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L4M8 - Procurement & Supply in Practise > Chapter 4.1 - Apply environmental, social and governance principles > Flashcards

Chapter 4.1 - Apply environmental, social and governance principles Flashcards

1
Q

Due dilligence

A

The process of ensuring a prospective supplier is who they claim to be and is capable of delivering the services to the standard required. Due dilligence tasks include financial checks, reference checks and ensuring the legal set up of their organisation is correct

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2
Q

Cartel

A

A group of organisations that work together to prevent competition, raise prices and gain control of a market

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3
Q

Child labour

A

The use of children to undertake work or other activities which can be illegal/exploitative

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4
Q

Collusion

A

The cooperative but secretive or covert joining of allegiances of two parties

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5
Q

Modern slavery

A

The ‘ownership’ and exploitation of humans in a workplace

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6
Q

Name 12 things that ESG considerations include an understanding of

A
  1. Bribery
  2. Corruption
  3. Fraud
  4. Cartels
  5. Child labour
  6. Collusion
  7. Modern slavery
  8. Sustainability
  9. Environmental issues
  10. DEI
  11. Values
  12. Human rights
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7
Q

Sustainability

A

It holistically considers the governance of an organisations environmental, social and economic viability to ensure organisations exist for the long term, and the needs of the present are met without compromising the needs of future generations

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8
Q

What does CSR refer to

A

The overall bigger picture of organisation values and goals

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9
Q

What does the triple bottom line measure?

A

Sustainability in relation to organisational performance and investment against the 3Ps

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10
Q

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

A
  1. Profit
  2. People
  3. Planet
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11
Q

What do the 3Ps relate to?

A

Three dimensions within a business

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12
Q

Human rights

A

Rights or principles, based on shared values that are accepted as belonging to every person, regardless of background

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13
Q

Triple Bottom Line (TBL)

A

This means making a profit, caring for people and looking after the planet (the 3Ps)

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14
Q

What does profit relate to?

A

The financial dimension

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15
Q

What does people relate to?

A

The social dimension

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16
Q

What does planet relate to?

A

The environmental dimension

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17
Q

Name 2 ways profit is measured

A
  1. The amount of money made
  2. Organisational net worth
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18
Q

Name 2 ways people is measured

A
  1. Social responsibility
  2. Perception in the community/globally
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19
Q

Name 2 ways planet is measured

A
  1. Impact on the environment
  2. Policies on recycling/sustainability
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20
Q

Name 2 examples of profit in practise

A
  1. A packaging manufacturer reinvests its profit in state of the art recycling machinery for its waste cardboard
  2. A vegetable packing operation generates enough money to be able to expand and increase the number of employees
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21
Q

Name 2 examples of people in practise

A
  1. A large privately owned call centre donates its end of life computers to local youth clubs and social groups to help the underprivileged gain Internet access
  2. A legal firm opens its canteen over festive periods ti provide a meal to individuals in the local community who cannot afford a celebration
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22
Q

Name 2 examples of planet in practise

A
  1. A driving instructor uses only hybrid vehicles to teach her learners, thus reducing CO2 emissions
  2. A chocolate manufacturer ony buys cocoa beans from ethically run and sustainably maintained cacao plantations
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23
Q

The HR RITUAL

A

The HR Ritual looks at the lifecycle of an employee, and highlights the key areas that need to be addressed by a sustainable organisations:
R - recruitment
I - induction
T - training
U - Utilisation
A - appraisal
L - leaving review

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24
Q

Name 3 advantages of the 3Ps

A
  1. Encourages awareness of sustainability
  2. Promotes the use of ESG policies
  3. Supports awareness of the environment
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25
Q

What is social impact

A

The effect that an organisation can have on the community and its stakeholders

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26
Q

Name 10 factors that form social impact

A
  1. Impact investing
  2. Health
  3. Social entrepreneurship
  4. Human and civil rights
  5. Education
  6. Public sector and public policy
  7. Corporate social impact
  8. International development
  9. Environmental sustainability
  10. Non-profit and social enterprise
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27
Q

Name 5 organisational factors that can contribute to how an organisation is perceived

A
  1. Location
  2. Values
  3. Reputation
  4. Products
  5. Ethics
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28
Q

Name 5 individual factors that can contribute to how an organisation is perceived

A
  1. Needs
  2. Values
  3. Attitude
  4. Personality
  5. Experiences
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29
Q

