovations, MNCs can enhance their integration, and monitoring and reporting.
procurement practices while contributing to broader global One of the core components of sustainable procurement in
sustainability efforts (Castro, 2019, Salamkar & Allam, MNCs is supplier selection based on sustainability criteria.
2019). However, despite the many benefits, the This involves assessing potential suppliers not only on the
implementation of sustainable procurement faces significant basis of cost and quality but also considering environmental
challenges related to cultural, regulatory, and logistical practices, social responsibility, and governance. MNCs must
constraints. MNCs must develop robust strategies to address develop clear criteria to evaluate suppliers' sustainability
these challenges and create a framework for integrating performance, including their adherence to environmental
sustainability into their global supply chains effectively. regulations, ethical labor practices, and resource efficiency
(Adewusi, Chiekezie & Eyo-Udo, 2022, Oyeniyi, et al.,
3. Conceptual Framework 2021). These sustainability criteria should be integrated into
Sustainable procurement within multinational corporations supplier qualification processes and used as a basis for long-
(MNCs) is an increasingly critical component of term partnerships with suppliers that share the corporation's
organizational strategy as businesses strive to align their sustainability goals. Ensuring that suppliers follow
operations with both environmental and business goals. A sustainability guidelines also requires MNCs to establish
conceptual framework for sustainable procurement should strong relationships and foster collaboration, ensuring that
encompass several core components that enable companies to suppliers understand and align with the company's
integrate sustainability effectively into their procurement sustainability expectations. Figure 4 shows a linear
practices. These components range from selecting suppliers framework of the PP process showing the influence on
based on sustainability criteria to incorporating technological business models presented by Witjes & Lozano, 2016.

Figure 4: A linear framework of the PP process showing the influence on business models (Witjes & Lozano, 2016)

Lifecycle analysis is another critical aspect of sustainable disposal (Arundel, Bloch & Ferguson, 2019, Panda & Sahu,
procurement. By conducting lifecycle assessments (LCAs), 2014). MNCs can use the findings of LCAs to make informed
MNCs can understand the environmental and social impacts procurement decisions that prioritize products and services
of products and services from their inception to their disposal. with lower environmental footprints. Lifecycle analysis can
This analysis includes examining resource use, energy also be used to evaluate product durability, repairability, and
consumption, emissions, waste generation, and end-of-life recyclability, encouraging the selection of sustainable

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options that reduce waste and support the circular economy identify trends, optimize operations, and forecast future
(Okafor, et al., 2023, Onukwulu, Agho & Eyo-Udo, 2023, sustainability challenges, allowing MNCs to take proactive
Uwaoma, et al., 2023). The integration of LCAs into measures and improve procurement efficiency.
procurement decisions ensures that MNCs prioritize Effective monitoring and reporting are vital to ensuring that
sustainability not just in their immediate sourcing practices sustainability goals are met in procurement. MNCs must
but throughout the entire lifecycle of the products and develop systems for tracking and measuring the
services they procure. environmental and social impacts of their procurement
Another essential element of sustainable procurement is the activities. This includes setting clear sustainability targets
inclusion of sustainability clauses in procurement contracts. and performance indicators, as well as implementing regular
These clauses help ensure that suppliers meet specific assessments to measure progress toward these targets (Al-
environmental and social standards, which may include Hajji & Khan, 2016, Osei-Kyei & Chan, 2015). Transparent
reducing carbon emissions, using renewable energy sources, reporting of sustainability performance is essential to
ensuring fair labor practices, and eliminating hazardous building trust with stakeholders, including consumers,
materials. Procurement contracts with sustainability clauses investors, and regulatory bodies. By publicly sharing
provide a legally binding framework for suppliers to adhere sustainability reports, MNCs demonstrate their commitment
to sustainability commitments (Curuksu, 2018, Onukwulu, to sustainability and accountability (Adewusi, Chiekezie &
Agho & Eyo-Udo, 2021, Tseng, et al., 2021). These contracts Eyo-Udo, 2023, Onukwulu, Agho & Eyo-Udo, 2023). These
also include provisions for monitoring supplier performance, reports should include data on carbon emissions, waste
making it easier to track compliance with sustainability reduction, ethical sourcing practices, and supplier
requirements and hold suppliers accountable for their actions. performance, offering a comprehensive view of the
Incorporating sustainability clauses into procurement company's procurement sustainability efforts. Monitoring
contracts helps ensure that sustainability is embedded in the and reporting systems also allow MNCs to identify areas for
relationship between MNCs and their suppliers, contributing improvement and adjust their procurement strategies as
to long-term sustainability goals. necessary to stay on track with their sustainability goals.
