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CIPS L4M4 Exam Syllabus Topics:

Section	Weight	Objectives
Topic 1: Understand options for sourcing requirements from suppliers	25%	- Sourcing approaches and strategies 1. Domestic vs international sourcing 2. Insourcing, outsourcing and offshoring 3. Single, multiple and sole sourcing - Tendering and selection processes 1. Award criteria and evaluation methods 2. Open, restricted and negotiated procedures
Topic 2: Understand ethical and responsible sourcing principles and practices	25%	- Ethical frameworks and concepts 1. Fairness, integrity and accountability 2. CIPS Code of Ethics 3. Conflict of interest and transparency - Sustainable and responsible sourcing 1. Audit, monitoring and improvement 2. Social, environmental and economic impact 3. Supplier development and collaboration
Topic 3: Understand compliance issues when sourcing from suppliers	25%	- Legislative and regulatory requirements 1. Labour laws, human rights and anti-corruption 2. Environmental regulations and sustainability 3. Ethical standards and codes of conduct - Organisational policies and procedures 1. Governance and accountability frameworks 2. Code of ethics and professional conduct
Topic 4: Understand key processes to analyse potential external suppliers	25%	- Supplier appraisal and evaluation 1. Financial stability and risk assessment 2. Quality and performance standards 3. Technical and operational capability - Market analysis and intelligence 1. Supplier capacity and capability assessment 2. Collecting and interpreting market data

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CIPS Ethical and Responsible Sourcing L4M4 Prüfungsfragen mit Lösungen (Q38-Q43):

38. Frage
Which of the incoterms listed are suitable for transporting goods via train?

A. EXW
B. FOB
C. FAS
D. CRF

Antwort: A

Begründung:
EXW- exworks is a suitable incoterm for transporting goods both by rail and boat. It can be used regardless of the mode of transport.
The other three are for transport over water. P. 143 Shipping Incoterms: the Complete Guide - Guided Imports Some students report a lot of questions on Incoterms in the exam, some say they only had 1. Best bet is to learn them if you possibly can.

39. Frage
Why is it specifically important for public sector organisations to use a competitive tendering process?

A. Increase competition in markets
B. To drive down costs of production
C. Value for money and transparency
D. To allow all organisations to tender

Antwort: C

Begründung:
Public sector organisations are required to demonstratevalue for money, transparency, and fairnessin the use of public funds. Competitive tendering ensures procurement decisions are objective, auditable, and based on pre-defined criteria. While competition and market access are benefits, the primary obligation is to ensure taxpayer money is spent responsibly and ethically. Competitive tendering reduces the risk of corruption, bias, and inefficiency, supporting accountability to stakeholders and the public. Ethical and responsible sourcing in the public sector is therefore closely linked to transparent procurement processes and regulatory compliance.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - public sector procurement principles, transparency and value for money.

40. Frage
Luke has sent out a Request for Information to test the waters of the supply market for a new product he is sourcing. He has received a high number of detailed documents back from suppliers. Which of the following is Luke now likely to know about the marketplace? Select THREE

A. acceptable lead times
B. amount of product competition
C. expected changes in the marketplace
D. samples of the product
E. exact costs of the item he's procuring

Antwort: A,B,C

Begründung:
The correct answers are; lead times, product competition and changes in the marketplace.
You wouldn't expect to receive samples or costings from a Request for Information - rather, these should be expected as part of the Tender Competition

41. Frage
Which of the following are key areas of regulations that govern organisations in responsible procurement and supply?

A. Competitive pricing, unsecured business loans and threats of new entrants
B. Ethical practice, data protection and marketplace competition
C. Digitisation, artificial intelligence and innovations
D. Company culture, product branding and staff uniforms

Antwort: B

Begründung:
Responsible procurement and supply are governed by several key regulatory areas to ensure ethical and fair practices. These include:
* Ethical Practice:Ensures that organisations conduct business in a manner that is ethical and free from corruption.
* Data Protection:Involves safeguarding personal and sensitive information, ensuring compliance with laws such as the General Data Protection Regulation (GDPR).
* Marketplace Competition:Ensures fair competition among businesses, preventing monopolies and promoting consumer choice.
These areas are critical in maintaining integrity, trust, and compliance within procurement activities.
Exact Extract from Study Guide:
"Key areas of regulation that organisations must follow include data protection, ethical practice, health, safety and environment, worker rights, marketplace competition, and product safety standards."

42. Frage
A buyer of bakery products sees wheat shortages due to poor harvests but demand remains high. How does this affect negotiation?

A. Buyer will find it difficult to negotiate lower prices
B. Prices will not be affected by shortages as demand is high
C. Bakery produce will be lower priced as less wheat is available
D. Buyer is in a strong position to reduce prices

Antwort: A

Begründung:
In commodity markets, shortages combined with sustained demand drive price increases. The buyer loses bargaining power, as suppliers can charge higher rates. Negotiating downward is unrealistic; instead, buyers should manage risk through hedging, forward contracts, or alternative sourcing. CIPS notes that responsible sourcing requires understanding market dynamics and their ethical implications (e.g., food security, affordability). The organisation must manage stakeholder expectations about pricing rather than assume negotiation leverage. This reflects the implications of market volatility in global supply chains.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - commodity market dynamics, supply
/demand, and negotiation position.

43. Frage
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