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The CIPS L4M4 certification exam offers a great opportunity to advance your career. With the Ethical and Responsible Sourcing certification exam beginners and experienced professionals can demonstrate their expertise and knowledge. After passing the Ethical and Responsible Sourcing (L4M4) exam you can stand out in a crowded job market. The Ethical and Responsible Sourcing (L4M4) certification exam shows that you have taken the time and effort to learn the necessary skills and have met the standards in the market.
| Section | Objectives |
|---|---|
| Topic 1: Corporate Social Responsibility (CSR) | - Stakeholder expectations and governance - CSR frameworks and standards |
| Topic 2: Supply Chain Risk and Compliance | - Supplier compliance and monitoring - Managing ethical risks in sourcing |
| Topic 3: Responsible Sourcing | - Sustainability in supply chains - Social responsibility and human rights - Environmental considerations and impacts |
| Topic 4: Ethics in Procurement and Supply | - Principles of professional ethics - Codes of conduct and ethical decision-making |
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NEW QUESTION # 77
Which award criteria can be applied when sourcing requirements from external suppliers?
Answer: B
Explanation:
Responsible award decisions should consider price and total life-cycle cost (TCO) to capture acquisition, operation, maintenance, and end-of-life costs, aligning with sustainability. Other items may inform due diligence but are not, by themselves, robust award criteria without being translated into measurable value and risk outcomes.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - evaluation and award; TCO and sustainability in criteria setting.
NEW QUESTION # 78
ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?
Answer: D
Explanation:
ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From there, once they know what the breach is and how serious it is, they can suggest corrective action.
They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself but rather the subcontractor. Also that would be really hasty considering we don't know what the issue is and what the market conditions are like. That supplier may be the only one who can provide the product. We also don't know if the supplier knows about the issue themselves.
NEW QUESTION # 79
The procurement team at Grape Juice Limited often use a weighted point system when ap-praising potential suppliers. What is a disadvantage of using a weighted point system?
Answer: A
Explanation:
Weighted points systems can be time consuming to create. They're very transparent and allow for objective grading of supplier bids (so these answers are incorrect). They are not easy to manipulate and this is an advantage of using them.
NEW QUESTION # 80
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: D
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 # 81
In a negotiation, a supplier does not want to upset or offend the buyer, so concedes their own requirement in order to ensure harmony. Which negotiation tactic is the supplier using?
Answer: C
Explanation:
This is accommodating: the supplier puts the buyer's interest above his own.
This is from the Thomas Killman model of conflict resolution. There are 5 strategies; competitive, collaborative, avoiding, accommodating and compromising. In the study guide it doesn't mention the name of the model but you do need to know the 5 strategies. The model comes up a lot in other modules so is a good one to learn. Particularly L5M1 which is about management theory.
NEW QUESTION # 82
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