Chapter 3.1 - Compare the key legislative, regulatory and organisational requirements when sourcing in the not-for-profit, private and public sectors Flashcards
Name 4 areas of regulation that organisations must follow
- Data protection
- Ethical practise
- Health, safety and environment and workers rights
- Marketplace competition
What do data protection regulations cover?
The movement, storage, ownership and distribution of personal data
What do ethical practise regulations include?
Regs that govern and promote good practises and prohibit corrupt or unfair practises between organisations and their customers
Collusion
The cooperative but secretive or covert joining of allegiances of two parties
Carterl
A group of organisations that work together to prevent competition, raise prices and gain control of the market
What do health, safety, environmental and workers rights ensure?
That workers have the right to work without prejudice, suffer no injury in the process of carrying out their work and have a suitable balance of work and leisure time
What do marketplace competition regs ensure
Fairness in business and trading, while promoting and facilitating competition within different markets to ensure that customers can find products at a good value
What are product safety standards?
Regs that sets minimum levels of safety or quality that a product should conform to before it can be sold within a country or region
British Standards Institution (BSI group)
An institution that produces the technical standards that products must conform to in the UK
Give an example of product safety standards in Europe
CE mark - European conformity. It shows that the product meets the requirements of relevant European directives, is safe, fit for use and suitable for sale within the EU and EEA
Brexit
The UK’s departure from the European Union in 2020
Name a piece of UK data protection legislation
Data Protection Act 2018
Name a piece of UK ethical practise legislation
Bribery Act 2010
Name a piece of UK health, safety and environment and worker rights legislation
The Equality Act 2010
Name a piece of UK marketplace competition legislation
Competition Act 1998
Name a piece of UK product standards legislation
Consumer Rights Act 2015
The public interest test
The test used by public sector organisations to determine whether or not information should be released to the public when it is requested. Information will not be released if it is not seen to be in the public interest
Name 2 additional regulations public sector organisations are subject to
- The freedom of information act 2000
- UK Public Contract Regulations 2015
Call for competition
A notice released by a buying organisation through the Official Journal of the European Union (OJEU) to make potential suppliers aware that they may participate in a sourcing competition in line with the organisations requirement
Prior Information Notice (PIN)
A notice released by a buying organisation through the OJEU to make potential suppliers aware of a sourcing competition that it intends to run in the future
Name 4 rules the PCR 2015 contain in relation to public sector sourcing
- A number of procedures that specify the format of the tender
- A process that outlines the stages the buyer must follow when carrying out a tender
- Timescales that allow tenderers a suitable amount of time to compile and submit a tender and showcase their capabilities
- Contract award criteria that outline what the buyer should consider when appraising the viability of submitted tenders
Name 3 examples of regulatory bodies for not-for-profit organisations
- Australian Charities and Not-for-profits commission
- Charity commission for England and Wales
- International revenue service (USA)
Corruption
Dishonest conduct, often by individuals who hold senior positions within organisations - can include bribery
What may help procurement professionals prepare themselves for any corrupt circumstances that they may have been presented with
Corruption Perceptions Index
Cultural Relativism
The idea that the way the person behaves, what they believe and what they consider to be normal are not universally applicable, but may be different from culture to culture
Facilitation payment
A form of bribery in which a sum of money is payable to speed up or secure the performance of an action to which the payer has legal entitlement. In some cultures this is considered unethical whereas in others t is often seen as normal practise
How may some individuals try to defend using corruption?
