Chapter 3 Flashcards
What is corporate governance?
Procedure and process’s which guide an organizations actions
Elements include:
Policies and procedure
performance management
value and ethics
What is a stakeholder?
individual or group of people who are interested in something or will be impacted by that something
What is a code of ethics
Document detailing acceptable behavior?
Can relate to:
Modern slavery Child labour Bribery Fair trade The environment
CIPS Code of Conduct can be quoted
Via a conflict of interest, what model can be used address the concern?
The 4D model
Disclose - conflicted person should disclose their conflict early on
Distance - conflicted person should immediately distance themselves from the associated deal
Delegate - If the conflicted person cannot distance themselves from the deal, they should delegate the work to a colleague who does not have any conflicts
Disassociate - if the contract high level and critical to the business, the conflicted person should disassociate themselves to ensure complete objectivity
What is whistle blowing?
An anomalous person can call to raise suspicion of illegal, unethical or not in line with company policy activities
Can you you name competition policies?
Intellectual property - to prevent competitors from copying ideas
Cartels - to prevent price fixing or controlled restriction of supply
Merger control - limit number of merger or at least approve of a merger not being detrimental to the market
Monopolies - to avoid one supplier having sole control over a market (no competition)
Which independent regulatory bodies exist in the UK utility sector?
Ofcom - communications
Ofgem - gas and electric markets regulator
Ofwat - water and waste water services
ORR - rail and road regulator
Remember, policies and procedures are derived from an organisation strategy. these policies and procedures should help the organisation achieve its strategy in the long run.
Strategy affect policy and policy affect procedure, procedure affect the organistion action to achieve its strategy.
Strategies must change in line with shifting market forces therefore a change in strategy creates a change in policy and procedure.
A significant change is referred to as a step change. they are large scale changes over short periods of time.
Small and constant changes over shorter time periods are referred to ask incremental changes
.
What is the ILO?
International Labour Organisation
Brings together governments, employers and workers under a tripartite agency involving 187 member states.
enables all tree parties to have an equal voice.
purpose of the ILO is to take in account the opinion of each party and helps reach as amicable resolution.
ILO ets standard which member states and other parties may used to formulate regulation, procedures and policies to promote a good way of working. This is achieved by setting core conventions for local parties to follow.
The ILO meet to discuss core convention and changes must be adhered to by member states and their parties.
What are the 8 core conventions set by the ILO?
Freedom of association and protection of right to organise - the right to self govern the workforce subject to taking into account their feedback. this is usually achieved through unions where workers can voice their opinion
Right to organise and collective bargaining - employees have the fundamental right to join a union. Convention protects them from discrimination from joining that union
Forced labour - obliges member to prevent forced labour within organisations
Abolition of forced labour - members must proactively seek out forced labour and stop it
Minimum age - stops children being employed before they are of legal age. Age is set by each member state, however, the suggested age to handle dangerous and hazardous goods in 18 across all member states.
Worst forms of child labour - member states are expected to proactively stop the worst form of child labour including slavery and prostitution
Equal remuneration - promotes the right of all orker doing the same job to receive the same pay
Discrimination (emp & occ) - stop discrimination against sex, sexual orientation, religion, race etc
How does the ILO describe child labour?
Work that deprives children of their childhood, their potential and their dignity and interferes with their schooling.
Which types of procurement structures exist according to CIPS?
Devolved - procurement carried out by local area
Centralised - procurement carried out by centralised hub i.e. head office
Hybrid - combination of both
Centralised procurement can a lot on resources and money. There is only one person or team looking at a consolidated amount of spend, thus less staff resource needed. Decisions on the better good of the organisation, not the selfish decision of the local exist is another advantage. It also promotes economies of scale, reduction in costs.
Some disadvantages are that centralised buyers won’t take in to account the local nuances needed in their decisions making process. lack of control or maybe even increased bureaucracy
A devolved structure can include the local procurement team or can even apply to a local head of department being responsible for purchasing
What types of consortia exists?
Loose - informal in their creation and lack structure
Voluntary - More formal arrangement. involve someone procurement on behalf of a group with intention
Regional - geographically based, organisation in this area can join
Profit making - pure focus on creating consortia for profit making. Idea is to achieve economies of scale
Member owned - individuals who belong to the consortia have to pay a membership joining fee.
Non profit - focus is not on profits, but reducing the overheads of each number. i.e. reduce number of staff needed vs trying to increase margin per product
What are the common functions that can be structured as shared services?
HR
Administration
ICT
Finance
Objective are to:
Create uniformity in in policy, procedure and standards
Continuous improvement
Save on overhead costs
helps focus on core activities
provide skill specialism, focus on skills, subject matter experts
Avoids duplication of work
Informational held in a central location
Easier to audit
