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Ethical Procurement and Supply L5M5 Paper 2.
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Does the main contractor have the power to appoint a subcontractor when necessary to ensure project deadlines are met?
Does mapping the supply chain lead to improved transparency of ethical and sustainable practice adherence?
What are the actions that buying organizations can adopt to enhance supply chain sustainability? Select the THREE that apply.
How can contract terms be structured to support sustainable supply chains?
- Express terms
- Community benefit clauses
- Terms providing reward for performance
- Implied terms
A South African company, LBTC Inc, specializes in selling mobile phones sourced from China. Their contract with XINXUA Manufacturers, a Chinese mobile phone producer, requires an initial 50% payment before dispatch, with the remaining amount paid after successful delivery and inspection. One contractual clause stipulates that ownership of the goods remains with XINXUA Manufacturers until the full payment is made. What is this clause called?
What factors among the following could lead to reputational damage for a business?
In which of the following cases would ensuring a stable supply chain take precedence over immediate financial benefits?
As a leading construction firm, MCI undertakes major infrastructure projects while outsourcing parts of the work to subcontractors. Is this subcontracting practice considered permissible?
To evaluate sustainability risks, contract relationships, and complexity while identifying improvements, procurement professionals use specific tools. Which of the following applies?
- Portfolio analysis
- Macro environmental audit
- Supply chain mapping
- Supplier preferencing
What is the term for an audit conducted to assess how well an organization complies with regulatory guidelines?
The Chief Procurement Officer (CPO) at AMG has prioritised a detailed supply chain mapping to analyze the company's global supply chains. What will this initial analysis primarily focus on within AMG’s supply chains?
- Tiers
- Branding
- Innovation
- Complexity
What are the essential requirements for a third-party auditor that an organization must take into consideration? Select the THREE that apply.
Would litigation be the right option to resolve conflicts between the parties in this case?
What are the major benefits of using ADR instead of traditional methods to resolve contractual disputes?
- ADR mechanism involve use of legal experts who will represent the parties well
- ADR ensures that good working relationship between the parties is maintained
- ADR can only be applied as the last resort to resolve a conflict
- ADR ensures confidentiality and reputation are maintained
What are the key principles of the International Labour Organisation (ILO)?
- Freedom of association and right to collective bargaining
- Freedom to bargaining higher salaries in the workplace
- Elimination of all form of forced and compulsory labour
- The right to charge higher prices to ensure a company’s sustainability
Choose the THREE scenarios that demonstrate child labour violations needing urgent removal.
What is the most efficient strategy for conveying a new ethics code to everyone involved in your supply chain?
Select the methods the ILO applies to assess and regulate labour standards within supply chains.
- Reporting
- observations
- On-site visits
- Investigation
As part of their cost-cutting measures, TRANSFLIT Crafters has chosen to outsource cleaning services to a reputable German company, Time Cleaners Limited. Does this decision make financial and operational sense?
What are the possible drawbacks of relying on a third-party organization for specialized services? Choose the applicable risks.
- Negative impact on collaborative relationship between the parties
- Failure to agree on justifiable and reasonable service cost
- Risks of intellectual property
- Loss of key personnel and expertise
In negotiating with a sugarcane supplier, a buyer seeks a fair, long-term agreement. With a packaging supplier, he prioritizes maximizing his company’s benefit. What are the negotiation styles he is using in these two scenarios?
- Collaborative style
- Avoiding style
- Compromising style
- Competitive style
What are effective methods for reducing bribery and corruption risks within supply chains? Select the correct options.
- Whistle blowing
- Terminating a relationship with a corrupt strategic supplier
- Creating policies on the acceptance of gifts
- Immediately firing employees who accept gifts and hospitality from suppliers
Suspiciously low labor rates in a supply chain should prompt a procurement professional to question which of the following concerns?
Select the THREE scenarios that represent fraud in supply chain operations.
When reviewing a new supplier for its staff uniforms, an airline is concerned about the ethical practices within the proposed supply chain. What measures can the airline implement to ensure all supply chain participants uphold its high standards of responsible sourcing?
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