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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q87-Q92):
NEW QUESTION # 87
The development of a documented process to assess the environmental performance of suppliers prior to appointment, would be covered by which part of an ISO 14001:2015 environmental management system?
- A. Performance evaluation
- B. Operation
- C. Support
- D. Context of the organization
Answer: B
Explanation:
Choice B- This is the correct answer. The "Operation" clause of ISO 14001:2015 includes the need for an organization to establish processes for managing external impacts, such as assessing the environmental performance of suppliers and considering their sustainability efforts before appointing them.
Incorrect answer:
Choice A- This part of the ISO 14001:2015 focuses on monitoring, measuring, analyzing, and evaluating the environmental performance of the organization. It is more about assessing the internal processes rather than supplier assessment.
Choice C- This part focuses on understanding the external and internal factors that influence the organization's environmental management system, but not directly on supplier assessment processes.
Choice D- This section covers the resources, competence, awareness, communication, and documented information needed to support the environmental management system, but does not directly address the supplier evaluation process.
Reference:
LO-3.2; Page 284; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards
NEW QUESTION # 88
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. 90 days' pay per employee
- B. £20,000 per worker
- C. £10,000 only
- D. No limit
Answer: D
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 # 89
Mila's Catering Services has committed to paying living wages to its workers as part of its ESG objectives. Which of the following are reasons for this initiative? Select any TWO.
- A. Improves long term buyer supplier relationships and makes them sustainable
- B. Paying a living wage can be expensive, especially for small businesses with thin profit margins
- C. Living wage laws can reduce job opportunities for less-skilled workers
- D. Creates a positive impact on the society
Answer: A,D
Explanation:
Choice B - Paying living wages improves long term buyer supplier relationships and makes them sustainable thus is good for business. This option is correct.
Choice D- Living wages workers are working individuals who can actively take part in the local economy and boost local businesses. This therefore motivates business leaders and employees who want their company to make a positive impact on the society. This is also the correct answer.
Choice A - The imposition of living wages reduces job opportunities for the very families they are intended to help. When wages are legislated by government above those that would result in a competitive market, employers respond by reducing the number of workers they employ and/or the number of hours their employees work. That means living wage laws lead to higher unemployment for low-skilled workers and reduce opportunities for those entering the workforce to gain valuable skills and work experience. This is a downside of living wage and not a reason to take the initiative.
Choice C -Considering cost, paying a living wage can be expensive, especially for small businesses with thin profit margins thus is not a reason to undertake the initiative.
Reference:
LO-1.3; Page 92-93; Wages and social security arrangements
NEW QUESTION # 90
Progoti Motors, a Bangladeshi company, has purchased a new fleet of vehicles from Japan. Which TWO of the following would be included in the 'Total Landed Costs' of this purchase?
- A. Research and development costs
- B. Disposal costs
- C. Transportation costs
- D. Recycling costs
- E. Import duties
Answer: C,E
Explanation:
According to the study guide, total landed cost includes the original product price, transportation costs, fees, customs and duty charges, currency exchange rates, and handling costs. Therefore, Choices B and C are correct. Landed costs typically do not include expenses unrelated to the production and sale of a single item or costs that are difficult to determine precisely. Choices A, D, and E fall into this category.
Reference:
LO-1.4; Page 107; Demand Management and the need for urgent orders
NEW QUESTION # 91
Forced labor, including all forms of modern slavery, remains a significant issue affecting many supply chains. Procurement professionals and suppliers must collaborate to effectively eliminate forced labor. Which of the following strategies can procurement professionals use to address forced labor practices?
1. Boycotting the goods produced from modern slavery
2. Inclusion of anti-slavery and human trafficking clauses in contracts
3. Training for employees and suppliers to raise awareness of slavery issues
4. Treat all women and men fairly at work
- A. 4 and 1
- B. 2 and 4
- C. 2 and 3
- D. 1 and 2
Answer: C
Explanation:
Choice 2- Inclusion of anti-slavery and human trafficking clauses in contracts requires a supplier to guarantee that it complies with anti slavery policy and performs due diligence on its own suppliers. Thus is the correct answer.
Choice 3- Providing education on the signs of forced labor and human trafficking can empower both employees and suppliers to recognize and report such practices. This is also an answer.
Incorrect answer:
Choice 1- Boycotting the goods produced from modern slavery is a role of the consumer and not a procurement professional.
Choice 4- Treat all women and men fairly at work is related to equality in a workplace and does not concern forced labor practices.
Reference:
LO-1.3; Page 91; Labor standards and working practices
NEW QUESTION # 92
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