L4M4 Ethical and Responsible Sourcing

A large public sector Org is subject to regulation about awarding a high value contract. It is seeking to award a large service contract and is aware that there are many potential suppliers. The requirement is not urgent. The specifications for the service are clear. The main concern of the Org is to find the supplier who can deliver the most economically advantageous service.

Which of the following approaches to awarding the supply contract is likely to be the most appropriate and in compliance with procurement regulations

• Restricted Tendering

• Competitive dialogue

• Direct Award

• Negotiated procedure

Which aspect of a supplier's financial position is usefully assessed with an acid test ratio

• Profitability

• Liquidity

• Growth

• Debt Levels

Which one of the following might be used to assess the technical capability of a supplier of electronic components

• Meeting recognised labour standards

• Inspection systems for detecting defective output

• Compatibility of supplier's and buyer's IT systems

• Production methods and age of equipment

A company uses prequalification procedures of supplier selection and invites only prequalified suppliers to tender for large procurement contracts.

Which of the following criteria are likely to be used to reach a decision about awarding a particular procurement contract for the purchase of components for a manufactured product.

Select TWO that apply

• Financial stability of the supplier

• Meeting labour standards

• Whole life costs

• Supplier price

• Conformance

Which of the following regulations might affect procurement by companies in the private sector.

Select TWO that apply.

• Public sector procurement regulations

• Anti-cartel legislation

• Product safety standards

• International product standards

• Quality management standards

Which of the following incoterms place the least responsibility on the buyer for transportation of the goods

• EXW

• DDP

• CIP

• FOB

Which one of the following methods of payment in international trade is the most secure against credit risk for the exporter

• Bank transfer

• Letter of credit

• Payment in advance

• Trading on open account

Which of the following are examples of modern slavery,

Choose TWO that apply

• Poor working conditions

• Very low wages

• Human trafficking

• Child labour

• Bonded labour

According to ISO 26000, which of the following are core issues relating to social responsibility.

Select TWO that apply.

• Labour practices

• Ethical behaviour

• Transparency

• Community involvement and development

• Respect for international norms of behaviour

A company wishes to ensure that procurement transactions with its suppliers are conducted ethically. Which of the following measures is likely to be the most effective for reviewing procurement arrangements and practices.

• Regular reviews of the suppliers' codes of ethics

• Regular monitoring of the suppliers' websites

• Regular dialogue with suppliers about procurement arrangements

• Requiring employees to sign statements of "no conflict interests"