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| Certification Vendor: | CIPS (Chartered Institute of Procurement & Supply) |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Exam Price: | Varies by region and assessment center (typically ~ยฃ70โยฃ120 per module) |
| Exam Duration: | 120 minutes |
| Available Languages: | English |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Passing Score: | 50% |
| Certificate Validity Period: | No fixed expiry (qualification remains valid once achieved) |
| Exam Format: | Computer-based exam, Scenario-based questions, Multiple choice questions |
| Real Exam Qty: | Approximately 60 questions |
| Recommended Training: | CIPS Study Hub CIPS Official Learning Resources |
| Exam Registration: | CIPS Official Qualifications Page CIPS Exams and Assessment Information |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based examination delivered via authorized test centers (e.g., Pearson VUE) and/or remote proctored options depending on region. |
| Pre Condition: | No formal prerequisites, but typically taken as part of CIPS Level 4 Diploma progression. Level 3 Diploma knowledge is recommended. |
| Official Syllabus URL: | https://www.cips.org |
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NEW QUESTION # 141
Credit rating agencies can assist procurement professionals. Typically, which of the following can be obtained from a credit rating agency report? Select TWO that apply.
Answer: B,C
Explanation:
Payment history and financial stress scores provide insights into a supplier's financial health and stability.
This information is crucial for procurement professionals in assessing whether a supplier can fulfill long-term commitments, supporting responsible sourcing by mitigating financial risks.
NEW QUESTION # 142
When conducting an ABC analysis- what category of items and type of suppliers would you typically find in the A category?
Answer: A
Explanation:
A Category spend is high value and strategic suppliers. C category is low value, high volume of spend aka tail spend. The bits in the middle are B category.
For example when you have a baby you have to buy lots of stuff for it. Your A spend is the big, important and expensive purchases like the pram, cot, carseat. You spend a lot of time in this category because they're important purchases you want to get right. The Tail Spend / C are all the little bits like nappies, baby shampoo, sippy cups. The B category are the bits in between - the purchases are kinda important but aren't as strategic or important as A category. Toys may fall into this category.
NEW QUESTION # 143
A procurement manager suggests implementing an ISO environmental standard to improve procurement practices. Some colleagues worry about complexity and resistance. Should the company proceed?
Answer: A
Explanation:
ISO environmental standards (e.g., ISO 14001) provide a structured framework for managing environmental responsibilities. They support sustainability goals by embedding continual improvement, legal compliance, and stakeholder trust. They are relevant to organisations of all sizes and sectors, not just large firms. While they do not automatically guarantee compliance, they enhance systematic control, training, and supplier engagement. Resistance and complexity can be overcome with phased implementation and awareness- building. CIPS emphasises that adoption of recognised standards demonstrates responsible sourcing, aligns with CSR strategies, and reassures stakeholders about commitment to sustainability.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - standards, sustainability frameworks, ISO principles.
NEW QUESTION # 144
A company's balance sheet will show you which of the following?
Answer: C
Explanation:
a balance sheet shows 'equity, assets and liabilities'. The other financial statements you need to know for this exam are cash flow statements and and income statements.
If you're not familiar with these three I strongly recommend you do some further reading on this before the exam if you can. This is helpful: How the 3 Financial Statements are Linked Together - Step by Step (corporatefinanceinstitute.com)
NEW QUESTION # 145
Tulip Rose Industries is using a restricted approach to tendering for a new contract for the facilities management of their seven factories which produce furniture made of organic materials. What is likely to be the reason they are using a restricted approach?
Answer: A
Explanation:
you would use a restricted approach when interest is likely to be high. The buyer needs a method of de-selecting unsuitable bidders and creating a shortlist of acceptable organisations.
For complex requirements you could use both an open or restrictive tender- the difference between the approaches is about how many bids you're likely to get rather than the complexity of it.
NEW QUESTION # 146
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