PASS GUARANTEED QUIZ 2025 L6M1: RELIABLE VALID STRATEGIC ETHICAL LEADERSHIP TEST COST

Pass Guaranteed Quiz 2025 L6M1: Reliable Valid Strategic Ethical Leadership Test Cost

Pass Guaranteed Quiz 2025 L6M1: Reliable Valid Strategic Ethical Leadership Test Cost

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CIPS L6M1 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Contrast the sources of power: This section targets Diversity and Inclusion Officers and analyzes how equality and diversity issues relating to the supply chain can be used to improve strategic effectiveness.
Topic 2
  • Understand and apply communication planning techniques: This section measures the skills of Communications Managers and focuses on evaluating influencing styles that can be used in the effective leadership of a supply chain. It covers implementing a vision of improved procurement, models for managing in different directions, and influencing styles for cross-functional leadership. A key skill measured is implementing a vision of improved communication.
Topic 3
  • Understand and apply methods to overcome leadership challenges: This section focuses on Conflict Resolution Specialists and contrasts the sources of power and how they can be used to overcome common challenges faced by procurement and supply chain leaders. It includes perspectives on individual power and organizational power.

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CIPS Strategic Ethical Leadership Sample Questions (Q29-Q34):

NEW QUESTION # 29
SIMULATION
Discuss two different types of power that could be used within the Procurement department of an organisation. Explain how procurement can use power responsibly to help the organization achieve its strategic objectives. (25 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - definition of power and Max Weber
P1 - charismatic power
P2 - rational/ legal
P3 - using power responsibly: training others, accountability/ setting procedures, ethical sourcing Conclusion - procurement has a lot of power in an organisation. The key to using power is 'balance' and using it responsibly Example Essay Power, in the context of organizations, refers to the ability of individuals or departments to influence decisions, actions, and outcomes. Max Weber, a German Sociologist, identified three types of power: charismatic, traditional, and rational/legal. In this essay, we will focus on two types of power relevant to the Procurement department - charismatic power and rational/legal power. Additionally, we will explore how Procurement can responsibly use these powers to help the organization achieve its strategic objectives.
Charismatic power refers to a type of influence or authority that is based on the personal qualities, charisma, and appeal of an individual leader. This form of power arises from the compelling and magnetic personality of a leader, which inspires and motivates followers to willingly and enthusiastically support their vision and goals. One well-known example of a charismatic leader is Steve Jobs, the co-founder of Apple. Charismatic leaders have the ability to inspire and motivate their followers to achieve goals that might seem challenging or even impossible. They often articulate a compelling vision for the future and communicate it in a way that resonates with others. Moreover, they exude confidence and enthusiasm, which can be contagious. Their passion and belief in their vision can energize and mobilize their followers. For this reason, this type of power is often linked with Transformational Leadership styles.
Rational/legal power is derived from established policies, procedures, and regulations that govern business processes. It relies on adherence to legal and ethical standards, ensuring fairness, transparency, and accountability. Rational/legal power is typically exercised in an impersonal and formal manner. Rather than being contingent on the personal qualities of an individual as with charismatic power, rational/ legal power is derived from a person's position within a formal organizational hierarchy. Weber associated rational/legal power with bureaucratic structures, where authority is distributed hierarchically, and individuals hold positions based on their qualifications, expertise, and adherence to established rules. For example, in the Procurement department of an organisation, the Head of Procurement would hold Rational/ Legal power through their ability to sign-off on the activities of others. This form of power emphasizes predictability and consistency in decision-making. Weber points out the downside to this type of power: that leaders with this type of power can be inflexible and rigid.
In an organisation, the Procurement department would use a mixture of charismatic and rational/ legal power in order to help the organisation achieve their strategic objectives. Some ways this could materialise include:
Training: Procurement can use a mixture of charismatic and rational power responsibly by providing training to other departments on aspects of procurement, especially compliance with legislation (which is critical in the public sector) and achieving value for money. This ensures that the organization's practices align with legal requirements and maximize cost-efficiency. Delivering training requires rational power (the training leader needs to know what they're talking about and have experience in this), but also charismatic power in order to engage learners. By training other departments, this will help the organisation achieve its strategic objectives.
Accountability and Reporting: Procurement can responsibly exercise rational/legal power by establishing clear accountability and reporting mechanisms. This includes ensuring that procurement decisions are documented, transparent, and in compliance with relevant laws and regulations. An example of this is creating Standard Operating Procedures, or ensuring Junior members of the team get approval from a Line Manager to conduct certain activities. This helps the organisation achieve strategic goals by eliminating (or significantly reducing) its exposure to risk.
Ethical Sourcing: Procurement can use power to address critical issues such as human trafficking within the supply chain. By setting and enforcing ethical sourcing standards, they contribute to responsible procurement practices. Procurement can use charismatic power to convince senior leadership and supply partners of the importance of ethical sourcing, and legitimate power to ensure that all stakeholders are complying with CSR policies. This could involve the use of gain-share mechanisms in contracts with supply partners.
In conclusion, Procurement departments wield considerable power within organizations, and the key to using this power is balance and responsibility. Charismatic and rational/legal powers can be harnessed to drive and achieve strategic objectives by ensuring ethical, compliant, and efficient procurement practices. By training, identifying vulnerabilities, and promoting responsible sourcing, Procurement contributes to the organization's overall success.
Tutor Notes
- You could bring in many different theories when describing two types of power. I've chosen two by Max Weber (he talks about 3 - charismatic, traditional and rational/ legal). But you could have used some from French and Raven (expert, legitimate, coercive, reward, referent) or Yukl (2010) - connection power and negative power. There are others too, these are just the main ones explored in the study guide
- A similar question was asked in March 22 but power is a big topic so may come up again, either with or without a case study. Another way they could use this topic is discussing ways of using the different power types to overcome issues.
- Weber's Types of Power - p. 171. How procurement can use power responsibly - p.177


