CH 17

The term supplier is accurately described by which statements? (Check all that apply.)

- It may also be referred to as a vendor or a contractor. - It is an organization that provides goods or services to another organization.

Low wages in supplier factories in developing countries are supported by which arguments? (Check all that apply.)

-Low wages allow brands to price their products competitively. -Low wages reduce overall costs for manufacturers

Human trafficking is most prevalent in which jobs and industries? (Check all that apply.)

-Prostitution -Textile industry

Identify the conditions under which lead firms are more likely to adopt supply chain codes of conduct. (Check all that apply.)

-When firms with highly visible brands are vulnerable to reputational damage -When civil society demands responsible practices

Place the steps in the "travels of a T-shirt" in sequential order, starting with the earliest step. (Place the first step on top.).

1. Cotton 2. The cotton 3. White Tshirts 4. A florida 5. A clothing 6. A customer

When Unilever and Symrise partnered with NGOs and aid organizations to help vanilla farmers in Madagascar, they achieved which benefits? (Check all that apply.)

A more stable vanilla supply Improved crop yields Higher income for farmers

The term supplier development is accurately described by which statements? (Check all that apply.)

Activities taken by a lead firm to improve the performance of their suppliers Investing time and resources to expand a supplier's capabilities

Environmental concerns that are likely to arise in the global supply chain include which issues? (Check all that apply.)

Air pollution emissions Toxic chemical dumping

CS#17 : Which critical environmental challenge did IKEA face within its cotton supply chain?

Cotton used more water than any other agricultural commodity.

The sources of power that suppliers can leverage over lead firms include which types of power? (Check all that apply.)

Economic Informational

What is the primary advantage that the firm Switcher receives from enabling customers to track the movement of their products in the supply chain through the website respect-code.org?

Enhanced brand loyalty

How were environmental and social standards enforced across IKEA's supply chain, according to the case IKEA's Sustainable Cotton Supply Chain?

IKEA formed a multi-stakeholder coalition to promote the standards.

Since 2006, the proportion of large and mid-sized firms in developed countries that have adopted a supply chain code of conduct has changed in what way, as depicted on Figure 17.2?

It increased dramatically.

Identify the provisions of the Responsible Business Alliance code of conduct. (Check all that apply.)

Labor standards Ethics and management Health and safety

Identify the reasons that have led to an increase in private regulation efforts across global supply chains. (Check all that apply.)

Lack of jurisdiction of home country governments Weak regulatory capacity in developing countries Limited enforcement power of transnational institutions

An industry-wide code of conduct specific to technology firms such as Hewlett-Packard, Apple, Dell, Intel and Cisco is called the ______ Code of Conduct.

Responsible Business Alliance

CS#17-2: How were environmental and social standards enforced across IKEA's supply chain?

The company formed a multi-stakeholder coalition to promote the standards.

CS+17-3: What was the outcome of IKEA's sustainable cotton initiative?

The company reached 100 percent of its goal.

Gap Inc.'s Personal Advancement and Career Enhancement program is an example of which reason that companies engage in supplier development?

The lead firm feels a moral obligation to the supplier.

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

The long and complex chain involved transporting products to many different facilities.

Whether or not work can be considered to be child labor depends on which factors?

The work conditions The hours worked The child's age

Identify one of the ways in which some firms have addressed concerns over the environmental impact of long-distance supply chains.

They adopted local sourcing policies.

What was the outcome of IKEA's sustainable cotton initiative, according to the case IKEA's Sustainable Cotton Supply Chain?

They reached 100 percent of their goal with 82 percent sustainable cotton and 18 percent recycled content.

When Nike learned that suppliers' excessive overtime was due to style proliferation, what action did the company take to remediate the problem?

They reduced the number of styles made in each supplier plant.

Identify the primary reason given by supply chain managers for investing in social and environmental responsibility.

To create a positive company brand or image

True or false: As lead firms interact to develop their suppliers, they follow a sequential process where lower level activities sometimes continue even as they progress through the next cumulative steps.

True

True or false: Some experts argue that the most effective way to assure socially responsible practices in global supply chains is a combination of public and private regulation.

True

One study found that disrupted supply chains reduced a firm's stock performance compared to their peers by ______.

forty percent

Match the audit type (in the left column) with its related audit characteristics (in the right column).

internal Audit- The advantage of this audit process is company control, and the disadvantage is potentially low credibility. External audit matches -The advantage of this type of audit is stakeholders' perception of objectivity, and the disadvantage is lack of control over quality and timeliness. Crowd-sourced matches - The advantage of this kind of audit is getting direct responses from workers, and the disadvantage is having to build worker trust and participation in the audit process.

Identify the terms that describe the process by which non-governmental institutions enable and constrain economic activities. (Check all that apply.)

private regulation private governance

Conducting a study to identify the underlying cause of repeated violations of particular standards is called ______.

root cause analysis

When lead firms and their suppliers exchange knowledge and collaborate on improvements, they create common benefits known as ______.

shared value

The action of monitoring a supplier's compliance with a specific code of conduct is called a ______.

supply chain audit

Disclosure of everything that happens within a company's network of suppliers is called ______.

supply chain transparency

A supplier that builds products directly for another company is called a ______ supplier.

tier-1