In supplier management, what is meant by 'duty of care'

• A. Responsibility to ensure suppliers meet legal, ethical, and safety standards to protect stakeholders.
• B. Focusing primarily on price when selecting suppliers.
• C. Ensuring suppliers comply only with financial audits.
• D. Guaranteeing on-time delivery regardless of standards.

Answer: (A)

Duty of care in supplier management means you have to act with reasonable care to prevent harm by ensuring suppliers meet legal, ethical, and safety standards that protect stakeholders such as customers, employees, and communities. It involves due diligence in selecting suppliers, clear contractual requirements for compliance, ongoing monitoring and audits, and taking corrective action when standards aren’t met. This responsibility goes beyond simply choosing the lowest price or focusing only on financial audits; it ensures that the entire supply chain upholds rights, safety, and regulatory compliance. Even timeliness matters only insofar as it’s achieved without compromising these commitments.