MGT CH 17

According to a recent survey, what percentage of firms would terminate a supplier if serious violations were found?

48 percent.

When suppliers endure audit after audit by different lead firms, this is called:

Audit fatigue.

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

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

Because supply chains have become heavily globalized, government regulation efforts are now more concentrated and increasingly effective.

FALSE

Lead firms often choose to develop their supplier's capabilities when the supplier has a strong management team, many resources, and high technical knowledge.

FALSE

When a supply chain audit is conducted, workers are usually willing to share their experiences with the auditors.

FALSE

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

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

Which groups often collaborate when developing industry-wide codes of conduct?

Government officials. NGOs. Companies. All of these answers are correct.

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

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. ((All of these answers are correct.))

A supplier that controls critical worker skills and technical know-how holds which type of power over its lead firm?

Informational.

A company can develop its own code of conduct or adopt an NGO or industrywide code.

TRUE

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

Third-party.

Which type of supplier is hired to provide products or services directly to a lead firm?

Tier-1.

Social impacts of global supply chains include:

Wages. Working conditions. Employee health. All of these answers are correct.

The illegal recruitment and movement of people against their will is called:

Forced labor.

A growing trend is for lead firms to work collaboratively with their suppliers to build capabilities and create shared value.

TRUE

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.

Global lead firms that depend on farmed, extracted, or mined resources run a relatively high risk for human rights abuses by their suppliers.

TRUE

Lead firms sometimes create contradictory demands on suppliers, for example, by insisting on low costs as well as compliance with expensive environmental standards.

TRUE

The term "supply webs" refers to the multiple steps taken to move a product or service from the most distant supplier to the customer.

TRUE