Logistics Purchasing Management Exam Review

A collection of flashcards designed to help students prepare for the Logistics Purchasing Management exam by reviewing key concepts and definitions.

What are ethics, morals, and beliefs in relation to logistics purchasing management?

Ethics refers to principles guiding conduct; morals are individual beliefs regarding right and wrong; beliefs are convictions about truth without empirical evidence.

What is the primary goal of Corporate Governance?

To enhance long-term shareholder value while ensuring transparency, accountability, and fairness in all company operations.

How do ethics impact stakeholder relationships in logistics management?

Ethical behavior fosters trust, strengthens relationships, and can lead to better collaborations and mutual respect between stakeholders.

What distinguishes ethical standards from professional standards?

Ethical standards provide moral guidelines for behavior, while professional standards set industry-specific criteria for performance and conduct.

Define Corporate Fraud.

Corporate fraud is a deceptive practice involving the manipulation of financial information for personal or organizational gain.

What is Corporate Social Responsibility (CSR) in logistics purchasing management?

CSR involves ethical obligations organizations have towards society and the environment, ensuring procurement practices benefit society while being sustainable.

List two legal aspects of Corporate Governance that relate to logistics and procurement.

1. Compliance with the Companies Act, 2008 regarding responsibilities of directors; 2. Adherence to the King IV Report on ethical leadership and stakeholder inclusivity.

How can social responsibility be integrated into logistics purchasing management?

By ensuring supplier diversity, ethical sourcing, and supporting local communities, while maintaining supply chain resilience.

What is the role of the Board of Directors in Corporate Governance?

The board oversees management and represents shareholders, providing strategic guidance and monitoring executive decisions.

Why is understanding corporate fraud significant in logistics management?

It helps identify risks, promotes ethical conduct, and protects the organization’s reputation, enhancing trust with stakeholders.