Name 8 factors that can form organisational social impact

A
  1. Ethical behaviour
  2. Environmental behaviour
  3. Sustainable behaviour
  4. Political and legal behaviour
  5. Economic behaviour
  6. Cultural behaviour
  7. Technological behaviour
  8. Donating/giving
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30
Q

Social value

A

The output from a contract that benefits society at large, rather than the purchaser or end user

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31
Q

Staff turnover

A

The number of employees that leave an organisation in a specified time period

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32
Q

Booming

A

A term used to describe the economy when it is in rapid growth

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33
Q

Bull market

A

A term for a market that is growing steadily

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34
Q

Bear market

A

A term for a market that is shrinking or in decline

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35
Q

Inflation

A

The amount the price for products/services increases over a period of time

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36
Q

Interest Rate

A

The percentage of money paid back on top of an amount borrowed

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37
Q

Name 2 things economic behaviour includes

A
  1. Pricing
  2. Inflation / interest rates
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38
Q

Deflation

A

A rare situation where prices fall over a period of time. This leads to a state that causes market postponement i.e. consumers stop spending, thinking that the goods or services will be cheaper in the near future

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39
Q

Name 5 things included in legislation and regulation

A
  1. Taxes
  2. Salary
  3. Working hours
  4. Trade regulations
  5. Quality standards
40
Q

Name the 6 factors of culture

A
  1. Stories
  2. Symbols
  3. Power structures
  4. Organisational structures
  5. Control systems
  6. Rituals and routines
41
Q

Name 5 key objectives of social impact

A
  1. Create
  2. Strive
  3. Recognise
  4. Measure
  5. Believe
42
Q

Name 5 outcomes that organisations which display poor behaviour are likely to see

A
  1. Reduced brand loyalty
  2. Difficulty in recruiting
  3. Negative media coverage
  4. Reduced sales/profit
  5. Reputational damage
43
Q

Name 5 ways organisations which display good behaviour will create a positive social impact

A
  1. High employment
  2. Fair wages
  3. Low pollution
  4. Sustainable resources
  5. Engagement and involvement with local organisations
44
Q

Name 8 factors that can monitor organisational social impact

A
  1. Agriculture
  2. Education
  3. Training
  4. Pollution
  5. Average wage
  6. Employment
  7. Involvement
  8. Reputation
45
Q

Name 6 examples of accreditations that suggests an organisation is aware of and incorporates ESG and ethical conduct into its practises

A
  1. Carbon Trust
  2. CIPS
  3. Fairtrade International
  4. IEMA
  5. ILO
  6. Red Tractor Certified Standards
46
Q

Professional register

A

A list managed by the awarding body detailing all individuals or organisations who are members or hold an accreditation

47
Q

Name 11 organisations that support ESG principles

A
  1. CIPS
  2. ILO
  3. Ethical Trading Initiative (ETI)
  4. Fairtrade international
  5. Ethical company organisation
  6. Anti-slavery international
  7. Amnesty international
  8. Red Tractor
  9. ISO
  10. IEMA (institute of environmental management and assessment)
  11. Carbon Trust
48
Q

Name the 3 jurisdictions types of businesses that the Bribery Act 2010 covers

A
  1. Companies registered and trading within the UK
  2. Companies registered in the UK and trading overseas
  3. International companies trading in the UK
49
Q

Name 4 specific offences that organisations can commit as per the Bribery Act 2010

A
  1. Two general offences covering the offering, promising or giving of an advantage, or requesting, agreeing to receive or accepting an advantage
  2. A discrete offence of bribery of a foreign public official
  3. A new offence of failure by a commercial organisation to prevent a bribe from being paid to obtain or retain business or a business advantage. If an offence is committed the organisation may use as a defence the fact that t has adequate procedures in place to prevent bribery
50
Q

Name 6 anti-bribery procedures

A
  1. Proportionate procedures
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and reviewing
51
Q

Name 6 effects of bribery in the marketplace

A
  1. Markets do not function effectively
  2. Competition is reduced
  3. Transparency is reduced
  4. Suppliers lose business
  5. Buyers make decisions that do not add value
  6. Prices are often higher
52
Q

Transparency International

A

An organisation which assesses national and governmental levels of corruption

53
Q

Name 5 examples of bribes

A
  1. Securing of a contract
  2. Gaining knowledge
  3. Winning of an order
  4. Ignoring poor performance
  5. Obtaining falsified documention
54
Q

