Chapter 3.5 - Contrast processes and practises that the organisation could adopt to meet environmental, social and governance goals

Question 1

Sustainable development

Answer 1

Development that meets the needs of the population in the present without negatively affecting the resource needs of future populations

Question 2

What is ESG

Answer 2

The demonstration of ethical behaviours carried out by an organisation, relating to their impact on the environment and people, alongside the internal policies and governance that determines its values and behaviours

Question 3

Name one of the best ways to display a strong commitment to ESG

Answer 3

An organisations sustainable development and the ways it applies these principles

Question 4

Name an example of sustainable development in supply chains

Answer 4

Our Common Future report

Question 5

Three pillars of sustainability

Answer 5

The concept of sustainability is often broken into three pillars, originally social, economic and environmental but in recent years people, profit and planet. These three pillars can in turn be broken down into three sub-dimensions, the third of which in each subset being a future proofing dimension:
People: character, corporate and community
Profit: sales, service and strategy
Planet: Reduce, reuse, recycle

Question 6

3 pillars of sustainability

Answer 6

1. Social / people
2. Economic / profit
3. Environmental / planet

Question 7

How is the importance of sustainable development widely recognised?

Answer 7

United Nations 2015 - 17 sustainable development goals

Question 8

What is a triple bottom line

Answer 8

Where organisational performance against social and environmental factors are considered to be important value streams, in addition to economic performance

Question 9

Who developed the triple bottom line

Answer 9

John Elkington

Question 10

What are the 3P’s (triple bottom line)

Answer 10

1. People
2. Profit
3. Planet

Question 11

What is the intersection of the 3P’s?

Answer 11

Sustainability

Question 12

Name 5 social impacts of organisations behaviours

Answer 12

1. health-related effects
2. splitting communities
3. causing sustainable population influxes
4. Attracting highly affluent and/or skilled people
5. Cultural changes as the composition of communities change

Question 13

Name 6 internal social impacts of an organisations behaviours

Answer 13

1. The organisation does not meet the requirements of employment law
2. Human rights are violated
3. Employees are asked to work very long hours
4. Employees work in unsafe conditions or are not protected from physical harm
5. Unethical behaviours are not properly challenged
6. The organisation’s leaders tolerate any of the above

Question 14

name 4 external social impacts of an organisations behaviours

Answer 14

1. Suppliers secretly using slave or low-paid labour to satisfy a contract where an unsustainably low price was negotiated and agreed
2. Employees who cannot park their vehicle on site instead park elsewhere in surrounding areas, taking up space designated for residents
3. Suppliers resort to using conflict materials in order to meet product costs for a contract where an unsustainably low price was negotiated and agreed
4. If the organisation closed its on-site canteen facility, staff may purchase food from external vendors, which could lead to increased waste and rubbish in the surrounding area (which may be residential) if suitable waste bins are not available

Question 15

What ISO is recognised for international sustainable development

Answer 15

ISO 20400:2017

Question 16

What does ISO 20400:2017 do?

Answer 16

gives guidance for stakeholders involved in procurement activities and processes that govern them

Question 17

Name 4 of the UN Sustainable Development Goals

Answer 17

1. The provision of decent work and the driving of economic growth
2. Reducing inequality in the supply chain
3. Responsible production
4. Supporting communities

Question 18

Name 3 standards that exist to support organisations in acting ethically and sustainably

Answer 18

1. International Organisation for Standardisation
2. Sustainable Agriculture Standard
3. Standard for Hired labour

Question 19

Name a benefit of being accredited to a standard?

Answer 19

Standards are recognised globally by other organisations which may make the organisation more attractive to potential customers

Question 20

Name 5 benefits of an organisation monitoring other aspects of its performance, including ESG impacts

Answer 20

1. Reduced wastage during manufacture
2. Less waste sent to landfill
3. A reduction in time lost to sickness
4. Money saved as a result of any combination of the above
5. Reduced exposure to corrupt activities such as bribery and fraud

Question 21

Offset/industrial participation

Answer 21

An agreement that a foreign organisation will invest into the country of the procuring government as part of its contractual obligations

Question 22

How are requirements for offset fulfillment usually expressed?

Answer 22

As a value in proportion to the value of the procurement

Question 23

Name 4 examples of some offset categories that may be considered for use by some countries

Answer 23

1. Procurement of products or services
2. Investment into improving local infrastructure
3. Contributions or investment into research and development through sharing knowledge, and potentially, intellectual property
4. Investments into improving local access to education for people of different age groups and backgrounds

Question 24

Name 6 benefits of using local sub-tier suppliers

Answer 24

1. Supporting local economies
2. Providing or securing jobs for local workers
3. Providing the supplier with an opportunity for portfolio diversification
4. Providing an opportunity of becoming an international supplier
5. Providing an opportunity to promote the sub-tier supplier’s work, based on its work with the supplying organisation, which may help the sub-tier supplier to secure future contracts with other organisations
6. The buyer learning more about the culture of the country the supplier is based in, including business and cultural norms and expectations

Question 25

Name the 3 points of offset

Answer 25

1. The procuring government will provide requirements that state what will and will not be accepted as suitable for fulfilling offset
2. Before selecting suppliers, the buying organisation should confirm with the government that either the potential supplier or the package of work it may produce qualify as acceptable offset opportunities
3. Where this is not done, unsuitable suppliers may be selected and alternatives may need to be chosen, or another route to satisfying the offset requirements may need to be explored

Question 26

What is one of the criticisms that multi-national organisations have faced in the past when it comes to offset

Answer 26

They establish a plant in a country, hire local people and subsequently abandon them and the plant when there is an opportunity to establish a more economically advantageous plant and workforce elsewhere in the world

Question 27

Name 6 groups of people (defined by the world health organisation) that come under disadvantaged groups

Answer 27

1. Children
2. The elderly
3. People with disabilities
4. Pregnant women
5. People living in poverty
6. Immunocompromised people