Cultural relativism
Code of conduct
A series of rules set by an organisation that define suitable behaviours and values that should be used and applied by a member of that organisation, for the purpose of acting in a suitable manner, as well as demonstrating uniformity and upholding the standards of the organisation
Bribery
The offer of a gift, financial gain or incentive to influence a decision
Fraud
Financial deception
Gifts and hospitality
Material goods, money or entertainment that may be given from one party to another. In the context of business, the giving and receiving of gifts from one organisation or individual to another may be perceived as giving and receiving a bribe
Name the 2 forms of corruption
- Bribery
- Fraud
Name the 4 industries that are more affected by foreign bribery
- Defence industry
- Property development industry
- Mining industry
- Medical industry
Name 5 things that may be included in a gifting and hospitality policy
- Situations in which it is acceptable to accept a gift
- What types of gifts are not acceptable
- How to proceed, depending on the value of goods
- How gifts should be used when received
- How gifting should be treated in line with other conflicts of interest that are known or may arise
Workplace fraud
Small-scale thefts taking place within the workplace that are difficult to detect and could collectively cause large financial or resource losses.
Embezzlement
The taking of money or property by a person whom it has been entrusted
Name the 3 sections of the fraud triangle
- Perceived pressure
- Perceived opportunity
- Rationalisation
Name 4 types of fraud
- Advance fee fraud
- Corporate fraud
- Identity fraud
- Individual fraud
Name 4 examples of cybercrime
- Phishing
- Account takeover
- Money muling
- Official request
Nepotism
Using actual or perceived power to give an unfair advantage to friends or family members
Name 5 relationships that could create a conflict of interest
- Partners
- Former or current business partners
- Shareholders in another company
- Close friends
- Children
Name 5 things a conflict of interest register would contain
- The date it is raised
- Names it pertains to
- Details of their roles and teams
- Details of the relationship between them
- The boundaries or conditions to be set
Human rights
Rights or principles, based on shared values that are accepted as belonging to every person, regardless of background
Zeitgeist
The ‘spirit’ of an age/time, meaning the cultural norms, values and behaviours from a particular period of history
Name 5 examples of articles in the universal declaration of human rights
- The right to freedom
- The right to have human rights and for these not to be removed
- The right to be treated equally
- The right to belief and changes in belief
- The right to free speech and expression
Sub-tier supplier
An organisation supplying into the suppliers that are contracted directly into buying organisations supply chain. This supplier’s activities, stability and reputation can all fact the buyer’s supply chain
Name 5 organisations that can support with remedying any human rights violations
- Local law enforcement organisations
- Amnesty international
- Human Rights Watch
- Equality and human rights commission (UK)
- Australian Human Rights Commission (Australia)
Fairtrade Foundation
An international charity which attempts to get a fair deal for farmers and workers in developing countries
Define modern day slaves
People who are forced into carrying out labour against their will, often through threats of violence against them and their families
Name 8 examples of signs that slavery may be taking place in the supply chain
- Suppliers based in nations with poor scores in the Corruption Perceptions Index
- Suspiciously low labour costs in sub-tier suppliers
- Variations in the quality of purchased products
- Evidence that workers live on-site
- Unwillingness of workers to communicate or make eye contact with buyers representatives who are viewing shop floor areas
- Poor quality work stations
- Few labourers, but long shifts or ‘round the clock’ working taking place
- UK-based supplier who does not have a published anti-slavery statement
Name the 5 procedures for tendering as set out in the EU 2014 Public procurement directives
- open procedure
- restricted procedure
- competitive procedure with negotiation
- Competitive dialogue
- Innovation partnership
Original equipment manufacturer (OEM)
Generally perceived as the producer of own-branded parts or equipment which are sold to other manufacturers for production and retail
Name the 3 stages of the PCR 2015 regs
- Specification stage
- Selection stage
- Award stage
Non-governmental organisation (NGO)
usually non-profit making. They have an important role in the economic development of developing countries. they provide assistance when national disasters occur, and welfare services for community development. Examples are the red cross, oxfam, greenpeace and world wildlife fund
Charities act 2022
An act of parliament reflecting the rules that charities need to follow in terms of behaviour and commercial process
Name 2 things NGOs may do
- Fund caregiving activities and provide other support for people in need
- Highlight topical issues or causes and actively campaign to correct them
