Deck 19: Ethics and Social Responsibilities

Question 1

Supply managers should demonstrate loyalty to the employer by diligently following the lawful instructions of the employer,using reasonable care and only the authority granted.

Answer 1

True

Question 2

According to the textbook,"There's No Such Thing as a Free Lunch."

Answer 2

True

Question 3

Supply professionals should refrain from reciprocal agreements that restrain competition.

Answer 3

True

Question 4

Sharp Practices are evasive and indirect misrepresentations that are just short of actual fraud.

Question 5

Supply professionals should know and obey the letter and spirit of laws governing the supply management function,and remain alert to the legal ramifications of supply management decisions.

Question 6

According to a study discussed in the textbook,A majority of supply professionals considers many of gifts and gratuities to be traditional sales tools.

Question 7

Supply professionals should enhance the proficiency and stature of the supply management profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behavior.

Question 8

Supply professionals should encourage all segments of society to participate by providing access for small,disadvantaged,and minority-owned businesses.

Question 9

Supply professionals should refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer.

Question 10

The drive towards world class supply management has increased the need for companies to establish ethics policies and professional standards that are created through cross-functional teams.

Question 11

The pressures that the marketplace exerts on supply management departments and on individual buyers make it essential that top management and supply management recognize and understand both the professional and ethical standards required in the performance of their duties.

Question 12

Supply professionals should promote positive supplier relationships through courtesy and impartiality in all phases of the supply management cycle.

Question 13

Supply professionals should refrain from soliciting or accepting money,loans,credits,or prejudicial discounts,and the acceptance of gifts,entertainment,favors,or services from present or potential suppliers that might influence,or appear to influence,supply management decisions.

Question 14

Supply professionals should discourage supply management's involvement in employer-sponsored programs of personal purchases that are not business related.

Question 15

According to a study discussed in the textbook,a minority of supply professionals feel that any form of gratuity constitutes a conflict with ethical standards.

Question 16

Supply professionals should avoid the intent and appearance of unethical or compromising practice in relationships,actions,and communications.

Question 17

Ethics are the guidelines or rules of conduct by which we aim to live.

Question 18

Supply professionals should handle confidential or proprietary information belonging to employers or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.

Question 19

Supply professionals should conduct international supply management in accordance with the laws,customs,and practices of foreign countries,consistent with your country's laws,and the employing organization's policies.

Question 20

Sharp practices focus on short-term gains and ignore the long-term implications for a business relationship.

Question 21

Which of the following is not one of the 12 topics that ethical and professional standards of supply management practice are built upon as advocated by the Institute for Supply Management?

A) Confidential Information
B) Treatment of Suppliers
C) Reciprocity
D) Fairness
E) Governing Laws

Question 22

Ethical actions can be reasonably avoided when the pressures that the marketplace exerts on supply management departments and on individual buyers are forcing expediency.

Question 23

The Principles of Supply Management Practice as created by the Institute for Supply Management are: loyalty to your organization,justice to those with whom you deal and faith in your God.

Question 24

SCPA is a term that applies to recycling and reusing efforts.

Question 25

Supply management's involvement in employer-sponsored programs of personal purchases that are not business related is not only ethically okay,but it is a typical perk of being a supply professional.

Question 26

The drive towards high standards for supply professionals has increased the need for companies to establish ethics policies and professional standards that are created through cross-functional teams.

Question 27

Supply professionals should engage in reciprocal agreements that restrain competition when the opportunity will yield significant financial gain for the buying firm.

Question 28

The Principles of Supply Management Practice as created by the Institute for Supply Management are: loyalty to your organization,justice to those with whom you deal and faith in your profession.

Question 29

According to a study discussed in the textbook,a majority of supply professionals considers many of gifts and gratuities to be traditional sales tools.

Question 30

Supply professionals should conduct international supply management in accordance with the laws,customs,and practices of foreign countries.Often this can lead to greater financial return since the laws of the buying firm's country may restrict ethical behavior to a greater extent.In such cases,the supply professional can take advantage of the softer laws.

Question 31

Sharp Practices are evasive and indirect misrepresentations that are actual fraud.

Question 32

Supply professionals should know and obey the letter,but not necessarily the spirit of laws.Finding ways to bend the legal system to the buying firm's advantage while remaining within legal bound just makes good business sense.

Question 33

Sharp practices focus on long-term gains and ignore the short-term implications for a business relationship.

Question 34

Supply professionals should only solicit or accept gifts,entertainment,and favors from potential suppliers when they feel that the supplier has failed to influence them in making their supply management decisions.

Question 35

Supply Managers must understand the Clean Air Act.

Question 36

Supply professionals should limit the sharing of confidential or proprietary information belonging to employers and/or suppliers.