Stakeholder collaboration is a critical component of a Integrating sustainable procurement into MNCs' business
successful sustainable procurement strategy. MNCs must strategies requires the alignment of environmental, social,
engage a broad range of stakeholders, including suppliers, and governance objectives with procurement processes. By
customers, and local communities, to align sustainability focusing on supplier selection based on sustainability,
goals. Collaborative engagement ensures that all parties are conducting lifecycle analysis, incorporating sustainability
working together toward shared objectives, such as reducing clauses into contracts, and fostering stakeholder
carbon footprints, improving working conditions, and collaboration, MNCs can ensure that their procurement
promoting ethical sourcing practices. Collaboration with activities contribute positively to environmental goals while
suppliers helps build trust and transparency, making it easier supporting business success (Al Kaabi, 2021, Ordanini,
to implement sustainable practices across the supply chain Parasuraman & Rubera, 2014). Additionally, technological
(Adewusi, Chiekezie & Eyo-Udo, 2023, Onukwulu, Agho & integration and robust monitoring and reporting systems
Eyo-Udo, 2023). In addition to suppliers, MNCs must also allow for greater transparency and efficiency in procurement
engage with customers to raise awareness of the importance processes, enabling companies to meet their sustainability
of sustainable procurement and ensure that consumers are targets and improve operational performance. The conceptual
informed about the environmental and social impacts of the framework presented here offers a comprehensive approach
products they purchase. Furthermore, engaging local for MNCs to align their procurement practices with broader
communities can ensure that procurement practices benefit sustainability objectives, contributing to long-term success
society as a whole, supporting local economic development and positive global impact.
and minimizing negative environmental impacts.
Technological integration plays an increasingly important 4. Methodology
role in advancing sustainable procurement practices. The The methodology for examining the impact of contract
adoption of digital platforms, the Internet of Things (IoT), negotiations on supplier relationships involves a
blockchain, and data-driven decision-making tools enhances comprehensive and qualitative approach aimed at
transparency, accountability, and efficiency in procurement understanding the theoretical underpinnings and practical
processes (Adewusi, Chiekezie & Eyo-Udo, 2022, implications that influence organizational efficiency. This
Onukwulu, Agho & Eyo-Udo, 2022). Digital platforms can methodology adopts a multi-method approach to gather data,
help MNCs track and manage supplier sustainability analyze trends, and provide valuable insights that can guide
performance in real time, providing instant access to both academic research and practical applications in
sustainability data such as carbon emissions, water usage, and procurement and contract management (Alam, et al.,2019,
waste generation. IoT devices can be used to monitor supply Nguyen & Hadikusumo, 2018).
chain operations, providing valuable data on energy usage, The research design focuses on conducting a qualitative
resource consumption, and other environmental indicators. review of academic literature, industry reports, and case
Blockchain technology further enhances procurement studies. This approach allows for an in-depth understanding
transparency by creating immutable records of transactions of the theoretical models, frameworks, and real-world
and ensuring that sustainability claims are verified at every practices that shape contract negotiations and supplier
step of the supply chain (Amirtash, Parchami Jalal & Jelodar, relationships. By focusing on qualitative data, this research
2021, Pal, Wang & Liang, 2017). These technological tools method allows for a more nuanced exploration of the impact
allow MNCs to make data-driven decisions, reducing the risk of contract negotiations on supplier relationships, as opposed
of inefficiency and ensuring that procurement practices align to relying solely on quantitative data. The research design is
with sustainability goals. Moreover, digital solutions can help structured to collect and synthesize diverse sources of

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information, ensuring a holistic view of the topic (Curuksu, trends, challenges, and best practices, providing a broader
2018, Onukwulu, Agho & Eyo-Udo, 2021, Tseng, et al., understanding of how contract negotiations impact supplier
2021). relationships across diverse contexts (Hutt &
In terms of data collection methods, this research relies on Gopalakrishnan, 2020, Luo & Shenkar, 2017).
