Question 3 (Marks: 30) Read the extract below based on Woolworths and answer the questions that follow. ETHICAL SOURCING

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Question 3 (Marks: 30) Read the extract below based on
Woolworths and answer the questions that follow. ETHICAL SOURCING
FOR WOOLWORTHS Together with our suppliers, we strive to operate in
a way that respects worker rights, maintains safe working
conditions, and protects the environment and the welfare of
animals. HERE'S HOW WE'RE SOURCING RESPONSIBLY: • Woolworths is a
member of the Better Cotton Initiative (BCI), a global enterprise
which aims to create long-term change by helping farmers grow
cotton in a way that reduces stress on the local environment and
improves the livelihoods of farming communities. Woolworths is
committed to sourcing 100% of our cotton as ‘more sustainable
cotton’ by 2020. ‘More sustainable’ means Better Cotton and Organic
Cotton. • All our suppliers, service providers and franchisees are
bound by our Woolworths Code of Business Principles. This means
that the quality of their workmanship must be the highest, their
workforce must be treated fairly, their premises must be safe and
that any negative impact their operations may have on the
environment is minimised. Woolworths is also a member of
SEDEX, a unique non-profit innovative web-based platform, helping
companies to manage ethical supply chain risks. • We’re also
working with NGO and partner, Canopy, to shift the fabric supply
chain towards practices that protect the world’s remaining ancient
and endangered forests and endangered species habitat. • As part of
our packaging strategy, we have committed to sourcing packaging
material from well-managed and/or controlled sources. These
materials are easily identifiable by the Forest Stewardship Council
(FSC™) logo that simply means piece of packaging (the sleeve, box,
carton, tray, bag, etc.) is made with paper or board from
well-managed forests and other responsible sources. FSC™ chain of
custody certification means that the material is tracked through
the production process - from the forest to the consumer and has
been independently certified. • Several years ago, we set about
transforming the cocoa used in our chocolate by sourcing UTZ
certified cocoa. UTZ provides assurance that the cocoa has been
grown and harvested responsibly. The programme ensures that farmers
learn to improve the quality and yield of their cocoa while
reducing their impact on the environment and enabling them to take
better care of their families. • Woolworths was the first South
African company to become a member of the global Roundtable on
Sustainable Palm Oil (RSPO) and has been working with suppliers and
local refineries to create the demand and develop the market for
sustainable palm oil since 2011. We are actively working with
suppliers to develop time-bound plans to switch to sustainable palm
oil, and already have several major suppliers using ‘mass balance’
certified sustainable palm oil. In 2018, Woolworths launched South
Africa’s first locally made product ranges bearing the RSPO
certification logo, including the WBeauty “Longmarket” soap range
and all Woolworths ready-made, frozen and hot counter pies. Source:
Woolworths: Ethical Sourcing, Woolworths Corporate website.
[Online]. Available at:
https://www.woolworths.co.za/corporate/cmp205999 [Accessed 15
February 2022].
Q.3.1 Explain the first three steps of the supplier
selection process and relate each step to Woolworths. (12)
Q.3.2 There are three types of buyer-supplier relationships that
an organisation can engage in.
Q.3.2.1 Explain the three types of buyer-supplier relationships
using original practical examples for each.
Note: • You are to explain the factor in your own words.
• More marks will be awarded for providing an original example
not found in your prescribed textbook or Learn. (12)
Q.3.2.2 Based on the three types of buyer-supplier
relationships, identify which relationship Woolworths has with its
suppliers. Justify your response by discussing at least two key
points. (6)