Should there be limits on international trade Essay

Should there be limits on international trade - Essay Example The strategic initiatives undertaken by the international trade regimes are deemed as pivotal towards understanding how organizations work to good effect within the industrial basis which are spanning all over the world. Therefore what one must comprehend is the fact that international trade will remain supreme no matter how tough or trying the times are in the future and what kind of conditions the world is going to engulf. Advantages International trade and world output are interlinked. Their relation is made stronger by the fact that there is a supply and demand relationship which exists between the two. The trade output in essence depends upon the world output and hence the relation seems to affect one another in a number of different ways. If the world output is less in a specified period of time, say for instance in any single year, then it would imply that the trade output has remained low as well (Warburton, 2010). If the world output has been higher during this while, the tr ade output would essentially go up and be stable as well. However when there are times of financial hardship and misery, recession will have drastic effects on the people as well. They would not mingle within the purchase domains as such and hence try to make do with whatever has been made available to them. The purchase of the products would go down and thus these people will derive comfort from the fact that they have made their financial future secure already. It is also a fact that during such recessionary times, the country’s currency will become weak and hence having imports from different countries with which it regularly has such a trade link will also become quite costly. It would be in the interest of this country if it disengages from the trade regime and tries to focus on making the trade output higher (Amin, 2008). This will eventually up the world output by quite a fair value and hence no problems would be encountered when there is another economic recession wit hin the country. The advantages of international trade are immensely driven by the desire to set things right for the sake of the people spread in all parts of the world. These advantages are significant towards gaining the vital understanding of the international trade realms. Disadvantages The problem with international trade is such that it depends on the stakeholders with which this trade is coming into actual basis. The trade links work wonders for the different trade organizations and lobby associations. If the market is not functioning in a proper and cohesive fashion, there could be problems for the international trade to happen. Also on the global front, international trade can take a nosedive if there are significant issues related with political tensions across the borders. This could mean that a particular country has trouble in importing goods from its links that have already been established over a period of time. Similarly this could mean that the international trade suffers when exportation of these goods is about to take place, but since the political climate is not appropriate at a certain time, these international trade links would come to a halt (Nkowani, 2009). There could be a multitude of reasons behind having

Guns Germs and Steel Essay Example for Free

Guns Germs and Steel Essay Yali asked the question of â€Å"why is it that you white people developed so much cargo and brought it to New Guinea, but we black people had so little cargo of our own? † (Diamond 14) In other words, he is asking â€Å"what is the factor between our people and ours that causes human development to proceed at different rates? † (Diamond 16) What Yali is really asking though, is, what is this mysterious factor? According to Diamond, the basis for development is the environment around us including the resources and the native people of New Guinea don’t live in an area where a chance is provided for them to take advantage of. The natural resources are just enough for them to get by. This is why the people of New Guinea produce so little â€Å"cargo† of their own. Pizarro’s capture of Atahuallpa and destruction of the Incas made the Europeans realize what power they head, and what they could do to the rest of the world. They easily wiped out the Inca’s of 80,000 with 168 men. From the Battle of Cajamarca, Pizzaro came back to Charles I saying that Europe had the power to conquer the Americas. There were reasons Pizarro and the Europeans could conquer the Americas†¦ They had better warfare than the Incas. Pizarro’s men had armor rode horseback and used steel compared to their wooden weapons. Eurasia happened to have an abundance of edible material because of the right environment leading to the domestication of plants and animals led the people to settle down in one place instead of being nomads. When people started to settle down and bring the food to them, they started to have a surplus which led for the people to have extra jobs and it started to also support a higher population while allowing women to have more children contributing to job specialization. These specialists were not devoted to farmers or food producers but varied to priests, blacksmiths etc. Permanent agriculture societies were able to from with the food surpluses leading to empires. Some of the reason that people began to settle down and farm are because at the time many wild foods began to decrease due to hunters and gatherers killing off too many large animals leaving life unsustainable. More wild plants that could be domesticated became available at the time. Technological advances allowe3d people to harvest and store greater amounts of food that they cultivated. Human populations rose it’s not clear how much it caused food production and how much food production caused it but researchers believe there’s a connection. As populations rose, they needed to have better food supplies and started farming. The farm societies were able to drive out neighboring hunter-gatherers. A continent with long east-west axis like (Eurasia) has an advantage over continents with long north-south axes (like Africa and the Americas). The reasons it does have to do with