Question 37

Supply professionals should promote positive supplier relationships through gifts and favors with key suppliers.

Question 38

Which of the following is not one of the 12 topics that ethical and professional standards of supply management practice are built upon as advocated by the Institute for Supply Management?

A) Small, Disadvantaged, and Minority Owned Businesses
B) Truth in all Dealings
C) Personal Purchases for Employees
D) Responsibilities to the Profession
E) Global Supply Management

Question 39

According to a study discussed in the textbook,a majority of supply professionals feel that any form of gratuity constitutes a conflict with ethical standards.

Question 40

Supply professionals need not refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer,but they should point out the issue with upper management after the business is completed.

Question 41

Which of the following is typically not confidential information?

A) Pricing and cost data from a supplier
B) Bid or quotation information a supplier has submitted
C) Formulas and process information from a supplier
D) Design information (drawings, blueprints, etc.) from a supplier
E) The request for a quotation given to a supplier

Question 42

The following list provides ethics guidelines for firms that are using competitive bidding.Which point does not belong in the list?

A) Invite only firms to whom they are willing to award a contract to submit bids
B) Normally, award the contract to the lowest responsive, responsible bidder
C) Keep competitive price information confidential
D) Notify unsuccessful bidders promptly so that they may reallocate reserved production
E) The buyer may "shop" for low prices without telling the potential suppliers

Question 43

ISM has defined several principles of social responsibility including:

A) Community initiatives
B) Diversity
C) Environment
D) Financial responsibility
E) All of the above

Question 44

Which of the following is not an example of a sharp practice?

A) An attempt is made to influence a seller by leaving copies of bids, or other confidential correspondence, where a supplier can see them.
B) A concession may be forced by dealing only with "hungry" suppliers
C) Obscure contract terms of benefit to the supply manager's firm are buried in the small type of contract articles
D) A supplier lies about the production capability of his firm's facilities which leads to a long term contract that the supplier cannot fulfill
E) A supply manager may take advantage of a supplier who is short of cash and who may seek only to cover his/her out-of-pocket costs

Question 45

Which of the following is not part of The Four Way Test?

A) Is it the TRUTH?
B) Is it FAIR to all concerned?
C) Will it return a high ROI?
D) Will it build GOODWILL?
E) Will it be BENEFICIAL to all concerned?

Question 46

Which of the following is not a key law or regulation that impacts supply management in the USA?

A) The Federal Acquisition Regulations
B) The Defense Acquisition Regulations
C) Patent, Copyright, and Trademark Laws
D) OSHA, EPA, and EEOC Laws
E) Foreign Border Control Act

Question 47

The following list provides ethics guidelines for firms that are using competitive bidding.Which point does not belong in the list?

A) Share the lowest bid information to other suppliers to coerce them to change their bid
B) Treat all bidders alike
C) Do not accept bids after the announced bid closing date and time
D) Do not take advantage of apparent mistakes in the supplier's bid
E) Do not "shop" or conduct auctions for low prices

Question 48

Which of the following is typically not confidential information?

A) Corporate taxes paid in a given year
B) Company plans, goals, and strategies
C) Personal information about employees or trustees
D) Supply sources and supplier information
E) Customer lists and customer information

Question 49

Which of the following is not an example of a sharp practice?

A) A supply manager talks in terms of large quantities to encourage a price quote on that basis
B) A sales person buys lunch for a buyer in the hope that the buyer will be influenced to buy his or her goods and services
C) A large number of bids are solicited in hope that the buyer will be able to take advantage of a quotation error
D) Bids are obtained from unqualified suppliers that the supply manager would not patronize in any case
E) A supply manager who places in competition the prices of seconds, odd lots, or distress merchandise misrepresents a market

Question 50

Which of the following is not one of the 12 topics that ethical and professional standards of supply management practice are built upon as advocated by the Institute for Supply Management?

A) Ethical Perceptions
B) Faith in Your Organization
C) Responsibilities to the Employer
D) Conflict of Interest
E) Gratuities

Question 51

Which of the following is not a key law or regulation that impacts supply management in the USA?

A) Uniform Commercial Code
B) The Clinton Act
C) The Clayton Act
D) The Robinson-Patman Act
E) The Federal Trade Commission Act

Question 52

Which of the following is not a recommended guideline for personal purchases for employees?

A) Avoid using an employer's purchasing power for special purchases
B) Make certain of fair arrangements for personal purchase programs
C) Use caution to ensure that employer-sponsored programs do not force special concessions on the supplier
D) Personal purchases should be used as a bonus for managers in supply management
E) Suppliers should be made aware that such purchases are not for the employer, but for the firm's employees