Chapter 3: Infrastructure Flashcards
What is corporate governance and what does it achieve?
The system of standards, procedures and policies by which an organisation is controlled. It is a framework created around the company’s values and objectives.
It aims to direct and control actions of stakeholders to make organisations effective, efficient, and successful and policies/procedures ethical.
What are the elements of corporate governance?
Vision Mission Strategy Objectives Goals
Policies/procedures Management stakeholder and board accountability Performance management Stakeholder protection Values/Ethics
What is a conflict of interest?
Where someone within an organisation has opposing loyalties which could either influence decisions in their own favour or giving preferential treatment.
What is a actual conflict of interest?
Having to make a decision that affects them personally
What is a perceived conflict of interest?
Having private interests that could affect a decision making process.
What is the 4D model for addressing conflict of interest?
Disclose
Distance
Delegate
Disassociate
What are the 4 areas ethics in procurement relate to?
Human rights
Bribery &Coercion
Fair Trade
Environmental
What are the main elements in a code of ethics?
Values Principles Personal responsibility Compliance Reporting
What are the benefits of a code of ethics?
Framework to provide cohesiveness Reputation Protection Focus on good practice Involvement Diversity
Key points from CIPS code of conduct
Enhance and protection the standing of profession
Maintain highest standards of integrity in all business relationships
Promote eradication of unethical business practices
Enhance the proficiency and stature of the profession
Ensure full compliance with laws and regulations
What is a policy?
Policy is based on strategic plan and contains info on how an organisation will conduct itself.
Based on organisational objectives, legislation, regulation and standards.
What is a procedure?
The ways in which policies will be delivered
What is the purpose of having policies and procedures
Ensure conformance with regulation Ensure compliance to legislation Protect from coercion, bribery and fraud Organisational protection Continuity of supply Promote efficiency Promote ethical behaviour Reference point Assist audit processes Aid with legal cases
What is organisational accountability?
All members of the business working both collectively and individually to achieve business objectives.
What are the 5 global standard levels of competency?
Tactical Operational Managerial Professional Advanced professional
What does accountability relate to in procurement?
Confirming to CIPS code of conduct
Compliance with ethical policies
Conducting suppliers appraisals and transparently
Awarding contracts to most effective suppliers
Managing spend to keep within budget
Ensuring specs are representative of need
Addressing or reporting potential areas of concern
List areas of reporting in procurement
Concerns/poor practice Budget variances Supplier delivery info Product quality Percentage of defects/reworks New suppliers Contracts for review Cost reductions Price increases Changes in legislation/regulation
What is the model for a step change?
Kurt Lewin - unfreeze, change, freeze
What are 8 main conventions of the ILO
Freedom of association Right to organise and collective bargaining Forced labour Abolition of forced labour Worst forms.of child labour Minimum age Equal remuneration Discrimination
What are advantages of centralised procurement?
Economy of scale
More efficient use of skills/resources
Reduction on expenses
Stronger relationships
What are the disadvantages of centralised procurement?
Potentially less supportive of local economies
Increased bureaucracy
Less accountability and sometimes lack of control
Name the 3 types of procurement structure
Centralised
Hybrid
Devolved
Name the 4 recognised hybrid structures
Consortium
Shared services
Lead buyer structures
Outsourced
What are the types of consortia
Loose Voluntary Regional Profit-taking Member-owned (buying groups - annual subscription) Nonprofit (overhead reduction)