crops and longitude. In general similar crops can grow at similar longitudes. In other words a cropped that developed in one place can be spread east to west (or west to east) but less likely to spread north and south. Epidemic diseases developed among the societies that had been farming the longest. These were Eurasian societies. Societies in the Americas, Australia, and other places had not been farming as long and lacked epidemic diseases. When Europeans came in contact with Native Americans, for example, European epidemic diseases killed huge percentages of the Native Americans. This helped the Europeans conquer and the conquest made them richer and more powerful. Therefore germs help to answer Yalis question. The societies that did independently invent writing were those with complex hierarchies and sophisticated systems of food production. Writing was needed for politics and was generally learned by bureaucrats who had the comfort of available time and energy. As food was available to them, they had no need to hunt and gather for themselves. Since their basic needs were being met, they could focus on a higher level of existence and communication. There are two conditions in which technology may develop. The first is â€Å"mother necessity ideology† which is when a society needs something to make things easier they invent it. Technology differed from place to place because there were more people to invent and better diffusion to spread the invention. The opposite happened in the Americas because there were less people and a slower diffusion rate. Also different cultures had different ideas for change. The only way that society can emerge is through food. Such developments include jobs, such as the chief and the beginnings of government. The institutions of society changed over time based on how organized they were. They evolved based around various factors like war and other societies. They are related by diffusion. Whenever a state is conquered by another state they enforce use of their technology or exploit it. States are going to develop weapons, troops, and religion in order to make the state survive. They develop in response to need of their population size. They use these agents of conquest to become larger and to conquer other societies; and for that they need guns, germs, and steel. What Diamond is saying is that he thinks that people really should not think that history is so much different from the sciences. He is saying that the study of history can be pretty scientific if it is done correctly (and that some sciences are not as precise as things like chemistry). Diamond is trying to argue that historians should use what he calls natural experiments. He thinks that there are many experiments where there are two or more places that are pretty similar in many ways but which then turned out differently (like his experiment in Chapter 2). He argues that historians can use these they can look at what was different and what was similar and how the differences led to the differences in the outcomes. Guns, Germs, and Steel Book Review I think Diamond’s central intent of writing the book is to explain how varying societies become dominate, and how certain others can become dominated. By looking at environmental conditions that caused the disparities that lead to certain societies developing guns, germs, and steel, including other technology, and forming a government necessary for conquest. He introduced the book with Yali’s question â€Å"Why is it that you white people developed so much cargo and brought it to New Guinea, but we black people has so little cargo of our own? † This question used a scientific/geographic background, and set his intent is to answer the question or inform how to answer the question. He also tries to analyze the causes of the expansion of civilizations’ in some parts of the world, since all people are physically the same what could cause some to be successful and others to die? He used archaeological and historical case studies and evidence from genetics and linguistics, he argued that technological and gaps in power are not caused by race or culture differences but by environmental differences, He used the idea of the axis as one saying that Eurasia had an east to west (or west to east) therefore having an advantage over Africa or the Americas for instance, because crops could grow at the same longitude but it was more difficult as they went north and south. Also when cultural or genetic differences have favored Eurasians like for example written language or resistance to epidemic diseases he says these advantages occurred because of the influence and geography on societies and cultures and were not inherited as genes from Eurasian ancestors. Diamonds book argues that the differences in progress for different societies around the world do not result from one group being smarter or more resourceful than another. Rather, he focuses on the impact of geography whether food and other key items were plentiful, whether and how disease spread, and how these developments led to different levels of industrialization, and wealth The book â€Å"Guns, Germs, and Steel† was very well written in the sense that Diamond had a question in which was the foundation of the book, he throughout the book acquired evidence and explanations and ideas of how to answer the question. The book had evidence to back it up by explaining how Eurasia had a better opportunity being west to east meaning they had better crop farming. Which led to a growing civilization and soon conquest. The book wasn’t exactly dull or boring but it wasn’t exciting or entertaining either. It was like any other history book it asked a question, then went on to the point. There was an explanation of the main topic which was Yali’s question and evidence that dealt with answering the question. From beginning to end, Diamond stresses that he realizes that efforts to compare societies have frequently been used by racists or nationalists to belittle groups or justify mistreatment of them. He argues that his analysis is in fact anti-racism at work because it shows that the white people who enjoy the comforts of modern life are ultimately luckier than, not more deserving than, people in impoverished nations.

