Which type of power is most likely to be used in corruption?
Answer(s): A
The abuse of power within the supply chain can be linked to corruption. If individuals with seniority favor one supplier over another, they can exercise their power to award the contract to whoever they wish. According to CIPS code of conduct, this is not ac-ceptable. According to French and Raven, there are five types of power (Legitimate power, Re-ward, Expert, Referent and Coercive), and these powers can most likely be used in corruption.
What is the method of monitoring suppliers?
When a contract has been awarded, either is to meet tangible needs or intangible needs, contractors or suppliers should be managed to ensure that they are meeting up with fulfilling their contractual agreement. To establish this, there are methods of managing contracts and suppliers. Service level agreement (SLA) clauses: is placed in contract to ensures that supplier meets the expected and agreed level of serviceKey performance indicator (KPI): are used to manage contracts that fulfill tangible needs, the KPIs are set performance thresholds that are used to monitor supplier's performance. Management by objectives (MBO): is the process of defining objective that are strategic to the organization relating them to the vision and mission and communicating them to the supplier through the contract and ensuring that this objective is met during contract performance. Reviews: Regular supplier reviews are good practices, for it gives the buyer opportunity to give feedback on performance.Continuous Improvement: Contracts and suppliers can be monitored through how they are chang-ing for better incrementally as they are fulfilling the schedule. There must be a set down system to timely improve on the process, people and continuously reduce waste. Training: It is essential that training, are provided to come up on areas supplier is lacking.
Research the ethical standard or accreditations of an industry with which you are familiar
If a supplier is accredited or is a member of an association that promotes good ethical conduct, a statement to this effect is likely to be featured on its company documentation. This could be in a form of letters after the organization name or the authorized use of logo. Accreditation information should be verified by procurement professionals either asking organiza- tion for certification to prove membership or accreditation or checking on a professional register.Below are associated bodies that form some industries.1. ISO 14001 for quality management2. CIPS for procurement and Supply3. Red Tractor NGO Registered in the UK, promoting human right4. Amnesty International human right5. Carbon Trust For Carbon neutral status.
Describe three types of fraud that could occur within the supply chain of an organization with which you are familiar.
Fraud occurs when a person acts deliberately to secure monies from another party through dishonest method. Within the supply chain of an organization, fraud can represent itself in the following ways:1. Kickbacks: e.g. (commission given to a bribe taker for service perform)2. Corrupt influence (e.g ordering more than what is required)3. Collusion: (group of suppliers working together to submit multiple bids and split profit.4. Bid Rigging (a contract is informally agreed with a chosen supplier prior to the official process5. invoicing fraud6. Substitution (submitting products that are below the required quality7. False claims (files false document)Refer to the question column for response
Fraud occurs when a person acts deliberately to secure monies from another party through dishonest method. Within the supply chain of an organization, fraud can represent itself in the following ways:1. Kickbacks: e.g. (commission given to a bribe taker for service perform)2. Corrupt influence (e.g ordering more than what is required)3. Collusion: (group of suppliers working together to submit multiple bids and split profit.4. Bid Rigging (a contract is informally agreed with a chosen supplier prior to the official process5. invoicing fraud6. Substitution (submitting products that are below the required quality7. False claims (files false document)Case StudyA series of news stories reporting events such as the collapse of the Rana Plaza building in 2013 have drawn attention to the poor conditions in garment factories across India and South East Asia. Human rights groups have long be critical of the excessive hours and poor wages workers are forced to endure, as well as the abuse they receive from supervisor. With consumers becoming increasingly aware of these conditions, more pressure is being put on global brands and retailers to ensure their supply chains are fair and ethical.Certain areas have been notorious for the mistreatment of workers. In India's textile valley', young women are been bound into contracts where they work for two to three years, in exchange for a lump sum of money that they can then put towards a dowry. This is known as the `Sumangali [a married woman] Thittam' scheme. These women are forced to live in hostels under restrictions that prevent them from moving, and are denied the opportunity to improve their living conditions. Retailers including Walmart and H&M are known to source garments from factories in the `textile valley'.Reports by organizations including the Asia Floor Wage Alliance (AFWA), Central Combodia, Global Labor Justice, Sedane Labour Resource Centre (LIPS) Indonesia, and Society for Labour and Development (SLD) India have exposed unethically run factories that supply garments to H&M, Gap and Walmart. However, retailers will continue to benefit from expensive labour until mounting customers pressure causes them to change.
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