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CIPS L4M4 Exam Syllabus Topics:

SectionObjectives
Topic 1: Corporate Social Responsibility (CSR)- CSR frameworks and standards
- Stakeholder expectations and governance
Topic 2: Responsible Sourcing- Sustainability in supply chains
- Social responsibility and human rights
- Environmental considerations and impacts
Topic 3: Ethics in Procurement and Supply- Principles of professional ethics
- Codes of conduct and ethical decision-making
Topic 4: Supply Chain Risk and Compliance- Supplier compliance and monitoring
- Managing ethical risks in sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions (Q109-Q114):

NEW QUESTION # 109
A multi-national company is seeking to negotiate an agreement with a global supplier for the delivery of fresh produce.
At which stage of the procurement process should the buyer consider Incoterms?

Answer: D

Explanation:
Incoterms define the allocation ofcosts, risks, and responsibilitiesbetween buyer and seller in international trade. They must be agreedbefore the contract is finalised, as they form a fundamental part of the contractual terms. Considering Incoterms early ensures clarity on delivery obligations, customs responsibilities, insurance, and transport costs. Selecting Incoterms after contract agreement or at order placement would create ambiguity and risk disputes. Ethical and responsible sourcing requires clear contractual definitions to prevent misunderstandings, ensure compliance, and fairly allocate risk in global supply chains.
Reference:CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - Incoterms and international contracting.


NEW QUESTION # 110
A buyer for a large manufacturing organisation is assessing a sole supplier tender opportunity. The buyer is finding it challenging to differentiate the proposals on unit purchase price. Are there any added values that the procurement manager can use to leverage the sole supplier proposal?

Answer: C

Explanation:
In cases where price differentiation is minimal, negotiating on added-value services like after-sales support can offer additional benefits. This aligns with responsible sourcing by focusing on long-term value and fostering a cooperative relationship with the supplier.


NEW QUESTION # 111
Elaine works for a British manufacturer of confectionary (sweets/ candy) items. One of the key ingredients is cocoa powder, which cannot be grown in the UK. Elaine therefore needs to look abroad for suppliers. Which of the following are risks that Elaine needs to consider when sourcing internationally? Select THREE

Answer: A,B,D

Explanation:
The correct answers are; currency exchange fluctuations, ethical behavior and cultural differences.
Shortened lead times is not correct because sourcing internationally would result in longer lead times. Export tariffs is not correct as Elaine is importing the items into the UK, not exporting them.


NEW QUESTION # 112
During the quality assurance of a supplier, Margaret is looking for an international standard thatshows the supplier's commitment to sustainable procurement. What document should the supplier provide to show this?

Answer: A

Explanation:
ISO 20400 is sustainable procurement.
14000 is environment
9001 is quality management
27001 is information security


NEW QUESTION # 113
A balance sheet will show a company's assets, liabilities and shareholder equity. What is share-holder equity?

Answer: B

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 # 114
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