Sustainable procurement practices in the supplier selection process: an exploratory study in the context of Brazilian manufacturing companies

Barbanti, AM, Anholon, R, Rampasso, IS, Martins, VWB, Quelhas, OLG and Leal Filho, W (2022) Sustainable procurement practices in the supplier selection process: an exploratory study in the context of Brazilian manufacturing companies. Corporate Governance (Bingley), 22 (1). pp. 114-127. ISSN 1472-0701

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Abstract

Purpose: This paper aims to evaluate the adoption of sustainable procurement practices adopted by Brazilian manufacturing companies in supplier selection; additionally, it is aimed to understand which of these practices enable a better differentiation of the analysed companies. Design/methodology/approach: A systematic literature review was performed to compose the theoretical base of this research. In addition, a detailed study of ISO 20400 standard was conducted. The guidelines of ISO 20400 were used as a base to structure a questionnaire used in a survey with professionals working in procurement sphere of manufacturing companies in Brazil. The data were analysed via frequency and CRITIC (Criteria Importance Through Intercriteria Correlation) method. Findings: A moderate dispersion in the adoption level of sustainable procurement practices in supplier selection process of the manufacturing companies was observed; in practices associated with social aspects, the dispersion is greater. A negative issue to be highlighted is that almost 20% of analysed companies did not even considered in their supplier selection process if their candidates accomplish philanthropic activities, generate jobs in local community and fulfill the Universal Declaration of Human Rights of United Nations (UN). Those two last practices are the ones with the best capacity to differ the companies in the sample. Originality/value: There are few studies that focuses on understanding the adoption of sustainable procurement practices in manufacturing companies' supplier selection process. The main contribution of this study to the literature is to evidence that social requirements in supplier selection process are considered in a clear and well-structured form only by few Brazilian manufacturing companies. Despite the sample size, companies analysed in this research are prominent organisations in manufacturing sector. Thus, if this situation occurs in these companies, a more critical scenario will be evidenced in other organisations. This study has implication for practice and academy. For companies' managers, information present here can be used to debate the theme in the organisational context and the nine practices and scale can be used to perform a critical analysis of company's practices. For researchers, the information present here can be used as starting point for futures studies.