CIPS Level 4 Diploma in Procurement and Supply L4M4 Question # 26 Topic 3 Discussion
L4M4 Exam Topic 3 Question 26 Discussion:
Question #: 26
Topic #: 3
A buyer is carrying out an assessment to identify the risk of unethical suppliers being selected for a new contract. Which of the following should the assessment include in order to protect the organisation against ethical reputational risks?
A.
The average staff retention levels experienced by the suppliers
B.
Whether the suppliers have received negative press around their fair treatment of subcontracted staff
C.
The likelihood of suppliers becoming insolvent in the future due to unforeseen circumstances
D.
Performance records (late deliveries/poor quality) of agreed contract deliverables
Assessing the ethical reputation of suppliers is crucial to mitigate risks associated with unethical practices. Negative media coverage regarding the fair treatment of subcontracted staff is a significant indicator of potential ethical issues within a supplier's operations. Such information can highlight concerns related to labor rights violations, discrimination, or unsafe working conditions, which can adversely affect the buying organization's reputation if not addressed.
[Reference:, CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 3.3.1: Application of the CIPS Code of Conduct, , ]
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