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2025 100% Free L5M5–Pass-Sure 100% Free Valid Real Exam | L5M5 Exam Questions Fee

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q70-Q75):

NEW QUESTION # 70
Abed, the CEO of a manufacturing firm, plans to introduce an ESG policy. During a board meeting, concerns were raised about potential employee resistance to the initiative. What could be the most likely cause of this resistance?

A. ESG policies require change which the employees are afraid of
B. Negative publicity
C. ESG policies require extra resources in both time and money
D. A good ESG strategy promotes innovation

Answer: A

Explanation:
Choice D- ESG policies require change and many employees are worried by change. Thus D is the correct answer!
Incorrect answer:
Choice A- ESG agendas increases business reputation and does not negatively publicize.
Choice B- Requiring extra resources is a matter of the management and does not concern the employees.
Choice C- Promoting innovation is a positive effect of ESG policies and leads to more engaged employees.
Reference:
LO-1.1; Page 7; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains

NEW QUESTION # 71
A global manufacturing company is looking for a collaborative platform to enhance its environmental, social, and governance (ESG) practices. It requires access to practical tools, peer networking, and resources to tackle challenges such as climate change, water sustainability, and supply chain management.
Which organization would best meet the company's needs?

A. International Procurement Organization (IPO)
B. Global Environmental Management Initiative (GEMI)
C. Greenpeace
D. United Nations Environment Programme (UNEP)

Answer: B

Explanation:
Option B- GEMI is tailored for businesses seeking tools, resources, and collaborative opportunities to enhance their ESG practices. Unlike other options, GEMI specializes in corporate environmental management and provides solutions to the practical challenges companies face in their operations.
Incorrect answer:
Option A- The IPO primarily supports global procurement professionals and organizations in reducing & optimizing their procurement and supply chain strategies. While it may offer insights into sustainable procurement, it does not specialize in environmental or sustainability management across broader operational areas like GEMI does.
Option C- UNEP sets international environmental agendas and fosters policies at the government level, but it does not provide the practical tools and peer collaboration specifically tailored for businesses.
Option D- Greenpeace is an independent global campaigning organization focused on confronting environmental issues such as climate change, deforestation, and ocean protection through activism and advocacy. Its primary approach involves raising public awareness and pressuring corporations and governments to adopt environmentally friendly practices, rather than providing businesses with practical tools or platforms for internal sustainability improvements.
Reference:
LO-2.1; Page 170; Use of risk mitigation strategies to achieve ESG objectives to secure ethical and sustainable procurement and supply arrangements

NEW QUESTION # 72
Which organisation is responsible for the creation of the 2030 Sustainable Development Agenda?

A. ILO
B. NATO
C. ISO
D. UN

Answer: D

Explanation:
This is the UN. There are 17 sustainability goals and these are listed on p.3. For the exam it's a good idea to familiarise yourself with them, but there's no need to learn them all off-by-heart.

NEW QUESTION # 73
Which of the following standard operating procedures do procurement professionals use to prevent fraud within a company?

A. Bypassing formal bidding processes for convenience in purchasing decisions
B. Using verbal agreements for procurement contracts to expedite the process
C. Allowing a single employee to handle all procurement transactions without oversight
D. Implementing a whistleblower hotline to report suspicious activities anonymously

Answer: D

Explanation:
Choice B- A whistleblower hotline allows employees to report suspected fraudulent activities or unethical behavior anonymously, fostering a culture of transparency and accountability. This tool can help organizations identify and address fraud early, reducing the risk of financial loss.
Incorrect answer:
Choice A- Allowing one person to manage all procurement transactions without oversight significantly increases the risk of fraud. Implementing checks and balances, such as requiring multiple approvals or reviews, is essential for accountability and transparency in procurement processes.
Choice C- Relying on verbal agreements increases the risk of misunderstandings and fraud, as there is no formal documentation to refer to. Written contracts are essential for establishing clear terms and protecting both parties, which helps mitigate fraud risks.
Choice D- This option is incorrect. Bypassing formal bidding processes undermines transparency and competitiveness, increasing the risk of fraud and corruption. Adhering to formal procurement processes ensures fairness, accountability, and proper documentation, reducing the likelihood of fraudulent activities.
Reference:
LO-1.1; Page 22-23; The role of governance considerations in securing ethical and sustainable procurement and supply arrangements

NEW QUESTION # 74
A company dedicated to sustainable procurement is evaluating its processes to integrate Fair Trade goods. At which stage of the procurement process can Fair Trade requirements be most strategically incorporated?

A. During tender specification development and supplier evaluation
B. After contract award, during supplier performance evaluation
C. During pre-procurement planning and market research
D. When monitoring supplier compliance during the contract term

Answer: A

Explanation:
Choice D- This is the most strategic stage for including Fair Trade requirements, as it ensures suppliers are aware of the criteria upfront and allows for evaluation based on their adherence to these standards.
Incorrect answer:
Choice A - While monitoring suppliers post-contract is important, it's reactive rather than strategic. The ability to enforce Fair Trade requirements is limited if they weren't specified from the start.
Choice B - This stage helps identify Fair Trade suppliers and assess feasibility but doesn't directly bind suppliers to comply with Fair Trade standards.
Choice C - Compliance monitoring is crucial for maintaining standards, but it's not the stage where requirements are introduced.
Reference:
LO-3.3; Page 311-312; Fairtrade standards that affect the workplace and producers and their implications for procurement and supply

NEW QUESTION # 75
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