NEW QUESTION # 30
SIMULATION
Michael is the new CEO of XYZ Ltd. He has recently joined the organisation which has been struggling financially and has issues with stakeholder communication. He is considering using the Democratic leadership approach. What are the advantages and disadvantages of this approach? Is this an appropriate style for Michael to adopt? (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Introduction
Leadership plays a crucial role in the success of an organization, especially when it is facing financial difficulties and stakeholder communication issues. The choice of leadership style significantly impacts employee morale, decision-making efficiency, and overall business performance. Michael, the new CEO of XYZ Ltd., is considering adopting the Democratic Leadership Approach to address these challenges.
This essay will examine the advantages and disadvantages of the Democratic Leadership Style and assess whether it is an appropriate leadership approach for Michael given the company's current challenges.
Understanding Democratic Leadership
Democratic leadership, also known as participative leadership, is a leadership style in which decision-making is shared between the leader and their team members. It encourages collaboration, open communication, and employee engagement, ensuring that various perspectives are considered before making strategic decisions.
Key Characteristics of Democratic Leadership
Inclusive Decision-Making - Employees and stakeholders are actively involved in decision-making.
Encourages Open Communication - The leader fosters a transparent and open communication culture.
Focus on Teamwork and Collaboration - Employees work together towards shared goals.
Emphasis on Employee Empowerment - Employees feel valued and are encouraged to contribute ideas.
Long-Term Strategic Thinking - Decisions are made collectively, considering long-term benefits.
Advantages of Democratic Leadership (10 Points)
1. Improved Employee Engagement and Morale
Employees feel valued and respected because they are included in decision-making processes.
This leads to higher motivation, job satisfaction, and productivity.
Example: In procurement, involving team members in supplier selection ensures better buy-in and accountability.
2. Better Decision-Making Through Diverse Perspectives
Employees at different levels of the organization contribute unique insights.
Encouraging open discussions can lead to better problem-solving and innovation.
Example: Engaging employees in financial turnaround strategies might lead to cost-saving ideas from the procurement or finance teams.
3. Strengthens Stakeholder Relationships and Communication
Democratic leadership improves communication with both internal stakeholders (employees, managers) and external stakeholders (investors, suppliers, customers).
By involving stakeholders in discussions, trust and cooperation are enhanced.
Example: Regular stakeholder meetings and open discussions on financial recovery plans can reduce uncertainty and resistance.
4. Encourages Creativity and Innovation
Employees are given the freedom to propose new ideas, leading to continuous improvement.
Example: In procurement, an inclusive approach might encourage supply chain digitalization or sustainable procurement strategies.
5. Builds a Positive Organizational Culture
A democratic leader promotes transparency, fairness, and ethical leadership.
This leads to a more positive work environment, reducing employee turnover.
Disadvantages of Democratic Leadership (10 Points)
1. Slow Decision-Making Process
Since multiple people are involved in decision-making, it takes longer to reach a consensus.
This can be problematic when quick decisions are required, especially in financial crisis situations.
Example: If XYZ Ltd. needs to immediately cut costs, too much discussion may delay urgent cost-saving measures.
2. Risk of Conflict and Disagreements
Open discussions may lead to conflicting opinions, making it difficult to find a common ground.
This can create delays and inefficiencies in procurement and financial strategies.
Example: If procurement and finance teams disagree on cost-cutting strategies, decision-making could be stalled.
3. Requires Skilled and Experienced Employees
Democratic leadership works best when employees are experienced, knowledgeable, and capable of making informed decisions.
