ISM LEAD Exam - Topic 5 Question 29 Discussion

Actual exam question for ISM's LEAD exam

Question #: 29
Topic #: 5

[All LEAD Questions]

A subsidiary of a medical equipment company buys raw materials from suppliers contracted through the central commodity management group, which is located at corporate headquarters. The president of the local woman-owned merchants association contacts the firm's supply manager and asks why the firm does not support the local economy, as some of the raw materials are available from nearby woman-owned suppliers. Which of the following is the BEST way for the supply manager to address this concern?

AExplain that sourcing policies are set by corporate headquarters

BDiscuss purchasing social responsibility with supply management staff at headquarters

CRequest authority to contract locally for a portion of the requirements

DRefer the question to senior management and ask them to contact the association

Show Suggested Answer

Suggested Answer: B

Addressing concerns about local economic support and diversity requires discussing purchasing social responsibility with the supply management staff at headquarters. This approach aligns the company's sourcing practices with broader corporate social responsibility (CSR) goals. By engaging in this discussion, the supply manager can advocate for the inclusion of local, woman-owned suppliers, thereby supporting the local economy and diversity initiatives. This step is proactive and demonstrates the firm's commitment to social responsibility, which can enhance its reputation and community relationships.

Carter, C. R., & Jennings, M. M. (2004). The Role of Purchasing in Corporate Social Responsibility: A Structural Equation Analysis. Journal of Business Logistics.

Porter, M. E., & Kramer, M. R. (2006). Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review.

by Taryn at Aug 13, 2025, 06:02 PM

Limited Time Offer

25%

Off

Get Premium LEAD Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lizbeth

2 months ago

I think they should at least try to source locally if possible!

upvoted 0 times

...

In

2 months ago

Option B seems like a good way to start a conversation.

upvoted 0 times

...

Mary

3 months ago

Totally agree, they should support local businesses!

upvoted 0 times

...

Rosamond

3 months ago

Wait, are there really no local suppliers available?

upvoted 0 times

...

Chau

3 months ago

Corporate sets the rules, can't do much about it.

upvoted 0 times

...

Darell

4 months ago

I lean towards option D because it seems like a way to escalate the issue, but I’m not sure if that’s the most effective way to address the local association's concerns.

upvoted 0 times

...

Zena

4 months ago

I feel like option C might be the most proactive, but I wonder if the supply manager actually has the authority to make that decision.

upvoted 0 times

...

Argelia

4 months ago

I think option B could be a good approach since it involves discussing social responsibility, which we covered in class, but I'm not entirely confident about the implications.

upvoted 0 times

...

Mollie

4 months ago

I remember we discussed how important it is to align with corporate policies, so option A seems like a safe choice, but I'm not sure if it's the best response.

upvoted 0 times

...

Aleta

4 months ago

This is a straightforward question in my opinion. The supply manager should just explain that the sourcing policies are set at the corporate level, so option A is the clear choice here.

upvoted 0 times

...

Marti

5 months ago

Okay, I think I've got a good handle on this. The key is to find a way to balance the local supplier request with the company's existing sourcing policies. I'll go with option C - that seems like the most reasonable compromise.

upvoted 0 times

...

Toshia

5 months ago

Hmm, I'm a bit unsure about this one. I'll need to review the details more closely and make sure I understand the key factors at play before deciding on the best approach.

upvoted 0 times

...

Reta

5 months ago

This seems like a tricky question. I'll need to carefully consider the different options and think about the best way to address the concern while staying within the company's policies.

upvoted 0 times

...

Man

5 months ago

A) Explain that sourcing policies are set by corporate headquarters - that's the most straightforward approach. No need to get headquarters involved or change the policy.

upvoted 0 times