The Role of Green and Ethical Procurement in Driving Organizational, Market and Operational Performance

Abstract

In today's competitive and sustainability-focused landscape, procurement decisions extend beyond cost considerations to include ethical and environmental obligations. Green and ethical procurement are increasingly recognized for their impact on how organizations operate and how they perform externally and achieve long-term sustainable outcomes. This paper examines the effect of green procurement and ethical procurement on organizational, market, and operational performance in the UAE. A quantitative approach focused on data from 408 executive-level employees in semi-government organizations in the UAE. In the analysis of the data, Partial Least Squares Structural Equation Modeling (PLS-SEM) was used to assess the hypotheses and to validate the conceptual model. The studies revealed that green and ethical procurement have positive and significant impacts on organizational, market, and operational performance. The research offered empirical evidence to show that sustainability-focused procurement can be socially and environmentally impactful and can be used to enhance competitiveness and long-term performance outcomes.