If employees lack expertise, their contributions may lead to poor strategic choices.
Example: A procurement team without risk management experience might suggest suppliers without considering geopolitical risks.
4. Ineffective in Crisis Situations
In urgent situations where immediate action is required, democratic leadership may not be effective.
Leaders might need to make quick, authoritative decisions to stabilize the business.
Example: If XYZ Ltd. is on the verge of bankruptcy, Michael may need to quickly implement cost-cutting measures without waiting for employee consensus.
5. Potential for a Lack of Accountability
When decisions are made collectively, it may be unclear who is responsible for failures.
Employees may avoid taking responsibility, assuming others will handle problems.
Example: If a supplier selection decision fails, no single person may be held accountable.
Is Democratic Leadership Appropriate for Michael at XYZ Ltd.? (5 Points) Given the challenges at XYZ Ltd. (financial struggles and stakeholder communication issues), democratic leadership has both advantages and risks. Below is an assessment of whether this style is suitable for Michael:
Reasons Why Democratic Leadership is Suitable:
✅ Improves stakeholder communication - Since XYZ Ltd. struggles with stakeholder relations, a democratic approach can help build trust and collaboration.
✅ Boosts employee morale - Employees in a struggling company may feel demotivated. Involving them in decision-making increases engagement and motivation.
✅ Encourages innovative solutions - XYZ Ltd. may need creative financial recovery strategies, and a democratic approach could generate new cost-saving ideas.
Reasons Why Democratic Leadership May Not Be Ideal:
❌ Slow decision-making - XYZ Ltd. needs quick financial recovery decisions, which democratic leadership may delay.
❌ May cause internal conflicts - If stakeholders have conflicting ideas on financial strategies, it may slow down progress.
❌ Not effective in crisis management - Michael may need to make tough cost-cutting decisions quickly, which requires a more authoritative approach.
Recommended Approach for Michael:
Instead of adopting a purely democratic leadership style, Michael should consider a balanced approach:
Use democratic leadership for long-term strategic planning - Engage employees and stakeholders when designing long-term recovery strategies.
Adopt an authoritative approach for urgent financial decisions - If immediate cost-cutting or restructuring is needed, Michael should make firm, quick decisions.
Communicate decisions transparently - Even when making executive decisions, Michael should keep employees and stakeholders informed to maintain trust.
This blended leadership style (situational leadership) allows Michael to benefit from democratic leadership's advantages while ensuring quick decision-making when necessary.
Conclusion
Democratic leadership has several advantages, including improving communication, employee morale, and stakeholder relationships, all of which are beneficial for XYZ Ltd. However, it also slows decision-making and may cause conflicts, which can be problematic given the company's financial struggles.
Michael should adopt a situational leadership approach, combining democratic leadership for long-term strategic planning with authoritative leadership for urgent financial decisions. This will ensure that XYZ Ltd. recovers financially while maintaining transparency and employee engagement.
By balancing these approaches, Michael can lead XYZ Ltd. out of financial struggles while fostering a positive organizational culture.
Final Answer Structure for Maximum Marks (25 Points)
Introduction (3 Points) - Overview of the problem and introduction to democratic leadership.
Key Characteristics of Democratic Leadership (4 Points) - Explanation of democratic leadership style.
Advantages of Democratic Leadership (10 Points) - Five advantages with explanations and examples.
Disadvantages of Democratic Leadership (10 Points) - Five disadvantages with explanations and examples.
Suitability for Michael (5 Points) - Balanced evaluation of whether this leadership style is appropriate.
Conclusion (3 Points) - Summary and recommendation of situational leadership approach.


