RELIABLE L5M5 EXAM BOOK, L5M5 TEST PRACTICE

Reliable L5M5 Exam Book, L5M5 Test Practice

Reliable L5M5 Exam Book, L5M5 Test Practice

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Tags: Reliable L5M5 Exam Book, L5M5 Test Practice, Test L5M5 Quiz, L5M5 Reliable Study Materials, New L5M5 Test Practice

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q73-Q78):

NEW QUESTION # 73
As a procurement manager with a focus on sustainability, your objective is to develop KPIs that assess the environmental impact of your suppliers and demonstrate their commitment to eco-friendly practices. What key performance indicators would be most effective in measuring these impacts?

  • A. The percentage of shipments that are damaged during transit
  • B. The ratio of recycled materials used in production versus virgin materials
  • C. The average response time to customer complaints
  • D. The total number of products the supplier offers

Answer: B

Explanation:
Choice A- This KPI directly measures the supplier's commitment to sustainability and their environmental impact by indicating how much they are utilizing recycled resources compared to new materials. The other options do not effectively reflect environmental practices.
Incorrect answer:
Choice B- This KPI measures the breadth of the supplier's offerings but does not provide any insight into their environmental practices or sustainability. A supplier could offer many products without any of them being eco-friendly.
Choice C- While important for customer service and supplier responsiveness, this KPI does not relate to environmental impact. A fast response time does not necessarily mean that the supplier is following sustainable practices.
Choice D- This metric focuses on logistics and supply chain efficiency rather than environmental sustainability. Although reducing damaged shipments can have some indirect environmental benefits, it doesn't directly measure the supplier's environmental practices or commitment to sustainability.
Reference:
LO-1.1; Page 16; The role of environmental considerations in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 74
Which of the following are regarded as potential benefits of responsible procurement?
1. Reduction of staff retention for the organization
2. Enhanced business reputation and social improvements
3. Increased operational risks due to supplier diversity
4. Cost savings due to the application of lifecycle costing

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

Answer: B

Explanation:
Choice 2- Selecting sustainable good and services from responsible suppliers creates a positive reputation, and social improvements increase therefore a business attracts new customers.
Choice 4- Responsible procurement uses life cycle costing which considers the whole life span of a product rather than the initial purchase cost only. Thus is more cost effective because costs that arise throughout the product's life are also taken into account.
Incorrect answer:
Choice 1- Responsible procurement shows commitment to long term environmental and social issues which helps to retain employees and attract new employees. Employees want to be associated with such business which are investing in the future and makes employees more motivated. Therefore choice 1 is the wrong choice.
Choice 3-This is not a benefit. While engaging a diverse supplier base can introduce complexity, it typically enhances resilience rather than increasing risks.
Reference:
LO-1.1; Page 10; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains


NEW QUESTION # 75
Ms. Nabila plans to create a CSR plan by involving all internal and external stakeholders of the company. Which TWO key components should she prioritize for the CSR plan?

  • A. Refinement
  • B. Financial Analysis
  • C. Introduction
  • D. CSR Strategy
  • E. Philanthropic responsibility

Answer: A,D

Explanation:
Key components of a CSR plan
* CSR assessment
* CSR strategy
* CSR commitment to stakeholder engagement
* Implementation plan and activities
* Verification and evaluation of results
* Refinement
Reference:
LO-1.1; Page 8; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains


NEW QUESTION # 76
GlobalPharm Ltd, a pharmaceutical company, has engaged a third-party auditor to assess its compliance with regulatory standards. During the audit, the company identifies potential risks. What is the most significant challenge GlobalPharm Ltd might face when working with a third-party auditor?

  • A. Loss of operational control over manufacturing processes
  • B. Reduced decision-making authority within management
  • C. Reputational damage if non-compliance issues are exposed
  • D. Lack of independence in the auditor's recommendations

Answer: C

Explanation:
Choice B- Reputational damage is a critical concern, as non-compliance findings could harm stakeholder trust, regulatory relationships, and the company's public image.
Incorrect answer:
Choice A- The company retains control over operations; auditors only provide assessments.
Choice C- Audits do not reduce management's decision-making authority.
Choice D- Certified auditors are expected to maintain independence.
Reference:
LO-2.3; Page 217-218; Challenges with third party auditors


NEW QUESTION # 77
The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?

  • A. kickback
  • B. greasing the wheels
  • C. bribery
  • D. insider trading

Answer: D

Explanation:
This is Insider Trading- the definition is on p.2


NEW QUESTION # 78
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