Dissertation (Master of Business Administration)The research has studied the relationship between the environmental effects and the disposal of the substandard assets by the public utilities. Tanzania as a developing country face a problem of environmental effects due to mismanagement of substandard assets, procured by the public utilities. In most developing countries, like Tanzania, clear-cut policies and procedure, rules and regulations, coordination in procurement activities, presence of corruptions and top management interference, are documented to be major contributors of procuring substandard assets and hence, speed the environmental problem in the societies. Despite the strong agreement by the procurement practitioners to prioritizing the environmental, procurement decisions and processes during tendering the problem which is caused by substandard products is still growing. Challenges facing the procurement officers in their bid to integrate environmental in the public procurement, also include an absence of reverse logistics activities. Due to this problem, this study was aimed at finding out the connection between environmental effects and the disposal of the substandard assets in Dodoma region. The study has used policies and procedures, rules and regulations, coordination in the procurement activities, presence of corruptions and top management interference as the independent variables, and the occurrence of environmental problem/ effects as the dependent variable. The results from the binary logistic regression model show that policies and procedure, rules and regulations, coordination in procurement activities and top management interference, are significant and determinants of the environmental effects while corruption was found to be statistically insignificant. The study further suggests that these variables which were found to be statistically significant have to be placed in the policies.