Latest [Apr 20, 2026] CIPS L5M5 Real Exam Dumps PDF [Q28-Q53]

Share

Latest [Apr 20, 2026] CIPS L5M5 Real Exam Dumps PDF

L5M5 Practice Test Questions Updated 91 Questions


CIPS L5M5 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand the impact of ESG (Environmental, Social, and Governance) considerations on ethical and sustainable supply chains: This section of the exam measures the skills of Procurement Managers and covers how ESG principles are applied to secure ethical and sustainable supply chains. It looks at the role of environmental, social, and governance factors in procurement decisions, alongside risks and benefits of ESG adoption. Learners also explore issues such as modern slavery, bribery, and human rights, as well as the importance of diversity, inclusion, and stakeholder management. The section highlights how globalization, culture, and labour practices shape supply strategies and examines potential conflicts that may arise when balancing ESG priorities with business demands.
Topic 2
  • Understand the importance of compliance with ESG (Environmental, Social, and Governance) factors to achieve ethical and sustainable procurement and supply arrangements: This section of the exam measures skills of Supply Chain Specialists and covers methods to ensure compliance with ESG standards in procurement. It includes the use of supply chain mapping, risk management, stakeholder engagement, and contractual terms to secure sustainable practices. Candidates also learn how to monitor supplier performance, handle non-compliance, and utilize third-party auditors to maintain ethical standards. Relationship management strategies, corrective actions, and escalation processes are emphasized as part of ensuring suppliers meet ESG expectations.
Topic 3
  • Understand initiatives and standards related to ESG (Environmental, Social, and Governance) that support ethical and sustainable procurement and supply: This section of the exam measures the skills of Procurement Leaders and covers the global frameworks and standards that shape ethical supply practices. It explores international labour standards set by organizations such as the UN and ILO, and labour codes like the Ethical Trading Initiative and SA800. Candidates also examine external environmental frameworks, industry accreditations, and their role in meeting ESG goals. Finally, this section addresses fair trade principles, organizations such as WFTO and Fairtrade International, and the need to align internal governance with global standards.

 

NEW QUESTION # 28
Banks, investors, and consumers form which type of stakeholder?

  • A. Connected internal stakeholder
  • B. External stakeholder
  • C. Connected external stakeholder
  • D. Internal stakeholder

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Stakeholders are categorised based on their relationship to the organisation. The L5M5 study guide (p.105) explains that connected external stakeholders are outside the organisation but directly linked through financial or contractual relationships. Banks (financiers), investors (shareholders), and consumers (customers) fall into this category. Internal stakeholders (A) include employees and management, while external stakeholders (B) are broader groups such as regulators and communities without direct contracts. "Connected internal stakeholders" (C) is not a valid classification. Procurement professionals must identify and manage stakeholder expectations to maintain ethical, transparent supply chains.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.105


NEW QUESTION # 29
Porter's concept of "Creating Shared Value" combines CSR with what other action?

  • A. Philosophy
  • B. Philanthropy
  • C. Marketing
  • D. Economics

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Porter's Creating Shared Value (CSV) concept integrates Corporate Social Responsibility (CSR) with philanthropy (B), meaning that companies can generate economic value while simultaneously creating social value for communities. The L5M5 study guide stresses that businesses can strengthen competitiveness while advancing social and economic conditions where they operate. Unlike traditional philanthropy, CSV embeds social impact into core business strategy rather than being a peripheral activity. Procurement professionals can apply this by selecting suppliers who deliver both economic efficiency and community benefits.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on CSR and shared value


NEW QUESTION # 30
People in the UK earn entitlements to Social Security through National Insurance contributions. Under what circumstances are payments provided? Select THREE

  • A. Retirement
  • B. Sickness
  • C. Change of job
  • D. Marriage
  • E. Redundancy

Answer: A,B,E

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Social Security in the UK provides benefits such as sick pay, redundancy support, pensions, and maternity/paternity payments. The L5M5 study guide (p.93) specifies that payments can be made in cases of sickness (A), loss of employment (B), and retirement (C). Benefits are not provided simply for changing jobs (D) or marriage (E), as these do not affect financial or employment security. Procurement professionals need to understand social security systems, especially when working with international suppliers, since welfare provisions differ globally and affect labour conditions.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.93


NEW QUESTION # 31
Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this?

