L5m5

1. Which of the following is a key benefit of involving workers in workplace matters?

a. It would ensure that workers will not strike or withhold labour

b. It will provide a structure for continuous problem solving
c. It will allow workers to freely associate and create trade unions
d. It will reduce the amount of overtime that workers need to perform.

2. You need to develop a corrective action plan for a supplier who is not meeting
sustainability standards. Which of the following activities will best help both buying and
supplying organisations to address the situation?

a. Defining the key performance indicators and critical success factors

b. Measuring the current performance of the supplier
c. Assessing the gap between current and desired situation
d. Review all policies and procedures relating to sustainability.

3. Buyers could access suppliers against a number of elements to ensure compliance with
delivery of the specification. In order to check whether a buying organisation is meeting the
requirements of its own sustainable procurement policy which process would they use?

a. A statutory audit
b. Risk assessment
c. Internal standards audit
d. Productivity Assessment

4. To develop the most appropriate solution to buying needs when working with a range of
suppliers, which of the following is an acceptable use of supplier information.

a. Posting confidential details of the suppliers you re currently negotiating with

b. Distributing an output-based specification, developed by one of the suppliers with all
the others
c. Sharing a range of best practice ideas among all the suppliers
d. Distributing private home contact information among suppliers

5. When a major national food quality issue arises, the identification of the cause of the
issue can be best identified using which of the following recognised techniques

a. Quality functional deployment

b. Supply chain mapping
c. Six sigma
d. Value analysis

6. Which features of the Eco-management and audit scheme (EMAS) add value to an
organisation and would justify the additional effort needed to obtain the certification?
Select two that apply.
 a. It provided enhanced legal security as it has a requirement for proof of legal
compliance.
b. It requires less involvement from employees and their representatives allowing them
to concentrate on the core business
c. External communications are more restricted allowing for greater levels of data
security and network integrity
d. As it is voluntary, there are no periodic reviews or checks by independent assessor,
reducing costs to the company to maintain
e. It provides a stricter and more systematic framework for measuring environmental
performance

7. When determining whether an organisation should start operating internationally and

expand their global market, they will undertake a range of analysis to help them to build a
business case. STEEPLED is an analysis tool that can be used which reviews a number of
factors in the macro-environment. Which of the following factors would be identified under
the political element of this analysis?

a. The level of corruption and bribery present

b. Currency fluctuations and exchange rates
c. The level of technological development
d. Fashion and trends led by local celebrities.

8. The most effective way of overcoming language barriers in supply chain relationship is
a. Insisting that English is the only business language used
b. Only ever communicating through use of written words
c. Ensuring there are shared common understanding of objectives
d. Using translation software to convert communications to a local language.

9. The ILO is a specialist agency promoting human, civil and labour rights. One of the
declarations is the declaration on fundamental Principles and Rights at Work (1998). Which
of the following principles are covered by this declaration? Select TWO that apply.

a. Elimination of child labour

b. Freedom of speech
c. Provision of training
d. Freedom of association
e. Right to work life balance

10. When dealing with suppliers from the low-cost countries in particular, what are the main
benefits of requesting that they comply with specific industry standards and codes of
conduct. Select TWO that apply.

a. Provides assurance that minimum legal and ethical standards are being met
particularly where other international standards are not available
b. Provides a guarantee that suppliers management of ethical and responsibility issues
are systematic, robust and internationally recognised
 c. Allows the buyer to guarantee to stakeholders that there is no risk to the company’s
brand and reputation
d. Allows small producers to compete on an equal basis as standardisation also
provides improved access to the supply chain
e. The buyer can enforce decisions with the supply without undue discussions or
disagreements with compliant suppliers.

11. An organisation is keen to improve the lives of workers in its supply chain. Which of the
following approaches or standards that could be adopted is most likely to help them achieve
their objective?

a. The adoption of responsible procurement

b. The adoption of ISO 9001
c. The adoption of environmental procurement
d. The adoption of ISO31000

12. Robert has been reviewing an oversees supplier whose labour costs are significantly
lower than any of the local suppliers he has spoken to. As his company is seeking to take
advantage of the global market, Robert is keen to highlight this in his report to senior
managers
Which part of the STEEPLED analysis should he include this information under?

a. Economic
b. Political
c. Legal
d. Ethical

13. When developing sustainable procurement policies, what independent sources can be
used to gauge the organisation’s progress?

