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CIPS L4M4 Exam Syllabus Topics:

SectionObjectives
Supply Chain Risk and Compliance- Supplier compliance and monitoring
- Managing ethical risks in sourcing
Responsible Sourcing- Social responsibility and human rights
- Environmental considerations and impacts
- Sustainability in supply chains
Corporate Social Responsibility (CSR)- CSR frameworks and standards
- Stakeholder expectations and governance
Ethics in Procurement and Supply- Principles of professional ethics
- Codes of conduct and ethical decision-making

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CIPS Ethical and Responsible Sourcing Sample Questions (Q215-Q220):

NEW QUESTION # 215
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?

Answer: A


NEW QUESTION # 216
Sourcing aims to achieve the best value for money by taking into account several factors. Freddy is sourcing a new component for his company which manufactures tractors. Should Freddy take into consideration ethics and sustainability?

Answer: C

Explanation:
"yes- ethics and sustainability form part of 'value for money' " is the correct answer.
There are several factors that represent value for money and these are listed on p.3. These include; price, delivery, quality, ethics, sustainability and availability.


NEW QUESTION # 217
Procurement professionals should never appoint suppliers with a low credit rating. Is this statement true?

Answer: D

Explanation:
A credit rating is a useful but limited indicator of financial health. It reflects a supplier's likelihood of meeting short-term obligations but may not capture context such as investment stage, government backing, or corrective strategies. Responsible sourcing requires holistic assessments, including liquidity ratios, profitability, gearing, and qualitative factors like market position and management capability. Automatically rejecting suppliers with lower scores can unnecessarily restrict competition or exclude SMEs in emerging markets. Instead, CIPS advocates proportional risk assessment and, where necessary, mitigation measures such as shorter contracts, phased payments, or guarantees.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - financial appraisal tools and their limitations.


NEW QUESTION # 218
Why would you use a credit score to appraise a supplier?

Answer: C

Explanation:
A credit rating generates a score which reflects 'the level of risk an organisation poses when dealing with other businesses'. It's saying how risky it is to loan them money or do business with them by looking at how good they are at paying people. So a high credit rating will say they're good at paying back their loans and paying their suppliers on time. A poor credit rating will say they often miss payments or pay late.
A credit rating will not tell you how much money they have, or details on their prices. Credit scores looks at purely financial data so wouldn't help you analyse whether their business practices are ethical or not.


NEW QUESTION # 219
A buyer might opt to do an Invitation to Tender (ITT) rather than a Request for Quotation (RFQ) because ...

Answer: D

Explanation:
ITT is appropriate for complex/high-value procurements needing detailed submissions and robust evaluation.
RFQ suits simple, well-specified, lower-value buys where price comparison is primary.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - sourcing procedures (RFI/RFQ/ITT) matched to complexity and risk.


NEW QUESTION # 220
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