Deck 4: Ethical and Sustainable Sourcing

Question 1

Sustainable sourcing is a process of purchasing goods and services that takes into account the short-term impact on people,profits,and the planet.

Answer 1

False

Question 2

Benchmarking is the practice of copying what other businesses do best.

Answer 2

True

Question 3

The influence of corporate sourcing decisions interacts with internal design,production,finance,marketing,and accounting.

Answer 3

True

Question 4

Green purchasing refers to suppliers planting trees for a designated dollar amount in a negotiated contract.

Question 5

Functional products are characterized by low profit margins,relatively stable demands,and high levels of competition.

Question 6

Ethical sourcing policies should NOT include determining where all purchased goods come from and how they are made.

Question 7

A "fair trade product" refers to manufactured products like clothing or electronics.

Question 8

Firms assess their sourcing capabilities because the sourcing function is one of the most value-enhancing functions in an organization.

Question 9

Companies outsource to help them reach their sustainability goals.

Question 10

Purchasing departments can be seen as a primary designer and facilitator of important inward- and outward-facing sourcing policies.

Question 11

There are just a small number of resources available for firms seeking to learn about and implement successful sourcing practices.

Question 12

Developing a collaborative negotiation infrastructure include four steps: building a preparation process,develop a negotiation database.Design a negotiation launch process,and institute a feedback mechanism.

Question 13

Green purchasing is a practice of purchasing products that contain a special green dye.

Question 14

Environmental supplier certifications can be used to identify rogue suppliers before they can cause problems.

Question 15

Because internationally recognized certifications like ISO 9000 are becoming so common among suppliers,it is becoming more important that purchasing firms develop internal certification programs that are geared toward the specific needs of the purchasing organization.

Question 16

Creating strategic supplier alliances benefits firms by increasing the performance and value of suppliers as well as increasing brand awareness.

Question 17

Demands by customers for companies to become more ethically and environmentally focused have placed added pressures on firms to improve their performance in supply chain management.

Question 18

According to the textbook,Wal-Mart is perhaps the company that is most averse to implementing sustainable business practices.

Question 19

It is considered unethical for a firm to intentionally buy from women-owned businesses.

Question 20

Generally speaking,there are two approaches to deciding whether or not an action is ethical,utilitarianism and rights and duties.

Question 21

Which of the following is a trend in ethical and sustainable sourcing?

A)Using suppliers who are reducing their carbon footprint
B)Discontinuing purchases from firms that use unacceptable labor practices
C)Sourcing from firms in underdeveloped nations
D)All of these

Question 22

Which of the following could be an ethical and environmental certification requirement?

A)Forest Stewardship Council (FSC) certification
B)Energy Star certification
C)Fair Trade certification
D)All of these

Question 23

One standard which is measured in environmental supplier certification is:

A)The number of trucks owned by the supplier
B)The suppliers' greenhouse gas emissions
C)Technology investment by the supplier
D)The number of on-time deliveries

Question 24

The use of environmental supplier certification programs assist companies by which of the following?

A)Identifying strategic alliance candidates
B)Identifying companies who are the most popular with consumers
C)Helping communities who are in jeopardy of plant closures
D)Encouraging distributive negotiations in strategic alliance development

Question 25

All of the following are reasons for the increasing use of ethical and sustainable sourcing practices EXCEPT:

A)Global population growth
B)Increasing environmental awareness
C)Legislation requiring corporate ethical and sustainable sourcing
D)Consumers' desires for better corporate responsibility

Question 26

The application of ethical principles to business situations can be referred to as:

A)Business ethics
B)Social responsibility
C)Ethical Sourcing
D)Strategic Sourcing

Question 27

Successful strategic supplier alliances can result in which of the following?

A)Better market penetration.
B)Access to new technologies and knowledge
C)Higher return on investment
D)All of these

Question 28

Managing a firm's external resources in ways that support the long-term goals of the firm can be referred to as:

A)Ethical souring
B)Functional sourcing
C)Strategic sourcing
D)Hybrid Sourcing

Question 29

Leading companies practicing sustainable sourcing and seeking to reduce costs would NOT use which of the following strategies?

A)Backward integration to purchase suppliers
B)Increase resource efficiencies
C)Avoid use of noncompliant suppliers
D)Rethink transportation and distribution systems

Question 30

Which of the following is NOT a step suggested in the Supply Chain Sourcing Strategy Framework?

A)Establish corporate ethical and sustainable sourcing policies.
B)Develop a performance measurement system.
C)Distribute free samples of all purchased products to the end-user for detailed evaluation and feedback on supply chain development
D)Prioritize items based on ethical and sustainability opportunities and ease of implementation.

Question 31

The Ethical Trading Initiative (ETI)does NOT include which of the following:

A)Workers receive a 30 minute break for an 8 hour shift
B)Working hours are not excessive
C)Regular employment is provided
D)Freedom of association and the right to collective bargaining are respected

Question 32

Which of the following is TRUE?

