L5M5 Managing Ethical Procurement and
Supply/ 177 Q&A
Advisory, Conciliation and Arbitration Service (ACAS) - Answer: A non-governmental agency of
the UK government that promotes strong industrial relations practice and provides an impartial
free conciliation service to resolve conflicts between employers and employees. ACAS aims to
help both sides of the conflict reach a mutually acceptable solution in the hope of avoiding the
potential cost, time and stress of a tribunal
Alternative dispute resolution (ADR) - Answer: A clause that can be included in a contract
stating how disputes are to be dealt with
Arm's-length relationship - Answer: This is a commercial relationship between a buyer and a
supplier that are independent or act independently. The focus of the relationship is the
exchange of purchase orders and invoices. This type of relationship is the opposite of a
collaborative relationship or partnership
Page 1 of 21
,Attrition - Answer: When a business loses staff through employees leaving and not being
replaced
Blog - Answer: Where people write about subjects of interest and post the information on the
Internet. People who blog are known as bloggers and they are increasing in number
Blue-washing - Answer: Refers to organisations that ally themselves with the United Nations
through joining programmes like the Global Compact in order to seem more legitimate, while
still acting in an unethical or unsustainable way
Boycott - Answer: Protest by refusing to deal with or buy from a particular individual or
business because of its behaviour
BRICS countries - Answer: An acronym that groups together high-growth emerging markets,
standing for Brazil, Russia, India, China and South Africa
Capital - Answer: Money or assets that can be used for investment or expansion
Cartel - Answer: An organisation created by a formal agreement between a group of producers
or suppliers of a good or service to regulate supply in order to manipulate prices
Categorisation - Answer: The division of organisational spend and suppliers into logical groups
Child labour - Answer: The exploitative employment of children in an industry
Civic obligations - Answer: The responsibilities of a citizen. These include serving on a jury or
being a witness in court
Page 2 of 21
, Closed-loop supply chain - Answer: Also known as reverse logistics, this is where the
manufacturer takes back part or all of the products to either reuse or recycle, reducing the
amount of waste going to landfill
Cloud - Answer: Accessing computer, information technology (IT), and software applications
through a network connection
Coercion - Answer: The act of forcing someone to do something using physical force or threats
Collective consultation - Answer: A process where staff representatives are consulted by
employers
Community benefit clause - Answer: Contractual clause used to build economic, social or
environmental conditions into the delivery of public contracts
Confederation of British Industry (CBI) - Answer: An organisation in the UK that represents
British businesses and lobbies the government on their behalf
Corporate social responsibility (CSR) - Answer: A business approach that contributes to
sustainable development by delivering economic, social and environmental benefits for all
stakeholders
Corrective action plan (CAP) - Answer: Step-by-step plan of action. When a problem arises or an
error is identified, a plan of action to resolve the issue is created. The corrective action plan is
targeted towards the problem and is implemented to achieve a resolution
Cottage industry - Answer: Business or manufacturing that happens in someone's home
Page 3 of 21
Supply/ 177 Q&A
Advisory, Conciliation and Arbitration Service (ACAS) - Answer: A non-governmental agency of
the UK government that promotes strong industrial relations practice and provides an impartial
free conciliation service to resolve conflicts between employers and employees. ACAS aims to
help both sides of the conflict reach a mutually acceptable solution in the hope of avoiding the
potential cost, time and stress of a tribunal
Alternative dispute resolution (ADR) - Answer: A clause that can be included in a contract
stating how disputes are to be dealt with
Arm's-length relationship - Answer: This is a commercial relationship between a buyer and a
supplier that are independent or act independently. The focus of the relationship is the
exchange of purchase orders and invoices. This type of relationship is the opposite of a
collaborative relationship or partnership
Page 1 of 21
,Attrition - Answer: When a business loses staff through employees leaving and not being
replaced
Blog - Answer: Where people write about subjects of interest and post the information on the
Internet. People who blog are known as bloggers and they are increasing in number
Blue-washing - Answer: Refers to organisations that ally themselves with the United Nations
through joining programmes like the Global Compact in order to seem more legitimate, while
still acting in an unethical or unsustainable way
Boycott - Answer: Protest by refusing to deal with or buy from a particular individual or
business because of its behaviour
BRICS countries - Answer: An acronym that groups together high-growth emerging markets,
standing for Brazil, Russia, India, China and South Africa
Capital - Answer: Money or assets that can be used for investment or expansion
Cartel - Answer: An organisation created by a formal agreement between a group of producers
or suppliers of a good or service to regulate supply in order to manipulate prices
Categorisation - Answer: The division of organisational spend and suppliers into logical groups
Child labour - Answer: The exploitative employment of children in an industry
Civic obligations - Answer: The responsibilities of a citizen. These include serving on a jury or
being a witness in court
Page 2 of 21
, Closed-loop supply chain - Answer: Also known as reverse logistics, this is where the
manufacturer takes back part or all of the products to either reuse or recycle, reducing the
amount of waste going to landfill
Cloud - Answer: Accessing computer, information technology (IT), and software applications
through a network connection
Coercion - Answer: The act of forcing someone to do something using physical force or threats
Collective consultation - Answer: A process where staff representatives are consulted by
employers
Community benefit clause - Answer: Contractual clause used to build economic, social or
environmental conditions into the delivery of public contracts
Confederation of British Industry (CBI) - Answer: An organisation in the UK that represents
British businesses and lobbies the government on their behalf
Corporate social responsibility (CSR) - Answer: A business approach that contributes to
sustainable development by delivering economic, social and environmental benefits for all
stakeholders
Corrective action plan (CAP) - Answer: Step-by-step plan of action. When a problem arises or an
error is identified, a plan of action to resolve the issue is created. The corrective action plan is
targeted towards the problem and is implemented to achieve a resolution
Cottage industry - Answer: Business or manufacturing that happens in someone's home
Page 3 of 21
