Reliable L4M4 Test Notes | Free L4M4 Test Questions

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CIPS L4M4 Exam Overview:

Certification Vendor:CIPS
Exam Name:Ethical and Responsible Sourcing
Exam Number:L4M4
Certificate Validity Period:3 years
Exam Format:Scenario-based, Objective Response, Multiple Choice
Related Certifications:L4M3 Commercial Contracting
L4M2 Defining Business Need
L4M7 Whole Life Asset Management
L4M8 Procurement and Supply in Practice
L4M1 Scope and Influence of Procurement and Supply
L4M5 Commercial Negotiation
L4M6 Supplier Relationships
Exam Duration:90 minutes
Available Languages:Spanish, Arabic, English, Chinese, French
Passing Score:70%
Exam Price:USD 230 - 280
Real Exam Qty:60
Recommended Training:CIPS Official Study Guide & Learning Materials
CIPS Approved Training Providers
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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2026 Newest Reliable L4M4 Test Notes | Ethical and Responsible Sourcing 100% Free Free Test Questions

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 2
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 3
  • 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 4
  • 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.

CIPS Ethical and Responsible Sourcing Sample Questions (Q108-Q113):

NEW QUESTION # 108
What type of ratio is used to measure a company's ability to meet its short-term financial obligations, specifically focusing on its ability to convert assets into cash to cover current liabilities?

Answer: D

Explanation:
Liquidity ratios, such as the current and quick ratios, evaluate a company's ability to meet short-term liabilities with current assets. This metric is crucial for assessing a supplier's financial stability, ensuring continuity and reliability in the supply chain, which aligns with ethical and responsible sourcing principles.


NEW QUESTION # 109
Which of the following is not a type of fraud that procurement professionals should be vigilant for?

Answer: B

Explanation:
Coercion is not a type of fraud. The other three are.


NEW QUESTION # 110
Why is it important to consider factors such as environmental, social, governance, and ethics (ESG) when analysing tenders?
* To ensure adherence to sustainability initiatives
* To improve process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain

Answer: C

Explanation:
Including ESG criteria in tender analysis helps ensure suppliers align with the buyer's sustainability initiatives (1) and helps identify risks within the supply chain (4), such as unethical labour practices or environmental harm. Improving workflow (2) and spend monitoring (3) are operational concerns but not ESG drivers.
Responsible sourcing requires procurement professionals to integrate ESG into decision-making, ensuring not only cost-efficiency but also ethical compliance, resilience, and long-term value. This reflects the growing importance of corporate social responsibility (CSR) and stakeholder expectations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Concepts" - ESG in sourcing decisions.


NEW QUESTION # 111
One of the typical selection criteria applied in determining the right supplier is 'technical capabilities', which might include ...

Answer: A

Explanation:
Technical capability focuses on the capacity to meet specification, volume, and reliability (including contingency). While maintenance is relevant, the clearest indicator among these options is the proven ability to deliver required quantities and hold contingency stock. Financial gearing and reputational associations are separate selection dimensions (financial/ethical).
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - supplier selection criteria (technical capability, capacity, quality, ethical credentials).


NEW QUESTION # 112
In which circumstances would it be relevant to apply the Pareto principle (80/20 rule) to supplier expenditure analysis? (Select TWO)

Answer: A,B

Explanation:
The Pareto principle (80/20) shows that around 80% of spend is often concentrated with 20% of suppliers. It is relevant for identifying strategic suppliers (D) that require close management and opportunities to improve or change relationships (E) for greater value. Contract expiry dates (B) and payment frequency (A) are administrative details, not Pareto analysis outputs. Cost variation (C) relates to performance analysis, not spend concentration. Responsible sourcing uses Pareto analysis to allocate resources effectively, focusing attention on the most impactful supplier relationships.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - spend analysis and supplier relationship management.


NEW QUESTION # 113
......

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