A Review on the Works of James Baldwin Essay -- Literature

Introduction The works of James Baldwin are directly related to the issues of racism, religion and personal conflicts, and sexuality and masculinity during Baldwin's years.James Baldwin's works, both fiction and nonfiction were in some instance a direct reflection his life. Through close interpretation you can combine his work to give a "detailed" look into his actual life. However since most writings made by him are all considered true works of literature we can't consider them to be of autobiographical nature. Religion Personal Life Baldwin reflected his own life in various forms. These include autobiographical essays to fiction and drama. His first novel, Go Tell It on the Mountain, and play, The Amen Corner, mirror his childhood experiences in the storefront churches of Harlem where James and his stepfather, David Baldwin, preached. The "Autobiographical Notes" section of Notes of a Native Son and the "Down at the Cross" section of The Fire Next Time provide a seemingly realistic view into Baldwin's childhood and his growing involvement with the civil rights movement. Filled with a number of autobiographical passages in Nobody Knows My Name, No Name in the Street and The Devil Finds Word join together to provide a general, somewhat realistic, autobiography. One interest in particular is Baldwin's view on his relationships with Richard Wright ("Alas, Poor Richard") and Norman Mailer ("The Black Boy Looks at the White Boy"), both of which are included in Nobody Knows My Name .(Werner, Craig 45-48) When Baldwin was three years of age his mother married David Baldwin, a Southerner who had made the journey to New York as part of the large stream of black migration north during the times following the First World War. James, t... ...aesthetic: James Baldwin's primer of black American masculinity." African American Review 32.2 (1998): 247. MasterFILE Premier Werner, Craig. "JAMES BALDWIN." Research Guide to Biography & Criticism 1.(1985): 45-48. Book Collection: Nonfiction. Baldwin, James Preservation of Innocence." Zero 1.2 (Summer 1949). Rpt. in Out/Look 6 (Fall 1989), 40-41 Powers, Peter Kerry. "The Treacherous Body: Isolation, Confession, and Community in James Baldwin." 787-813. Duke University Press, 2005. Academic Search Premier. de Romanet, Jerome. "Revisiting Madeleine and `The Outing': James Baldwin's revision of Gide's sexual politics." MELUS 22.1 (1997): 3. MasterFILE Premier. EBSCO. Web. 4 Dec. 2010. Robert E. Morsberger. "James Baldwin." Magill Book Reviews. Salem Press, 1998. eNotes.com. 2006. 4 Dec, 2010 james-baldwin-0080505824

The Decline of the American Dream Essay -- American Dream in Decline

On a brisk September day in 2011, in the commercial district of Manhattan Island, a minute protest in Liberty Square commenced against the fiscal atrocities committed by economic establishments leading to the financial crisis and subsequent economic recession in 2007 and 2008. Over the course of the month, the movement protesting the miscarriage of justice and democracy following the economic catastrophe and the overall inequitable and unfair wealth distribution diffused to over 100 American cities as well as 1,500 cities worldwide. The revolutionary movement was named Occupy Wall Street and through occupying and protesting the symbolic location of the financial elite, Wall Street, the crusade aimed to â€Å"[revolt] against the corrosive power of major banks and multinational corporations over the democratic process.† With mass media attention domestically and internationally in the months after the initial demonstration, Occupy Wall Street acquired global reputation as the representatives of the destitute 99% protesting the fiscal tyranny of the top 1% of income earners in the United States who were â€Å"writing the rules of an unfair global economy†¦[and] foreclosing on [America’s] future† (â€Å"About Us†). Occupy Wall Street exposed the controversy of income inequality to the forefront of American society, public, and politics, as the issue was being widely neglected in favor of social as well as racial diversity and inequality. These issues only illustrate one dimension of the multilayered diversity in America, the social aspect. While social diversity is an integral component to the foundation of American society today, the issues of income and wealth diversity is also paramount. Income inequality and its implications can be traced to th... ...ranscript of the Constitution of the United States.† The Charters of Freedom. Archives.gov, n.d. Web. 27 Feb. 2014. . â€Å"2012 General Election Turnout Rates.† United States Elections Project. George Mason University, 2012. Web. 27 Feb. 2014. . â€Å"2012 Presidential Race.† OpenSecrets.org. The Center for Responsive Politics, 2012. Web. 25 May 2014. . â€Å"Wealth Trends of Members of Congress.† OpenSecrets.org. The Center for Responsive Politics, n.d. Web. 25 May 2014. . Williams, Roberton. â€Å"CBO Details Growing U.S. Income Inequality.† Forbes. Forbes, 9 Dec. 2013. Web. 27 Feb. 2014. . The Decline of the American Dream Essay -- American Dream in Decline On a brisk September day in 2011, in the commercial district of Manhattan Island, a minute protest in Liberty Square commenced against the fiscal atrocities committed by economic establishments leading to the financial crisis and subsequent economic recession in 2007 and 2008. Over the course of the month, the movement protesting the miscarriage of justice and democracy following the economic catastrophe and the overall inequitable and unfair wealth distribution diffused to over 100 American cities as well as 1,500 cities worldwide. The revolutionary movement was named Occupy Wall Street and through occupying and protesting the symbolic location of the financial elite, Wall Street, the crusade aimed to â€Å"[revolt] against the corrosive power of major banks and multinational corporations over the democratic process.† With mass media attention domestically and internationally in the months after the initial demonstration, Occupy Wall Street acquired global reputation as the representatives of the destitute 99% protesting the fiscal tyranny of the top 1% of income earners in the United States who were â€Å"writing the rules of an unfair global economy†¦[and] foreclosing on [America’s] future† (â€Å"About Us†). Occupy Wall Street exposed the controversy of income inequality to the forefront of American society, public, and politics, as the issue was being widely neglected in favor of social as well as racial diversity and inequality. These issues only illustrate one dimension of the multilayered diversity in America, the social aspect. While social diversity is an integral component to the foundation of American society today, the issues of income and wealth diversity is also paramount. Income inequality and its implications can be traced to th... ...ranscript of the Constitution of the United States.† The Charters of Freedom. Archives.gov, n.d. Web. 27 Feb. 2014. . â€Å"2012 General Election Turnout Rates.† United States Elections Project. George Mason University, 2012. Web. 27 Feb. 2014. . â€Å"2012 Presidential Race.† OpenSecrets.org. The Center for Responsive Politics, 2012. Web. 25 May 2014. . â€Å"Wealth Trends of Members of Congress.† OpenSecrets.org. The Center for Responsive Politics, n.d. Web. 25 May 2014. . Williams, Roberton. â€Å"CBO Details Growing U.S. Income Inequality.† Forbes. Forbes, 9 Dec. 2013. Web. 27 Feb. 2014. .

