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| Section | Objectives |
|---|---|
| Supply Chain Risk and Compliance | - Supplier compliance and monitoring - Managing ethical risks in sourcing |
| Responsible Sourcing | - Social responsibility and human rights - Environmental considerations and impacts - Sustainability in supply chains |
| Ethics in Procurement and Supply | - Principles of professional ethics - Codes of conduct and ethical decision-making |
| Corporate Social Responsibility (CSR) | - Stakeholder expectations and governance - CSR frameworks and standards |
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NEW QUESTION # 213
Supplier selection focuses on which of the following?
* Supplier suitability and capability of meeting requirements
* Which pre-qualified supplier represents the best outcome
* Financial stability and quality culture of the supplier
* Most time-efficient tender from a supplier
Answer: D
Explanation:
Supplier selection is about ensuring that suppliers are capable and suitable to meet the buyer's requirements, including quality, reliability, and alignment with ethical standards. It also focuses on identifying, from a pool of pre-qualified suppliers, which supplier offers the best overall outcome. Financial stability and culture are considered earlier in pre-qualification, not during final selection. Similarly, "time-efficiency" in tender response is not a primary factor in supplier selection. Responsible sourcing emphasises due diligence, capability, and alignment with sustainability and ethical practices as part of selection decisions.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - supplier pre-qualification vs. selection criteria.
NEW QUESTION # 214
Which of the following is not a indices that measures economic data?
Answer: A
Explanation:
ISO isn't an indices- it stands for 'International Labour Association'.
The others are all indices that measure economic data; consumer price index, producer price index and gross domestic product.
NEW QUESTION # 215
Mark is a category manager responsible for buying large pieces of laboratory equipment in the public (government) sector. Which of the following Incoterms would ensure that an overseas supplier is responsible for paying all delivery costs, including import duties and taxes for these goods?
Answer: D
Explanation:
DDP (Delivered Duty Paid) requires the supplier to cover all delivery costs, including import duties and taxes.
This term ensures that the buyer receives the goods without additional charges, aligning with public sector procurement practices for cost-effective and transparent sourcing.
NEW QUESTION # 216
Which of the following can be undertaken by the buyer in relation to the governance of a supplier's ethical and sustainable behaviours?
* Review the insurance clauses in the contract
* Check that the supplier's internal policies are up to date
* Check the supplier's conflict of interest register for their contract
* Review the non-disclosure agreement for their contract
Answer: C
Explanation:
Governance of ethical and sustainable behaviour focuses on ensuring suppliers have the right systems, policies, and transparency measures in place. Reviewing insurance clauses ensures suppliers are prepared to manage liability and risks responsibly. Checking conflict of interest registers promotes transparency and prevents corruption. By contrast, NDAs protect confidentiality but are not primarily ethical governance tools, and simply checking "up-to-date policies" without context may not guarantee compliance. CIPS highlights governance mechanisms such as audits, policy reviews, and conflict registers as integral to monitoring ethical performance and ensuring accountability.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - governance measures, monitoring supplier ethics.
NEW QUESTION # 217
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?
Answer: C
Explanation:
shareholder equity = the owner/s of the organisation's residual claim once all debts have been paid. What Is Shareholder Equity (SE) and How Is It Calculated? (investopedia.com)
NEW QUESTION # 218
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