Ethical Supply Chain Management: Ensuring Social Responsibility and Ethical Sourcing

Question 1

What is the primary objective of a social responsibility audit in ethical sourcing?

Accepted Answer

Identify areas for improvement in ethical practices

Answer

Penalize suppliers for non-compliance

Answer

Enhance the company's reputation

Answer

Reduce operational costs

Question 2

Which of the following is a potential ethical conundrum in supply chain management?

Accepted Answer

Utilizing child labor to cut production costs

Answer

Disposing of hazardous waste responsibly

Answer

Offering fair wages to suppliers

Answer

Sourcing materials sustainably

Question 3

What is the purpose of a comprehensive sustainability strategy in supply chain management?

Accepted Answer

Guide the company's efforts towards social and environmental responsibility

Answer

Set targets for reducing carbon emissions

Answer

Improve the efficiency of the supply chain

Answer

Ensure compliance with regulations

Question 4

Which of the following is a core principle of ethical sourcing?

Accepted Answer

Ensuring fair wages and safe working conditions

Answer

Prioritizing cost savings at the expense of labor standards

Answer

Ignoring concerns related to human rights

Answer

Tolerating corruption and bribery

Question 5

Which of the following is considered a violation of labor standards?

Accepted Answer

Paying below the legally mandated minimum wage

Answer

Providing safe and hygienic working conditions

Answer

Respecting workers' rights to organize and bargain collectively

Answer

Offering health insurance and paid time off

Question 6

Which key aspect of ethical sourcing in supply chain management focuses on ensuring fair treatment of workers?

Accepted Answer

Ensuring fair labor practices

Answer

Environmental sustainability

Answer

Maximizing profits

Answer

Reducing operating costs

Question 7

What is the main purpose of a code of conduct for suppliers?

Accepted Answer

To communicate ethical expectations to suppliers

Answer

To monitor and evaluate supplier performance

Answer

To enforce legal compliance

Answer

To manage supplier relationships

Question 8

What is the distinction between ethical sourcing and sustainable sourcing?

Accepted Answer

Ethical sourcing focuses on social responsibility, while sustainable sourcing focuses on environmental impact

Answer

Ethical sourcing is more important than sustainable sourcing

Answer

Sustainable sourcing is more important than ethical sourcing

Answer

There is no difference between ethical sourcing and sustainable sourcing

Question 9

How does collaboration and partnership among stakeholders enhance the effectiveness of ethical sourcing?

Accepted Answer

Facilitates open communication and transparency, allowing for informed decision-making

Answer

Reduces the financial burden of ethical sourcing by sharing costs among partners

Answer

Eliminates the need for ethical auditing and monitoring

Question 10

Which of the following is a fundamental principle of social responsibility in supply chain management?

Accepted Answer

Ensuring equitable treatment of workers

Answer

Maximizing shareholder profit at any cost

Answer

Minimizing environmental impact to the detriment of profit

Answer

Reducing production costs by any means necessary

Question 11

What is the primary purpose of an ethical sourcing code of conduct?

Accepted Answer

To establish clear guidelines for suppliers regarding ethical practices

Answer

To provide a legal defense for the purchasing organization in case of ethical violations

Answer

To increase product visibility and consumer awareness of ethical sourcing

Answer

To reduce the potential for negative brand perception

Question 12

What is the ultimate goal of ethical sourcing in supply chain management?

Accepted Answer

Creating a more just, equitable, and environmentally conscious global supply chain

Answer

Maximizing profits for the organization

Answer

Protecting consumers from harmful products

Answer

Complying with all applicable laws and regulations

Question 13

Which of the following is NOT an innovative technology or approach used to enhance ethical sourcing and supply chain transparency?

Accepted Answer

Paper-based records

Answer

Blockchain

Answer

Radio-frequency identification (RFID)

Answer

Artificial intelligence (AI)

Question 14

In supply chain management, how can businesses balance economic goals with ethical considerations when making sourcing decisions?

Accepted Answer

Conduct cost-benefit analyses to evaluate both economic and ethical implications.

Answer

Prioritize ethical factors above financial gains.

Answer

Assign ethical responsibilities to external suppliers.

Answer

Ignore ethical concerns to maximize profits.

Question 15

How do supply chain certifications and standards promote ethical practices?

Accepted Answer

Establish minimum ethical guidelines for suppliers

Answer

Provide legal protection for ethical sourcing

Answer

Have no impact on ethical sourcing

Question 16

Which of the following is NOT a fundamental principle of social responsibility in supply chain management?

Accepted Answer

Maximizing shareholder profits at all costs

Answer

Protecting the environment through sustainable practices

Answer

Ensuring ethical sourcing and responsible procurement

Answer

Respecting human rights and promoting fair labor conditions

Question 17

The International Labour Organization (ILO) Core Conventions primarily focus on addressing which critical ethical concerns in the workplace?

Accepted Answer

Forced labor, child labor, and other fundamental labor rights violations

Answer

Corporate governance and boardroom ethics

Answer

Environmental pollution and waste management issues

Answer

Financial reporting and accounting practices

Question 18

Which of the following is a recognized benefit of implementing ethical sourcing practices?

Accepted Answer

Enhanced brand reputation and consumer trust

Answer

Substantial reduction in overall production costs

Answer

Accelerated product development timelines

Answer

Guaranteed increase in customer satisfaction levels

Question 19

The concept of 'due diligence' in ethical sourcing refers to:

Accepted Answer

Taking proactive steps to identify, assess, and mitigate potential ethical risks and impacts

Answer

Ignoring ethical concerns and prioritizing profit maximization

Answer

Delegating ethical responsibilities to third-party suppliers

Question 20

Which of the following is a recognized challenge that organizations may face when implementing social responsibility and ethical sourcing practices in their supply chains?

Accepted Answer

Limited transparency and traceability in supplier operations

Answer

Overly stringent government regulations and policies

Answer

Lack of skilled labor and workforce shortages

Answer

Rapid technological advancements and industry disruption

Question 21

The 'triple bottom line' approach in sustainable supply chain management emphasizes evaluating performance across which three key dimensions?

Accepted Answer

Economic, social, and environmental

Answer

Quality, cost, and delivery

Answer

Financial, operational, and strategic

Answer

Customer, supplier, and employee

Question 22

The United Nations Global Compact provides a framework for organizations to:

Accepted Answer

Voluntarily commit to sustainability and responsible business practices

Answer

Avoid liability and legal consequences for ethical violations

Answer

Obtain certification for their products as ethically sourced

Question 23

Which of the following tools is commonly used to assess the ethical performance and compliance of suppliers?

Accepted Answer

Supplier Code of Conduct

Answer

Financial audit report

Answer

Environmental impact assessment

Answer

Customer satisfaction questionnaire

Question 24

Ethical sourcing practices can positively contribute to:

Accepted Answer

Improved employee morale, motivation, and commitment

Answer

Reduced profit margins and lower financial performance

Answer

Delayed product launches and missed market opportunities

Answer

Increased customer turnover and reduced loyalty