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CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Exam Price:	$185.69
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Passing Score:	70%
Exam Format:	Multiple Selection Questions, Multiple Choice Questions (MCQ)
Available Languages:	English
Certificate Validity Period:	N/A
Exam Duration:	90 minutes
Real Exam Qty:	60
Sample Questions:	CIPS L4M4 Sample Questions
Exam Way:	Computer-based exam at CIPS accredited exam centre
Pre Condition:	No mandatory pre-requisites, but candidates are typically working towards or enrolled in the CIPS Level 4 Diploma in Procurement and Supply.
Official Syllabus URL:	https://www.cips.org/students/level-4-diploma

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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 2	Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 3	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 4	Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.

CIPS Ethical and Responsible Sourcing Sample Questions (Q143-Q148):

NEW QUESTION # 143
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

A. they will not achieve KPIs
B. they may coach staff in what to say
C. they will not be able to make that time and date
D. they will not perform regular duties that day

Answer: B

Explanation:
A risk of pre-planning an audit is the supplier has time to prepare for it. It's a good thing in that they can get their paperwork in order but the downside is they can overprepare so you don't get a realis-tic representation of what they're doing. One way they can do this is coaching staff in what to say to the auditors.

NEW QUESTION # 144
A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

A. No- a low gearing suggests that the company is financed by long-term debt rather than equity
B. Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily
C. No- a low gearing shows you that a company isn't likely to be profitable
D. Yes- a low gearing ratio means the company's finances are made up of equity rather than debt

Answer: D

Explanation:
the correct answer is 'Yes- a low gearing ratio means the company's finances are made up of equity rather than debt'.
Remember low gearing = good (based on equity), high gearing = bad (based on debt). Anything over 50% is considered high.
The two no answers are therefore incorrect and you can discount these straight away. The other yes answer is one of those answers which COULD be true, but isn't always true, and we'd need more information to know for sure. When you get options like this there will be one that is always right and one which is sometimes right - so always pick the always right one.
Dealing with supply chain disruptions is complex, and depending what the disruption is, how big it is, what the industry is etc determines whether a supplier can handle it or not. Because there's more factors to consider than just gearing, this isn't the right answer.

NEW QUESTION # 145
A buyer has been working with managers on a tender and is now assessing supplier proposals. Is it good practice for the procurement buyer to make sourcing recommendations?

A. No, it is a lengthy and unnecessary step for the procurement buyer
B. Yes, the procurement buyer can advise on the proposals, but decisions should involve business managers
C. No, the buyer's recommendations are not relevant; only managers decide
D. Yes, the procurement buyer should decide independently to avoid conflict of interest

Answer: B

Explanation:
Good governance in procurement requires collaboration. The buyer provides expertise in sourcing methods, evaluation, and compliance with procurement rules, but decisions should also involve business managers who understand operational needs. Acting independently could cause conflict and undermine accountability.
Conversely, leaving all decisions to managers risks bypassing procurement expertise. The best practice is for procurement to advise and recommend, while engaging stakeholders in final award decisions, ensuring transparency, fairness, and shared accountability. This balances compliance with ethical sourcing requirements and operational business needs.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - roles and responsibilities in procurement governance.

NEW QUESTION # 146
Tracey Collum is a procurement professional and married to Nick Collum.
Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids.
After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems.
Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?

A. Remove Supplier X from the tender due to a conflict of interest and continue with the tender
B. Award the contract to Supplier X because Tracey can ask for a better price because they are married
C. Award the contract to Supplier X because Nick will be promoted if Supplier X wins the contract
D. Ask to be removed from the tender due to a conflict of interest and complete a conflict of interest form

Answer: D

Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.

NEW QUESTION # 147
What information would you expect to find on a supplier's response to a 'Request for Information'? Select TWO

A. their marketing strategy
B. detailed information regarding their costing structure
C. their capability and capacity to fulfil a contract
D. their ethical and sustainability policies

Answer: B,C

Explanation:
A RFI typically finds the following information from potential suppliers; ethical and sustainability policies and their capacity / capability to fulfil a contract. It could also include financial position, mission and vision.

NEW QUESTION # 148
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