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CIPS L4M4 Exam Syllabus Topics:

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

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CIPS Ethical and Responsible Sourcing Sample Questions (Q105-Q110):

NEW QUESTION # 105
GDP is an economic index that a procurement professional can use to measure economic data. What does GDP tell you?

A. the value of commodities such as steel, oil and wheat at a point in time
B. average changes in price over a year
C. the monatary value of the goods manufactured in a financial period
D. the value of public limited companies within a country

Answer: C

Explanation:
GDP = gross domestic product = "the monetary value of goods and services manufactured or sup-plied in a financial period". People use it to say whether a country's economy is strong or weak.
Stock markets look at the value of public limited companies within a country.
Commodity indices look at the value of commodities such as steel, oil and wheat at a point in time Average changes in price over a year can be measured by CPI or PPI

NEW QUESTION # 106
What are the two main financial accounting statements of an organisation that show the values of assets and liabilities, and the profit earned in the period?

A. Profit and loss account (statement of financial performance) and chairman's statement (in the annual report)
B. Cash flow statement (statement of cash flow) and profit and loss statement (statement of financial performance)
C. Cash flow statement (statement of cash flow) and balance sheet (statement of financial position)
D. Balance sheet (statement of financial position) and profit and loss account (statement of financial performance)

Answer: D

Explanation:
The balance sheet and profit and loss account provide a comprehensive view of an organisation's financial health, showing assets, liabilities, and profits. These statements are essential in evaluating a supplier's financial capacity, aligning with responsible sourcing practices for financial stability.

NEW QUESTION # 107
Private sector procurement organisations should always allow suppliers at least 35 days to respond to invitations to tender. Is this statement true?

A. No, because this timeframe will cause delays that are unacceptable to stakeholders
B. Yes, because that timeframe is internationally recognised as being appropriate
C. No, because the complexity of the tender should inform the response timescale
D. Yes, because it helps suppliers to plan and prioritise their work

Answer: C

Explanation:
Response times should be tailored to the complexity of the tender. Responsible sourcing encourages flexibility in setting realistic timelines that allow suppliers adequate time to prepare, supporting efficient and effective sourcing without unnecessary delays.

NEW QUESTION # 108
An organisation is keep to include Social Outcomes in it's assessment for Value for Money for a new tender.
Which of the following should be considered?

A. accreditations such as Fair Trade
B. supplier's ESG policy
C. CO2 emissions of the supplier's delivery vehicles
D. use of local labour to deliver the contract

Answer: D

Explanation:
Social value is about benefitting the local community / society. Therefore of those options listed, use of local labour is the most appropriate to consider.

NEW QUESTION # 109
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?

A. EXW
B. DPU
C. FAS
D. DDP

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 # 110
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