secondary data sources, including a review of relevant The comparative analysis highlights the adaptability of
research articles, industry white papers, and negotiation case negotiation frameworks and strategies in different
studies. Secondary data analysis is crucial for synthesizing environments, showing how firms customize their
existing knowledge in the field of contract negotiations and approaches based on their unique needs and objectives. For
supplier relationships. Research articles offer theoretical example, in industries where competition is high, firms may
insights into negotiation strategies, contract frameworks, and focus more on cost reduction and short-term agreements,
supplier management, while industry white papers provide whereas in industries with long-term supply chains,
contemporary practices, challenges, and innovations organizations may prioritize collaboration and resource-
observed in different sectors (Okafor, et al., 2023, Onukwulu, sharing in their negotiations. These comparative insights
Agho & Eyo-Udo, 2023, Uwaoma, et al., 2023). Case studies, offer practical guidance for organizations seeking to improve
which are often rich with practical examples, serve as a their own contract negotiations and supplier relationship
valuable source of real-world evidence, helping to connect management practices (Holvino, 2014, Maddux, et al., 2021).
theory with practice and offering insights into how Together, thematic and comparative analysis provide a
organizations apply various negotiation theories and comprehensive understanding of the impact of contract
frameworks in supplier relationships. negotiations on supplier relationships. The findings from
Expert interviews with procurement and contract these analyses are used to generate conclusions about how
management professionals further enhance the methodology different negotiation strategies, frameworks, and best
by incorporating practical perspectives and firsthand practices affect organizational efficiency. This
experiences. These interviews provide invaluable insights comprehensive approach helps to uncover both the
into the challenges faced by organizations during contract theoretical and practical aspects of supplier relationship
negotiations, as well as the strategies employed to address management, offering valuable insights for both scholars and
issues such as cost management, risk mitigation, and long- practitioners in the field.
term supplier collaboration (Kreikamp, 2018, Lisak, et al., One of the key aspects of this research methodology is the
2016). Procurement professionals often have in-depth emphasis on triangulation. By combining secondary data,
knowledge of how contract negotiations are conducted across expert interviews, and case studies, the research ensures that
various industries, and their experiences can shed light on the findings are robust and well-supported by multiple sources of
nuances of supplier relationship management. Their expertise evidence. This triangulation increases the credibility and
helps bridge the gap between theory and practice and ensures validity of the research, as it provides a more comprehensive
that the research reflects the practical realities of negotiating view of the topic and reduces the risk of bias or limitations
contracts with suppliers. from any single data source (Hitt, 2016, Malik, 2018,
Once data is collected, the next step in the methodology is Shliakhovchuk, 2021). The integration of multiple
data analysis. Thematic analysis is employed to identify key perspectives also allows the study to uncover different layers
themes and patterns within the literature, case studies, and of insight, from the high-level theoretical implications to the
expert interviews. This method helps to organize and granular, real-world applications in supplier relationship
categorize data according to the most pertinent theories and management.
frameworks related to contract negotiations and supplier In conclusion, the methodology for exploring the impact of
relationships. By analyzing common themes across multiple contract negotiations on supplier relationships uses a
sources, the study is able to draw conclusions about how qualitative, multi-method approach that integrates literature
various negotiation strategies, contract structures, and reviews, case studies, expert interviews, and thematic and
relationship-building tactics influence supplier collaboration, comparative analysis. This comprehensive methodology
cost management, and organizational efficiency allows for a deep understanding of how contract negotiations
(Kappagomtula, 2017, Ljubica, Dulčić & Aust, 2016). influence supplier collaboration, operational efficiency, and
Thematic analysis is particularly well-suited for this type of organizational performance (Hibbert & Hibbert, 2014, Mirza,
research because it allows for flexibility in identifying both 2018, Spring, 2017). By drawing on a range of data sources
explicit and implicit insights from diverse data sources. It and analysis techniques, the study provides valuable insights
enables the researcher to explore a range of factors that may that can inform both academic research and practical
affect supplier relationships, such as market conditions, applications in procurement and contract management. This
regulatory changes, and cultural differences, which may not methodology ensures that the study captures the complexity
always be evident in structured data sets or quantitative of contract negotiations and supplier relationships while
analyses. The results of this analysis can also reveal gaps in offering actionable recommendations for improving
existing research and highlight areas where further organizational efficiency in these critical areas.
investigation may be needed (Jackson, 2018, Lücke, Kostova
& Roth, 2014). 5. Case Studies
In addition to thematic analysis, comparative analysis is used Sustainable procurement has emerged as a crucial component
to examine real-world contract negotiation examples from of corporate strategy, especially for multinational
different industries. This analysis compares how different corporations (MNCs) aiming to align their business
sectors—such as manufacturing, retail, technology, and objectives with environmental and social sustainability goals.
