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CIPS L4M4 Exam Syllabus Topics:

Section	Objectives
Understand compliance issues when sourcing from suppliers	- Anti-bribery and anti-corruption measures - Regulatory and legal compliance - Sustainability and environmental considerations - Codes of conduct and ethical standards - Modern slavery and human rights in supply chains - Global sourcing considerations and Incoterms - Ethical sourcing and corporate social responsibility (CSR)
Understand options for sourcing of requirements from suppliers	- Insourcing vs outsourcing decisions - Sourcing strategies and approaches - Factors influencing sourcing decisions - Single, dual and multiple sourcing
Understand the key processes that can be applied to the analysis of potential external suppliers	- Risk assessment in supplier selection - Financial analysis of suppliers - Supplier audits and due diligence - Use of Request for Information (RFI), Request for Proposal (RFP) and Request for Quotation (RFQ) - Supplier appraisal and evaluation methods

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Ethical and Responsible Sourcing Training Material - L4M4 Updated Torrent & Ethical and Responsible Sourcing Reliable Practice

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CIPS Ethical and Responsible Sourcing Sample Questions (Q286-Q291):

NEW QUESTION # 286
It is good practice for the procuring organisation's auditors to undertake the following upon completion of a supplier's audit. Select the TWO that apply.

A. Prepare an audit report that may be shared with the supplier in advance
B. Do nothing, after all, this is a known supplier incapable of serious breaches
C. Report non-compliance to police and have the supplier arrested for lapses
D. Call for a meeting with colleagues and share confidential details of the audit
E. Inform the supplier of any non-conformances and improvement opportunities

Answer: A,E

Explanation:
Informing suppliers of non-conformances and improvement opportunities supports responsible sourcing by promoting continuous improvement. Preparing a report for supplier review also aligns with transparency and collaborative improvement, integral to ethical sourcing standards.

NEW QUESTION # 287
Which of the following incoterms relate specifically to transporting items over water?

A. delivered duty paid
B. ex works
C. cost and freight
D. delivered at place

Answer: C

Explanation:
cost and freight is specific to transport over water. The others relate to all types of transportation.
Incoterms_2020_chart | Intersped
Some students report a lot of questions on Incoterms in the exam, some say they only had 1. It real-ly is luck of the draw.

NEW QUESTION # 288
The procurement team received an urgent request to source quotations for pest control services. The team decided to use a local newspaper to advertise the requirements. Was this an appropriate approach?

A. No, because international vendors must also be notified of the opportunity
B. Yes, so that the local pest control sector can decide between them who should bid
C. Yes, they must seek as many bids as possible even if it takes longer
D. No, because they might receive too many irrelevant proposals which may delay the assessment process

Answer: D

Explanation:
For urgent, low-value local services, targeted sourcing (e.g., RFQs to pre-vetted suppliers) is more efficient than open advertising that can create excess, low-quality responses and slow down delivery. Responsible practice also considers proportionality and timely risk control.
Reference: CIPS L4M4 Study Guide (v2): LO "Implementation" - route-to-market choices; proportionality and efficiency in sourcing.

NEW QUESTION # 289
ABC Ltd works with supplier XYZ Ltd who uses a variety of subcontractors. ABC has recently learned of an ethical breach being committed by one of XYZ's subcontractors. What should ABC do?

A. Research alternative suppliers
B. Recommend remedial action
C. Seek compensation
D. Terminate the contract

Answer: B

Explanation:
ABC should do a 'root cause analysis' to find out where the issue has come about, and why. From there, once they know what the breach is and how serious it is, they can suggest corrective action.
They can't jump straight to terminating the contract or seeking damages as it's not the supplier itself but rather the subcontractor. Also that would be really hasty considering we don't know what the issue is and what the market conditions are like. That supplier may be the only one who can provide the product. We also don't know if the supplier knows about the issue themselves.

NEW QUESTION # 290
Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

A. The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply
B. Financial assessments provide a holistic view of a company's capability, including quality and delivery performance
C. If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs
D. A supplier who is highly profitable will be charging prices higher than the average market rate

Answer: A

Explanation:
Financial assessments help ensure a supplier can meet the demands of a high-value contract without disruptions. This aligns with responsible sourcing principles by promoting stable supplier relationships and reducing the risk of supply chain interruptions due to financial instability.

NEW QUESTION # 291
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