“Life Insurance Buying Behavior”

Most of us really see to it that we will have better lives in the future. It is been our desires that we can live a life full of comforts and our needs are supplied and met. We sometimes look ahead of time or we go beyond in our horizons so that we can prepare what lies ahead of us especially when we will grow old. Because of this, we tend to get life insurance to secure our unknown future. This kind of trend is very popular in Toronto, Canada as well as around the globe.But before we go further to our thorough discussions, we must know first what is life insurance and what are the possible benefits that we could get from it. When we say life insurances, it occasionally pertains to as life insurance which arranges for a sum or disbursement of money upon the death of the insured. Moreover, life insurance can also used as a way or method of saving or investment. Through this, we can receive many benefits. The insurance on human lives include benefaction benefit, supplementary benefits in event of death or disarticulate by accidental means or accidents, supplementary benefits for annuities and disability. There are several kinds of life and relative insurance products. The people or the public alters and the necessity for life insurance alters in analogy.The purposes of this study are to understand the buying behavior of life insurance at Toronto, Canada and the reasons why they buy life insurance.*Buying behavior of life insurance in Toronto and its reasons why buys it*In a study conducted in March 14, 2006 and entitled â€Å"Life Insurance: Like ‘Deal or No Deal’ without the Drama† advocated that â€Å"what does the game show â€Å"Deal or No Deal† have in similar with life insurance. Kerzner concluded that both are the same because like in a game, contestants are sweating out with regards to their decision in  order to be in the right track so that they can get the jackpot. Same as buying life insurance because buyers go through su ch experience due to its big amount of money involve. In a LIMRA research, it presents that several people delay or postpone in spite they learn that they need more life insurance. In a survey made by LIMRA of both non-buyers and buyers of life insurance, only 4 out of 10 non-buyers commented that they were scared of making wrong choice or conclusion and half of it explained that they couldn’t choose how much to buy and 70 percent answered that they could not afford it. Kerzner added that:â€Å"Behavioral economics tells us that when people say they can't afford life insurance, even when they admit they don't have enough, there's more to it than a straight budget calculation,† Kerzner said. â€Å"The negative feelings of ‘losing' the premium for more insurance are often a lot stronger than the positive feelings of buying the needed protection.†1An article entitled â€Å"Increased protection for life and health consumers: CompCorp† stated that CompCo rp guards Canadian policyholders in opposition to loss of benefits in the occurrence that life and health insurance company be unsuccessful. It was announced that its members favored and commended three improvements and augmentations to its consumer defense:2Accumulated Values are fully protected up to $100,000;31 â€Å"Life Insurance: Like ‘Deal or No Deal’ Without the Drama. March 14, 2006. http://www.insurance-canada.ca/consinfolife/LIMRA-Survey-Life-Insurace-603.php  3-2 Ibid†¦For Cash Values, CompCorp ensures that policyholders receive at least 85% of their promised benefits and, below $60,000, CompCorp ensures 100% protection;4Guaranteed amounts of Segregated Funds are protected under Cash Value coverage and, as such, policyholders receive at least 85% of their promised benefits and, below $60,000, CompCorp ensures 100% protectionCompCorp protection puts in to every Canadian policyholder altogether with a current and prevailing product to any recent polici es purchased from a member company.5   Another article stated that â€Å"in December 2003, Canadian life insurance application activity has enlarged and improved 3.5 percent as years by. Canadian life insurance application activity gauged and calculated as a percent of the sum in North American Life Index has enlarged over the years successively.MIB Life Index- Percent Change5 â€Å"Increased protection for life and health consumers: CompCorp†. July 7. http://www.insurance-canada.ca/consinfolife/CompCorp-enhancements-507.phpAn article stated that there was a mass marketing. Corporations or companies advertised recent products and services to all their valued customers even though those products or services were suitable for the individuals on the mailing list of the company. When a certain bank presented a mass marketing movement, there is 1 percent up to 3 percent reply rate was well-thought-out successful. If the regular direct-mail movement costs a company about $98,000 to spread 100,000 customers, in accordance to its estimation from the New York City Direct Marketing Association that organization is getting a large amount of loss.66 â€Å"Slices of Lives†.  http://www.cio.com/magazineReferencesâ€Å"Life Insurance: Like ‘Deal or No Deal’ Without the Drama. March 14, 2006. http://www.insurance-canada.ca/consinfolife/LIMRA-Survey-Life-Insurace-603.php â€Å"Increased protection for life and health consumers: CompCorp†. July 7. http://www.insurance-canada.ca/consinfolife/CompCorp-enhancements-507.php â€Å"2003 Annual Report†. http://www.mib.com/webcontent/2003%20MIB%20Life%20Index%20Annual%20Report.pdf â€Å"Slices of Lives†. http://www.cio.com/magazine

Obsessed With Ob- Words

