Free PDF Quiz 2026 CIPS Valid L4M4: Ethical and Responsible Sourcing Free Exam

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CIPS L4M4 Exam Syllabus Topics:

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

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CIPS Ethical and Responsible Sourcing Sample Questions (Q167-Q172):

NEW QUESTION # 167
Tracey Collum is a procurement professional and married to Nick Collum.
Tracey has been leading a tender for a new radar system, where four suppliers have submitted their bids.
After the bids were received, Nick joined one of the suppliers (Supplier X) as the project director for radar systems.
Nick has asked Tracey to award the contract to Supplier X. What should Tracey do?

A. Ask to be removed from the tender due to a conflict of interest and complete a conflict of interest form
B. Award the contract to Supplier X because Nick will be promoted if Supplier X wins the contract
C. Remove Supplier X from the tender due to a conflict of interest and continue with the tender
D. Award the contract to Supplier X because Tracey can ask for a better price because they are married

Answer: A

Explanation:
To maintain integrity and avoid conflicts of interest, Tracey should declare the conflict and remove herself from the tender process. Ethical sourcing practices emphasize transparency and fairness, which prevent potential biases and maintain trust within procurement processes.

NEW QUESTION # 168
FTSE100 and Sensex are examples of what?

A. commodity indices
B. public sector organisations
C. stock markets
D. financial reports

Answer: C

Explanation:
they are stock markets.
What is the FTSE 100 Index? Complete Beginner's Guide (moneycheck.com)
BSE SENSEX - Wikipedia

NEW QUESTION # 169
Which of the following are considerations when evaluating quality as a criterion for supplier selection? Select TWO that apply.

A. The existence of Total Quality Management (TQM) and a continuous improvement culture
B. The supplier's environmental impact analysis
C. Certification to the management system ISO 14001
D. Certification to the management system ISO 9001
E. The existence of policies and initiatives toward more sustainable packaging and materials

Answer: A,D

Explanation:
Total Quality Management (TQM) practices and ISO 9001 certification are indicators of a supplier's commitment to quality. Responsible sourcing evaluates these factors to ensure suppliers meet high-quality standards and continuous improvement expectations.

NEW QUESTION # 170
Which of the following might encourage an organisation to outsource their IT function?

A. When there is a limited manufacturing capacity
B. When there is an internal conflict within the company
C. If the outsourcing solution increases the costs
D. If there is limited finance investment and resource

Answer: D

Explanation:
Organisations may choose to outsource IT when they have limited financial investment capability and internal resources. Outsourcing allows access to specialist expertise, up-to-date technology, and scalable services without the need for large capital expenditure. Limited manufacturing capacity is irrelevant to IT, increased costs would discourage outsourcing, and internal conflict is not a valid sourcing rationale. Ethical and responsible sourcing requires outsourcing decisions to be based on clear business needs, value creation, and risk management, ensuring continuity of service and effective use of organisational resources.
Reference: CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - outsourcing decisions; make-or- buy considerations.

NEW QUESTION # 171
Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

A. If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs
B. The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply
C. Financial assessments provide a holistic view of a company's capability, including quality and delivery performance
D. A supplier who is highly profitable will be charging prices higher than the average market rate

Answer: B

Explanation:
Financial assessments help ensure a supplier can meet the demands of a high-value contract without disruptions. This aligns with responsible sourcing principles by promoting stable supplier relationships and reducing the risk of supply chain interruptions due to financial instability.

NEW QUESTION # 172
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