Chapter 17

As a stakeholder, suppliers' interests include:

Both earning income and utilizing productive capacity efficiently.

How can a lead firm improve a supplier's performance when the cost to replace the supplier is high?

Engage the supplier in capability-building.

What is one drawback of conducting supplier audits?

On site inspections are expensive

The lack of jurisdiction of home country governments over supplier behavior is exemplified by:

The United States Department of Labor having no control over safety in Indonesia.

Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because:

All of these are correct: Government-enforced laws give legitimacy to demands for workplace changes, Regulators benefit from record-keeping required by private companies' codes of conduct, Public and private organizations are able to share the enforcement workload

Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

All of these are correct: The number of widely used suppliers decreased, Lead firms preferred larger suppliers, Lead firms sought ongoing strategic relationships

Social impacts of global supply chains include:

All of these are correct: Wages, working conditions, employee health

The International Labor Organization (ILO) identifies child labor by which factors?

Both child's age and work hours

Which of these statements is not true about supply chain transparency?

Brand loyalty among consumers is reduced by a firm's revelations.

Private governance is most likely to emerge under which of these conditions?

Firms with highly visible brands are more vulnerable to reputational damage.

Studying the underlying cause of repeated supplier violations is called:

Root cause analysis

When a lead firm invests in supplier resources or offers training, this is an example of:

Supplier development

This type of audit is perceived by stakeholders as more objective and reliable:

Third party

Lead firms sought ongoing strategic relationship

Tier - 1

According to a 2016 survey of senior supply chain managers, what is the leading reason to invest in supplier social responsibility?

To create a positive image and enhance brand equity.