ITPEC FE Morning April 2022 Question 64

Setting procurement standards that cover the environment and human rights, and asking suppliers to comply — CSR procurement extends a company's social responsibility to its supply chain.

A company is held responsible not only for its own conduct but also for how its purchases are made: child labour, pollution or unsafe work at a supplier becomes the buyer's problem. CSR procurement therefore publishes guidelines on the environment, human rights, labour conditions and fair trade, requires suppliers to follow them, and checks that they do.

Answer (c)

Why not others:

• •(a) — choosing the lowest price is cost-driven purchasing; it ignores the social and environmental conditions CSR is about
• •(b) — keeping several suppliers so that supply survives a disaster is multi-sourcing for business continuity (BCP)
• •(d) — using EDI for fast, accurate ordering is electronic procurement, an efficiency measure

Key rule: CSR procurement is judged by whether suppliers meet environmental, human rights and labour standards, not by price, speed or supply continuity.

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