A)VMI stands for Vertically Managed Inventory
B)3PL stands for Third Party Leverage
C)VMI stands for Vendor-Managed Inventory
D)3PL stands for Three Point Logistics

Question 33

The following term refers to an act that creates the greatest good for the greatest number of people:

A)Rights and duties
B)Corporate responsibility
C)Utilitarianism
D)Social sustainability

Question 34

One of the most value enhancing activities performed by a supplier,for a key customer,which minimizes carrying costs and can avoid stockouts:

A)Early supplier involvement scheduling
B)Vendor managed inventory
C)Strategic inventory planning
D)Purchase spend reduction forecasting

Question 35

Promoting diversity by intentionally buying from small firms or ethnic minority businesses.This is an example of:

A)Supply base rationalization
B)Ethical sourcing
C)Sustainable sourcing
D)Supply base sourcing

Question 36

Cutting back on packaging,fuel,or electricity is an example of:

A)Ethical sourcing
B)Sole sourcing
C)Sustainable sourcing
D)Global sourcing

Question 37

According to a Bridgestone Americas survey,consumers revealed that companies can show they are environmentally responsible by all of the following EXCEPT:

A)Creating products that minimize energy and water use
B)Buying products manufactured only in America
C)Generating less waste
D)Minimizing carbon emissions

Question 38

In designing an ethical and sustainable strategy a firm might make use of which of the following?

A)Hire more supervisors to address problems quickly.
B)Use of a performance metric to gauge the success of the firm's efforts.
C)Create many short term relationships with suppliers
D)All of these

Question 39

The management of the firm's external resources through identification and selection of suppliers,management of supplier relationships,and monitoring and rewarding supplier performance in an effort to support the long-term goals of the organization is called:

A)Buyer-supplier integration
B)Acceptance sampling
C)Procurement rationalization
D)Strategic sourcing

Question 40

The purchasing managers at Sunnydale Corporation decide to intentionally increase purchases from small,women-owned suppliers.This decision can be considered:

A)Illegal
B)Unethical
C)Ethical Sourcing
D)Utilitarianism

Question 41

One benefit from benchmarking sourcing practices is:

A)Savings in energy consumption and materials, lower distribution costs, and improved corporate image among regulators, customers and community.
B)Lower prices of goods and services, use of fewer buyers and lower administrative costs.
C)Larger market for products, economies of scale in purchasing and production, and lower labor costs.
D)Allows firms to potentially leapfrog the experience-gaining stage by trying things that have worked well for other companies.

Question 42

Which of the following should NOT be used as assessment criteria to evaluate the purchasing department's performance?

A)Improving time to market
B)Lowering inventory turnover rates
C)Participating in value engineering/value analysis efforts
D)Creating supplier alliances

Question 43

Service companies like beauty parlors,cleaning companies and delivery companies are also becoming aware of the trends in ethical and sustainable sourcing.Describe FOUR ways a service company can use ethical and sustainable sourcing.Provide an example of how this can happen.

Question 44

As relationships with suppliers become more trusted,reliable,and long-term in nature,early supplier involvement has become a popular strategy among firms.Explain THREE benefits gained from using this strategy.

Question 45

Describe THREE important steps in organizing and managing a successful strategic alliance program.

Question 46

Sustainable sourcing is a rather common practice among firms in many industries.What are THREE possible benefits companies practicing sustainable sourcing seek to achieve:

Question 47

Which of the following can be used as a punishment for suppliers that perform poorly?

A)Elimination of future business with the focal firm
B)Downgrade the supplier's status
C)Billback penalty
D)All of these

Question 48

Why do firms assess their sourcing capabilities?

A)They are looking for ways to reduce their employee headcount.
B)They can easily spot suppliers who are not practicing sustainable sourcing practices.
C)They can gauge their success in improving their own value-enhancing contributions to the firm
D)It helps them improve communication with their suppliers.

Question 49

Benchmarking is:

A)A system of performance metrics that seeks to motivate suppliers to perform better.
B)A practice where companies attempt to learn and apply the best practices of other companies.
C)A system of marking defective inbound inventory so it can quickly be identified for return to the supplier.
D)A program where suppliers compete for contracts, but those companies who are outbid are provided advice for winning future contracts

Question 50

Home Depot is a retail leader in selling home improvement tools and materials.Home Depot wants to become more environmentally conscious.​Answer the following series of questions in an effort to develop a plan that will guide Home Depot executives into transforming Home Depot into a sustainable organization through green sourcing.
a.Define sustainability.
b.Outline a set of goals (FOUR) that would lead Home Depot down a sustainable path.
c.How do these goals make sense from both a financial and environmental perspective?
d.What are some ways supplier managers can aid in achieving these goals?

Question 51

Explain why sourcing practices are benchmarked.Provide TWO examples of resources available for firms seeking to implement successful sourcing practices.