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Ensure Success In Exam With CIPS L5M5 PDF Questions

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CIPS L5M5 Exam Syllabus Topics:

Topic
Details

Topic 1

Understand initiatives and standards related to ESG (Environmental, Social, and Governance) that support ethical and sustainable procurement and supply: This section of the exam measures the skills of Procurement Leaders and covers the global frameworks and standards that shape ethical supply practices. It explores international labour standards set by organizations such as the UN and ILO, and labour codes like the Ethical Trading Initiative and SA800. Candidates also examine external environmental frameworks, industry accreditations, and their role in meeting ESG goals. Finally, this section addresses fair trade principles, organizations such as WFTO and Fairtrade International, and the need to align internal governance with global standards.

Topic 2

Understand the impact of ESG (Environmental, Social, and Governance) considerations on ethical and sustainable supply chains: This section of the exam measures the skills of Procurement Managers and covers how ESG principles are applied to secure ethical and sustainable supply chains. It looks at the role of environmental, social, and governance factors in procurement decisions, alongside risks and benefits of ESG adoption. Learners also explore issues such as modern slavery, bribery, and human rights, as well as the importance of diversity, inclusion, and stakeholder management. The section highlights how globalization, culture, and labour practices shape supply strategies and examines potential conflicts that may arise when balancing ESG priorities with business demands.

Topic 3

Understand the importance of compliance with ESG (Environmental, Social, and Governance) factors to achieve ethical and sustainable procurement and supply arrangements: This section of the exam measures skills of Supply Chain Specialists and covers methods to ensure compliance with ESG standards in procurement. It includes the use of supply chain mapping, risk management, stakeholder engagement, and contractual terms to secure sustainable practices. Candidates also learn how to monitor supplier performance, handle non-compliance, and utilize third-party auditors to maintain ethical standards. Relationship management strategies, corrective actions, and escalation processes are emphasized as part of ensuring suppliers meet ESG expectations.

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q28-Q33):

NEW QUESTION # 28
Labour standards facilitate international trade and there are international regulations to secure this. Is this statement TRUE?

A. Yes - labour standards are regulated by the UN and other multi-national bodies
B. No - no countries have established labour standards
C. No - labour standards vary from country to country
D. Yes - there is a minimum labour standard governing pay and conditions

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The correct answer is that labour standards vary from country to country. According to the L5M5 study guide (p.85), while international conventions exist (e.g., ILO conventions), there is no single binding international law regulating labour standards across all nations. Instead, each country enforces its own rules regarding wages, hours, and working conditions. Some countries have strict protections, while others may have weak or poorly enforced standards. Therefore, procurement professionals must apply due diligence and supplier audits when sourcing internationally, as ethical risks arise in jurisdictions with lower labour protections.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.85

NEW QUESTION # 29
Westecs Inc., a leading consumer products manufacturer, has made significant investments in sustainable practices across its supply chains and in promotional advertising. Which of the following is the most likely benefit of this investment?

A. Increased number of competitors
B. Unsatisfied shareholders
C. Reduced indirect costs
D. Improved brand image

Answer: D

Explanation:
Choice B- Investing in sustainable practices and promoting them effectively can enhance Westecs Inc.'s brand image. Consumers increasingly prefer brands that demonstrate a commitment to sustainability, which can lead to increased customer loyalty and market differentiation.
Incorrect answer:
Choice A- There is an increased spending in indirect costs such as ESG initiatives which is one of the risk of behaving sustainably thus is not a reward.
Choice C- This option is incorrect. Shareholders are typically more satisfied when a company invests in sustainability, as it often aligns with long-term profitability and risk management. However, if the investments are poorly managed or do not lead to expected returns, there could be dissatisfaction, but that is not a likely immediate reward.
Choice D- This option is incorrect. While investing in sustainability may attract new competitors to the market, it is not a direct reward of the investment. Instead, companies might find themselves in a more competitive landscape due to rising consumer demand for sustainable products, but this is not an immediate reward.
Reference:
LO-1.1; Page 28; The risks and rewards of adopting ESG considerations in securing ethical and sustainable procurement and supply arrangements

NEW QUESTION # 30
Which of the following is NOT one of the four fundamental principles and rights at work recognized by the International Labor Organization (ILO)?

A. Elimination of forced or compulsory labor
B. Equal pay for equal work
C. Freedom of association and the right to collective bargaining
D. Abolition of child labor

Answer: B

Explanation:
Choice C - Equal pay for equal work is important but is not one of the four fundamental principles of ILO. Thus is the correct answer.
All the other options are core categories of ILO.
Reference:
LO-3.1; Page 249; Standards set by the United Nations (UN) and the International Labor Organization (ILO)

NEW QUESTION # 31
The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?

A. No- it is not legally binding and there is no requirement to publish any progress reports
B. No- it is voluntary to join and not legally binding
C. Yes- reports must be filed regularly on process
D. Yes - it is voluntary to join, but it is legally binding once signed up

Answer: B

Explanation:

Reference: LO-3.1; Page 257; The role of the UN and ILO in pursuing improved ESG and Ethical standards

NEW QUESTION # 32
Which of the following best demonstrates how implementing ISO standards can result in direct cost savings?

A. Enhancing brand image and reputation in the global market
B. Artificial intelligence for predictive customer behavior analysis
C. Gaining new customers by showcasing compliance with international standards
D. Cloud-based document management systems for paperless operations

Answer: D

Explanation:
Option D- This is the correct answer, as cloud-based document storage systems reduce paper, printing, and storage costs. ISO standards often encourage sustainable practices like digitizing documents, which directly saves on operational costs related to printing and paper use.
Incorrect answer:
Option A- While AI can improve business efficiency and decision-making, it is more focused on optimizing customer engagement and marketing strategies. It does not directly lead to cost savings.
Option B- Improving brand image is a long-term strategic benefit but does not directly reduce costs. It may contribute to business growth but not immediate cost savings.
Option C- ISO certification can attract new customers and boost business credibility, but this is more about increasing revenue rather than reducing costs.
Reference:
LO-3.2; Page 277-278; The benefits and challenges of independent standards in securing ESG objectives in ethical and sustainable procurement and supply arrangements

NEW QUESTION # 33
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