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| Certification Vendor: | CIPS (Chartered Institute of Procurement & Supply) |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Passing Score: | 50% |
| Exam Duration: | 120 minutes |
| Certificate Validity Period: | No fixed expiry (qualification remains valid once achieved) |
| Exam Price: | Varies by region and assessment center (typically ~£70–£120 per module) |
| Exam Format: | Computer-based exam, Multiple choice questions, Scenario-based questions |
| Available Languages: | English |
| Real Exam Qty: | Approximately 60 questions |
| Recommended Training: | CIPS Study Hub CIPS Official Learning Resources |
| Exam Registration: | CIPS Exams and Assessment Information CIPS Official Qualifications Page |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based examination delivered via authorized test centers (e.g., Pearson VUE) and/or remote proctored options depending on region. |
| Pre Condition: | No formal prerequisites, but typically taken as part of CIPS Level 4 Diploma progression. Level 3 Diploma knowledge is recommended. |
| Official Syllabus URL: | https://www.cips.org |
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NEW QUESTION # 170
A buyer is considering trading with a new overseas supplier and wants to assess anti-bribery risks in that country. Which information sources would be useful? (Select TWO)
Answer: C,E
Explanation:
Local anti-corruption laws (A) provide insight into the legal framework and enforcement environment, while Transparency International (B) publishes the Corruption Perceptions Index and reports on bribery risks worldwide. These are reliable sources for assessing corruption levels and associated risks. UNSDGs set broad sustainability goals but not country-specific corruption risks. The ICC deals with arbitration, not anti-bribery.
ISO standards provide frameworks for compliance but do not analyse country risk. Responsible sourcing requires due diligence on governance environments to mitigate bribery risks and comply with anti-corruption legislation such as the UK Bribery Act.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethical risk, corruption, and international frameworks.
NEW QUESTION # 171
Incoterms are divided into four main groups to follow the movement of goods covering the exporter's premises, export and import points, and cost and risk. Which letters represent the four groups of Incoterms?
Answer: C
Explanation:
Incoterms are grouped as E (Ex Works), F (Free Carrier), C (Carriage Paid To), and D (Delivered Duty Paid), reflecting various stages of responsibility transfer between buyer and seller. Understanding Incoterms is critical for responsible sourcing, as it clarifies logistics and cost responsibilities.
NEW QUESTION # 172
Which is an example of a criterion for supplier selection during a tender for a hospital build to demonstrate the people element of the 'triple bottom line'?
Answer: C
Explanation:
The 'people' element of the triple bottom line focuses on social responsibility, including fair labor practices and community engagement. A supplier's demonstrated commitment to a labor industry code of conduct indicates adherence to ethical labor standards, such as fair wages, safe working conditions, and respect for workers' rights, aligning with the social sustainability goals of the project.
Exact Extract from Study Guide:
"The triple bottom line - profit, people and planet
* Adopt sustainable practices, standards and specifications in the supply chain
* Consider the social impact of the organisation's behaviours
* Design procurement processes to deliver social outcomes as well as, or as an alternative to, normal economic measures of value"
NEW QUESTION # 173
A procurement manager for a major retail group is using ratio analysis to assess the financial viability of suppliers who have tendered for a logistics services tender. The recommended supplier has a current ratio of
0.6. What are the potential consequences of awarding the contract to this supplier, given their current ratio is below 1?
Answer: B
Explanation:
A current ratio below 1 suggests that the supplier may not have sufficient current assets to cover short-term liabilities, which could pose a risk to the buyer. Assessing financial stability aligns with responsible sourcing practices, as it ensures suppliers can fulfill contracts without disruption.
NEW QUESTION # 174
Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?
Answer: D
Explanation:
Incorporating ESG requirements into contractual terms is a valid and increasingly common approach. It ensures that suppliers are contractually obligated to adhere to specific environmental, social, and governance standards, aligning with the buyer's commitment to responsible sourcing. This practice not only promotes ethical behavior but also mitigates risks associated with non-compliance, such as reputational damage or legal penalties.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."
NEW QUESTION # 175
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L4M4 Reliable Test Pattern: https://www.examdiscuss.com/CIPS/exam/L4M4/
2026 Latest ExamDiscuss L4M4 PDF Dumps and L4M4 Exam Engine Free Share: https://drive.google.com/open?id=1yYf-qigqYm_OcstJKxkQNroOJOAja9tM