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CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Exam Format:	Multiple Selection Questions, Multiple Choice Questions (MCQ)
Available Languages:	English
Passing Score:	70%
Real Exam Qty:	60
Exam Duration:	90 minutes
Certificate Validity Period:	N/A
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Exam Price:	$185.69
Sample Questions:	CIPS L4M4 Sample Questions
Exam Way:	Computer-based exam at CIPS accredited exam centre
Pre Condition:	No mandatory pre-requisites, but candidates are typically working towards or enrolled in the CIPS Level 4 Diploma in Procurement and Supply.
Official Syllabus URL:	https://www.cips.org/students/level-4-diploma

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CIPS L4M4 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2	Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 3	Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.
Topic 4	This section examines analyzing market data, obtaining quotations tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

CIPS Ethical and Responsible Sourcing Sample Questions (Q140-Q145):

NEW QUESTION # 140
What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

A. Allow the supplier to complete current orders placed, while pursuing an alternative source to change to as soon as approved
B. Immediately raise the issue with the supplier and jointly develop a timely action plan to be implemented before a repeat audit
C. Immediately halt all orders with the supplier, make a record of the violation in the supplier database, and switch to an alternative source of supply
D. Remove all business and inform press organisations, who will in turn bring the issue to the attention of formal governmental organisations who can take action

Answer: B

Explanation:
Addressing human rights issues collaboratively by developing an action plan allows for improvement and correction. This approach is consistent with ethical sourcing principles, which encourage responsible intervention to correct and improve supply chain practices rather than punitive measures that may not lead to long-term change.

NEW QUESTION # 141
A public sector buyer has run a competitive tender, for which there were eight bidders. All bidders have met the public sector organisation's minimum standards. In addition, they must also meet several other requirements. The buyer will make the contract award decision based on which of the following?

A. The bidder's price
B. The supplier location
C. Weighted criteria
D. Framework agreement terms

Answer: C

Explanation:
Weighted criteria allow the buyer to evaluate multiple factors, not just price, to make a fair and balanced decision. This approach ensures responsible sourcing by considering quality, sustainability, and other relevant factors alongside cost, which aligns with public procurement ethics and standards.

NEW QUESTION # 142
When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored.
Which of the following questions would be assessing any of the ESC criteria?
* Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
* How do you promote equal opportunity for your employees, customers, and suppliers?
* What is the annual turnover and profitability of your company?
* Does your company have an anti-bribery policy?

A. 1 and 3
B. 1 and 4
C. 2 and 4
D. 2 and 3

Answer: C

Explanation:
Questions about equal opportunity and anti-bribery policies assess the supplier's commitment to social and ethical standards. These aspects are part of the ESC criteria, which align with responsible sourcing practices by ensuring suppliers maintain ethical workforce practices and governance.

NEW QUESTION # 143
What is a major benefit to using Incoterms when sourcing goods internationally?

A. it replaces the need for insurance
B. it ensures ethical business practices
C. it replaces lengthy contractual clauses
D. it ensures value for money

Answer: C

Explanation:
Incoterms can replace lengthy contract clauses as they replace the need for contracts to detail which party is responsible for organising transport, paying duties, having the insurance etc.
Incoterms is an odd one for exam topics- some students say it was a huge part of their exam and there were many questions on this. Others said there were just one or two. Questions get randomly assigned from the bank so it's completely random how many you'll get on this topic.

NEW QUESTION # 144
The procurement team received an urgent request from the business to source quotations for pestcontrol services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach to use in the circumstances?

A. Yes, so that the local pest control sector can decide between them who should bid
B. No, because international vendors must also be notified of the opportunity
C. No, because they might receive too many irrelevant proposals which may delay the assessing process
D. Yes, they must seek as many bids as possible, even if it takes longer

Answer: C

Explanation:
Advertising in a local newspaper for a specialized requirement can lead to irrelevant bids, delaying the process. Efficient sourcing practices recommend targeted advertising to reach qualified suppliers, ensuring timely responses and reducing assessment time, especially for urgent needs.

NEW QUESTION # 145
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