healthcare—approach supplier relationships and contract Through sustainable procurement practices, these
negotiations. By analyzing case studies from multiple organizations can address pressing global challenges such as
industries, the research is able to identify industry-specific climate change, resource depletion, and social inequalities,

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while simultaneously improving operational efficiency and company has worked with its suppliers to reduce emissions,
enhancing their brand image (Hajro, Gibson & Pudelko, improve energy efficiency, and enhance environmental
2017, Moran & Abramson, 2017). Several multinational management practices. Shell’s procurement strategy
corporations (MNCs) across various sectors, including emphasizes collaboration with suppliers who share the
manufacturing, energy, and technology, have integrated company’s values of sustainability and climate action. By
sustainable procurement into their supply chain management integrating sustainability criteria into the procurement
practices. By examining a range of case studies from these process, Shell is able to drive change throughout its supply
industries, we can gain insights into how sustainable chain, ensuring that environmental goals are met across all
procurement is implemented, the challenges faced during this areas of operation (Cletus, et al., 2018, Rodriguez, 2021).
process, and the strategies used to overcome them. Both BP and Shell’s examples highlight the critical role that
In the manufacturing sector, companies like Unilever and sustainable procurement plays in reducing the environmental
Nestlé have been at the forefront of integrating sustainability impact of the energy sector and supporting global efforts to
into their procurement processes. Both companies have combat climate change.
committed to sourcing raw materials in ways that minimize The technology sector also provides important examples of
environmental impact and promote social welfare. For sustainable procurement, with companies like Apple and
instance, Unilever’s Sustainable Sourcing Program involves Microsoft leading the way in aligning their procurement
working with suppliers to ensure that the products they practices with sustainability goals. Apple, for instance, has
purchase, such as palm oil, tea, and paper, are sourced in an focused on sourcing conflict-free materials for its products,
environmentally responsible manner (Griffith & Dunham, particularly rare minerals used in electronic devices. The
2014, Moran, Abramson & Moran, 2014). The company has company has implemented a strict supplier code of conduct
established a comprehensive framework to support the that requires suppliers to meet high environmental and labor
adoption of sustainable sourcing practices, including standards (Bouncken, Brem & Kraus, 2016, Shankar, 2021).
certifications, audits, and direct collaboration with suppliers In addition to this, Apple works closely with its suppliers to
to improve their sustainability performance. Through these improve their environmental practices, reduce waste, and
efforts, Unilever has made significant strides toward reducing increase recycling rates in their manufacturing processes. The
deforestation, improving the livelihoods of smallholder company’s efforts have contributed to its ambitious goal of
farmers, and ensuring that its supply chain is resilient to making its entire supply chain carbon neutral by 2030.
environmental shocks. Apple’s sustainable procurement approach highlights the
Similarly, Nestlé’s commitment to sustainable procurement importance of ensuring that suppliers adhere to strict
is evident in its work to make its supply chain more sustainability criteria and working collaboratively to improve
transparent and traceable. The company uses technology, sustainability across the entire supply chain.
such as blockchain, to ensure the authenticity of sustainable Microsoft, another leader in the technology sector, has made
sourcing claims, particularly in commodities like cocoa, significant strides in integrating sustainability into its
coffee, and palm oil. This digital approach allows Nestlé to procurement processes. The company’s sustainable
track its products from the source to the point of sale, procurement efforts focus on sourcing renewable energy,
ensuring that they meet the company’s sustainability criteria energy-efficient technologies, and products that have
(Gotsis & Grimani, 2016, Nassef & Albasha, 2019). In minimal environmental impact. Microsoft has set a goal of
addition, Nestlé collaborates with local suppliers and farmers, becoming carbon negative by 2030, and its procurement
offering training programs on sustainable farming practices strategy plays a key role in achieving this target (Barclay,
and providing financial support to help them transition to 2014, Sucher & Cheung, 2015). The company works with
more environmentally friendly methods. Both Unilever and suppliers to reduce their carbon emissions, improve energy
Nestlé showcase the importance of collaboration with efficiency, and adopt sustainable practices in their own
suppliers and the integration of sustainability into operations. Microsoft’s approach demonstrates the
procurement as key components of their strategies to achieve importance of collaboration between large corporations and
long-term environmental and business goals. their suppliers in driving systemic change toward
In the energy sector, companies like BP and Shell have also sustainability in the tech industry.
