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CIPS M4L8 (Procurement and Supply) LO4 STUDY GUIDE QUESTIONS AND ANSWERS.
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CIPS M4L8 (Procurement and Supply) LO4 STUDY GUIDE QUESTIONS AND ANSWERS.
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CIPS M4L8 (Procurement and Supply) LO4STUDY GUIDE QUESTIONS AND ANSWERS.
French and Raven's sources of power - 2:
✔✔Referent:
Power from charisma, charm and personality
Coercive
Power generated from the ability to make threats
Embezzlement:
✔✔· Taking of money / property entrusted into a person's care.
· Money / property usually obtained in a legal / acceptable fashion and
the individual is within their rights to possess the money / property.
· Not the legal owner and if they claim ownership, they are committing
embezzlement.
FRAUD:
✔✔· Occurs when a person acts deliberately to secure monies from
another party through dishonest methods.
· Can be conducted internally or externally by an organisation.
Types of fraud in procurement - 1:
✔✔· Kickbacks: commission paid to bribe taker for services performed.
· Corrupt influence: accepting/ordering more than is genuinely required;
approving a supplier who does not conform to the required standards.
,· Collusion: groups of suppliers working together to submit multiple bids
and splitting the profit. Entering multiple bids raises the chances of one of
the group winning the contract.
Types of fraud in procurement - 2:
✔✔· Bid rigging: a contract is informally agreed with a chosen supplier
prior to the official process
· Invoicing fraud: charging suppliers or customers a higher labour cost
than was actually undertaken or recharging products out at higher value
than is standard.
Types of fraud in procurement - 3:
✔✔· Substitutions: submitting substitutions of products or services that are
under the agreed quality standards, but which appear to conform.
· False claims: filing false documentation for damages to suppliers, tax
returns to governments or claims to insurance companies.
Fraud in procurement:
✔✔· Strict policies and procedures can make it less likely for an
organisation to be exposed to fraud.
· Buyers can be susceptible to attempted fraud by suppliers / organisations
imitating suppliers, asking for confidential information.
· Fake documents can appear in the supply chain from suppliers or
regulatory bodies who may have received a bribe.
· References on a potential supplier should be from a credible and
impartial source,
,· All documentation should be checked and verified prior to awarding a
supplier a contract.
· Raise and escalate concerns to a person with authority to deal with.
Consequences of fraud:
✔✔· Can be immense.
· If a contract is cancelled due to fraud being discovered this incurs
financial and reputational costs.
HUMAN RIGHTS
✔✔· Statutory ways in which individuals expect to, and should, be
treated.
· Must be carefully examined when applying ethical and responsible
sourcing.
· When evaluating suppliers, procurement professionals should investigate
suppliers' policies and practices in relation to the treatment of their workers
and associated organisations within their supply chain.
· All supply chains should promote fair and reasonable human rights.
Human rights include:
✔✔· Dignity
· Fairness
· Respect
· Equality
· Freedom
· Human rights relate to the following.
· Sexual orientation
· Gender
, · Religious beliefs
· Cultural values
· Race
· Ethnicity
· Nationality
The Universal Declaration of Human Rights, five basic rights:
✔✔1. Right to equality
2. Freedom from discrimination
3. Right to life, liberty and personal security
4. Freedom from slavery
5. Freedom from torture and degrading treatment
MODERN SLAVERY
✔✔• Human trafficking: the process of seeking, recruiting, transporting
and exploiting individuals to work against their will.
• Bonded labour: also known as debt bondage, this is an individual's
promise to provide services through exploitation as repayment of a debt or
other obligation.
• Forced labour: work that people are forced to do with the threat of
punishment if it is not carried out.
• Child labour: the exploitative and illegal employment of children.
• Domestic slavery: individuals exploited through working in private
households for little or no money in return for living accommodation.
Ethical and responsible sourcing includes understanding the following:
✔✔· Bribery
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