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CIPS L4M4 Exam Overview:

Certification Vendor:	CIPS (Chartered Institute of Procurement & Supply)
Exam Name:	Ethical and Responsible Sourcing
Exam Number:	L4M4
Real Exam Qty:	Approximately 60 questions
Passing Score:	50%
Certificate Validity Period:	No fixed expiry (qualification remains valid once achieved)
Exam Duration:	120 minutes
Available Languages:	English
Exam Format:	Multiple choice questions, Scenario-based questions, Computer-based exam
Exam Price:	Varies by region and assessment center (typically ~£70–£120 per module)
Related Certifications:	CIPS Level 4 Diploma in Procurement and Supply
Recommended Training:	CIPS Official Learning Resources CIPS Study Hub
Exam Registration:	CIPS Exams and Assessment Information CIPS Official Qualifications Page
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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CIPS L4M4 Exam Syllabus Topics:

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

CIPS Ethical and Responsible Sourcing Sample Questions (Q13-Q18):

NEW QUESTION # 13
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

A. quality
B. ethics
C. time
D. quantity
E. environment

Answer: B,E

Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.

NEW QUESTION # 14
Which of the following information can facilitate international imports and exports?
* Product quality statistics
* Certificate of origin
* Purchase order
* Supplier financial position

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

Answer: C

Explanation:
International trade relies on proper documentation. A certificate of origin (2) confirms where goods are produced, often required for customs clearance and to determine tariffs. A purchase order (3) provides formal buyer intent and agreement of terms, forming the basis for customs and logistics processes. Product quality statistics (1) and supplier financial position (4) are relevant for supplier selection and monitoring but not directly for import/export processes. Responsible sourcing requires procurement professionals to ensure correct documentation is used to avoid delays, penalties, or breaches of trade regulations.
Reference: CIPS L4M4 Study Guide (v2), LO: "Application" - documentation in international sourcing.

NEW QUESTION # 15
In which instance would multiple sourcing be the most applicable approach?

A. Sourcing for high-cost, strategically important components
B. Sourcing for the provision of a service, where close relationship management is required
C. Sourcing a specialised, unique component where the supplier's knowledge is key
D. Sourcing for components required at short notice

Answer: D

Explanation:
Multiple sourcing is particularly advantageous for ensuring quick delivery and preventing stock-outs, as it provides the flexibility to source from multiple suppliers. This approach aligns with responsible sourcing by ensuring continuity and reducing risks in the supply chain.

NEW QUESTION # 16
Commodities can be traded on a stock exchange and are generally divided into one of four categories. Which of the following is not one of these four categories?

A. metals
B. livestock
C. energy
D. plastics

Answer: D

Explanation:
Plastic is not a commodity. A commodity is something that is naturally occurring and plastic is manufactured.
The other category of commodity is agriculture.

NEW QUESTION # 17
Daniel is evaluating bids from new suppliers who are looking to supply his company XYZ Indus-tries with components for manufacturing. Although price is important, Daniel wishes to consider 'added value'. Which of the following is considered an 'added-value solution'? Select THREE

A. cost plus pricing
B. on time in full deliveries
C. bulk discount
D. sustainability
E. innovation

Answer: B,D,E

Explanation:
The correct answers are innovation, on time in full deliveries and sustainability.
The other options are pricing mechanisms rather than 'added value'. Added Value is giving the buyer something extra that's not necessarily financial. It can be as simple as delivering orders quicker than expected, or having a dedicated customer service phone line. Something that makes their lives a little easier.

NEW QUESTION # 18
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