CIPS L5M5 Test Assessment & New L5M5 Study Notes
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CIPS L5M5 Exam Syllabus Topics:
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New L5M5 Study Notes - New L5M5 Exam Questions
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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q30-Q35):
NEW QUESTION # 30
Green Book Ltd wants to include ESG measures in contracts. Which of the following is not an ESG performance measure?
- A. ED&I (Equality, Diversity & Inclusion)
- B. Waste reduction
- C. Social value
- D. On time in full delivery
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.194) confirms that On Time In Full (OTIF) delivery is a standard performance metric but is not an ESG measure. ESG measures include waste reduction (E), social value (S), and ED&I (S), which assess ethical, social, and environmental responsibilities. Procurement professionals must distinguish between operational KPIs and sustainability-focused KPIs to ensure contracts drive both efficiency and ethical responsibility.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.194
NEW QUESTION # 31
Forced labor, including all forms of modern slavery, remains a significant issue affecting many supply chains. Procurement professionals and suppliers must collaborate to effectively eliminate forced labor. Which of the following strategies can procurement professionals use to address forced labor practices?
1. Boycotting the goods produced from modern slavery
2. Inclusion of anti-slavery and human trafficking clauses in contracts
3. Training for employees and suppliers to raise awareness of slavery issues
4. Treat all women and men fairly at work
- A. 4 and 1
- B. 2 and 3
- C. 1 and 2
- D. 2 and 4
Answer: B
Explanation:
Choice 2- Inclusion of anti-slavery and human trafficking clauses in contracts requires a supplier to guarantee that it complies with anti slavery policy and performs due diligence on its own suppliers. Thus is the correct answer.
Choice 3- Providing education on the signs of forced labor and human trafficking can empower both employees and suppliers to recognize and report such practices. This is also an answer.
Incorrect answer:
Choice 1- Boycotting the goods produced from modern slavery is a role of the consumer and not a procurement professional.
Choice 4- Treat all women and men fairly at work is related to equality in a workplace and does not concern forced labor practices.
Reference:
LO-1.3; Page 91; Labor standards and working practices
NEW QUESTION # 32
What are the two ways an item can be labelled as "Fair Trade" by the WFTO? Select TWO
- A. Audit route
- B. Integrated supply chain route
- C. Product certification route
- D. Manufacturer route
Answer: B,C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The World Fair Trade Organisation (WFTO) recognises Fair Trade items through either the product certification route (A), where only the product is certified, or the integrated supply chain route (C), where the entire supply chain is Fair Trade compliant. The L5M5 study guide (old p.223, new p.300) emphasises that these approaches provide flexibility for businesses while ensuring ethical standards are upheld. Manufacturer route (B) and audit route (D) are not official WFTO pathways. Procurement professionals should understand these routes when sourcing ethically certified goods.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.300
NEW QUESTION # 33
Which of the following form the 'Triple Bottom Line'? Select THREE
- A. Product
- B. Profit
- C. Planet
- D. Placement
- E. People
Answer: B,C,E
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The concept of the Triple Bottom Line (TBL), also referred to as the "3Ps," is a framework that assesses organisational success through People, Planet, and Profit. These dimensions highlight the balance between social equity (people), environmental stewardship (planet), and economic performance (profit). According to the CIPS L5M5 study guide (p.3), procurement and supply professionals are expected to incorporate sustainability into decision-making processes, ensuring that business practices do not only create economic value but also deliver positive social and environmental impacts. "Product" and "Placement" are not part of the TBL model, as they are marketing-related concepts, not sustainability measures. This principle ensures procurement strategies align with corporate responsibility and long-term sustainable growth.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.3
NEW QUESTION # 34
Scenario:
Apor is an online retailer of clothing and shoes. It sells four different fashion product lines:
Product 1: Apor has achieved competitive advantage on this product line by producing clothing cheaply. This has been achieved through investment in advanced manufacturing technology, which allows items to be made more cheaply than competitors.
Product 2: Apor is marketing to a younger customer segment for this product and has developed unique features that appeal to teenagers in particular.
Product 3: This product is a specialist type of shoe only purchased by professional dancers. Apor's strategy is to appeal to this small and specific customer segment, and it achieves advantage through low cost of manufacture. However, demand has been affected recently due to import duty and tax changes.
Product 4: The marketing slogan for this product is "Greener Clothing for the Planet". Although slightly more expensive than other ranges, Apor achieves advantage through the product's eco-friendly features, appealing to a smaller, specific segment.
Task:
For each product, match the correct Macro Environment Driver and the correct Source of Competitive Advantage.
Answer:
Explanation:
NEW QUESTION # 35
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