1. Change in company share price

2. Feedback from stakeholders
3. Company publicity brochures
4. Credibility checks across customers

a. 1 and 2 only
b. 2 and 4 only
c. 3 and 4 only
d. 1 and 3 only

14. More organisations are adopting policies to highlight their approach to corporate social
responsibility. Apart from avoiding the risk of a poor reputation, if they did not adhere to
customer demands for this action, what other non-financial benefits could an organisation
achieve from the adoption of approaches to develop their image for sustainability?

a. Greater profits through reduced operating costs

 b. Improved employee recruitment and retention
c. Increased shareholder interest and investment
d. Reduced risk of the business failing financially.

15. Which of the following can be included in a business case arguing for global sourcing to
show evidence that global sourcing provides competitive advantage to a company?

1. The ability to dictate costs and to have a major influence on the drive down further
lower country specific costs
2. Reduced supply chain agility and the need to hold more stock to take on competitors
who are also pursuing the global market
3. Cost efficiencies and supply flexibility by being able to select the lowest cost supplier
from anywhere in the world
4. The ability to differentiate the corporate brand by having a global presence offering
access to a wider product base

a. 1 and 2 only
b. 2 and 3 only
c. 1 and 4 only
d. 3 and 4 only

16. When procuring internationally it can be difficult to establish trading arrangements that
are fair and open to all regardless of national differences in operating terms. Which global
organisation deals with the trading rules which are agreed and ratified by trading nations?

a. International standards Organisations (ISO)

b. The world trade Organisation (WTO)
c. The ethical trading Initiative (ETI)
d. Social accountability international (SAI)

17. You work for an employment agency providing temporary workers across your country.
Your managing director has asked you to provide some advice on the development of his
new sustainability and ethics policy. He wants to ensure that the organisation meets the
relevant standard for social accountability and labour practices and asks you if the
international standard ISO14001 will be appropriate. How do you respond?

a. Yes, it is appropriate as it provided a systematic way to manage one of the key pillars
of sustainability
b. Yes, it is appropriate because environmental management can incorporate
occupational health and safety
c. No, ISO 14001 is not appropriate as it only focus on the environment ISO9001 would
be a better choice
d. NO Iso14001 is not appropriate as it only focuses on the environment SA 8000 would
be better choice.
18. Fred is a category buyer for sub-assemblies at ABC who produce office chairs. He has
identified that he can purchase the sub-assemblies cheaper internationally from Andalucía
than he can nationally. This is because Andalucía is classified as a low-cost country as it has
lower salaries, it is close to the raw materials needed and therefore production can be done
cheaper.

If Fred recommends that ABC buy their requirements from Andalucía with a low-cost
country sourcing strategy which of the following advantages would he expect?

a. Reduced risk of supply failure

b. Improved control of resources
c. Quicker shipping and deliveries
d. Competitive pricing advantages

19. Which of the following are standards, based on the conventions of the ILO which are
shown on the Ethical trading Initiative (ETI)?

1. Profit levels should be kept to minimum

2. There should be payment of a living wage
3. Professional training must be provided
4. There should be no discrimination practiced.

a. 1 and 4 only
b. 2 and 3 only
c. 1 and 3 only
d. 2 and 4 only.

20. A supplier has sourced a third-party company to undertake an audit of their

procurement process. Which of the following are purposes of a company undertaking a
procurement management audit? Select TWO that apply.

1. To review the supply chains management IT systems

2. To ensure the procurement team are equally paid
3. To ensure environmental risk assessment are countersigned
4. To ensure procurement policies are being adhered to
5. To help in the detection of any fraudulent purchase activities.

21. A company is seeking to managing a sustainability related performance dispute with a

supplier. Should the company confront the supplier with evidence of an infringement of
compliance with set sustainable criteria?

a. Yes, so that the supplier is fully aware of the precise reason for the complaints
b. Yes, so that the company can intimidate and pressure the supplier into corrective
action
c. No, as confrontation could cause further issues and be used against the company
d. No, as issues should be escalated immediately so the supplier cannot plan excuses.
22. A building contractor has decided to invest resources into mapping its supply chain.
Which of the following benefits of supply chain mapping? Select TWO that apply.