Obsessed With Ob- Words Obsessed With Ob- Words Obsessed With Ob- Words By Sharon The other day, someone used a word that I hadnt heard in a long time: obstreperous. I love the way that rolls off the tongue. It means noisy, unruly, belligerent, cantankerous you get the picture. Obstreperous originates from the Latin prefix ob- (against) and strepere (to make a noise). A drunk being hustled out of a bar, while protesting loudly might be described as obstreperous. Other meanings for the prefix ob include contrary, against, towards or in the way of. It appears in several English words including: obdurate (from the Latin durare to harden) inflexible object (from the Latin iacere to throw) argue against obligate (from the Latin ligare to bind) bind legally obliterate (from the Latin litera letter) erase or destroy obnoxious (from the Latin noxius harmful) offensive obsession (from the Latin sidere to besiege) persistent preoccupation obstacle (from the Latin stare to stand still) a barrier obstinate (from the Latin struere- to stand) stubborn obstruct (from the Latin struere- to pile up) impede Variations of ob- include oc-, of-, op-, and o- in words such as: occasion (from the Latin cadere to fall) opportunity occlude(from the Latin claudere to shut) obstruct occult (from the Latin culere to cover) shut off from view occupy (from the Latin capere/cupare to seize) take possession of occur (from the Latin currere to run) happen offend (from the Latin fendere to hit) violate or cause pain offer (from the Latin ferre to carry) present or make available omit (from the Latin mittere to send) leave out opponent (from the Latin ponere to place) adversary More ob- words on Obnoxious Observations Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:Dialogue Dos and Don'ts25 Russian Words Used in English (and 25 More That Should Be)90 Verbs Starting with â€Å"Ex-†

Developing a Sustainable Procurement Policy The WritePass Journal

Developing a Sustainable Procurement Policy Introduction Developing a Sustainable Procurement Policy ). According to Kennard (2006, p.1), ‘sustainable procurement is the process whereby economic development, social development and environmental protection are balanced against business needs.’ In simpler terms, sustainable procurement means carefully considering the impact of every purchasing decision on the environment and on society. The United Nations’ definition of sustainable procurement is similar to that of Kennard (2006). The UN (2010) defines procurement as sustainable if it is able to integrate requirements, specifications and criteria, which are compatible with and favourable towards the protection of the environment, promotes social progress, and supports economic development. Environmental aspect refers to the impacts of the product or service on the environment over the whole life-cycle (i.e. from cradle to grave). Social aspect deals with the effects of purchasing decisions on issues such as labour conditions, international equity in the distribution of resources, etc. Last but not least, economic considerations involve purchasing based on principles of best value for money, price, quality, availability and functionality. These can be achieved through resource efficiency, improving the quality of products and services, and by optimizing costs. For private business organisations engaging in sustainable procurement, it cannot be denied that that they are maximising net benefits both for themselves and the world at large (i.e. society and external environment). As such, businesses integrate cost considerations and the basic procurement criteria of price and quality, with sustainability impacts (usually evaluated in terms of quality consideration). The environmental, economic, and social factors that are part of sustainable procurement are known as the ‘triple bottom line’ or TBL (Meehan Bryde 2011). Despite the seemingly complicated requirements and processes involved for sustainable procurement, this is not meant to burden the market with additional obligations (UN 2010). Sustainable procurement is a well-defined strategy that can be phased gradually throughout the supply chain and the organisation’s business processes. When implemented effectively, sustainable procurement promotes dialogue and open communication between the suppliers, procurers, and management operations. Business Drivers for Sustainable Procurement There are several incentives for businesses to engage in sustainable procurement. One of the main drivers for sustainable procurement is due to its financial benefits. Sustainable procurement helps organisations to eliminate waste, be more energy efficient, reduce the company’s carbon foot print, and save money. Moreover, it can help to enhance the company’s image since this will have a positive impact on customers, especially as there is a rising demand for products and services that are produced in a more socially responsible and environmentally friendly way (CIPS 2012). Engaging in sustainable procurement also helps an organisation to establish a competitive advantage by improving competitiveness. Additionally, sustainable procurement will allow the company to comply with environmental legislation. Some organisations also aim to promote resource efficiency or increase their standing in sustainability rankings such as the Dow Jones Sustainability Index (Copeland 2012). This may be motivated by the company’s corporate social responsibility (CSR) initiatives. Practicing sustainable procurement helps companies to achieve their CSR objectives. For instance, some sustainability programmes provide jobs by sourcing supplies locally, which in turn helps to develop the local economy. The company can also improve their ethical, health and safety standards by requiring suppliers to source raw materials in an ethical and responsible way (OPITO 2012). Kennard (2006) lists down the