  • A. Benchmarking audit
  • B. Third-party audit
  • C. Compliance audit
  • D. External audit

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
A compliance audit evaluates whether an organisation adheres to regulatory requirements, security policies, and internal risk management procedures. The L5M5 study guide (p.207) highlights that this is distinct from external audits (conducted by outsiders), third-party audits (commissioned independently), and benchmarking audits (comparing against industry peers). Procurement professionals must use compliance audits to ensure suppliers meet legislative and regulatory standards, reducing risks of non-compliance, fines, and reputational damage.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.207


NEW QUESTION # 32
When creating a Sustainable Procurement Policy, which of the following steps should be conducted first?

  • A. Draft the policy
  • B. Identify who will take lead responsibility
  • C. Gather information
  • D. Consult with stakeholders

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.33) outlines nine steps to creating a Sustainable Procurement Policy. The very first step is to identify who will take lead responsibility (C). This ensures accountability from the outset. Once a leader is appointed, the next steps include gathering information, drafting the policy, consulting with stakeholders, obtaining approval, and monitoring. Without clear leadership, policies risk being ineffective. Procurement professionals must ensure accountability and leadership to drive sustainability objectives effectively.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.33


NEW QUESTION # 33
The WTO (World Trade Organisation) has several functions. Which of the following is not a function of the WTO?

  • A. Deal with trade disputes between countries
  • B. Strive for full employment and high living standards
  • C. Set trade rules between countries
  • D. Ensure a high level of labour standards

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The WTO's main functions include setting international trade rules, facilitating agreements, resolving disputes between member countries, and supporting global trade liberalisation. It also works to promote economic growth and development, indirectly aiming for higher employment and better living standards. However, the WTO does not set or enforce labour standards-this role belongs to the International Labour Organisation (ILO), which specifically governs employment rights, child labour elimination, and health and safety at work. The L5M5 study guide (p.256) emphasises the importance for procurement professionals to distinguish between global trade institutions such as the WTO and labour-focused organisations like the ILO.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.256


NEW QUESTION # 34
Green Book Ltd wants to include ESG measures in contracts. Which of the following is not an ESG performance measure?

  • A. ED&I (Equality, Diversity & Inclusion)
  • B. Waste reduction
  • C. Social value
  • D. On time in full delivery

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.194) confirms that On Time In Full (OTIF) delivery is a standard performance metric but is not an ESG measure. ESG measures include waste reduction (E), social value (S), and ED&I (S), which assess ethical, social, and environmental responsibilities. Procurement professionals must distinguish between operational KPIs and sustainability-focused KPIs to ensure contracts drive both efficiency and ethical responsibility.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.194


NEW QUESTION # 35
Which of the following are benefits of sustainable business practices? Select TWO

  • A. Increased productivity and reduced waste
  • B. Weakened performance
  • C. Increased spending
  • D. Competitive advantage

Answer: A,D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.7) highlights key benefits of sustainability, including increased productivity, reduced waste (A), and gaining competitive advantage (B) in the marketplace. Sustainable practices often improve efficiency, reduce resource consumption, and build stronger reputations, which attract customers and investors. Options C and D are incorrect, as weakened performance and higher spending are not benefits; instead, sustainability enhances resilience and long-term cost savings. Procurement professionals must position sustainability not as a cost burden but as a driver of efficiency, innovation, and brand strength.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.7


NEW QUESTION # 36
Which ISO standard is most appropriate for CSR?

  • A. ISO31000
  • B. ISO14000
  • C. ISO9001
  • D. ISO22000

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
ISO14000 is the family of standards for environmental management, making it the most appropriate for CSR (Corporate Social Responsibility). The L5M5 study guide (p.211) states that ISO14001, in particular, sets requirements for organisations to establish environmental management systems (EMS). ISO9001 relates to quality management, ISO22000 to food safety, and ISO31000 to risk management. For procurement, ISO14000 certification provides assurance that suppliers follow recognised environmental practices, making it highly relevant to CSR and ESG goals.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.211


NEW QUESTION # 37
Which of the following is NOT part of the UN's 17 Sustainable Development Goals?

