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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Real Exam Qty: | 60 |
| Exam Format: | Scenario-based, Objective Response, Multiple Choice |
| Related Certifications: | L4M1 Scope and Influence of Procurement and Supply L4M5 Commercial Negotiation L4M8 Procurement and Supply in Practice L4M7 Whole Life Asset Management L4M2 Defining Business Need L4M3 Commercial Contracting L4M6 Supplier Relationships |
| Available Languages: | Chinese, Spanish, French, Arabic, English |
| Certificate Validity Period: | 3 years |
| Passing Score: | 70% |
| Exam Price: | USD 230 - 280 |
| Exam Duration: | 90 minutes |
| Recommended Training: | CIPS Approved Training Providers CIPS Official Study Guide & Learning Materials |
| Exam Registration: | CIPS Official Registration |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based online or on-site at authorized test centers |
| Pre Condition: | No formal prerequisites; suitable for professionals with 1–2 years of procurement experience or relevant education |
| Official Syllabus URL: | https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing |
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NEW QUESTION # 285
Tracey Collum is a procurement professional and married to Nick Collum. Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids. After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems. Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?
Answer: C
Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.
NEW QUESTION # 286
Which of the following is an advantage to the TUPE regulations?
Answer: B
Explanation:
Continuity of supply for the buying organisation is an advantage of TUPE regulations.
TUPE is the Transfer of Undertakings (Protection of Employment). It's when the workforce / em-ployees of one company go to work for another one, usually after their company is bought out. They're transferred to the new company along with the furniture and buildings.
TUPE is UK specific. You don't need to know too much details about it for this exam - just what it is and the benefits. The main benefit is people don't lose their jobs when their company gets bought out. Basic guide to TUPE (pinsentmasons.com)
NEW QUESTION # 287
Intra-company trading allows business units within a large enterprise to supply goods or services to another.
What are the likely objectives of intra-company trading?
Enhances production capacity utilisation
Offsets some of the fixed costs of the supplying entity
Compensates the supplying unit for the less effective technology applied Ensures internal technology always out-performs that of external suppliers
Answer: A
Explanation:
Intra-company trading aims to optimize internal resources by enhancing production capacity utilization and offsetting fixed costs. By supplying goods or services internally, organizations can achieve economies of scale and better allocate resources. However, compensating for less effective technology or ensuring superior internal technology over external suppliers are not primary objectives of intra-company trading.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 1.1.2: Make or buy decisions and the role of intra-company trading
NEW QUESTION # 288
Which of the following are remedial actions that may be undertaken by the purchasing organisation following a supplier audit? Select the TWO that apply.
Answer: C,E
Explanation:
Defining corrective actions and running supplier development programs are effective remedial actions following an audit. These approaches support continuous improvement, aligning with responsible sourcing by helping suppliers meet ethical and performance standards.
NEW QUESTION # 289
A procurement manager is undertaking a financial due diligence of potential suppliers.
Which of the following financial elements are used in the calculation ofgearing?
Select TWO that apply.
Answer: A,B
Explanation:
Gearing is a measure of a supplier'slong-term financial riskand indicates the proportion of debt used to finance the organisation compared with equity. It is calculated usinglong-term debt (such as long-term loans)in relation toshareholders' equity (ordinary share capital). High gearing suggests greater reliance on borrowed funds, increasing the risk of financial instability and potential supply disruption. Cost of sales and operating costs relate to profitability, while current liabilities are short-term obligations assessed through liquidity ratios, not gearing. Procurement professionals must understand gearing when conducting financial due diligence to ensure suppliers are financially sustainable and capable of meeting long-term contractual commitments.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - Financial appraisal of suppliers; gearing and solvency analysis.
NEW QUESTION # 290
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