different benefits of sustainable procurement. These are also some of the main drivers that motivate businesses to practice sustainable procurement in their supply chain management and operations. Manage costs by implementing a more comprehensive approach to whole-life costing Improve internal and external standards via conducting performance assessments Compliance with environmental and social regulations or legislation Manage business risks Improve the company’s image and/or brands Develop a sustainable supply chain for the future Involve the local community A study conducted by Price Waterhouse Coopers and EcoVadis (2010), in collaboration with the INSEAD Social Innovation Centre quantified the value drivers associated with sustainable procurement policies. Through examining several case studies, the quantitative model was developed by analysing the three main drivers for sustainable procurement (i.e. cost reduction, risk reduction, and revenue growth) and their impacts on the company’s annual procurement expenditures, market capitalization, and revenue. These were then compared to the implementation cost of a sustainable procurement programme. The findings of the study show that the cost reduction impact of sustainable procurement outweighs the implementation costs, especially on categories where cost savings and sustainability benefits are aligned. This indicates that businesses engage in sustainable procurement because the value drivers that compel them to engage in sustainability are evaluated to be beneficial to their organi sations. Table 1. Analysis of the main drivers for sustainable procurement vs. impacts on company’s performance Source: Waterhouse Coopers and EcoVadis (2010) Evaluation of Case Studies on Sustainable Procurement In this section, two global multi-national companies are evaluated in terms of their sustainable procurement policies. These are AkzoNobel and IKEA. Case Study: AkzoNobel AkzoNobel is a one of the leading companies in the manufacture and supply of paints, coatings, and specialty chemicals. As of 2012, the company has revenue of â‚ ¬15.7 billion and 57,200 employees in its global operations (AkzoNobel 2012). In 2008, AkzoNobel is the first company to combine its annual report and sustainability report into a single publication. This demonstrated that sustainability is a business case, instead of a novelty, which was an idea held by most companies. For its 2009 agenda, the company included as one of its priorities the achieving world class sustainability and safety. AkzoNobel won the ProcureCon award in 2008 for its leadership in sustainable procurement. AkzoNobel is also one of the top-ranked companies in the Dow Jones Sustainability Index and in 2012; it was evaluated as one of the global super-sector leaders in chemicals (Van Hoeven 2012; AkzoNobel 2012; Achilles 2008). Table 2. Assessment 2012 – Global Supersector Leaders (1) Source: Dow Jones Sustainability Index, Annual Review 2012 It is evident that AkzoNobel has embedded sustainability in its overall corporate strategy. The company manages sustainability by integrating it across the business and it is reviewed based on a balanced score card. In order to map out their sustainability achievements, AkzoNobel has developed a framework to assess the environmental, economical and social aspects of their operations. This framework has three levels: (Van Hoeven 2012; AkzoNobel 2012) Invent – to identify and manage areas that will provide long-term and sustainable opportunities for the company; work with customers and suppliers in delivering eco-premium solutions; and develop their people to lead and deliver innovative solutions Manage – to incorporate a strong sustainability component throughout the entire value chain; work in partnership with suppliers to ensure business integrity and help deliver sustainable value to the customers; optimise processes, improve yields and improve energy efficiency Improve – to improve in meeting compliance especially in the following areas: Integrity management; heath, safety, environment and security management; Product stewardship; and Employment practices. Figure 1. AkzoNobel’s Sustainability Framework Case Study: IKEA IKEA is a global retail powerhouse in the home furnishings sector with over 338 stores worldwide. As of 2012, the company has a sales turnover of â‚ ¬27.5 billion and 154,000 workers in its global operations. IKEA’s business idea is supported by its vision of offering well-designed, functional, and low-priced home furnishing products. The company makes its products affordable so as to enable many people to afford them (IKEA 2012). IKEA’s business units have integrated sustainability in their business plans and managers are responsible for achieving the company’s sustainability targets. To support its sustainability objectives, the company has employed social and environmental specialists with expertise in a wide range of areas. IKEA stores and distribution centres also have social and environmental coordinators to provide training and monitor working conditions, safety, waste management, and water and energy conservation (Van Hoeven 2012). IKEA utilizes a Sustainability Product Score card to help classify its home furnishing range and help the company move towards more sustainable product development. It serves as a guide in improving products based on 11 criteria that have an impact on a product’s sustainability profile during its life-cycle. The results of the scorecard are displayed in individual product labels (IKEA 2011a). Table 3. IKEA KPI Customers IKEA integrates sustainability in every stage of the value chain. The company is creating and securing sustainable processes for: (a) Product development and sourcing of raw materials