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CIPS L4M4 Exam Syllabus Topics:

SectionObjectives
Topic 1: Corporate Social Responsibility (CSR)- Stakeholder expectations and governance
- CSR frameworks and standards
Topic 2: Responsible Sourcing- Social responsibility and human rights
- Sustainability in supply chains
- Environmental considerations and impacts
Topic 3: Supply Chain Risk and Compliance- Managing ethical risks in sourcing
- Supplier compliance and monitoring
Topic 4: Ethics in Procurement and Supply- Codes of conduct and ethical decision-making
- Principles of professional ethics

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CIPS Ethical and Responsible Sourcing Sample Questions (Q151-Q156):

NEW QUESTION # 151
A procurement manager analyses total company expenditure on goods and services. What can expenditure by product category or supplier achieve? (Select TWO)

Answer: D,E

Explanation:
Expenditure analysis by category/supplier enables buyers to track trends over time (A), supporting benchmarking and financial control. It also identifies opportunities for negotiation (C) by highlighting concentration of spend and potential leverage with suppliers. Marketing strategy, production scheduling, and stock disposal are outside procurement's primary scope. Responsible sourcing relies on robust spend analysis to identify efficiency opportunities, reduce wasteful expenditure, and support supplier relationship management strategies, all while aligning with sustainability and compliance goals.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - spend analysis and its role in responsible sourcing.


NEW QUESTION # 152
Which of the incoterms listed are suitable for transporting goods via train?

Answer: A

Explanation:
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.


NEW QUESTION # 153
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will spread across multiple doctors' practices and community health centres. Ramesh has reviewed different tender approaches and concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

Answer: B

Explanation:
In a restricted tender process, only pre-qualified suppliers are invited to bid, ensuring that participating suppliers have met necessary qualifications. This approach helps in managing high-value contracts by focusing on capable suppliers. Ethical and responsible sourcing in the public sector demands supplier pre- qualification to ensure compliance, transparency, and quality.


NEW QUESTION # 154
Which of the following would you use to determine the outcome of a competitive tender? Select TWO.

Answer: A,E

Explanation:
Price and Quality are the two considerations when marking a competitive tender.
Location, distribution and reputation may be considered for SOME tenders, but these would be sub-categories that fall under 'quality questions.


NEW QUESTION # 155
An international supplier of shirts provides four different prices for each garment depending on the Incoterm selected by the buyer. Which Incoterm would support achieving the lowest unit price per garment?

Answer: C

Explanation:
Under EXW (Ex Works) the seller prices only for making goods available at their premises; the buyer bears transport, export formalities, main carriage, and risk from collection. Because the seller's obligations are minimal, the quoted unit price is typically the lowest. Delivered terms (DAP/DDP/CPT) add seller costs and risk, raising the price.
Reference: CIPS L4M4 Study Guide (v2): LO "Application" - Incoterms responsibilities, cost/risk allocation.


NEW QUESTION # 156
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