embraced sustainable procurement to align their supply chain While these case studies offer compelling examples of
practices with their commitment to reducing their carbon successful sustainable procurement practices, they also
footprint. These companies have focused on sourcing energy- highlight the challenges that organizations face when
efficient products and services that can help reduce implementing such strategies. One of the key challenges is
greenhouse gas emissions. BP, for example, has integrated the difficulty in ensuring that suppliers adhere to
sustainability criteria into its procurement process for goods sustainability standards, especially in global supply chains
and services, particularly in the construction of renewable where oversight can be limited. Companies like Unilever,
energy infrastructure (French, 2015, Shakerian, Dehnavi & Nestlé, BP, Shell, Apple, and Microsoft have had to invest in
Shateri, 2016). BP’s procurement strategy includes the tools and resources to monitor and verify their suppliers’
selection of suppliers based on their sustainability sustainability performance (Anttila, 2015, Steers & Nardon,
performance, promoting energy efficiency, and driving 2014). This often involves conducting audits, providing
innovation in the renewable energy sector. The company’s training, and offering financial support to help suppliers
commitment to achieving net-zero carbon emissions by 2050 transition to more sustainable practices. However, ensuring
has led it to rethink its entire supply chain, working with supplier compliance remains a complex issue, particularly in
suppliers who are equally committed to sustainability. regions with weak regulatory frameworks or limited access
Shell has taken similar steps in integrating sustainability into to technology.
its procurement practices by focusing on environmental Another challenge is balancing cost considerations with
performance and ethical sourcing in its supply chain. The sustainability goals. While many organizations recognize the

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long-term benefits of sustainable procurement, such as Unilever, Nestlé, BP, Shell, and Microsoft have demonstrated
improved brand reputation and reduced environmental that integrating sustainability into procurement can yield
impact, the upfront costs associated with sustainable sourcing significant benefits, such as reduced environmental impact,
can be high. This is particularly true in industries where improved supply chain resilience, enhanced brand reputation,
sustainable alternatives may be more expensive or harder to and increased operational efficiency. These companies have
obtain. Companies must carefully consider how to manage adopted a variety of approaches to sustainable procurement,
the trade-off between cost and sustainability, often requiring including sourcing materials that meet specific
them to work closely with suppliers to negotiate terms that environmental standards, collaborating with suppliers to
benefit both parties (Adnan, Bhatti & Baykal, 2022, Ora, promote sustainable practices, and leveraging technology to
2016). This balancing act is especially important in increase transparency and traceability in the supply chain.
competitive industries where price sensitivity is high, and the One of the most important insights is the need for a long-term
implementation of sustainable procurement practices may commitment to sustainability in procurement. Organizations
initially lead to increased costs. that successfully implement sustainable procurement
Despite these challenges, the lessons learned from these case practices do not view sustainability as a one-off initiative but
studies underscore the importance of collaboration, as an ongoing process. For example, companies like Unilever
transparency, and long-term vision in implementing and Nestlé have set ambitious goals to make their supply
sustainable procurement practices. Successful companies chains more sustainable over the next few decades,
have demonstrated that aligning business and environmental demonstrating that sustainable procurement is an evolving
goals is possible when organizations are committed to journey that requires continuous improvement (Micheli &
working with suppliers and stakeholders to create shared Cagno, 2016, Toutounchian, et al., 2018). This long-term
value. They have shown that sustainable procurement is not commitment is supported by strong governance structures,
only about meeting environmental targets but also about clear sustainability goals, and robust monitoring and
fostering long-term relationships with suppliers, driving reporting mechanisms. Companies that align their
innovation, and contributing to a more sustainable future procurement processes with environmental and social
(Abu-Nimer & Smith, 2016, Pasic, 2020). objectives are also better positioned to mitigate risks related
In conclusion, the case studies from various sectors, to supply chain disruptions, regulatory compliance, and
including manufacturing, energy, and technology, illustrate reputational damage.
