Purchasing management for sustainable business development in the ESG context

Abstract

Purchasing management is the initial source of value in managing a company’s supply chain. The aim of the article is to present the scope and assess the importance of taking into account environmental, social, and governance aspects (Environmental, Social and Governance, ESG) in purchasing management for the sustainable development of the company’s activities. When solving the research problem, the author uses an evolutionary approach derived from maturity models of the purchasing function. The author argues that ESG factors should be reflected in a wide range of purchasing maturity elements, including the strategic approach, position in the organizational structure, internal integration in the enterprise, external integration in the supply chain, performance measurement and metrics, and the use of technology. She estimates that with a more holistic and integrated scope of taking into account ESG aspects in building purchasing maturity, their importance in achieving the ability to manage risks related to sustainable development increases, and as a result, the opportunity for sustainable development of the company’s operations is higher.