100% PASS QUIZ 2025 PERFECT L5M5: LATEST MANAGING ETHICAL PROCUREMENT AND SUPPLY (L5M5) EXAM GUIDE

100% Pass Quiz 2025 Perfect L5M5: Latest Managing Ethical Procurement and Supply (L5M5) Exam Guide

100% Pass Quiz 2025 Perfect L5M5: Latest Managing Ethical Procurement and Supply (L5M5) Exam Guide

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The CIPS L5M5 certification from CIPS is a sought-after recognition of Exams-boost skills and knowledge. With this Managing Ethical Procurement and Supply (L5M5) certification, professionals can enhance their careers, boost earnings, and showcase their expertise in a competitive job market. The benefits of passing the L5M5 Exam are numerous, but preparing for the exam is not a simple feat.

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q22-Q27):

NEW QUESTION # 22
A Fair Trade-certified coffee cooperative located in a rural area is undergoing an audit to assess its compliance with Fair Trade standards. During the audit, several non-compliance issues are identified, requiring immediate corrective action to align with International Labour Organization (ILO) standards.
For each identified breach, match the corresponding Fair Trade Principle with the most relevant ILO Standard by selecting the appropriate option and placing it in the table below.
Breach 1: Workers in the coffee processing plant are exposed to prolonged noise levels during their shifts. However, many employees do not have or are not using proper hearing protection, raising serious concerns about potential hearing damage.
Breach 2: A significant number of workers, particularly local laborers, receive wages below the living wage threshold. This has resulted in financial hardship for their families, despite the cooperative's Fair Trade certification.
Breach 3: The cooperative is engaged in environmentally harmful waste disposal practices, frequently dumping waste into nearby streams. This has led to increasing concerns among local communities and environmental advocacy groups regarding the negative impact on the local ecosystem.
Breach 4: The cooperative exhibits gender-based employment disparities, where women are not appointed to certain roles, particularly managerial and supervisory positions. Additionally, the required uniforms for these roles fail to accommodate women, further restricting their opportunities due to health and safety regulations.

  • A. Fair Payment: Workers must receive fair wages that meet the minimum living wage requirements.
  • B. No discrimination, gender equity, freedom of association: Employers must ensure gender equality in hiring practices and provide equal opportunities for all workers, regardless of gender.
  • C. Good working conditions: Workers must be provided with a safe working environment that meets all health and safety standards, including protective equipment
  • D. Respect to the environment: Employers must adopt practices that reduce environmental impact and ensure that the working environment does not harm the local ecosystem

Answer: A,B,C,D

Explanation:

Good Working Conditions → A) Workers must be provided with a safe working environment that meets all health and safety standards, including protective equipment. The Fair-Trade principle of good working conditions emphasizes that workers should have access to a safe, healthy, and supportive work environment. ILO Principle A aligns with this by requiring safety measures such as protective equipment to ensure worker well-being. Fair Payment → C) Workers must receive fair wages that meet the minimum living wage requirements.


NEW QUESTION # 23
GlobalTechManufacturing (GTM), a multinational company, operates a complex supply chain spanning multiple countries and stakeholders. Recognizing this complexity as a major risk, the Chief Supply Chain Officer (CSCO) has launched a supply chain mapping project. The objective is to analyze GTM's supply chain structure and develop risk mitigation strategies. The initial phase of this project will primarily focus on understanding which of the following aspects within GTM's supply chains?
1. Branding
2. Tiers
3. Complexity
4. Innovation

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

Answer: A

Explanation:
Option 2 - Supply chain mapping involves a detailed analysis of supplier layers, including Tier 1, Tier 2, and Tier 3 suppliers. Identifying these tiers allows GTM to trace the flow of materials, information, and services throughout the supply chain. This visibility is crucial for assessing supplier relationships, dependencies, and risks at each level, helping to mitigate potential disruptions. Therefore, this is a correct answer.
Option 3 - GTM's supply chain is extensive and intricate, spanning multiple countries with interconnected layers. Understanding this complexity helps identify risks, inefficiencies, and bottlenecks. Mapping the network enables GTM to manage interdependencies and enhance supply chain resilience, making this another correct answer.
Incorrect answer:
Option 1- While branding is important for market presence and customer perception, it is not directly related to supply chain mapping or risk mitigation in this context.
Option 4- Innovation is valuable for driving competitive advantage and improving processes, but the focus here is on understanding the current structure of the supply chain to address risks, not on developing new innovations.
By focusing on tiers and complexity, GTM can lay a strong foundation for managing its global supply chain risks effectively thus the answer is Choice A.
Reference:
LO-2.1; Page 145-148; Mapping supply chains to achieve supply chain transparency


NEW QUESTION # 24
Which term describes non-binding recommendations that offer guidance on best practices?

  • A. Regulations
  • B. Guidelines
  • C. Statutes
  • D. Directives

Answer: B

Explanation:
Choice A- These are non-binding recommendations or advice that suggest best practices but do not carry the force of law. This A is the correct choice.
Incorrect answer:
Choice B- These are binding legal rules that must be followed as they have the force of law. They come into force on a set date in all of the member states.
Choice C- In legal contexts (e.g., EU), directives set goals that member states must achieve, but each state decides how to implement them.
Choice D- These are formal written laws passed by a legislative body of a government, and they are legally binding.
Reference:
LO-2.2; Page 185; Monitoring Contract Performance


NEW QUESTION # 25
A discrimination claim has been filed against ASDA Stores Ltd, a leading UK retailer. The claimant alleges discrimination based on skin color and religion, violating the Equality Act 2010. If the claim is successful, what is the maximum compensation award?

  • A. No limit
  • B. 90 days' pay per employee
  • C. £20,000 per worker
  • D. £10,000 only

Answer: A

Explanation:
Choice D- For a breach of Equality Act 2010, there is no limit on the award of compensation in a discrimination claim. Thus is the correct answer.
Incorrect answer:
Choice A - 90 days' pay per employee is an award relating to dismissal on grounds of redundancy not discrimination.
Choice B - The average award for unfair dismissal is around £10,000 only not discrimination.
Choice C -The maximum penalty that employers had to pay for non-compliance with national living wage law is £20,000 per worker, which is not concerned with discrimination.
Reference:
LO-1.3; Page 40; Role of EDI in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 26
Mr. Jerry, a procurement professional at a multinational company, notices unusually low labor rates within the supply chain. Which of the following should be his primary concern?

  • A. Corruption
  • B. Modern Slavery
  • C. Fraudulent activity
  • D. Bribe

Answer: B

Explanation:
Choice A- A procurement professional can evaluate the risk of slavery in their supply chain by considering whether buyers negotiate excessively low prices. If suppliers are pressured to reduce costs, it can negatively impact the finances of businesses involved in raw material production, increasing the likelihood of forced labor. Therefore, Choice A is the correct answer.
Choice B- Corruption is the dishonest or fraudulent behavior of people in power. This could be in the form of a producer bribing an official to get access to more farmland. It does not relate to low labor rates.
Choice C- Bribery is the act of offering money or something valuable to another person to persuade them to do something for you. Therefore is not concerned with labor rates.
Choice D- Fraud is the criminal deception that is designed to give a person or business a financial or personal benefit, ranging from bribes offered during supplier selection to forged checks during financing to fraudulent payments or payment guarantees. This option is not associated with low labor raters thus is not the answer.
Reference:
LO-1.1; Page 45; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements


NEW QUESTION # 27
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