NEW QUESTION # 31
SIMULATION
Discuss internal and external sources of change (10 points). What is a Forcefield Analysis and how can this help a leader plan for change? (15 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Divide into two separate answers
1) Internal changes; personnel, systems, structure. External changes; STEEPLED and Porter - legislation, economy, technology, competitors.
2) Intro: what is a forcefield analysis? Explain how to do one. Then How can it help? Define objectives, impact on communication strategy Example Essay Change is a constant in the business world, and organizations must adapt to various internal and external forces to remain competitive and relevant. Understanding the sources of change is crucial for managing transformations effectively. In this essay, we will explore the distinction between internal and external sources of change and discuss how they impact personnel, processes, and company structure.
Sources of Internal Change within a Business:
People Changes: Changes in personnel, such as hiring, firing, promotions, and retirements, can have a profound impact on an organization. New hires may require training and onboarding, potentially affecting productivity during the transition. Terminations or layoffs may lead to temporary disruptions and workload adjustments for remaining employees. Moreover personnel changes can influence the organization's culture. New employees may bring different values and perspectives, while the loss of experienced employees can result in a shift in the workplace culture. Promotions and changes in leadership positions can influence decision-making, team dynamics, and the overall direction of the organization.
Systems Changes: Implementing or modifying systems, including software, technology, or operational procedures, can significantly affect how an organization operates. Well-planned systems changes can lead to increased operational efficiency, reduced errors, and improved decision-making, but employees may need time to adapt to new systems, potentially causing a temporary decrease in productivity. Moreover, systems changes can impact data storage, retrieval, and analysis, influencing how information is utilized within the organization.
Company Structure Changes: Altering the organization's structure, including hierarchies, departments, or reporting lines, can reshape how work is organized and executed. Employees who experience shifts in job roles, responsibilities, or reporting relationships, can affect job satisfaction and performance. It may also require adjustments in communication processes, potentially impacting the flow of information within the organization. A well-designed company structure can enhance efficiency and adaptability, while a poorly structured one may lead to inefficiencies and bureaucracy.
Sources of External Change Impacting a Business:
Legislation Changes: Changes in laws and regulations can have immediate and long-term consequences for businesses. Adapting to new regulations may require financial investments in compliance measures, training, or legal counsel. Businesses may need to modify processes and practices to ensure adherence to updated legal requirements. Companies that can proactively adapt to legislative changes may gain a competitive advantage by being compliant and avoiding penalties. An example of this is the upcoming changes to Public Sector Procurement Regulations which will take place in 2024, following the UK's departure from the EU.
Economic Changes: Economic shifts, such as recessions, inflation, or economic growth, can affect an organization's financial health and market position. Economic downturns can lead to decreased consumer spending and reduced revenue, requiring cost-cutting measures like layoffs or budget reductions. Conversely economic growth can present new market opportunities, prompting expansion, product diversification, or investment in research and development. Economic fluctuations can also disrupt supply chains, affecting inventory management, pricing, and delivery times.
Technological Changes: Rapid advancements in technology can drive changes in how businesses operate and compete. Embracing technological advancements can enhance operational efficiency, reduce costs, and improve customer experiences. Employees may require training to adapt to new technologies, and organizations may need to invest in digital infrastructure. Technology-driven innovations can disrupt traditional industries and create new competitive threats or opportunities. For example the music industry has seen huge changes in the past 10 years due to the increasing popularity of streaming platforms such as Apple Music and Spotify.
