BUS100 Chapter17 Main Questions

chains for compliance with codes of conduct and other standards

1. Large lead firms have leverage over smaller suppliers. 2. Firms and products have highly visible brands, and are therefore more vulnerable to reputational damage. 3. Civil society is exerting pressure for responsible practices; for example, through campaigns, boycotts, or shareholder resolutions. 4. A strong business case can be made for social and environmental responsibility

the reasons for the emergence of company and industrywide codes of conduct

1. Weak regulatory capacity in developing countries 2. Limited enforcement power of transnational institutions 跨国机构执法能力有限 3. the absence of effective public regulation

what suppliers are?

A supplier is an organization that provides goods or services to another organization. Suppliers are important market stakeholders, since they provide critical inputs and often manufacture branded products

What is the scope of the global supply chain?

As globalization has increased, supply chains have become increasingly complex. The world of global supply chains links thousands of firms, large and small, across multiple cultural and political boundaries.

the conditions under which such initiatives are likely to succeed

Businesses can begin with monitoring and remediation, and then moves upward through capability building, and finally to the creation of shared value. Firms continue activities at the lower levels, even as they progress through the next two, in cumulative steps.

the various methods businesses and nonprofit organizations use to audit global supply

Lead firms and groups of firms use several methods to audit compliance with supply chain codes of conduct. These include internal audit, third-party (external) audits, and crowd-sourced audits. Increasingly, companies are working together to audit major suppliers and to share results, often on cloud-based platforms

What are the social, ethical, and environmental issues that arise in global supply chains?

Many social, ethical, and environmental issues arise in global supply chains. These include low wages, unsafe conditions, child and forced labor, unethical sourcing from conflict areas, and adverse environmental impacts of resource extraction, production, and transportation.

contemporary trends in the private regulation of supply chain practices ?

Private regulation refers to nongovernmental institutions that establish rules in global supply chains. It generally takes the form of company and industrywide codes of conduct with which suppliers must comply. Private regulation tends to arise in situations where public regulation is weak, and lead firms carry significant reputational risk because of strong consumer brands

What is the nature of suppliers' interests and power?

They share a common interest in building long-term, stable relationships with buyers. Suppliers that provide unique skills, resources, or capabilities tend to have more power.

the reasons for engaging collaboratively with suppliers

when companies invest in suppliers and their employees, exchange knowledge, and collaborate on improvements, they create shared value that benefits both parties. A growing trend is for companies to engage collaboratively with suppliers to build capability. This benefits both the firm and supplier, creating shared value. Suppliers are more likely to engage with lead firms with which they have stable, long-term relationships