  • A. Take urgent action to combat climate change
  • B. End poverty in all its forms, everywhere
  • C. Eradicate unethical business practices
  • D. Reduce inequality within and among countries

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The UN's 17 Sustainable Development Goals (SDGs) form the 2030 Agenda for Sustainable Development. They cover areas such as ending poverty (A), reducing inequality (B), and combatting climate change (C). However, eradicate unethical business practices (D) is not one of the listed goals. The L5M5 study guide (p.4) stresses that while business ethics are important, the SDGs are broader, covering social, environmental, and economic development priorities. Procurement professionals should be able to identify the SDGs, as supply chain policies are increasingly aligned with them to support global sustainability efforts.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.4


NEW QUESTION # 38
Westecs Inc., a leading consumer products manufacturer, has made significant investments in sustainable practices across its supply chains and in promotional advertising. Which of the following is the most likely benefit of this investment?

  • A. Reduced indirect costs
  • B. Unsatisfied shareholders
  • C. Improved brand image
  • D. Increased number of competitors

Answer: C

Explanation:
Choice B- Investing in sustainable practices and promoting them effectively can enhance Westecs Inc.'s brand image. Consumers increasingly prefer brands that demonstrate a commitment to sustainability, which can lead to increased customer loyalty and market differentiation.
Incorrect answer:
Choice A- There is an increased spending in indirect costs such as ESG initiatives which is one of the risk of behaving sustainably thus is not a reward.
Choice C- This option is incorrect. Shareholders are typically more satisfied when a company invests in sustainability, as it often aligns with long-term profitability and risk management. However, if the investments are poorly managed or do not lead to expected returns, there could be dissatisfaction, but that is not a likely immediate reward.
Choice D- This option is incorrect. While investing in sustainability may attract new competitors to the market, it is not a direct reward of the investment. Instead, companies might find themselves in a more competitive landscape due to rising consumer demand for sustainable products, but this is not an immediate reward.
Reference:
LO-1.1; Page 28; The risks and rewards of adopting ESG considerations in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 39
Which term describes non-binding recommendations that offer guidance on best practices?

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

Answer: C

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 # 40
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. Recycling costs
  • C. Transportation costs
  • D. Disposal 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 # 41
BrightWave Ltd, a publicly listed company, has recently expanded into international markets. To maintain regulatory compliance and stakeholder confidence, it relies on its audit committee. This committee oversees critical areas, including governance, risk management, and financial reporting.
Which TWO of the following responsibilities are typically within the audit committee's scope?
1. Reviewing and approving the company's strategic growth plans.
2. Monitoring the integrity of the financial statements and reporting process.
3. Appointing and evaluating the performance of the external auditors.
4. Managing the day-to-day operations of the finance department.
5. Ensuring the implementation of effective internal control systems

  • A. 3 & 5
  • B. 1 & 3
  • C. 2 & 4
  • D. 2 & 3

Answer: D

Explanation:
Option 2 - Monitoring the integrity of financial statements and reporting processes is a core responsibility of an audit committee, ensuring accuracy, transparency, and compliance with regulations.
Option 3- Appointing and evaluating the performance of external auditors falls within the audit committee's duties to ensure independence and effectiveness in audits.
Incorrect answer:
Option 1 & 4 - Strategic growth plans and managing day-to-day operations are the responsibilities of senior management and the board, not the audit committee.
Option 5- Internal control systems oversight can involve the audit committee, but implementation typically lies with management.
Reference:
LO-2.3; Page 215; Assessing the competencies of third-parties for the provision of ethical and ESG audit services


NEW QUESTION # 42
In the power dominance model, which factor is most likely to strengthen the buyers' power relative to suppliers?

  • A. Low price sensitivity among buyers
  • B. A small number of suppliers for a large number of buyers
  • C. High switching costs for buyers
  • D. High availability of substitute products

Answer: D

Explanation:
Choice D is the correct answer. When numerous substitute products are available, buyers can easily switch suppliers if dissatisfied, increasing their bargaining power in negotiations.
Incorrect answer:
Choice A- This typically increases supplier power, as a limited number of suppliers can dictate terms to a larger pool of buyers.
Choice B- This would decrease the power of buyers, as they would be less likely to change suppliers due to the costs involved.
Choice C- If buyers are not sensitive to price, they are less likely to negotiate strongly or switch suppliers based on cost, which decreases their bargaining power.
Reference:
LO-1.4; Page 127-128; Responsible use of power relationships


NEW QUESTION # 43
In what circumstances is Expert Determination the most suitable method for resolving contract disputes?

