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The UK has introduced several pieces of legislation relevant to CSR. Which legislation ensures that employers keep their workers safe?
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The Health and Safety at Work Act 1974 requires UK employers to ensure that working conditions are safe and that risks to health are managed. According to the L5M5 study guide (p.6), this includes duties such as accident prevention, safe use of equipment, and training employees. While the Working Time Regulations (A) relate to working hours, the Companies Act (B) covers corporate governance, and the Disability Discrimination Act (D) focuses on preventing discrimination, only the Health and Safety at Work Act specifically ensures safe conditions. Procurement professionals must be aware of this when selecting and monitoring suppliers, particularly in high-risk industries.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.6
An international trade dispute would be resolved by which organisation?
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The World Trade Organisation (WTO) is responsible for facilitating international trade agreements and resolving disputes between member states. According to the L5M5 study guide (p.87), the WTO provides a dispute settlement mechanism where countries can challenge trade barriers, tariffs, or unfair practices. The UN (A) focuses on peace, security, and development, while the ILO (C) addresses labour standards. Governments (D) do not resolve disputes independently when they are WTO members; instead, they rely on the WTO framework. Procurement professionals must understand the WTO's role, as its rulings influence trade laws, tariffs, and sourcing strategies.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.87
Marge is reading a government-issued statement which helps a company decide which course of action to take but is not legally binding. What type of document is Marge reading?
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.185) explains the distinction between regulatory documents. Guidelines are advisory documents providing best practice but are not legally binding. Regulations and statutes (A and C) are legally binding, and directives (B) are binding once incorporated into national legislation. Procurement professionals must be able to differentiate between binding legislation and advisory guidelines to ensure compliance. While guidelines help shape ethical practices, failure to follow them usually does not carry legal penalties.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.185
Which of the following are tools that a company can use to improve ethics and sustainability across the supply chain? Select THREE
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide highlights several tools procurement can use to embed ethics and sustainability into supply chains. These include benchmarking (A), which compares practices against best-in-class organisations; supply chain mapping (C), which provides visibility of all tiers of suppliers to identify risks; and on-site audits (D), which verify supplier compliance with ethical standards directly. Supplier preferencing (B) is a portfolio analysis tool used to understand suppliers' perspectives, not specifically an ethical improvement tool. Cost analysis (E) is primarily financial and does not ensure ethical compliance. Procurement professionals must apply tools like mapping and audits to identify risks such as forced labour, environmental harm, or corruption.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on supplier evaluation and sustainability tools
Which of the following statements about the ILO (International Labour Organisation) is incorrect?
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The ILO (International Labour Organisation) is an agency of the United Nations (UN), not the WTO. The L5M5 study guide (p.249) explains that the ILO promotes labour rights globally, sets international standards, and provides mechanisms for complaints and representation. Its principles include eliminating child labour, eradicating forced labour, and promoting safe and fair working conditions, including maternity protection. By contrast, the WTO (World Trade Organisation) deals with trade rules and disputes, not labour standards. This distinction is essential in procurement, as professionals must understand which bodies regulate trade versus labour practices.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.249
