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Managing Ethical Procurement and Supply Version: Demo [ Total Questions: 10] Web: www.dumpscafe.com Email: support@dumpscafe.com CIPS L5M5 https://www.dumpscafe.com https://www.dumpscafe.com/Braindumps-L5M5.html IMPORTANT NOTICE Feedback We have developed quality product and state-of-art service to ensure our customers interest. If you have any suggestions, please feel free to contact us at feedback@dumpscafe.com Support If you have any questions about our product, please provide the following items: exam code screenshot of the question login id/email please contact us at and our technical experts will provide support within 24 hours.support@dumpscafe.com Copyright The product of each order has its own encryption code, so you should use it independently. Any unauthorized changes will inflict legal punishment. We reserve the right of final explanation for this statement. CIPS - L5M5Pass Exam 1 of 6Verified Solution - 100% Result A. B. C. D. A. B. C. D. E. Question #:1 Which of the following is NOT part of the UN’s 17 Sustainable Development Goals? End poverty in all its forms, everywhere Reduce inequality within and among countries Take urgent action to combat climate change Eradicate unethical business practices Answer: D Explanation The UN’s form the 2030 Agenda for Sustainable Development. 17 Sustainable Development Goals (SDGs) They cover areas such as , , and . ending poverty (A) reducing inequality (B) combatting climate change (C) However, is one of the listed goals. The L5M5 study guide (p.eradicate unethical business practices (D) not 4) stresses that while business ethics are important, the SDGs are broader, covering social, environmental, and economic development priorities. Procurement professionals should be able to identify the SDGs, as supply chain policies are increasingly aligned with them to support global sustainability efforts. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.4Reference: Question #:2 What forms of organisation form the Ethical Trading Initiative (ETI)? Select THREE Private businesses Public sector businesses Governments NGOs Trade Unions Answer: A D E Explanation The is a leading alliance focused on improving working conditions in Ethical Trading Initiative (ETI) global supply chains. The L5M5 study guide (p.260) explains that ETI membership comprises: Private businesses (such as retailers and brands), Non-Governmental Organisations (NGOs), and CIPS - L5M5Pass Exam 2 of 6Verified Solution - 100% Result A. B. C. D. A. B. C. D. Trade Unions. This tripartite approach enables collaboration between commercial, labour, and social interests to improve standards. Governments are not direct members, although their legislation can influence ethical trading. Public sector bodies may adopt ETI principles but are not core members. ETI’s Base Code, founded on ILO conventions, outlines key principles including no forced labour, freedom of association, and fair working conditions. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.260Reference: Question #:3 What is a monopsony? There is only one supplier of a good There is only one buyer of a good There is only one product available in the market There is only one market to sell the good in Answer: B Explanation A exists when there is only in a market but multiple sellers. For example, in the monopsony one buyer defence industry, a government may be the sole buyer of military equipment such as submarines. This contrasts with a , where only one seller dominates the market. The L5M5 study guide (p.127) monopoly explains that monopsony can create power imbalances, as the buyer holds significant leverage over suppliers, potentially leading to unfair contract terms. Ethical procurement requires recognising such risks and ensuring that dominant buyers do not exploit suppliers unfairly. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.127Reference: Question #:4 Porter’s concept of “Creating Shared Value” combines CSR with what other action? Marketing Philanthropy Philosophy Economics Answer: B CIPS - L5M5Pass Exam 3 of 6Verified Solution - 100% Result A. B. C. D. A. B. C. Explanation Porter’s concept integrates with Creating Shared Value (CSV) Corporate Social Responsibility (CSR) , meaning that companies can generate economic value while simultaneously creating social philanthropy (B) value for communities. The L5M5 study guide stresses that businesses can strengthen competitiveness while advancing social and economic conditions where they operate. Unlike traditional philanthropy, CSV embeds social impact into core business strategy rather than being a peripheral activity. Procurement professionals can apply this by selecting suppliers who deliver both economic efficiency and community benefits. # Managing Ethical Procurement and Supply (L5M5) Study Guide, section on CSR and shared Reference: value Question #:5 Ruben is buying new machinery for his factory. He chooses a more expensive option after considering ESG factors. Why might this be? The higher-priced item will be of better quality The higher-priced item is from a more reputable company In terms of life-cycle costing, the more expensive item may be cheaper in the long term The more expensive item will be more environmentally friendly Answer: C Explanation Procurement often considers rather than upfront cost alone. The L5M5 Whole Life Cycle Costing (WLCC) study guide (p.7) explains that while a product may be more expensive initially, it may be cheaper in the due to lower maintenance costs, greater durability, and reduced energy use. This approach supports long term sustainability by balancing financial and environmental impacts. Options A, B, and D cannot be assumed from the scenario since no evidence supports them. WLCC ensures procurement delivers long-term value, aligning with sustainability goals. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.7Reference: Question #:6 Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this? External audit Third-party audit Compliance audit CIPS - L5M5Pass Exam 4 of 6Verified Solution - 100% Result D. A. B. C. D. A. B. C. Benchmarking audit Answer: C Explanation A evaluates whether an organisation adheres to compliance audit regulatory requirements, security . The L5M5 study guide (p.207) highlights that this is policies, and internal risk management procedures distinct from (conducted by outsiders), (commissioned independently), external audits third-party audits and (comparing against industry peers). Procurement professionals must use benchmarking audits compliance audits to ensure suppliers meet legislative and regulatory standards, reducing risks of non- compliance, fines, and reputational damage. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.207Reference: Question #:7 Which of the following statements is TRUE about the adjudication form of dispute resolution? Select TWO It is an informal process It is quicker than going through the courts A decision must be made within 28 days The decision cannot be legally binding Answer: B C Explanation Adjudication is a , widely used in construction and supply disputes. The L5M5 study formal ADR method guide (p.237) outlines its key features: it is designed to be and legally requires faster than court proceedings that a decision is reached within of referral. Decisions made can also be legally binding. Contrary to 28 days option A, adjudication is not informal; it follows structured legal processes. Option D is also incorrect, as adjudicator decisions may carry binding authority unless overturned later in arbitration or litigation. The process ensures disputes are resolved promptly, preventing long projectdelays. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.237Reference: Question #:8 Which of the following is a disadvantage of the ISO14001 standard? It is different across industries Environmental targets are not set by ISO CIPS - L5M5Pass Exam 5 of 6Verified Solution - 100% Result C. D. A. B. C. D. Organisations are mandated to have an Environmental Policy All companies use this for greenwashing Answer: B Explanation ISO14001 is an international standard for environmental management systems. According to the L5M5 study guide (p.277), one disadvantage is that ; instead, ISO does not set environmental performance targets itself it requires organisations to define their own targets. This means some organisations may set very easy or minimal goals, limiting actual environmental improvement. Option A is incorrect as ISO14001 applies consistently across industries. Option C is a requirement, not a disadvantage. Option D is an overgeneralisation—while some firms misuse it for "greenwashing," many genuinely use it to improve sustainability. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.277Reference: Question #:9 What is the purpose of an IPO (International Procurement Organisation)? To encourage all organisations to move operations abroad To identify the most cost-effective manufacturers across the world To facilitate transport logistics To run background checks on potential international supply partners Answer: B Explanation The role of an is to provide sourcing intelligence to International Procurement Organisation (IPO) companies operating globally. The L5M5 study guide (p.66) explains that IPOs identify the most cost- , enabling buyers to reduce operational expenses and increase efficiency. effective manufacturers worldwide They do not force organisations to relocate operations (A), nor are they primarily focused on logistics (C). While due diligence may be part of supplier selection, running background checks (D) is not the main purpose of an IPO. In practice, IPOs support centralised sourcing strategies and leverage international supplier markets to achieve best value. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.66Reference: Question #:10 Sandra, CEO of a manufacturing firm, is introducing an ESG Policy. Employees may resist this. What is the most likely reason? CIPS - L5M5Pass Exam 6 of 6Verified Solution - 100% Result A. B. C. D. ESG policies could signify reduced profits for the company This may signify changes in the way the business operates Lower stakeholder returns Negative publicity Answer: B Explanation Employee resistance to ESG policies typically arises because they may require changes to existing practices . The L5M5 study guide (p.6) notes that employees often resist change, particularly if it and operations disrupts established ways of working. While reduced profits (A) or stakeholder returns (C) may concern senior executives, they are less relevant to employee resistance. ESG policies usually enhance reputation, not create negative publicity (D). Procurement professionals must manage change carefully by engaging employees and suppliers, ensuring they understand the long-term benefits of ESG practices. # Managing Ethical Procurement and Supply (L5M5) Study Guide, p.6Reference: About dumpscafe.com dumpscafe.com was founded in 2007. We provide latest & high quality IT / Business Certification Training Exam Questions, Study Guides, Practice Tests. We help you pass any IT / Business Certification Exams with 100% Pass Guaranteed or Full Refund. Especially Cisco, CompTIA, Citrix, EMC, HP, Oracle, VMware, Juniper, Check Point, LPI, Nortel, EXIN and so on. View list of all certification exams: All vendors We prepare state-of-the art practice tests for certification exams. You can reach us at any of the email addresses listed below. 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