CIPS MODULE 1 – EXPLAIN KEY ASPECTS OF CORPORATE
GOVERNANCE OF PROCUREMENT OR SUPPLY CHAIN
FUNCTION – 3.1
Define the following terms
Corporate Governance
Stakeholders
Cod of ethics - ANSWER The mechanisms, procedures and processes that are
used to control and direct an organisation
An individual or group of individuals with an interest in an organisation,
employees, customers, community
A document detailing acceptable behaviour within an organisation
Describe what is meant by corporate governance? - ANSWER The system of
standards, procedures, and policies by which an organisation is controlled. It is
a framework that is created around the organisations values and objectives
Focuses on making organisations, effective, efficient and successful and their
procedures and policies ethical
Aims to govern and control the actions of stakeholders. The policies contain the
roles and expectations of people within their organisation
, Ensure individuals don't take advantage of the organisation to gain an unfair
advantage
State the elements of corporate governance? - ANSWER Policies and
Procedures
Stakeholder Management and Board Accountability
Performance Management
Stakeholder Protection
Values and Ethics
Describe what is meant by conflicts of interests? - ANSWER This occurs
when a persons involvement within an organisation includes multiple interests
Interests could be financial or having a family member working within the
business, these may influence a persons behaviours in favour of their own gain
apposing loyalties
State examples of conflicts of interest and the possible outcomes of this? -
ANSWER A buyer having a close relationship with a procurement manager -
the buyer may be treated more favourably than others and rules not followed,
salary could be higher than others due to personal relationships
A buyer having a relationship with a subordinate or supplier - confidential
information could be disclosed, unprofessional conversations could be held in
the work place. Subordinate could receive favourable treatment
GOVERNANCE OF PROCUREMENT OR SUPPLY CHAIN
FUNCTION – 3.1
Define the following terms
Corporate Governance
Stakeholders
Cod of ethics - ANSWER The mechanisms, procedures and processes that are
used to control and direct an organisation
An individual or group of individuals with an interest in an organisation,
employees, customers, community
A document detailing acceptable behaviour within an organisation
Describe what is meant by corporate governance? - ANSWER The system of
standards, procedures, and policies by which an organisation is controlled. It is
a framework that is created around the organisations values and objectives
Focuses on making organisations, effective, efficient and successful and their
procedures and policies ethical
Aims to govern and control the actions of stakeholders. The policies contain the
roles and expectations of people within their organisation
, Ensure individuals don't take advantage of the organisation to gain an unfair
advantage
State the elements of corporate governance? - ANSWER Policies and
Procedures
Stakeholder Management and Board Accountability
Performance Management
Stakeholder Protection
Values and Ethics
Describe what is meant by conflicts of interests? - ANSWER This occurs
when a persons involvement within an organisation includes multiple interests
Interests could be financial or having a family member working within the
business, these may influence a persons behaviours in favour of their own gain
apposing loyalties
State examples of conflicts of interest and the possible outcomes of this? -
ANSWER A buyer having a close relationship with a procurement manager -
the buyer may be treated more favourably than others and rules not followed,
salary could be higher than others due to personal relationships
A buyer having a relationship with a subordinate or supplier - confidential
information could be disclosed, unprofessional conversations could be held in
the work place. Subordinate could receive favourable treatment
