SC CHAPTER 17

Even though the inventory in landfill shows up in a firm's balance sheet, it is not significant from a sustainability perspective.

False

The supply chain driver Facilities seldom offers an opportunity to simultaneously improve the environmental and financial performance through innovation.

False

Walmart started its focus on sustainability in order to attract customers that value sustainability.

False

A United Nations (UN) commission defined sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

True

For firms to focus on sustainability, it is crucial that they internalize the "monetary value" of the social or environmental cost of their actions.

True

Hardin (1968) described the tragedy of the commons as a dilemma arising when the common good does not align perfectly with the good of individual entities.

True

Hardin (1968) introduced the idea of "mutual coercion" whereby social arrangements or mechanisms coerce all participants to behave in a way that helps the common good.

True

Heileman (1997) provided a simple but greatly useful recoverable materials flowchart (i.e., closed-loop supply chain) to help distinguish the concepts or repair, remanufacture, and recycle.

True

The UN introduced a framework identifying economic, environmental, and social sustainability as the "three pillars" of sustainable development.

True

The term greenwashing is often used to refer to products and practices that seem green but fundamentally aim to grow profits.

True

The factors driving an increased focus on sustainability can be divided into three distinct categories. Which of the following is not one of these categories? a.Optimizing the use of natural resources based on their market price. b.Reducing risk and improving the financial performance of the supply chain. c.Community pressure and government mandates. d.Attracting customers who value sustainability. e.None of the above.

a.Optimizing the use of natural resources based on their market price.

Most concrete action has been observed primarily when a focus on sustainability: a.increases consumption of commodity resources. b.reduces risk and improves the financial performance of the supply chain. c.makes the world more sustainable. d.attracts customers who value sustainability. e.All of the above.

b.reduces risk and improves the financial performance of the supply chain.

The presence of lead paint in some of its most popular toys forced this company to recall hundreds of thousands of toys sold between April and July of 2007: a.Walmart. b.Hasbro. c.Mattel. d.Remco. e.All of the above.

c.Mattel

Some have questioned whether Walmart's claims with regards to environmental responsibility are justified; pointing to the fact that Walmart's demand for lower prices from its suppliers has driven down the quality and durability of consumer goods. This has the effect of: a.reducing landfill inventory. b.supporting "cradle-to-cradle" design for products. c.speeding up the flow of goods from factory to landfill. d.(a) and (b) only. e.None of the above.

c.speeding up the flow of goods from factory to landfill.

A market mechanism to coerce all participants to behave in a way that helps the common good is: a.cap-and-trade. b.emission tax. c.automobile fuel efficiency standard. d.(a) and (b) only. e.None of the above.

d.(a) and (b) only.

Every company and supply chain faces the challenge of the tragedy of the commons as it operates in a global environment. They must: a.compete against others who may be extracting benefits from resource commons without spending to maintain these commons. b.compete in a market in which customers often value low cost and are not willing to pay for a more sustainable solution. c.bear the entire negative utility (−1) while the commons share all the positive utility (+1). d.(a) and (b) only. e.None of the above.

d.(a) and (b) only.

A command-and-control approach to coerce all participants to behave in a way that helps the common good is: a.cap-and-trade. b.Waste Electrical and Electronic Equipment (WEEE) Directive (take-back mandate). c.automobile fuel efficiency standard. d.(b) and (c) only. e.None of the above.

d.(b) and (c) only.

The UN's Intergovernmental Panel on Climate Change has been assessing global warming since 1990. This UN panel has determined that even though most of the buildup of carbon dioxide in the atmosphere has come from the United States and Western Europe, it is poorer countries closer to the equator that are likely to face the biggest risk of: a.drought. b.disrupted water supplies. c.swelling of oceans due to melting ice sheets. d.All of the above. e.None of the above.

d.All of the above.

Much less success for sustainability initiatives has been driven by: a.government mandate. b.reducing risk and improving the financial performance of the supply chain. c.environmental and social activists. d.attracting customers who value sustainability. e.None of the above.

d.attracting customers who value sustainability.

Walmart has seen this benefit to its bottom line due to its sustainability efforts: a.reduced energy costs due to more efficient LED lighting in stores. b.reduced energy costs due to skylights in stores. c.reduced material costs due to reducing packaging. d.reduced transportation costs due to reducing packaging. e.All of the above.

e.All of the above.