of home furnishings and food products; (b) Production and distribution; (c) Stores and shopping centres; and (d) Product end-of-life (IKEA 2011b). In terms of its procurement policy, IKEA has two important focus points: (Van Hoeven 2012) Increasing the sustainability its of supplier base The IKEA IWAY code of conduct is required to be followed by all suppliers. IKEA auditors regularly visit suppliers to ensure that they comply with IWAY criteria. These visits are either announced or unannounced and each supplier is visited at least twice a year. The Compliance and Monitoring Group is responsible for ensuring that the audit criteria are implemented worldwide. Increasing the use of sustainable raw materials. IKEA is taking up leadership in the stewardship of sustainable wood and cotton and the company is adapting their procurement and sourcing functions as necessary. Issues and challenges for organisations in developing a Sustainable Procurement Policy Sustainable procurement in the business setting requires a high degree of cooperation and commitment among all members of the supply chain. Additionally, the ‘lack of understanding of sustainability within business, coupled with poor training and accountability are significant barriers to building supplier capacity’ (Kennard 2006, p.1). Many businesses have developed tools and techniques to support this cooperation and commitment, as well as to instil sustainability accountability in the organisation. Training is very important in fostering a culture of sustainability within an organisation. All parties in the supply chain should be given adequate training regarding the importance and benefits of practicing sustainability. Moreover, the shifting of organisational and supply chain processes into a more sustainable way requires a lot of preparation and education (CIPS 2012). Ethical core values should also be incorporated in the sustainable procurement policies and procedures for contractors and suppliers. Transparency is essential in order to support the organisation’s ability in implementing and ensuring that the policies have been followed. Sustainable procurement policies should include environmental protection, safeguarding the organisation against corruption, respect and consideration for people, and zero-accident tolerance in safety and health issues (Kennard 2006). The transition to sustainable procurement is not an easy task. There are various product certifications, data, labels, and other documentations that make compliance to sustainability initiatives a big challenge. As such, it can be very difficult to synthesize the loads of data regarding a product’s sustainability attributes and evaluate it as sustainably compliant. Additionally, procurement professionals have another challenge – how to integrate these sustainability criteria into purchasing decisions, while also taking into account traditional considerations such as cost, quality, and delivery. More importantly, the biggest challenge is how to roll out the company’s sustainable procurement policy to the thousands of products that it purchases (Suarez 2012). The road to sustainable procurement can be daunting but organisations can start on the right path by aligning their sustainable procurement policy/approach with the company’s overall CSR initiatives and business priorities. Suarez (2012) recommends the following strategy for companies, which are in the beginning phase of their sustainable procurement policy: ‘By understanding how they define a product’s sustainability, companies can prioritize their efforts to reduce the impacts of the products they purchase and align their process with broader corporate sustainability goals. Looking at the full life-cycle of a product, they can focus on the highest impact areas, or hotspots, that overlap with their own commitments to sustainability’ (sec.2). It is also important for companies to consider and involve in the creation of a sustainable procurement policy other internal stakeholders who may not be directly part of the procurement process. For instance, departments such as marketing, product design, and operations/facilities may have significant influence on product specifications and these in turn can influence procurement decisions. The company should involve these individuals in considering sustainability impacts. It is recommended that a company engage in integrated sustainability procurement efforts in order to ensure that relevant people are involved in the process and sustainability is achieved (Suarez 2012). According to Copeland (2012), companies that want to be sustainable due to a passion for being green can only take it to a certain extent. Unless the board and shareholders support their sustainability objectives, they won’t be successful. However, getting the board and shareholders to support a sustainable procurement policy may not be that easy. To address this, the company needs to understand why it makes business sense to be sustainable. In order for the board to support the sustainable procurement policy, it is important to understand the whole life costing of the products being procured. This includes thinking about not just the purchase and usage cost, but also the cost of disposal. Sustainable procurement should also add to the value of the company’s existing products. The product should be improved in some way by the use of sustainable materials, rather than just being sustainable for the sake of being green (Copeland 2012). Procurement professionals should be championing sustainability objectives at the board level to help their organisation to thrive (Van Hoeven 2012). Implementation and Monitoring issues for Sustainable Procurement Implementation and monitoring a sustainable