1. Enables identification of high-risk suppliers in the supply chain

2. Opportunity to target development areas in the supply chain
3. Complete removal of all risks from the supply chain
4. Achieve cost savings by targeting suppliers at the end of the chain
5. Allows all middle tier suppliers to be removed from the chain

23. An international organisation has been accused of refusing to allow their employees to
join unions or negotiate with them on issues regarding working hours. Which area of the ILO
standard could this organisation potentially be breaching?

a. Fair globalization
b. Working out of poverty
c. Social dialogue
d. Employment creation

24. Supply chain workers’ rights for equality are protected by local legislation. Is this true?

a. No, they are protected by mandatory international standards

b. Yes, there is international legislation to protect workers
c. Yes, every country has passed equality legislation
d. NO, legislation varies around the world depending on the local laws.

25. Global pharmaceutical Group (GPG) has a new CPO who has been instructed by the
board to conduct a thorough review of GPG’s supplier base. The CPO has concluded the
review and has identified 5% of GPG’s suppliers that are regarded as strategic importance to
the business. Most are involved in product development initiatives and all are engaged on
contracts between 8- and 12-years duration. The CPO has decided to introduce a program of
supplier development for this top tier of suppliers. How will this differ compared to
relationships with other more transactional suppliers? Supplier development involves

1. Competitive tendering
2. Long term focus
3. Tactical negotiations
4. Frequent two-way communications.
a. 1 and 2 only
b. 1 and 3 only
c. 2 and 4 only
d. 3 and 4 only
26. A procurement manager is developing a supplier development programme with one of
her key suppliers. Which of the following should form part of the planning phase for
implementing the supplier development programme? Select THREE that apply.

1. Ensure senior management buy-in

2. Conduct training for all staff
3. Monitor and review progress
4. Measure quick-win saving from the supplier
5. Review supply chains
6. Identify problem areas

27. A supplier offers a purchaser some corporate hospitality at a rugby match as thanks for
the purchaser’s business over the previous year. The purchaser refuses the gift and explains
to the supplier how accepting this type of hospitality would be an infringement of their
standards for sustainability. The purchaser continues to trade with the supplier.

Is continuing to trade supportive or ethical and sustainable procurement?

a. No, because there has been a breach of ethical standards

b. No, because the incident will cause a break down in buyer-supplier relationships
c. Yes, because gifts and hospitality should not be a factor in ethical procurement
d. Yes, because the incident has raised the supplier’s awareness of the ethical
standards.

28. Company X has been bought by a global company who now aim to centralise all souring
procurement activity and standardise all processes. What factors could contribute to
increased competitive advantage for company X through the centralization of the souring
activity?

a. Reduced due diligence activity resulting in higher governance of suppliers

b. Efficiency gains that lead to increased productivity and lower prices
c. Improved bench marking shared data to provide ability to agree prices with global
competitors
d. Ability to use more favourable legislation in different countries and avoid local legal
obligations.

29. Which of the following benefits can company X hope to achieve from CSR due diligence
in their supplier on -boarding activity?

a. Transference of CSR responsibilities and accountability to the supplier

b. Improved ongoing monitoring of CSR practices within the whole supply chain
c. Clear baseline and monitoring of suppliers CSR contractual obligations.
d. Assurance of supplier commitment to open and transparent gender pay publication

30. Mark the supply chain manager at a food retailer is facing a dilemma. His organisation is
keen to pursue ethical sourcing approaches and sign up to a relevant code of practice for
the food industry. Mark has selected a code which ensures that certain social and
environmental standards are met.

However, during the third-party audit, the auditor said that although the code which Mark
has elected does ensure that production has met certain social and environmental
standards, it does not provide any guarantee that farmers have received a fair and
sustainable price for their crop. The auditor believes that Mark’s organisation should change
to a different code, that includes the objective to:
“Build long term trade partnerships that are economically just and environmentally sound,
to foster mutually beneficial relations between members of the supply chain, leading to fair
prices for all”

Which of the following responses would be suitable for Mark to adopt?

1. Ignore the recommendation of the auditor, as they are only a third party
2. Adopt the code suggested by the auditor, and immediately reject the original code
3. Apply the principles of both codes into a bespoke ethical code for Mark’s
organisation
4. Consult with senior management as they are ultimately accountable for the
organisation’s ethical standards
a. 1 and 2 only
b. 2 and 4 only
c. 3 and 4 only
d. 1 and 3 only

31.Company X will focus efforts on implementing sustainable procurement in future

engagements with suppliers to enhance its corporate image in the marketplace. This should
also minimise business risk, obtain cost savings and create markets or new products. The
first tender with this focus as for confidential waste disposal, as Company X currently has
shredding capability and disposes of all paper in the normal waste bins
A start-up, Company Y was successful in its bid based on cost and ISO14001 (environmental
engagement) accreditation. Company Y uses an innovative process to collect and recycle
confidential documents, converting them to electricity which is then returned to the buying
organisation.
Based on the information provided how will company X achieve its sustainable procurement
aims through this engagement.

