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CIPS L4M4 Exam Overview:

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

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

CIPS Ethical and Responsible Sourcing Sample Questions (Q66-Q71):

NEW QUESTION # 66
A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?

A. ethical behaviour is impossible to determine as issues such as Modern Slavery often go undetected
B. compliance with Codes of Conduct from professional bodies is mandatory
C. the buyer should ask suppliers to be accredited to ISO9001a supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs

Answer: C

Explanation:
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.
The other options are wrong:
1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi-sation is forced to comply with CIPS.
2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible
3) ISO 14001 is quality management so is irelevent.

NEW QUESTION # 67
Dylan is looking to appoint a new supplier of paint to his manufacturing business. The paint will be used to paint buses and taxis and therefore needs to be high quality and durable. Which of the following should Dylan look for in terms of quality management when appraising the suppliers?

A. ESG
B. Carter's 10 Cs
C. ISO9001
D. conformance specification

Answer: C

Explanation:
ISO9001 is Quality Management so is therefore the correct answer. The other options can be used to appraise suppliers but do not link directly or fully to Quality Management.

NEW QUESTION # 68
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?

A. develop strategy
B. supplier selection
C. asset management
D. contract award

Answer: B

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 # 69
When assessing the financial performance of a potential supplier, it is important to understand how much gross profit they are making. The gross profit margin ratio uses which of the following pieces of information from the profit and loss (statement of financial performance)? Select TWO that apply.

A. Income from sales
B. Value of equity capital
C. Current liabilities
D. Cost of goods sold
E. Total current assets

Answer: A,D

Explanation:
The gross profit margin ratio is calculated by subtracting the cost of goods sold (COGS) from income from sales, then dividing by income from sales. This ratio indicates the profitability of a supplier, a critical factor in assessing financial health, which helps buyers ensure reliable supply continuity.

NEW QUESTION # 70
Which of the following are secondary research sources that can be used when investigating markets and suppliers? Select THREE that apply.

A. Focus groups
B. Supplier interviews
C. Economic indices
D. Professional magazines
E. Supplier websites
F. Direct conversations

Answer: C,D,E

Explanation:
Professional magazines, economic indices, and supplier websites provide secondary data that can be useful in understanding market trends and supplier performance. Responsible sourcing often relies on a mix of primary and secondary data sources to make informed decisions about supplier selection.

NEW QUESTION # 71
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