Quiz 2026 L4M4: Valid Ethical and Responsible Sourcing Book Free

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
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 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.
Topic 4
  • Understand the key processes that can be applied to the analysis of potential external suppliers:

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CIPS Ethical and Responsible Sourcing Sample Questions (Q245-Q250):

NEW QUESTION # 245
Intra-company trading allows business units within a large enterprise to supply goods or services to another.
What are the likely objectives of intra-company trading?
Enhances production capacity utilisation
Offsets some of the fixed costs of the supplying entity
Compensates the supplying unit for the less effective technology applied Ensures internal technology always out-performs that of external suppliers

Answer: A

Explanation:
Intra-company trading aims to optimize internal resources by enhancing production capacity utilization and offsetting fixed costs. By supplying goods or services internally, organizations can achieve economies of scale and better allocate resources. However, compensating for less effective technology or ensuring superior internal technology over external suppliers are not primary objectives of intra-company trading.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.1.2: Make or buy decisions and the role of intra-company trading


NEW QUESTION # 246
Robert is appraising suppliers and is keen to evaluate suppliers' contribution to the community and the environment. Which of the following should Robert look at?

Answer: C

Explanation:
Robert should look at the supplier's ESG policy. This stands for Environmental Social Governance. So covers both his requirements for community (social) and environmental factors.
ISO 9001 is about Quality Management and ISO27000 about Information Security so these are in-correct answers. An Anti-Slavery Policy would not discuss the environment.


NEW QUESTION # 247
"Phishing" occurs when an employee receives a false email that appears genuine, exposing the organisation to cybercrime. Which crime category does this fall under?

Answer: D

Explanation:
Phishing is a form of fraud, where deception is used to gain financial advantage or access to sensitive data. It is not corruption (misuse of power), bribery (offering inducements), or a human rights issue. Procurement professionals must be alert to fraud risks in supply chains, including cyber-enabled risks such as phishing and invoice fraud. Responsible sourcing extends to protecting organisational data and finances against such attacks, often through robust controls, training, and supplier verification procedures.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - fraud, corruption, and ethical risks in supply chains.


NEW QUESTION # 248
AirFreight Ltd is a rapidly growing organisation and has employed a consultant to review its expenditure on bought-in goods and services. The highest value of expenditure is vehicle livery, which the organisation classifies asstrategic importance.
How can this information help the consultant decide on the procurement strategy?

Answer: C

Explanation:
Strategic, high-value categories requiregreater management attention, as they have a significant impact on organisational performance, brand image, and risk exposure. A collaborative relationship allows for innovation, quality improvement, continuity of supply, and alignment with ethical and sustainability objectives. Low-value or non-critical categories are more suited to transactional or arm's length relationships.
Ethical and responsible sourcing requires procurement resources to be prioritised according tovalue and strategic importance, ensuring high-risk categories receive appropriate governance and supplier engagement.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - category management; strategic vs non-critical spend.


NEW QUESTION # 249
Which of the following should be assessed in supplier proposals to check compliance with environmental, social, and governance (ESG) standards? Select THREE that apply.

Answer: A,B,E

Explanation:
Employee working conditions, a code of ethics, and a carbon emissions policy are all indicative of a supplier's commitment to ESG standards. Assessing these factors aligns with responsible sourcing practices, which prioritize sustainability and ethical considerations.


NEW QUESTION # 250
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