1. Reduce its total corporate spend on utilities

2. Reduce its total spend on paper and printing
3. Reduce business continuity risk by using a start up
4. Reduce its corporate environmental impact
a. 1 and 2 only
b. 2 and 3 only
c. 2 and 3 only
d. 1 and 4 only
32. Company X designs and manufactures clothes. It has in-house designers however is
tendering for a manufacturer to produce a new fashion line. Company X’s values include no
use of child labour, fair wage throughout the supply chain, gender equality and respecting
the environment. They want to ensure any commitment the manufacturer makes to
upholding company X’s values are maintained throughout the whole life of the contract.
Based on the information provided, which of the following measures of performance should
be a priority for Company X to include in the contract?
1. Monthly management information provision from manufacturer to company X of
ages of all workers throughout the supply chain
2. Quarterly communication of the gender pay data from manufacturer to Company X
3. Contact details for the manufacturers employees with gender information to be
given to Company X.
4. Monitoring the right to terminate if the manufacturer is found to be illegally
disposing of waste materials.

a. 1 and 2 only
b. 3 and 4 only
c. 2 and 3 only
d. 2 and 4 only.

33. Which of the following questions would a company consider including in its due
diligence question set, when assessing a vendor’s compliance with the WFTO principles?

1. How do you ensure no child labour is used in your supply chain?

2. How do you ensure all your employees and those of your suppliers pay the UK
minimum wage equivalent?
3. Do you publish your gender pay gap data quarterly?
4. What measures do you take to minimise the impact of your waste stream on the
environment?

a. 1 and 2 only
b. 2 and 3 only
c. 2 and 4 only
d. 1 and 4 only

34.Which of the following essential criteria should company X use during a tender to
appoint an auditor for assessing supplier compliance with standards for sustainability?

1. Expert knowledge of supplier’s local governments consumer legislation

2. Ability to conduct on-site visits of supplier’s plant and offices
3. Expert knowledge of company X’s legal obligations for sustainability
4. Understand of local culture and differences in what’s considered acceptable practice.

a. 1 and 2 only
b. 2 and 3 only
c. 3 and 4 only
d. 1 and 4 only
35. What actions should a company encourage suppliers to implement to increase the
supplier employees understanding of their impact on sustainability?

1. Implement a system for tracking employees business travel related carbon footprint
and provide results to respective employees
2. Create an office roof garden to encourage improvement to employee health
3. Supplier to publish their sustainability report and send the link in an email to all
employees
4. Replace office windows every 3 years to ensure the best glazing available on the
market is used.

a. 1 and 2 only
b. 1 and 3 only
c. 2 and 3 only
d. 3 and 4 only

36. Which actions should an organisation advice its suppliers to implement to increase the
supplier employees’ understanding of their impact on sustainability, specifically in respect of
water wastage?

1. Put signs up in kitchens and bathrooms which give advice on water conservation
techniques
2. Install water coolers in every office to encourage use of clean drinking water
3. Reduce the number of men’s toilet facilities available to encourage gender equality
4. Share the organisations water bill with employees showing any increase or decrease
in use.

a. 1 and 2 only
b. 2 and 3 only
c. 3 and 4 only
d. 1 and 4 only

37. Should suppliers be given at least a month’s advance notice of an intended sustainability
audit?

a. Yes – because they need time to adequately prepare their financial statements and
may have conflicting priorities, they need to consider
b. Yes – because they should be given opportunity to coach their employees in
adequate responses to audit questions.
c. No – because short notice reduces the risk of the supplier being able to commit audit
fraud
d. No – because other customers of the suppliers won’t give them advance n notice
and auditors need to maintain consistency
38. Would recommending that suppliers reduce the number of toilet facilities in their offices
help the supplier raise their employees’ awareness of their impact on sustainability?

1. Yes – because the employees would have to walk further to number the bathroom
thus would be discouraged from using the facilities so often.
2. Yes – because the employees would drink less liquids in order to reduce their need
to go to the bathroom as often
3. No – because the employees are going to complain about the convenience it has
caused them
4. No because whilst it may reduce water usage, the reasons need to be communicated
to the employees to raise their awareness

39. A country has a recent history of slave labour and is internationally condemned for poor
labour practices. Only 12% of the country’s children regularly attend school and 34% of
children under the age of 16 are employed full time in manufacturing and textiles industries.

