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| Certification Vendor: | CIPS |
|---|---|
| Exam Name: | Ethical and Responsible Sourcing |
| Exam Number: | L4M4 |
| Exam Price: | $185.69 |
| Passing Score: | 70% |
| Exam Format: | Multiple Choice Questions (MCQ), Multiple Selection Questions |
| Real Exam Qty: | 60 |
| Related Certifications: | CIPS Level 4 Diploma in Procurement and Supply |
| Exam Duration: | 90 minutes |
| Available Languages: | English |
| Certificate Validity Period: | N/A |
| Sample Questions: | CIPS L4M4 Sample Questions |
| Exam Way: | Computer-based exam at CIPS accredited exam centre |
| Pre Condition: | No mandatory pre-requisites, but candidates are typically working towards or enrolled in the CIPS Level 4 Diploma in Procurement and Supply. |
| Official Syllabus URL: | https://www.cips.org/students/level-4-diploma |
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NEW QUESTION # 232
Raja is a procurement manager who is keen to gain further insight into the current marketplace and whether local suppliers are capable to provide a service he is looking to procure. He wishes to test the market before he begins a formal tender process. What should Raja do?
Answer: D
Explanation:
Raja should send out a RFI- request for information; this will allow him to gain feedback from the marketplace prior to tender.
Speaking only with current suppliers will not provide all the information Raja requires.
He should not send out a request for quotation since he is still conducting market research An open competition would be how he can procure, after he's completed his research
NEW QUESTION # 233
What information would you expect to find on a supplier's response to a 'Request for Information'? Select TWO
Answer: B,C
Explanation:
A RFI typically finds the following information from potential suppliers; ethical and sustainability policies and their capacity / capability to fulfil a contract. It could also include financial position, mission and vision.
NEW QUESTION # 234
What might a buyer encounter if the supplier's government has introduced a protectionist measure?
Answer: A
Explanation:
Protectionist measures are designed to shield domestic industries from foreign competition. The most common form is import duties (tariffs), which raise the landed cost of goods entering the country. This creates a barrier to trade by making imports less competitive compared to local products. Arbitration is a dispute resolution method, not a trade barrier. Carnets are documents for temporary duty-free movement of goods, and inward processing relief is an exemption for goods imported for re-export. Responsible sourcing requires buyers to anticipate the cost and risk implications of protectionism when engaging in international supply.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implications" - tariffs, duties, and trade barriers.
NEW QUESTION # 235
The procurement manager has received the following data from the supplier's accounts to facilitate the calculation of the supplier's current ratio:
Current Assets: Stock $200; Debtors $60; Cash $40; Total $300
Short Term Liabilities: Bank overdraft $150
Which calculation will the procurement manager use to find out the current ratio?
Answer: A
Explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated by dividing current assets by current liabilities. In this case:
Current Assets = $300
Current Liabilities = $150
Current Ratio = 300 ÷ 150 = 2.0
This indicates that the supplier has twice as many current assets as current liabilities, suggesting good short- term financial health.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.3: Financial Appraisal of Suppliers
NEW QUESTION # 236
A chief procurement officer (CPO) reviews a tender process and recommendation before making the final submission to the board of directors for approval. The CPO notices that the evaluation team assessed technical and financial capacity but did not conduct an assessment and due diligence on the supplier's environmental, social, governance, anti-bribery, and corruption practices and processes. The CPO has decided to forward the report to the board for approval and seek reassurance from the supplier at a later date once the contract has been signed. Was the CPO's decision the correct one?
Answer: B
Explanation:
Ethical and responsible sourcing requires that environmental, social, governance, anti-bribery and corruption (ESG/ABC) considerations are assessed before contract award, not after. Failure to conduct due diligence exposes the buying organisation to reputational damage, legal sanctions, financial losses, and supply chain disruption. Seeking reassurance post-contract removes leverage and weakens governance controls. CIPS guidance stresses that supplier evaluation must be holistic, covering technical, financial, and ethical compliance to ensure risks are identified and mitigated early. Strategic contracts, in particular, demand robust due diligence to protect organisational integrity and stakeholder trust.
Reference: CIPS L4M4 Ethical & Responsible Sourcing Study Guide (v2) - supplier due diligence; ESG and reputational risk management.
NEW QUESTION # 237
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