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Question 146 - CSCP discussion

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A company is formally adhering to the principles of the UN Global Compact. After a review of their supply chain, they have found that a key supplier is in violation of the compact. The best action for the company to do first is:

A.
do nothing. The company is not responsible for compliance of suppliers.
Answers
A.
do nothing. The company is not responsible for compliance of suppliers.
B.
replace the supplier as soon as possible with a compliant supplier.
Answers
B.
replace the supplier as soon as possible with a compliant supplier.
C.
notify the supplier of non-compliance.
Answers
C.
notify the supplier of non-compliance.
D.
require the supplier to become compliant.
Answers
D.
require the supplier to become compliant.
Suggested answer: C

Explanation:

UN Global Compact: Companies adhering to the UN Global Compact commit to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment, and anti-corruption.

Supplier Non-Compliance: When a key supplier violates these principles, it affects the company's commitment to the Compact.

Best Initial Action:

Do Nothing: This would violate the company's commitment to the Compact.

Replace Supplier: This might be necessary later but is premature without attempting to rectify the situation.

Notify Supplier: Informing the supplier of the non-compliance is essential to give them a chance to correct the issue. This step shows a collaborative approach to compliance.

Require Compliance: Necessary but should follow the notification to provide a reasonable timeframe for compliance.

Conclusion: Notifying the supplier is the most appropriate first step, as it provides an opportunity for the supplier to address the issue and demonstrates the company's commitment to ethical practices.

United Nations Global Compact. (2020). The Ten Principles of the UN Global Compact. UN Global Compact.

Sroufe, R. (2017). Integrated Management: How Sustainability Creates Value for Any Business. Emerald Publishing.

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asked 16/09/2024
Bruno Piovan
27 questions
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