Competitor Actions: Actions taken by competitors, such as new product launches, marketing campaigns, or market entries, can influence an organization's market share and strategy. This may require adjustments in pricing, product offerings, or marketing strategies. An organisation should look at Porter's 5 Forces and STEEPLE analysis to fully understand potential external sources of change.
In the dynamic business environment, both internal and external sources of change play significant roles in shaping organizations. Recognizing these sources of change and effectively managing them are essential for organizations to succeed.
Forcefield Analysis
Lewin's Force Field Analysis is a valuable tool that can help a leader plan for change by providing a structured framework for understanding the forces at play in an organization when considering a change initiative. Developed by psychologist Kurt Lewin in 1951, this model helps leaders assess the driving forces that promote change and the restraining forces that resist it.
Identifying Driving and Restraining Forces:
Driving Forces: These are factors that push for change and support the desired change initiative. Identifying these forces helps leaders understand what is propelling the organization toward change. Examples of driving forces include market opportunities, customer demands, and performance improvement goals.
Restraining Forces: These are factors that oppose or hinder change. Recognizing these forces is crucial as they represent obstacles that need to be addressed or overcome. Restraining forces can include employee resistance, existing processes, or budget constraints.
Assessing the Balance:
After identifying driving and restraining forces, leaders can assess the balance between them. This analysis provides a clear picture of the overall readiness for change within the organization. If driving forces outweigh restraining forces, it suggests a favourable environment for change, while an imbalance in the other direction may require more effort to gain buy-in and overcome resistance.
Prioritizing Action Steps:
Once the forces are identified and their balance is assessed, leaders can prioritize action steps accordingly. For driving forces, leaders can focus on leveraging them further and ensuring that they continue to support the change. For restraining forces, strategies can be developed to mitigate or overcome them. This may involve addressing concerns, providing training, or reallocating resources.
How this can help a leader plan for change:
Force Field Analysis provides a foundation for developing a comprehensive change management plan. Leaders can use the insights gained to structure the plan, including defining specific objectives, timelines, and key performance indicators (KPIs) to measure progress.
Understanding the forces at play allows leaders to tailor their communication and engagement strategies. They can target communication efforts toward addressing the concerns and motivations of employees, stakeholders, and other relevant parties. By addressing restraining forces through effective communication, leaders can build support for the change.
The analysis doesn't end with the initiation of change; it continues throughout the change process. Leaders can continuously monitor the balance of forces and adjust their strategies as needed. If new restraining forces emerge or driving forces weaken, the change plan can be adapted accordingly to maintain momentum.
In summary, Lewin's Force Field Analysis provides leaders with a structured approach to understanding the dynamics of change within an organization. By identifying driving and restraining forces, leaders can better plan, execute, and manage change initiatives, ultimately increasing the likelihood of successful implementation and achieving desired outcomes.
Tutor Notes
- I have split my answers here and clearly signposted this to the examiner. A top tip is to consider the examiner's first look at your essay. By doing this, they can clearly see within the first 10 seconds that I've understood the question and I've answered all parts. It's a way to set yourself up for success. So, use all the headings and spacings you can. I don't think you can use bold in the exam, but you could use capital letters instead.
- A way to improve on the above would be to give more examples. For the Forcefield analysis you could talk about a potential change at company X being the introduction of a new product line, and say what the forces for and against would be. This would really hammer-home to the examiner you know your stuff.
- Sources of change - p. 224 (note the study guide says internal sources are people, structure and processes, I used the word system in my essay above rather than processes but it's the same thing). External sources of change are anything from STEEPLED and Porter. Remember the question is only worth 10 points, so 3 or 4 internal and 3 or 4 internal is more than enough. Don't do a full STEEPLED. You don't have time.
- Forcefield analysis is p. 232


