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CIPS L4M4 Exam Syllabus Topics:

SectionObjectives
Understand compliance issues when sourcing from suppliers- Regulatory and legal compliance
- Anti-bribery and anti-corruption measures
- Ethical sourcing and corporate social responsibility (CSR)
- Modern slavery and human rights in supply chains
- Codes of conduct and ethical standards
- Sustainability and environmental considerations
- Global sourcing considerations and Incoterms
Understand options for sourcing of requirements from suppliers- Insourcing vs outsourcing decisions
- Factors influencing sourcing decisions
- Single, dual and multiple sourcing
- Sourcing strategies and approaches
Understand the key processes that can be applied to the analysis of potential external suppliers- Risk assessment in supplier selection
- Supplier appraisal and evaluation methods
- Supplier audits and due diligence
- Use of Request for Information (RFI), Request for Proposal (RFP) and Request for Quotation (RFQ)
- Financial analysis of suppliers

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CIPS Ethical and Responsible Sourcing Sample Questions (Q156-Q161):

NEW QUESTION # 156
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?

Answer: A

Explanation:
The most effective way to demonstrate zero tolerance is by embedding a comprehensive anti-bribery framework: clear policies, mandatory staff and supplier training, reporting channels, and monitoring. Simply requesting suppliers' policies or avoiding known offenders is reactive, not proactive. Requiring suppliers to read policies without internal enforcement lacks substance. CIPS highlights that robust governance structures, supported by recognised frameworks such as the UK Bribery Act or FCPA, reinforce organisational credibility, protect reputation, and ensure compliance. This builds trust across supply chains and ensures ethical standards are maintained.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ethics, anti-bribery and corruption frameworks.


NEW QUESTION # 157
Which of the following are signs that modern-day slavery might be taking place within the supply chain?
Select THREE.

Answer: A,D,E

Explanation:
The correct answers are; suspiciously low labour costs, workers living on site and poor quality products (as this signals that the workforce may be unskilled).
A low score on the CPI is a good thing (high scores are more likely to signify slavery concerns) and just because someone speaks English as a second language doesn't mean you automatically need to be suspicious.
That would be prejudice.


NEW QUESTION # 158
Which models would be appropriate for analysis of the supply market?
* Porter's Five Forces
* Porter's Value Chain
* STEEPLED
* Ishikawa Fishbone

Answer: B

Explanation:
Porter's Five Forces and the STEEPLED model are valuable tools for analyzing supply markets. These models help identify external pressures and market dynamics, supporting responsible sourcing by enabling buyers to understand and respond to market influences effectively.


NEW QUESTION # 159
Which of the following is not a type of fraud that procurement professionals should be vigilant for?

Answer: A

Explanation:
Coercion is not a type of fraud. The other three are.


NEW QUESTION # 160
Which beneficial outcomes would result from a procurement decision to change supply to alocal sourcefor a services contract?
Select TWO that apply.

Answer: B,E

Explanation:
Sourcing services locally can deliversocial and economic benefits, including the creation oflocal employment opportunitiesandeconomic stimulation within the community. Local suppliers often reinvest in the local economy, supporting regional development and social value objectives. While reduced environmental impact may occur, it is not guaranteed for services, and contract management requirements remain regardless of supplier location. Ethical and responsible sourcing encourages consideration of social value outcomes, particularly where procurement decisions can positively impact local communities and stakeholders.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - social value; local sourcing benefits.


NEW QUESTION # 161
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