Name 4 things corruption may include

A
  1. Bribery
  2. Deception
  3. Abuse of power
  4. Embezzlement
55
Q

Name 6 influencing styles according to Yukl & Falbe

A
  1. Assertive
  2. Ingratiating
  3. Exchange
  4. Upward appeal
  5. Coalition
  6. Rational persuasion
56
Q

Name the 5 French and Raven powers

A
  1. Legitimate
  2. Reward
  3. Expert
  4. Referent
  5. Coercive
57
Q

Bid rigging

A

A form of fraud where the contract has been pre-agreed to be awarded to a supplier prior to the tender/RFQ process

58
Q

Name 7 examples of procurement fraud

A
  1. Kickbacks
  2. Corrupt influence
  3. Collusion
  4. Bid rigging
  5. Invoicing fraud
  6. Substitutions
  7. False claims
59
Q

Name 5 factors human rights include

A
  1. Dignity
  2. Fairness
  3. Respect
  4. Equality
  5. Freedom
60
Q

Name 6 factors human rights relates to

A
  1. Sexual orientation
  2. Gender
  3. Religious beliefs
  4. Cultural values
  5. Ethnicity
  6. Nationality
61
Q

Name the 5 basic human rights according to the Universal Declaration of Human Rights

A
  1. Right to equality
  2. Freedom from discrimination
  3. Right to life, liberty and personal security
  4. Freedom from slavery
  5. Freedom from torture and degrading treatment
62
Q

Name 5 things included in modern slavery

A
  1. Human trafficking
  2. Bonded labour
  3. Forced labour
  4. Child labour
  5. Domestic slavery
63
Q

Name 5 industries where modern slavery is more prevalent

A
  1. Agriculture
  2. Construction
  3. Hospitality
  4. Car washing
  5. Domestic service
64
Q

Name 4 areas that should be investigated when considering environmental factors

A
  1. Pollution
  2. Recycling
  3. Renewable processes
  4. Sustainability
65
Q

Name 6 ways pollution can be created

A
  1. Factory emissions
  2. Noise
  3. Smell
  4. Inbound and outbound transport and logistics
  5. Development
  6. Waste disposal
66
Q

Name 4 aspects of an ESG policy

A
  1. Environment
  2. Workplace
  3. Marketplace
  4. Society
67
Q

Name 3 examples of organisations that are proactively promoting sustainability

A
  1. A paper manufacturer that is replanting trees
  2. A fishing company that leaves enough fish in their natural habitat to breed
  3. A cleaning company that is 100% neutral in its emissions
68
Q

Name 6 ways of monitoring ESG practises

A
  1. Monitoring KPIs
  2. Using a scorecard/dashboard
  3. Holding regular supplier reviews
  4. Ensuring suppliers keep their accreditations up to date
  5. Keeping up to date with changing legislation regs
  6. Being aware of media stories
69
Q

Name 8 consequences of ESG breaches

A
  1. Supplier closed down
  2. Shortage of products
  3. Price rise due to demand outstripping supply
  4. Reputation by association
  5. Stakeholder backlash
  6. Loss of investment
  7. Reduction in sales/profit
  8. Supplier evaluation process challenged
70
Q

Reporting framework

A

A set of criteria to measure an organisations performance

71
Q

Name 6 things usually included in a reporting frameworl

A
  1. Cash flow statement
  2. Profit/loss account
  3. Statement of Financial Position
  4. Shareholder value
  5. Predicted versus achieved sales
  6. Future budget
72
Q

Name 5 methods for gathering and evaluating data

A
  1. Quality systems
  2. Impact tools
  3. Feedback
  4. Output focused tools
  5. Outcome focused tools
73
Q

Output

A

What is produced or delivered

74
Q

Outcome

A

Level of performance achieved in relation to the output

75
Q

Give 4 examples of qualitative ESG impact measures

A
  1. Stakeholder perception
  2. Reputation
  3. Good ethical practises
  4. Benefit to the economy
76
Q

Give 4 examples of quantitative ESG impact measures

A
  1. Reduction in emissions
  2. Amount of funding donated
  3. Amount of training courses delivered
  4. Percentage of resources replaced
77
Q

