Chapter 4 Flashcards
Which elements make up ethical sourcing due diligence?
Bribery
Corruption
Fraud
Human rights
Modern slavery
Sustainability
Environmental issues
Equality
Diversity
Values
What does the Bribery Act suggest a business should have in place to protect itself against bribery in the workplace?
Proportionate procedures - procedure per level of severity
Top level commitment - statement from CEO etc
Risk assessment - regular assessment of likelihood vs impact
Due diligence
Communication - ongoing training
Monitoring review - supply chain to be monitored in line with procedure to ensure compliance
What sources of powers does the Power Base Model show us?
Legitimate power - this comes from idea that a single person or group have the formal right to power and other should be submissive by default. For example, managerial position, miltary rank, official position held. A sale director is able to make decision during a negotiation without having to call back to HQ for approval.
Reward power - this comes from a person and orgnisation ability to reward or compensate which can influence someone’s decision. For example the buyer may represent a large organisation who spend alot, are a reputable brand the seller wants to be a part of and so on.
Expert power - this is where someone can excert power with expertise in a field, professional qualification, a category manager. This can help challenge the other party when they are being vague or just not telling the whole truth. It forces the opposition to open and transparent because they will likely be caught out.
Referent power - also known as Charisma is where someone has develop a reputation for being someone people want to make a deal with. This can be where they are an expert in their field, are tough but fair, mange to breakdown barriers with understanding emotions, they are known for upholding the highest standard of ethics, wanting everyone to get a good deal and so on.
Coercive power - someone’s with power to punish other, embarrass, threaten, withdrawal of benefits to influence others behavior for non compliance
Informational power - power someone hold if they are able to withhold information others needed to get something done. Also known as the ‘gatekeeper’.
in terms of negotiation, the more powers bases you can call on the better.
Mnemonic r-relic
Which elements make up corruption?
Bribery
Deception
Abuse of power
Embezzlement - taking money or property which has been entrusted into a persons care. For example, an employee is entrusted to possess these legally but then tries to own them which becomes embezzlement
Can you name examples of fraud?
Fraud is when a person act deliberately to secure monies from another party through dishonest methods. Examples include:
Kickbacks
Collusion
Bid rigging - agreed who will win contract before competitive ITT etc. begins
False claims - falsified docs etc
The universal declaration of human rights includes which 5 basics rights?
Right to equality
Freedom from discrimination
Right to life, liberty and personal security
Freedom from slavery
Freedom from torture and degrading treatment
What are the 5 recognizes types of Modern Slavery?
Human trafficking
Bonded labour/ debt bondage
Forced labour
Child labour
Domestic slavery
Remember to reference CIPS CoC for brownie points. Simply state that it is reference to all member to ensure ethical and responsible sourcing and the behavior members should show.
What does the application of the CIPS CoC look like to members?
Enhance and protect the standing of the profession - never engage with irresponsible/ unethical activities
Maintain the highest standard and integrity in business relationships - act professionally, disclose all conflicts of interest, keeping the confidence of all parties with in the supply chain
Promote the eradication of unethical business practices - perform regular due diligence of suppliers
Enhance the proficiency and stature of the profession - Continue to strive for further knowledge through CPD and setting positive examples for other colleagues to follow
Ensure full compliance with laws and regulation - Comply with local country laws and if no laws exist, utilize CIPS CoC at all time
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
Why is it important to keep ethical code of practice up to date?
Keep up to date with changing political and social norms, changes to standards and legislation as well as well change of precedents i.e. a recent court case of public outcry with an issue elsewhere which has now shifted public perception
What process should be followed to maintain and update code of ethics?
CoE can be monitored by:
Define - define the compliance risk
Prevent - prevent those risks
Detect - detect noncompliance
Respond - respond to allegations/ violations
Evaluate - evaluate results and seek to continually improve
What do Codes of Ethics cover?
Diversity
Equality and inclusion
Mission statement and values
Conflict of interest
Whistle blowing
Noncompliance
Can you name some ethical organisations?
CIPS
ILO
Fair Trade Foundation
ISO
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.