NEW QUESTION # 32
SIMULATION
Zainab is a Procurement Manager and has recently taken on 10 new staff members, taking the size of her team from 10 to 20. Discuss the process of learning that the new members of the team may go through as they start their new roles (15 points). Explain different learning styles she may find in members of her team, relating your answer to one academic model (10 points).

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Understanding the Learning Process and Learning Styles in a Procurement Team As a Procurement Manager, Zainab is responsible for onboarding 10 new team members, doubling the size of her team from 10 to 20. As these new employees begin their roles, they will go through a structured learning process to develop the necessary skills and knowledge. Additionally, each individual may have a different learning style, requiring Zainab to tailor her training approach.
Part 1: The Process of Learning for New Procurement Staff (15 Points)
New employees in Zainab's procurement team will typically go through the following learning stages, based on the Four Stages of Competence Model:
1. Unconscious Incompetence (Not Knowing What They Don't Know)
At this stage, the new hires are unaware of what they need to learn and may overestimate their abilities.
Example: A new procurement assistant may not realize the complexity of supplier negotiations or compliance requirements.
Zainab's Role:
✔ Provide clear job descriptions and introduce new employees to procurement policies.
✔ Use mentoring or shadowing to expose them to real-world tasks.
2. Conscious Incompetence (Realizing the Knowledge Gap)
As they begin working, new team members become aware of their lack of knowledge and skills.
Example: A recruit may struggle to use procurement software or understand supplier evaluation criteria.
Zainab's Role:
✔ Offer structured training programs (e.g., workshops on procurement software).
✔ Allow safe spaces for mistakes and learning.
3. Conscious Competence (Developing Skills with Effort)
New employees start applying their knowledge but still require concentration and practice.
Example: A team member can conduct supplier due diligence, but needs to double-check procedures.
Zainab's Role:
✔ Provide feedback and constructive coaching.
✔ Assign small, real-world tasks to build confidence.
4. Unconscious Competence (Mastering the Skills Automatically)
At this stage, the employee can perform tasks efficiently without much conscious effort.
Example: A procurement officer can analyze supplier bids instinctively, applying best practices without hesitation.
Zainab's Role:
✔ Encourage employees to mentor new hires in the future.
✔ Offer career development opportunities (e.g., CIPS qualifications).
Part 2: Learning Styles in the Team (10 Points)
Different team members will have different learning styles, which means Zainab must tailor her training to accommodate them. A useful model to understand these differences is Kolb's Learning Styles Model (1984), which identifies four learning styles:
1. Activists (Learn by Doing)
Prefer hands-on experiences and practical exercises.
Example: A new team member learns best by participating in live supplier negotiations.
Training Approach:
✔ Use role-playing exercises and real procurement tasks.
2. Reflectors (Learn by Observing and Thinking)
Prefer to watch, analyze, and review before taking action.
Example: A procurement analyst might prefer to observe meetings before participating.
Training Approach:
✔ Provide case studies and post-task reflection sessions.
3. Theorists (Learn by Understanding Concepts and Models)
Prefer structured explanations, data, and frameworks.
Example: A procurement team member might want to study CIPS frameworks before implementing them.
Training Approach:
✔ Use lectures, whitepapers, and structured presentations.
4. Pragmatists (Learn by Applying Knowledge to Real Problems)
Prefer practical solutions and immediate application.
Example: A procurement officer may experiment with supplier cost models in real contracts.
Training Approach:
✔ Use real-world
SIMULATIONs and problem-solving exercises.
Conclusion
New employees in Zainab's procurement team will progress through stages of competence, requiring structured learning, coaching, and hands-on experience. By recognizing different learning styles (based on Kolb's model), Zainab can tailor training to ensure maximum engagement and skill development. This will help her team become efficient, confident, and competent procurement professionals.


