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CIPS L4M4 Exam Syllabus Topics:

Section	Weight	Objectives
Understand ethical and responsible sourcing principles and practices	25%	- Ethical frameworks and concepts 1. Conflict of interest and transparency 2. Fairness, integrity and accountability 3. CIPS Code of Ethics - Sustainable and responsible sourcing 1. Supplier development and collaboration 2. Audit, monitoring and improvement 3. Social, environmental and economic impact
Understand options for sourcing requirements from suppliers	25%	- Tendering and selection processes 1. Award criteria and evaluation methods 2. Open, restricted and negotiated procedures - Sourcing approaches and strategies 1. Single, multiple and sole sourcing 2. Insourcing, outsourcing and offshoring 3. Domestic vs international sourcing
Understand key processes to analyse potential external suppliers	25%	- Market analysis and intelligence 1. Collecting and interpreting market data 2. Supplier capacity and capability assessment - Supplier appraisal and evaluation 1. Quality and performance standards 2. Financial stability and risk assessment 3. Technical and operational capability
Understand compliance issues when sourcing from suppliers	25%	- Legislative and regulatory requirements 1. Labour laws, human rights and anti-corruption 2. Environmental regulations and sustainability 3. Ethical standards and codes of conduct - Organisational policies and procedures 1. Governance and accountability frameworks 2. Code of ethics and professional conduct

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CIPS Ethical and Responsible Sourcing Sample Questions (Q169-Q174):

NEW QUESTION # 169
Which of the following are examples of secondary data? Select TWO

A. comparison websites
B. networking
C. trade fairs and exhibitions
D. commissioned market research
E. economic indices

Answer: A,E

Explanation:
economic indices and comparison websites are secondary sources of data. The other three are examples of primary sources of data.
Primary= you get the data yourself
Secondary = you find the data from somewhere else

NEW QUESTION # 170
What is the best way to demonstrate that your organisation does not tolerate bribery and corruption?

A. Not working with suppliers who you have heard have a reputation for bribery and corruption
B. Having full anti-bribery training, policies, and procedures in place
C. Asking all suppliers to read your organisation's policy on anti-bribery and corruption
D. Requesting your supplier's ethical policies on an annual basis

Answer: B

Explanation:
Implementing full anti-bribery training, policies, and procedures demonstrates a proactive stance against bribery and corruption. Ethical sourcing principles encourage organisations to institutionalise comprehensive anti-bribery measures to ensure transparency, fairness, and compliance within the supply chain, reducing the risk of corrupt practices.

NEW QUESTION # 171
What is a risk of pre-warning a supplier that you will conduct an audit of their facilities?

A. they may coach staff in what to say
B. they will not achieve KPIs
C. they will not perform regular duties that day
D. they will not be able to make that time and date

Answer: A

Explanation:
A risk of pre-planning an audit is the supplier has time to prepare for it. It's a good thing in that they can get their paperwork in order but the downside is they can overprepare so you don't get a realis-tic representation of what they're doing. One way they can do this is coaching staff in what to say to the auditors.

NEW QUESTION # 172
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?

A. multiple sourced
B. sole sourced
C. dual sourced
D. single sourced

Answer: B

Explanation:
This is sole sourcing as there is only one supplier in the marketplace.
Be careful not to confuse single sourcing and sole sourcing. Single sourcing is when a buyer chooses to work with only one supplier (usually to achieve economies of scale), sole sourcing, on the other hand, is when the buyer doesn't have a choice- they work with one supplier because there is only one supplier in the market.
Types of sourcing is a key concept for this exam.

NEW QUESTION # 173
A buyer is assessing a supplier's proposal in terms of any added value offered. Which of the following are examples of added value?
* The supplier has submitted the lowest price compared to competitors
* The supplier is offering solutions to reduce costs in the supply chain
* The supplier is committed to reducing plastic and waste in operations
* The supplier is personally known by the Operations Director

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

Answer: B

Explanation:
Added value refers to benefits beyond basic price and compliance. Examples include suppliers proposing innovations or cost-reduction strategies in the supply chain (2) and sustainability commitments like reducing plastics and waste (3). Lowest price is part of baseline evaluation, not added value. Personal connections (4) are not a valid or ethical procurement criterion and could breach fairness. Responsible sourcing emphasises identifying suppliers who contribute to continuous improvement, sustainability, and efficiency beyond contractual minimums.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - evaluating added value in supplier proposals.

NEW QUESTION # 174
......

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