Question 18

Explanation

The correct answers are:

• Demanding kickbacks or bribes

• Having unclear or unfair tender award criteria

Explanation: Kickbacks or bribes are illegal payments or incentives that are given to a buyer in exchange for preferential treatment or improper services. Suppliers who are ethical and law-abiding would avoid doing business with buyers who demand such payments, as they would risk legal consequences, reputational damage, and unfair competition. Kickbacks also increase the cost of doing business and reduce the quality of goods and services.

Unclear or unfair tender award criteria are another factor that can discourage suppliers from participating in a procurement process. Suppliers need to know the rules and expectations of the bidding process, and how their proposals will be evaluated and compared. If the criteria are vague, ambiguous, or biased, suppliers may lose confidence in the transparency and integrity of the buyer and may suspect favouritism or corruption. Unclear or unfair criteria can also lead to disputes and complaints from unsuccessful bidders.

The other practices are more likely to make a buying organisation more attractive to suppliers, because:

• Adopting clear and concise CSR policies shows that the buyer is committed to ethical, social, and environmental responsibility, and expects the same from its suppliers. This can enhance the buyer’s brand image, attract more customers, and foster long-term relationships with suppliers who share the same values and goals.

• Using SRM technology to streamline processes can improve the efficiency and effectiveness of the procurement function, and reduce the administrative burden and costs for both buyers and suppliers. SRM technology can also facilitate communication, collaboration, and coordination between buyers and suppliers, and enable better performance monitoring and feedback.

• Reducing paperwork and bureaucracy in procurement processes can also benefit both buyers and suppliers, as it can save time, resources, and hassle. Paperwork and bureaucracy can create delays, errors, and confusion, and hinder the agility and responsiveness of the procurement function. Reducing paperwork and bureaucracy can also increase the transparency and accountability of the procurement process, and reduce the risk of fraud and corruption.

Reference: CIPS study guide page 54-56/ New syllabus 2024

LO 1, AC 1.3