Advanced Environmental Purchasing Strategies and Their Strategic Impacts in a Sustainable Economy

This study explores the relationship between environmental purchasing practices and firm performance, addressing a critical gap in the literature on corporate social responsibility and environmental management. Environmental purchasing, defined as the integration of eco-conscious principles into supply chain management, is posited to influence financial metrics such as net income and cost of goods sold. Using a combination of survey data from purchasing managers and archival financial data, the research empirically tests whether adopting environmentally friendly purchasing policies leads to economic benefits or imposes additional costs on firms. The findings reveal that environmental purchasing is positively associated with higher net income and reduced cost of goods sold, after accounting for firm size, leverage, and earnings. This evidence underscores the strategic value of green purchasing initiatives, suggesting that firms can enhance financial performance while meeting environmental objectives. The study contributes to the growing discourse on sustainable business practices and offers actionable insights for purchasing managers to align environmental and financial goals effectively.