procurement policy is faced with many challenges. This is mainly due to the fact that implementing sustainable procurement means changing policies and procedures and fostering a new mindset and culture to the organisation’s management and employees. Undoubtedly, there will be resistance to such changes. A study by Meehan Bryde (2010) found that although some companies have sustainability objectives included in their corporate mission statements and despite external and internal pressures to embed sustainability; these have not translated into widespread practice of sustainable procurement in their organisations. This indicates that some organisations suffer from inertia in terms of their sustainability initiatives. To neutralise inertia and spur the organisation into action, the authors recommends several strategies: (a) Take experiences from other areas that emphasise the importance of inter-organisational relationships; (b) Develop a small number of sustainable development indicators for procurement and use more advanced environmental practices as examples to demonstrate how these elements have socio-economic impacts; and (c) Instead of just focusing on the pressures and drivers of sustainability, emphasise the triggers to overcome inaction and lead changes in behaviour amongst p rocurement staff. One of the issues in implementing a sustainable procurement policy is the lack of leadership and commitment (Kennard 2006). The organisation needs to elect sustainability champions who will lead in transitioning the company’s policies and processes. Without these leaders, there will be no one to drive the organisation’s sustainability efforts. These leaders should be held accountable for failure to meet the required standards. Alternatively, the organisation could set up a working group or steering committee, comprised of people from different departments, to help find the most effective ways to implement the sustainable procurement policy (Sustainable Procurement Resource Centre 2012). In monitoring the compliance to and effectiveness of a sustainable procurement policy, one critical area that may pose challenges to the organisation is the setting of measurements or KPIs (key performance indicators). The organisation should set how it is going to measure its progress and the impact of the sustainable procurement policy on its supply chain (Copeland 2012). According to Wilkinson Kirkup (2009), ‘Process KPIs can help to demonstrate an organisation’s intent to external organisations, whilst also helping the organisation track the implementation of policies’ (p.24). To avoid confusion and make it easier for employees to adapt, the company should not use a different measuring system than the one it normally uses. New information should be built into existing supplier scorecards and relationship management systems. There should be a seamless integration into the old measurement system so that the business runs as usual despite the changes (Copeland 2012). Another issue in monitoring is compliance. There is the possibility that suppliers will fail to comply with the sustainable procurement policy when the company does not follow up on compliance. As such, organisations should also conduct regular audits to ensure compliance. The performance of suppliers and other members of the supply chain must be regularly monitored to check for adherence to the organisation’s sustainable procurement policies (Wilkinson Kirkup 2009). Conclusions and Recommendations Implementing a sustainable procurement policy has positive final results for a business organisation. It can help to cut costs; increase product sale price, due to the perceived added value from procuring sustainably; and attract more customers through an improved brand reputation or company image (Copeland 2012). Moreover, according to the ICLEI (2012, p.1), a procurement policy that effectively incorporates sustainability can: (a) Reduce environmental impacts; (b) Drive social improvements; and (c) Achieve financial efficiency. These benefits are the main drivers which compel business organisations to engage in sustainable procurement. In evaluating the case studies of two multi-national companies, AkzoNobel and IKEA, it was found that in order for sustainable procurement to succeed, it must be integrated into all aspects of the business from management, operations, and supply chain. Both AkzoNobel and IKEA are leaders in sustainability in their fields because they have successfully embedded a sustainable culture into their businesses. They employ frameworks, principles, and KPIs to help them implement and monitor their sustainability achievements. They have very specific sustainability goals and they regularly audit the performance of different business units, especially in the supply chain, to ensure compliance with the company’s sustainable procurement policies. There are several issues and challenges to developing a sustainable procurement policy. These include: (a) The need for a high degree of collaboration and engagement among members of the supply chain; (b) Lack of understanding about sustainability; (b) Lack of accountability; (c) Poor training; (d) Difficulties in synthesizing loads of sustainability information; (e) Problems with integrating sustainability criteria into purchasing decisions; and (f) Lack of support from the board. There are also challenges in the implementation and monitoring of sustainable procurement policies. These include: (a) Failure to put into action the objectives set forth in the sustainability agenda; (b) Lack of leadership in commitment; (c) Difficulties in setting the measurement tool or KPIs; and (d) Problems in monitoring compliance. 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