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The procurement team of a global supermarket has created a business case for a corporate social responsibility (CSR) sourcing strategy to meet the corporate objective of sustainability. This would require sourcing only from suppliers who meet ethical standards, a reduction in plastic, and using recycled material where possible. Which of the following business benefits would be mentioned in the business case? Select TWO that apply:
Suggested Answer: B
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Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.
LO 2, AC 2.1
44 comments · newest first
LI
Ling
11 months ago
A is essential for any CSR strategy!
MO
Mohammad
11 months ago
Wait, can they really reduce costs while being ethical?
SO
Soledad
12 months ago
Improved brand equity is a no-brainer!
OC
Ocie
12 months ago
I think E could be a stretch, though.
HE
Heidy
1 year ago
Definitely A and D! Those are key benefits.
AU
Audria
1 year ago
I agree with Flo about brand equity, but I wonder if leveraging technology could also be relevant in this context.
BE
Bea
1 year ago
I practiced a similar question, and I think reduced cost might not apply here since CSR often involves higher upfront costs.
FL
Flo
1 year ago
I'm not entirely sure, but I feel like improved brand equity could be a strong point too. It makes sense that consumers would support ethical brands.
LA
Laura
1 year ago
I remember discussing how fulfilling a business objective is crucial for CSR strategies, so I think A is definitely one of the benefits.
MA
Malika
1 year ago
I feel pretty confident about this. Fulfillment of the business objective and improved brand equity seem like the obvious choices here.
GE
Gene
1 year ago
I'm a bit confused - is reduced cost really a likely benefit of a CSR strategy? I'll have to re-read the question carefully.
MA
Maira
1 year ago
Okay, I think I've got this. The key is to focus on the business benefits that align with the stated objectives of sustainability and ethical sourcing.
FL
Flo
1 year ago
Hmm, I'm not sure about this one. I'll need to think carefully about which benefits would be most relevant to a CSR sourcing strategy.
CA
Casie
1 year ago
This seems straightforward - the business case would likely highlight the benefits of meeting the corporate sustainability objective and improving brand equity.
WI
Willard
1 year ago
I'm a bit confused by the wording of some of these options. I'll need to re-read them a few times to make sure I understand.
CH
Charlie
1 year ago
I think it's similar to that practice scenario where we had to outline the main goals and subjects involved. I feel like the subject's name is definitely needed.
ME
Merlyn
1 year ago
Okay, let's see. The goals of SIEM implementation include dashboarding, performance enhancement, and trend analysis. So the one that's not a goal must be the answer.
KE
Keith
1 year ago
I'm pretty confident on this one. The longer the term to maturity, the more sensitive the bond price is to changes in interest rates. So the risk and potential return are both higher.
GA
Gary
1 year ago
I bet the procurement team is feeling 'green' with envy, trying to come up with all these benefits. Maybe they should just say 'because it's the right thing to do'.
ED
Edgar
1 year ago
D) Improved brand equity
LI
Lilli
1 year ago
A) Fulfilment of a business objective
HO
Hoa
1 year ago
Increased capacity (B)? That's about as relevant as a unicorn riding a skateboard. This is a sustainability initiative, not an expansion plan.
LE
Leatha
1 year ago
Leverage of technology (C) could also play a role in implementing a sustainable sourcing strategy.
JA
Jaleesa
1 year ago
Reduced cost (E) is also a significant business benefit that would be mentioned in the business case.
GE
Gertude
1 year ago
Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.
MI
Milly
2 years ago
Leverage of technology (C)? Really? I don't see how that would be a key benefit in this case. They're talking about sourcing and materials, not tech upgrades.
NI
Niesha
2 years ago
Reduced cost (E) is an interesting one. I'm not sure if that would be a benefit, since sustainable practices often come with a higher price tag.
FE
Felton
1 year ago
Fulfilment of a business objective (A) is important too. Aligning with CSR goals can help the supermarket differentiate itself in the market.
BE
Bernardo
1 year ago
Improved brand equity (D) would also be mentioned in the business case. Consumers are increasingly valuing companies that prioritize sustainability.
ED
Eden
1 year ago
Reduced cost (E) is definitely a benefit. Sustainable practices can actually lead to cost savings in the long run.
VI
Vi
1 year ago
D) Improved brand equity
CH
Christiane
2 years ago
A) Fulfilment of a business objective
CA
Casandra
2 years ago
Fulfilment of a business objective (A) is a no-brainer. This aligns with the corporate goal of sustainability, so it has to be in the business case.
SH
Sherell
2 years ago
I'm not sure about D), but I think E) Reduced cost could also be mentioned in the business case.
KR
Kristian
2 years ago
I agree with Ryann. I also think D) Improved brand equity would be mentioned as a business benefit.
RY
Ryann
2 years ago
I think A) Fulfilment of a business objective would be mentioned in the business case.
FR
Freida
2 years ago
Reduced cost could also be a significant benefit, as using recycled materials can lead to cost savings.
CY
Cyril
2 years ago
I agree with Mona. D) Improved brand equity would also be a key benefit mentioned.
XE
Xenia
2 years ago
A business case for a CSR sourcing strategy should definitely mention improved brand equity (D) as a key benefit. Customers these days really care about sustainability and ethical practices.
JA
James
1 year ago
Increased capacity (B) and leverage of technology (C) may not be directly related to a CSR sourcing strategy, but they could still play a role in overall business success.
SH
Shad
1 year ago
Fulfilment of a business objective (A) is important to show alignment with overall corporate goals.
LA
Lavelle
2 years ago
Reduced cost (E) could also be a significant business benefit of sourcing ethically and sustainably.
CA
Carey
2 years ago
Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.
MO
Mona
2 years ago
I think A) Fulfilment of a business objective would be mentioned in the business case.