The country has recently undergone a transition and now has its first ever elected
government, that won the election primarily based on its pledges to introduce labour
legislation and ensure that it becomes an ILO Member state.

Based on the information provided, which of the following measures must the country take
before the ILO would accept its application for membership?

1. Legislation to abolish manufacturing of non-fair-trade items

2. Legislation to abolish all forms of forced labour
3. Legislation to abolish any child labour under the age of 12
4. Legislation to effectively monitor children’s school performance

a. 1 and 2 only
b. 2 and 4 only
c. 2 and 3 only
d. 3 and 4 only

40.
Forced labour convention, Amend the clause to state any hours over a weekly standard
1930 (No 29) of 40 will be optimal and paid at a specified hourly overtime
rate
Minimum Age convention Amend the clause to state that no child under the age of 14 is
No 1973 (No 138) eligible to work and if found to be in breach will have their
contract of employment terminated immediately
Discrimination Amend the clause to remove all mention of prioritisation
(Employment and instead stating any promotion will be awarded to the most
Occupation Convention, suitable candidate in terms of skills and knowledge
1958 (No 111)
Right to organise and Amend the clause to recognise a specific union and advising
collective Bargaining employees on relevant process.
Convention 1949 (No 98)
41. A lack of demand planning has resulted in an influx of demand on strategic component.
The procurement function intends to increase their order and receive split deliveries to
ensure a regular input of components. Is this the correct action to take?

a. Yes, another order can be placed with the supplier if the issue re-occurs
b. Yes, this maintains continuity and then actions should be put in place to ensure the
risk of re-occurrence is mitigated
c. No, the procurement function should see if they can acquire the component quicker
from another source
d. No, the procurement function should state this cannot be done and they should
inform the customer.

42. One of the principles of the ILO is the representation of workers and collective
bargaining. This is also known as

a. Freedom of association
b. Equality
c. Elimination of child labour
d. Abolition of forced labour

43. Which of the following are methods of managing financial risks in supply chains? Select
THREE that apply.

a. Hedging currency exposures

b. Checking operational processes
c. Ensuring suppliers are legally compliant
d. Controlling client credit positions
e. Monitoring supplier gearing
f. Reviewing reputational issues

44. A contact manager at Healthcare Trust Group (HGT) has been dealing with a high value
and high-risk contract, on which the supplier’s performance has been adequate since the
contract was awarded two years ago, but has been declining in recent months. HTG has
been made aware by an ex-employee (of the supplier) that the supplier has been infringing
HTG’s legal advisers who have suggested that termination and exit might ultimately be the
only option and the contract manager is considering this possibility before returning for
further advice. Which of the following should be contract manager do first as a priority?

1. Conduct their own audit on the supplier

2. Serve an initial termination notice
3. Investigate other options for service delivery
4. Formally interview the ex-employee

a. 1 and 2 only
b. 1 and 3 only
 c. 2 and 4 only
d. 3 and 4 only

45 Which of the following are key considerations when deciding whether to adopt a low-
cost country sourcing strategy? Select THREE that apply.

a. Transport costs
b. Use of advertising
c. Lead times
d. Quality control
e. Competitor benchmarking
f. Product life cycle

46. You are required to match the appropriate fair trade principle breach with the
appropriate solution for each producer
Good working conditions The producer must provide adequate hearing protection to
adhere to the ILO standards
Fair Payment The producer must pay the living wage to its employees in
order to adhere to the ILO standards
Respect to the The producer must find an alternative environmentally
environment friendly method do dispose of their waste in order to adhere
to the ILO standards
No discrimination, gender The producer must find a solution to allow women to be
equity, freedom of appointed to any role, e.g. uniform adhering to country and
association health and safety requirement
1 B 24 D
2 C 25 C
3 C 26 1,5,6
4 C 27 D
5 B 28 C
6 A,E 29 B
7 A 30 C
8 C 31 D
9 A,D 32 A
10 A,D 33 D
11 A 34 B
12 A 35 B
13 B 36 D
14 B 37 C
15 D 38 D
16 B 39 C
17 D 40 -
18 D 41 B
19 D 42 A
20 C,D 43 A,D,E
21 A 44 B
22 A,B 45 A,C,D
23 C 46 -