Ch 17 Social Responsibility

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 programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers?

Both Sustainable Compliance Initiative and Sedex Global.

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

Both a child's age and the work hours.

As a stakeholder, suppliers' interests include:

Both earning income and utilizing productive capacity efficiently.

Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?

Both environmental performance and product quality.

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

Informational.

Which type of supplier audit is being used when a company hires and trains its own staff of auditors?

Internal.

What is one drawback of conducting supplier audits?

On-site inspections are expensive.

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

Supplier development.

What is the first step that lead firms take to develop their suppliers?

Supplier monitoring.

A visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a:

Supply chain map.

Social impacts of global supply chains include:

Wages. Working conditions Employee health.

Environmental concerns for supply chain managers include:

Both of these answers are correct: The distance of transporting goods from their source to the consumer; and efficiency within the supply chain.

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.

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

Government officials. NGOs. Companies.

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.

When lead firms work with suppliers they can create shared value such as:

Higher income for the supplier. Higher quality products for customers. A more stable supply of products

Codes of conduct are accurately described by which statement?

Most early codes of conduct were developed by individual companies.

Studying the underlying cause of repeated supplier violations is called:

Root cause analysis.

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

In the discussion case, Ikea's Sustainable Cotton Supply Chain, which statement accurately describes IKEA's supply chain?

The long and complex chain involved farming, ginning, spinning, weaving, and stitching.

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

The number of widely used suppliers decreased. Lead firms preferred larger suppliers. Lead firms sought ongoing strategic relationships.

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