the significant role that sustainable procurement plays in The integration of sustainability into procurement practices
aligning business objectives with environmental goals. By has also proven to be a powerful tool for fostering innovation
collaborating with suppliers, investing in sustainability within the supply chain. By working closely with suppliers to
initiatives, and addressing the challenges of cost and develop more sustainable products and services, MNCs can
compliance, multinational corporations can successfully drive technological advancements and promote the adoption
integrate sustainability into their procurement processes of environmentally friendly practices across their entire
(Abdallah & Alnamri, 2015, Osland, 2017). The lessons supply chain. For instance, in the technology sector,
learned from these case studies provide valuable insights for companies like Apple and Microsoft have worked with
other organizations seeking to adopt sustainable procurement suppliers to reduce the environmental impact of their
practices, offering guidance on how to overcome challenges manufacturing processes and to innovate in the design of
and create value for both businesses and the environment. energy-efficient products (Liu, Wang & Wilkinson, 2016,
Thumburu, 2020). These efforts demonstrate how sustainable
6. Discussion procurement can encourage suppliers to adopt new
Sustainable procurement has become a critical strategy for technologies, improve operational efficiency, and reduce
multinational corporations (MNCs) aiming to align their waste.
business objectives with broader environmental and social Despite the clear benefits, the transition to sustainable
goals. The importance of this approach has gained procurement is not without its challenges. One significant
momentum in response to increased awareness of barrier is the increased cost of sustainable products and
environmental degradation, climate change, and social services. In many cases, sustainable alternatives can be more
inequalities. Through sustainable procurement, MNCs can expensive than conventional options, which may make it
reduce their environmental footprint, promote social difficult for organizations to justify the higher initial
responsibility, and enhance their long-term competitiveness investment. This cost challenge is particularly relevant in
(Moretto, et al., 2022, Vehviläinen, 2019, Vilasini, Neitzert industries that are price-sensitive or highly competitive,
& Rotimi, 2011). The discussion of sustainable procurement where the financial pressures on companies are considerable
reveals the key findings from existing literature and case (Kabirifar & Mojtahedi, 2019, Thamrin, 2017). However, the
studies, the implications for practice, and the solutions to case studies of Unilever and Nestlé show that the long-term
address barriers in the implementation of sustainable benefits of sustainable procurement, such as improved brand
procurement strategies. reputation, regulatory compliance, and risk management,
One of the key findings from the literature review and case often outweigh the initial costs. Furthermore, by working
studies is that sustainable procurement is no longer an collaboratively with suppliers, MNCs can drive down costs
optional practice but a core component of corporate strategy. over time through economies of scale, shared innovation, and
Multinational corporations in sectors ranging from more efficient resource utilization.
manufacturing and energy to technology and retail are Another significant barrier to the widespread adoption of
increasingly integrating sustainability into their procurement sustainable procurement is the lack of clear and consistent
processes to meet the growing expectations of consumers, sustainability standards across industries and regions. The
investors, and regulators (Mohanty, Choppali & Kougianos, absence of universal sustainability metrics and frameworks
2016, Van Zyl, Mathafena & Ras, 2017). Companies like can make it challenging for MNCs to assess the sustainability

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performance of their suppliers and to ensure compliance with supply chains, identify areas for improvement, and ensure
sustainability requirements. Companies must often rely on that suppliers are adhering to sustainability standards
certifications and third-party audits to verify the (Ebrahim, Battilana & Mair, 2014, Soni & T. Krishnan,
sustainability of their suppliers, but the diversity of standards 2014). Additionally, technology can help reduce the
and the complexity of supply chains can make this process administrative burden of managing sustainability
cumbersome and time-consuming (Ibrahim, 2015, Tezel, et certifications and audits, making it easier for companies to
al., 2020). To overcome this challenge, MNCs should work ensure compliance and monitor progress.
towards standardizing sustainability criteria and In conclusion, sustainable procurement represents a
collaborating with industry partners, NGOs, and significant opportunity for multinational corporations to align
governmental bodies to develop clear and consistent their business objectives with environmental and social
guidelines for sustainable procurement. sustainability goals. While there are challenges to
The lack of supplier engagement and resistance to change can implementing sustainable procurement practices, including
also pose a challenge. Many suppliers, particularly those in cost considerations, lack of standardization, and supplier
developing countries or emerging markets, may not have the resistance, the benefits of adopting these strategies far
capacity or knowledge to adopt sustainable practices. In these outweigh the drawbacks (Diaz, et al., 2021, Singh & Abhinav
cases, MNCs must take a proactive approach by providing Parashar, 2021). By setting clear goals, collaborating with
training, technical assistance, and financial support to help suppliers, investing in technology, and creating strong
suppliers meet sustainability standards. Unilever’s governance frameworks, MNCs can integrate sustainability
Sustainable Sourcing Program and Nestlé’s supplier into their procurement processes and drive positive change
engagement efforts are prime examples of how companies throughout their supply chains. Ultimately, sustainable
can work with suppliers to build capacity and foster a culture procurement not only helps MNCs meet their environmental
of sustainability across the supply chain (Hossain, 2018, and social objectives but also enhances their long-term
Syed, et al., 2020, Watson, et al., 2018). These initiatives competitiveness, risk management, and brand reputation.
