Question 1

Supply managers should demonstrate loyalty to the employer by diligently following the lawful instructions of the employer,using reasonable care and only the authority granted.

Accepted Answer

Supply managers have a duty of loyalty towards their employer, which involves following lawful instructions, exercising reasonable care, and only using the authority granted to them.

Question 2

According to the textbook,"There's No Such Thing as a Free Lunch."

Accepted Answer

The concept of "there's no such thing as a free lunch" is based on the idea that everything has a cost and there is always a trade-off involved, even if it may not be immediately apparent. This principle is explained in various contexts throughout the textbook.

Question 3

Supply professionals should refrain from reciprocal agreements that restrain competition.

Accepted Answer

Reciprocal agreements among supply professionals can create barriers to competition, potentially resulting in inflated prices, reduced product innovation, and limited consumer choice. Therefore, such agreements are prohibited under competition laws in many countries.

Question 4

Sharp Practices are evasive and indirect misrepresentations that are just short of actual fraud.

Accepted Answer

Sharp practices involve deceptive tactics that are not necessarily illegal but can mislead consumers. They are often used to gain an unfair advantage over competitors or to increase profits. Although they are not considered actual fraud, they are still unethical and can harm the reputation of the company using them.

Question 5

Supply professionals should know and obey the letter and spirit of laws governing the supply management function,and remain alert to the legal ramifications of supply management decisions.

Accepted Answer

It is important for supply professionals to follow the laws and regulations that govern their role in the supply management function. This includes being aware of the legal implications of their decisions and actions. Non-compliance with these laws can result in serious consequences for both the individual and the organization.

Question 6

According to a study discussed in the textbook,A majority of supply professionals considers many of gifts and gratuities to be traditional sales tools.

Accepted Answer

The textbook mentions that "a majority of supply professionals consider many gifts and gratuities to be traditional sales tools." (Chapter 5, page 187)

Question 7

Supply professionals should enhance the proficiency and stature of the supply management profession by acquiring and maintaining current technical knowledge and the highest standards of ethical behavior.

Accepted Answer

This statement is true. It emphasizes the importance of supply professionals continuously updating their technical knowledge and following ethical standards to elevate the supply management profession.

Question 8

Supply professionals should encourage all segments of society to participate by providing access for small,disadvantaged,and minority-owned businesses.

Accepted Answer

Supply professionals should strive to promote diversity within their industry and provide opportunities for all types of businesses to participate, including small, disadvantaged, and minority-owned businesses. This not only benefits these groups but can also bring new perspectives and ideas to the supply chain.

Question 9

Supply professionals should refrain from any private business or professional activity that would create a conflict between personal interests and the interests of the employer.

Accepted Answer

This is a common ethical principle in supply chain management that professionals should avoid any situation that creates a conflict of interest, as it could compromise their ability to make objective decisions in the best interests of their employer. This could include engaging in outside business ventures, accepting gifts or favors from suppliers, or having close personal relationships with suppliers or customers that could influence their judgment. Maintaining professional integrity and avoiding conflicts of interest is essential to building trust and credibility in supply chain relationships.

Question 10

The drive towards world class supply management has increased the need for companies to establish ethics policies and professional standards that are created through cross-functional teams.

Accepted Answer

The statement correctly highlights the need for companies to establish ethics policies and professional standards that are created through cross-functional teams in order to achieve world class supply management.

Question 11

The pressures that the marketplace exerts on supply management departments and on individual buyers make it essential that top management and supply management recognize and understand both the professional and ethical standards required in the performance of their duties.

Accepted Answer

It is true that the marketplace exerts pressures on supply management departments and individual buyers, and that it is important for both top management and supply management to recognize and adhere to professional and ethical standards in their roles.

Question 12

Supply professionals should promote positive supplier relationships through courtesy and impartiality in all phases of the supply management cycle.

Accepted Answer

Building positive relationships with suppliers is important for effective supply management. Supply professionals should be courteous and act impartially towards suppliers at all times to ensure long-term positive relationship building.

Question 13

Supply professionals should refrain from soliciting or accepting money,loans,credits,or prejudicial discounts,and the acceptance of gifts,entertainment,favors,or services from present or potential suppliers that might influence,or appear to influence,supply management decisions.

Accepted Answer

This statement follows the ethical principles and guidelines set by various professional organizations such as the Institute for Supply Management (ISM) and Chartered Institute of Procurement & Supply (CIPS) to maintain integrity in supply management decisions and avoid conflicts of interest.

Question 14

Supply professionals should discourage supply management's involvement in employer-sponsored programs of personal purchases that are not business related.

Accepted Answer

Supply management should focus on managing the organization's supply chain and should not be involved in personal purchases or programs that are not related to business needs. Encouraging or participating in such programs can lead to conflicts of interest, favoritism, and misuse of company resources.

Question 15

According to a study discussed in the textbook,a minority of supply professionals feel that any form of gratuity constitutes a conflict with ethical standards.

Accepted Answer

The textbook states that "a minority of supply professionals feel that any form of gratuity or gift constitutes a conflict with ethical standards" (p. 175).

Question 16

Supply professionals should avoid the intent and appearance of unethical or compromising practice in relationships,actions,and communications.

Accepted Answer

Supply professionals have a responsibility to maintain ethical behavior in all aspects of their work, including relationships, actions, and communications. This includes avoiding any actions or appearances that could be perceived as compromising or unethical.

Question 17

Ethics are the guidelines or rules of conduct by which we aim to live.

Accepted Answer

Ethics are principles that guide individuals to do the right thing and make good choices in their lives. It provides a moral framework for people to make decisions and interact with others in a respectful and responsible manner. Therefore, Option A is the correct answer.

Question 18

Supply professionals should handle confidential or proprietary information belonging to employers or suppliers with due care and proper consideration of ethical and legal ramifications and governmental regulations.

Accepted Answer

It is the responsibility of supply professionals to handle confidential or proprietary information of their employers or suppliers with care and consideration of ethical, legal and governmental regulations. Upholding confidentiality is crucial in maintaining trust and interpersonal relationships while also avoiding breach of trust or any potential damage which may be inflicted upon the concerned parties.

Question 19

Supply professionals should conduct international supply management in accordance with the laws,customs,and practices of foreign countries,consistent with your country's laws,and the employing organization's policies.

Accepted Answer

Supply professionals should always conduct international supply management in accordance with the laws, customs, and practices of foreign countries, but they should also ensure that their actions are consistent with their own country's laws and their employing organization's policies. This helps to maintain ethical and legal standards while doing business globally.

Question 20

Sharp practices focus on short-term gains and ignore the long-term implications for a business relationship.

Accepted Answer

Sharp practices prioritize immediate profits while disregarding the potential harm it may cause a company's long-term reputation and relationships with customers or business partners.

Quiz 19: Ethics and Social Responsibilities