L4M4 practice question 11 of 25
A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance. Should the company go ahead with the recommendation?
Full set: 293 questionsImplementing an ISO environmental standard, such as ISO 14001, provides a structured framework for an organisation to manage its environmental responsibilities. This directly supports the achievement of sustainability goals by promoting resource efficiency, waste reduction, and improved environmental performance throughout the supply chain. While concerns about complexity and supplier resistance are valid management challenges, they do not negate the fundamental benefit of aligning procurement practices with strategic sustainability objectives. The standard is designed to be scalable for organisations of any size.
B. ISO standards are designed to be adaptable and scalable; while they require effort, they are not inherently "too complex" for a medium-sized company.
C. This is factually incorrect. ISO standards like ISO 14001 are applicable to any organisation, regardless of its size, type, or industry.
D. ISO 14001 requires a commitment to legal compliance, but certification itself is not a legal guarantee of 100% compliance at all times.
1. Chartered Institute of Procurement & Supply (CIPS). (2018). Ethical and Responsible Sourcing (L4M4). Profex Publishing. pp. 115-117. (Discusses ISO 14001 as a key framework for environmental management systems).
2. International Organization for Standardization. (2015). ISO 14001:2015 Environmental management systems — Requirements with guidance for use. Section 1: Scope. (States the standard is applicable to any organization, regardless of size, type and nature).
3. L. M. B. C. M. Lysons, K., & Farrington, B. (2020). Procurement and Supply Chain Management (10th ed.). Pearson. Chapter 10, "Sustainable Procurement," discusses how environmental management systems like ISO 14001 help organisations manage their environmental impact.
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