often involve collaborative efforts, such as joint training
programs, workshops, and incentive structures, to encourage 7. Conclusion and Recommendations
suppliers to adopt sustainable practices and to support their In conclusion, sustainable procurement is increasingly
long-term growth. recognized as a critical strategy for multinational
In addition to addressing these challenges, there are several corporations (MNCs) seeking to align their business
practical recommendations for MNCs looking to adopt objectives with broader environmental and social goals. The
sustainable procurement strategies. First, it is essential for conceptual framework presented highlights the importance of
MNCs to set clear sustainability goals and integrate them into integrating sustainability into procurement processes to
their overall business strategy. These goals should be reduce environmental impact, improve supply chain
measurable, time-bound, and aligned with global resilience, foster innovation, and enhance long-term
sustainability frameworks, such as the United Nations competitiveness. MNCs that effectively incorporate
Sustainable Development Goals (SDGs). By doing so, sustainable procurement practices can achieve operational
companies can ensure that sustainability becomes a core part efficiency, manage risks, and create value for both the
of their operations and procurement processes (Frota company and society. The key elements of this framework
Barcellos, 2019, Steyn, 2014). Furthermore, MNCs should emphasize the need for clear sustainability goals,
establish strong governance structures and allocate sufficient collaboration with suppliers, transparency in the supply
resources to support the implementation of sustainable chain, and leveraging technology to improve monitoring and
procurement initiatives. This includes appointing reporting processes. Through the case studies and theoretical
sustainability officers, creating cross-functional teams, and insights, it is evident that while challenges exist in
investing in the necessary tools and technologies to monitor implementing sustainable procurement practices, the benefits
and report on supplier performance. far outweigh the barriers, making it an essential component
Second, MNCs should prioritize collaboration and of modern business strategy.
transparency with their suppliers. Sustainable procurement is Strategic recommendations for MNCs aiming to adopt
not a one-sided effort but requires a joint commitment to sustainable procurement practices include setting specific,
environmental and social responsibility. MNCs should measurable, and time-bound sustainability goals aligned with
actively engage with suppliers to understand their global frameworks such as the United Nations Sustainable
sustainability challenges and work together to find solutions. Development Goals (SDGs). By embedding these goals into
This may involve providing suppliers with access to the company's overall business strategy, organizations can
sustainable technologies, offering financial incentives for ensure that sustainability becomes an integral part of their
adopting sustainable practices, and supporting them in operations. MNCs should also prioritize building strong
achieving sustainability certifications (Filatotchev, Ireland & relationships with suppliers, focusing on collaboration rather
Stahl, 2022, Srivastava, et al., 2022). Open communication than merely compliance. This involves sharing knowledge,
and transparency are key to building trust and ensuring that providing technical support, and incentivizing suppliers to
all parties are aligned in their sustainability efforts. adopt sustainable practices. Additionally, companies should
Finally, MNCs should invest in technology and data analytics invest in technologies that increase transparency and
to improve the transparency and traceability of their supply traceability in the supply chain, enabling real-time
chains. Advances in blockchain technology, Internet of monitoring of sustainability performance and reducing the
Things (IoT) devices, and data analytics have made it easier complexities of auditing and certification processes. Creating
for companies to track and verify the sustainability an internal governance structure with dedicated sustainability
performance of their suppliers. By leveraging these teams and leadership is also essential to ensuring the effective
technologies, MNCs can gain real-time insights into their implementation and monitoring of sustainable procurement

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strategies. Social Sciences. 2023;5(10):693-708.

For future research directions, there are several important 9. Adnan N, Bhatti OK, Baykal E. A phenomenological
areas that require further exploration. One of the key areas is investigation on ethical leadership and workplace
the role of technological advancements in enhancing engagement from a multi-cultural perspective.
sustainable procurement. Emerging technologies such as International Journal of Organizational Leadership.
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