NEW QUESTION # 33
SIMULATION
Explain how Modern Slavery is a risk to a supply chain and possible ways a Supply Chain Manager can mitigate this risk (25 points)

Answer:

Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - modern slavery is an issue due to complex international supply chains P1 - risk - subcontracting or outsourcing P2 - risk - lack of visibility P3 - risk - other countries not having strong laws against it P4 - mitigate - supplier due diligence P5 - mitigate - traceability e.g. blockchain P6 - mitigate - training P7 - mitigate - collaboration and reporting P8 - example - DJ Houghton Conclusion - modern slavery is risk legally and ethically and also to business reputation Example Essay Modern slavery, a grave violation of human rights, poses a significant risk to supply chains across the globe. As organizations increasingly rely on complex and globalized supply networks, the risk of unwittingly engaging with suppliers that exploit forced labour and human trafficking becomes ever more concerning. This essay explores the risks associated with modern slavery in the supply chain and suggests possible mitigation strategies for supply chain managers. To illustrate the real-world implications of these risks, I will reference the legal case of Antuzis & Ors v DJ Houghton Ltd.
Modern slavery, which includes practices like forced labour and human trafficking, can infiltrate supply chains in various ways. One significant entry point is through subcontracting and outsourcing. As supply chains become increasingly complex, organizations often rely on subcontractors and suppliers further down the chain. Unfortunately, these lower-tier suppliers may engage in exploitative labour practices to cut costs, which can go unnoticed by the primary organization.
Moreover, the lack of transparency within supply chains poses a considerable risk. Limited visibility into sub-tier suppliers and subcontractors makes it challenging to assess their labour practices. This lack of transparency creates opportunities for modern slavery to thrive undetected, posing a significant risk to organizations and their stakeholders.
Additionally, globalization plays a role in the risk equation. Sourcing materials and products internationally increases the risk of encountering suppliers operating in regions with weaker labour protections and lax enforcement of anti-slavery laws. This is particularly true in countries with less stringent child working laws such as in South East Asia.
Supply chain managers play a crucial role in identifying and mitigating the risk of modern slavery in the supply chain. Several strategies can be employed to address this risk effectively:
Firstly, comprehensive supplier due diligence is paramount. This involves conducting thorough assessments of suppliers, including lower-tier suppliers, to evaluate their labour practices, compliance with anti-slavery laws, and adherence to ethical standards. It also entails implementing regular audits and inspections of suppliers to ensure compliance with labour laws and ethical standards. An organisation can employ a third party to conduct these audits, to ensure that the results are authentic.
Secondly, establishing transparency and traceability within the supply chain is essential. This can be achieved by meticulously mapping the supply chain, identifying potential risks, and ensuring visibility into lower-tier suppliers. Modern technology, such as blockchain and supply chain management software, can be instrumental in tracking and tracing the origins of products and materials.
Thirdly, organizations should develop and communicate a robust supplier code of conduct that explicitly prohibits modern slavery and outlines the consequences for non-compliance. Encouraging suppliers to adopt similar codes of conduct within their own operations can help create a network of ethical supply chain partners.
Moreover, regular risk assessments and impact analyses are critical. These assessments should consider geographical, industry-specific, and supplier-specific factors and help organizations understand the potential consequences of modern slavery-related risks on their reputation and bottom line.
Training and education are also essential components of mitigation strategies. Employees and suppliers should be educated on identifying and reporting instances of modern slavery, and awareness should be raised about the legal and ethical obligations surrounding this issue.
Lastly, collaboration and reporting are crucial. Organizations should collaborate with industry associations, NGOs, and government bodies to share best practices and improve industry-wide efforts against modern slavery. Transparent reporting on efforts to mitigate modern slavery risks demonstrates a commitment to addressing the issue and fosters trust with stakeholders.
The case of Antuzis & Ors v DJ Houghton Ltd serves as a stark reminder of the potential legal consequences of failing to address modern slavery in the supply chain. In this case, the court found that the company, DJ Houghton Ltd, had subjected workers to deplorable working conditions, effectively amounting to modern slavery. What sets this case apart is that the court held the directors personally liable for breaches of their duty of care to the workers. This case underscores the legal liabilities and reputational damage that organizations and their leadership can face if they neglect their responsibilities in the supply chain.
In Conclusion, modern slavery poses a significant risk to supply chains, jeopardizing ethical values, legal compliance, and corporate reputations. Supply chain managers have a crucial role in identifying and mitigating this risk by implementing due diligence, transparency measures, and ethical standards. By taking proactive steps to combat modern slavery, supply chain managers can protect their organizations and copyright their moral and legal obligations in an increasingly interconnected global economy. The case of Antuzis & Ors v DJ Houghton Ltd serves as a compelling reminder of the real-world consequences of failing to address this critical issue Tutor Notes
- The case study mentioned above is an excellent one to use in an essay about Modern Slavery. DJ Houghton Ltd was charged £1m in 2016 for trafficking migrant workers from Lithuania to various egg farms in the UK. They were subjected to inhumane conditions, income below minimum wage, they failed to provide adequate facilities to eat, wash and rest, and threatened workers with fighting dogs. The company's Gangmaster Licence was also revoked. Antuzis & Ors v DJ Houghton Ltd | Addleshaw Goddard LLP
- Your answer may also make reference to ethical standards and accreditations such as Fair Trade, using the CIPS Code of Conduct, Modern Slavery Act, having a strong CSR policy, appointing an ethical Ombudsman, ILO Conventions and the 2018 Decent Work Agenda, SA8000. Mentioning these extra bits would likely get you a distinction.


NEW QUESTION # 34
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