Name 4 things included in ESG reporting

A
  1. Percentages
  2. Statistics
  3. Case studies
  4. Testimonials
78
Q

Give an example of Social ROI

A

For every £1 invested, we returned £2.51 of confirmed social value

79
Q

Name 12 ESG practises within procurement

A
  1. Evaluating and monitoring suppliers in relation to ethical conduct
  2. Considering the TBL
  3. Actively working to reduce environmental damage in the supply chain
  4. Evaluating needs and only procuring what is required
  5. Gaining standards and accreditations
  6. Developing and training the workforce
  7. Removing waste from the supply chain
  8. Applying continuous improvement in the supply chain
  9. Developing the procurement professionals of the future
  10. Amending specifications
  11. Creation of whilstleblowing procedures and anonymous reporting mechanisms for corrupt and unethical conduct
  12. Health and safety, and labour policies for employees
80
Q

What is ESG about in procurement

A

Balancing social development and environmental protection against business needs

81
Q

Name 5 ISO standards that relate to ESG

A
  1. ISO 26000 (social responsibility)
  2. ISO 14001 (environmental management)
  3. ISO 26000 (sustainability)
  4. ISO 20400 (sustainable procurement)
  5. ISO 37001 (anti-bribery management)
82
Q

Name the 8 wastes (TIMWOODS)

A
  1. Transpotation
  2. Inventory
  3. Motion
  4. Waiting
  5. Over processing
  6. Over production
  7. Defects
  8. Skills
83
Q

Name the 12 factors associated with ESG in procurement

A
  1. Engaging with stakeholders
  2. Collaboration & cooperation
  3. Big data analytics
  4. Whole-life costing
  5. Social aspects
  6. Ethics
  7. Sustainability
  8. The environment
  9. Value for money
  10. Governance considerations
  11. Anti-bribery & anti-corruption
  12. Compliance
84
Q

Name 2 reasons you should be continually monitoring their code of ethics

A
  1. to ensure that they are looking after the interests of the supply chain
  2. To ensure that potential customers can be reassured that they are conforming to all the required regs
85
Q

Name the 5 steps of maintaining ethical codes of practise

A
  1. Define - ethics and compliance risk
  2. Prevent - ethics and compliance lapses/failures
  3. Detect - non-compliance
  4. Respond - to allegations and violations
  5. Evaluate - results and continually improve
86
Q

ISO 14001

A

Environmental management system

87
Q

ISO 26000

A

Core dimensions of social responsibility in commerce

88
Q

ISO 37000

A

Standards expected for governance and control of organisations

89
Q

Nolans 7 principles of public life

A
  1. Accountability
  2. Selflessness
  3. Integrity
  4. Objectivity
  5. Leadership
  6. Honesty
  7. Openness
90
Q

Name 6 social and governance aspects that the code of ethics should cover

A
  1. Diversity
  2. DEI
  3. Mission statement and values
  4. Conflict of interest
  5. Whistleblowing
  6. Non-compliance
91
Q

Name 10 things diversity includes

A
  1. Ethnicity
  2. Gender
  3. Sexual orientation
  4. Cultural background
  5. Beliefs
  6. Values
  7. Age
  8. Abilities
  9. Political views
  10. Religion
92
Q

Name 5 types of conflicts of interest

A
  1. Financial
  2. Materialistic
  3. Prejudicial
  4. Personla
  5. Professional
93
Q

Name 2 aspects of best practise when dealing with conflicts of interest

A
  1. Disclose any suspected conflict of interest to management
  2. Avoid situations where conflicts of interest can occur
94
Q

Whistle-blowing

A

When an individual reports activity or information which they believe to be illegal, unethical or not in accordance with the organisations policies and procedures

95
Q

Name 5 ways CIPS members should conduct themselves

A
  1. Enhance and protect the standing of the profession
  2. Maintain the highest standard of integrity in all business relationships
  3. Promote the eradication of unethical business practices
  4. Enhance the proficiency and stature of the profession
  5. Ensure full compliance with laws and regs
96
Q

Name 7 ways ESG can be achieved in supply chains across all three sectors

A
  1. Incorporating ESG considerations into specifications
  2. Including ESG factors as part of the supplier selection criteria
  3. Considering the impact of JIT supply on ESG
  4. Aspiring to achieve internationally recognised ESG standards internally
  5. Eliminating waste in the supply chain
  6. Continuous education and professional development for employees
  7. The use of ethical codes of conduct and codes of practise to guide ESG behaviours through the supply chain

L4M8 - Procurement & Supply in Practise (6 decks)

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