What is a Sustainable Policy

The video tutorial discusses the importance of organizational policies, focusing on sustainability in procurement. It explains procurement policies, emphasizing the integration of social and environmental criteria alongside financial considerations. The tutorial outlines principles of sustainable procurement, including environmental, social, and economic impacts. It provides steps to build sustainable policies, such as setting cost thresholds and creating decision matrices, to ensure long-term benefits and accountability.

What is the primary purpose of a procurement policy within an organization?

• To reduce the cost of goods

• To regulate goods and services and maintain standards

• To promote international trade

• To increase the number of suppliers

Which of the following is NOT a principle of sustainable procurement?

• Considering environmental impacts

• Supporting suppliers with social responsibility

• Avoiding unnecessary consumption

• Focusing solely on the lowest price

What should be considered from an economic standpoint in sustainable procurement?

• Only the upfront cost

• The lifecycle cost including operations and maintenance

• The cost of raw materials

• The cost of labor

What is a key step in building a sustainable procurement policy?

• Eliminating all trade-offs

• Setting a cost threshold for sustainable options

• Ignoring internal policy settings

• Focusing only on environmental benefits

Why is it important to consider lifecycle costs in procurement decisions?

• To ensure the cheapest initial purchase

• To minimize the need for repairs and replacements

• To maximize supplier profits

• To reduce the number of suppliers