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CIPS L4M4 Exam Syllabus Topics:

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

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CIPS Ethical and Responsible Sourcing Sample Questions (Q210-Q215):

NEW QUESTION # 210
During which stage of the procurement cycle would you remove suppliers that do not add value, or could pose a risk to the buying organisation?

Answer: D

Explanation:
At supplier selection stage, unsuitable suppliers should be removed (those that do not add value or pose a risk).
At develop strategy stage you're not even looking at suppliers yet- you're just deciding what you need. At contract award and asset management it's too late.
CIPS procurement cycle - Procurement Supply Cycle | CIPS


NEW QUESTION # 211
Faisal, a hospital procurement specialist, includes adherence to certain standards in a medical equipment tender. What is the benefit of incorporating standards in a specification?

Answer: C

Explanation:
Standards, such as ISO or BS norms, establish clear, universally recognised benchmarks for quality, safety, and performance. Including them in specifications reduces ambiguity, ensuring suppliers know exactly what is required and how compliance will be measured. They do not automatically guarantee lowest pricing or cover all unique buyer requirements. Instead, they improve comparability, fairness, and governance in tendering. Responsible sourcing emphasises use of recognised standards to ensure safety, ethical compliance, and consistent quality, particularly in sensitive categories like healthcare, where patient safety and continuity of service are paramount.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - specifications and standards in sourcing.


NEW QUESTION # 212
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?

Answer: C

Explanation:
the correct answer is 'marketplace competition'.
Ethical practice is about prohibiting corrupt and unfair practice, rather than issues of supply and demand.
Although being in a cartel is 'unethical behavior' this option doesn't fully answer the question which talks about limiting supply- this is related to marketplace competition.


NEW QUESTION # 213
If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?

Answer: B

Explanation:
The correct answer is 'demand is exceeding supply'- If everyone wants to buy something, the sup-pliers will likely increase the price.
If there was little demand or there were threats of substitutions, this would likely result in a price decrease.


NEW QUESTION # 214
The Freedom of Information Act is a piece of UK legislation which allows members of the public to request information on issues such as public sector sourcing. When a request is made, it is compulsory for the public sector to provide this information to the public. Is this statement true?

Answer: A

Explanation:
the correct answer is 'no- the public sector can choose not to publish information if it is not deemed to be in the public interest'.
They use something called the 'public interest test' to determine if the information should be re-leased or not.
For example they may not respond to a request asking how many bullets the UK Army has in storage, as that would be detrimental to national security interests.
Responses to requests are made within 21 days, not 28.


NEW QUESTION # 215
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