What potential costs could an organization face if it fails to conduct Due diligence effectively?
Answer(s): A
Though strong due diligence procurement professionals can assess which suppliers or potential suppliers appear to meet the criteria associated with ethical practice. Prior to the contract being awarded, strong due diligence can save the organization from the following cost:1) Cost of reputation2) Environmental damage3) Stakeholders dissatisfaction,4) poor quality and rework5) Breach of contract6) Ethical concerns
Research the ethical standard or accreditation 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.Refer to the question column for response
What is Iso 14001?
14001 set out as international standards for an environmental management system.
Create a list of assets of a company with which you're familiar and divide them into standard and bespoke categorizing.
Name of company: Full power projectsBusiness: Project management training and consultancyIf an organization is sourcing an asset that is readily available or mass produced then the cost associated with the design and manufacturing will be lower percentage of the total cost than if an organization commissions a bespoke piece of equipment to be designed and manufactured. The following are a list of assets owned by fullpower projects.Standard/off the shelf (Mass produced)Projector from a shop-displayed files and document jackets from market Desks and furnitureBespoke/specialist - white board and markerWith extra, e.g. made with company colorGift/ sovereign (bags and T. shirt) with coup any label, color and design Refer to the question column for response
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