  • A. international contracts
  • B. high value contracts
  • C. personality disputes
  • D. technical disputes

Answer: D

Explanation:
Choice C- This is the correct answer. Expert Determination is particularly suited for disputes that require specialized technical knowledge, such as issues related to engineering, construction, or IT systems. An independent expert with relevant expertise can assess and resolve the dispute effectively.
Incorrect answer:
Choice A-Expert Determination is not specifically suited to international contracts. While it could be used in such cases, it is more about the nature of the dispute (technical issues) rather than the geographic scope of the contract.
Choice B- The value of the contract does not determine the suitability of Expert Determination. Other methods like arbitration or litigation are often more common for resolving high-value disputes.
Choice D- Expert Determination is not designed to handle personality conflicts or disputes rooted in interpersonal disagreements. Mediation or other relationship-focused methods are more appropriate in such cases.
Reference:
LO-2.4; Page 236; Escalating non-compliance and making exit arrangements


NEW QUESTION # 44
The use of child labour can affect which parties in the supply chain? Select TWO

  • A. Retailers
  • B. Manufacturers
  • C. Suppliers
  • D. Producers

Answer: B,D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Child labour often occurs in the production stage (e.g., farming, mining) and manufacturing stage (e.g., garment sweatshops). According to the L5M5 study guide (p.252), these unethical practices create risks for procurement, as organisations may face reputational damage, legal consequences, and disrupted supply chains. Retailers and suppliers are indirectly affected but are not the primary locations where child labour is found. Procurement professionals must ensure thorough supply chain due diligence, audits, and supplier codes of conduct to prevent child labour risks in procurement decisions.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.252


NEW QUESTION # 45
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. Fraudulent activity
  • B. Corruption
  • C. Modern Slavery
  • D. Bribe

Answer: C

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 # 46
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. Respect to the environment: Employers must adopt practices that reduce environmental impact and ensure that the working environment does not harm the local ecosystem
  • B. Good working conditions: Workers must be provided with a safe working environment that meets all health and safety standards, including protective equipment
  • C. Fair Payment: Workers must receive fair wages that meet the minimum living wage requirements.
  • D. 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.

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 # 47
Samir is the Project Manager of a large construction project. Due to the complexity of the build, the main contractor has employed specialist subcontractors. What is the disadvantage of using subcontractors for this work?

  • A. Compliance with the law
  • B. Less control
  • C. Increased costs
  • D. Lower quality of work

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The disadvantage of subcontracting is less control over performance. The L5M5 study guide (p.156) notes that while subcontracting allows access to specialist expertise, it creates additional risks for project delivery, as the main contractor remains accountable for subcontractor performance. Problems such as delays, quality issues, or non-compliance can occur, and these are more difficult to manage indirectly. Increased costs (A) are not always true since subcontracting can be cost-effective, while lower quality (B) depends on subcontractor capability. Compliance with the law (D) is a requirement, not a disadvantage. Procurement professionals must carefully manage subcontractors through clear contracts, monitoring, and accountability measures.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.156


NEW QUESTION # 48
Under the Equalities Act 2010, which of the following is not a protected characteristic?

  • A. Disability
  • B. Age
  • C. Pregnancy
  • D. Weight

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The Equalities Act 2010 provides legal protection against discrimination in the UK. The L5M5 study guide (p.35) lists the protected characteristics, which include disability, pregnancy and maternity, age, race, sex, sexual orientation, gender reassignment, marriage/civil partnership, and religion/belief. Weight is not included as a protected characteristic. For procurement, understanding equality legislation is vital to ensuring suppliers uphold fair treatment of employees and do not discriminate unlawfully. Organisations must embed these protections into contracts and supplier codes of conduct.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.35


NEW QUESTION # 49
What forms of organisation form the Ethical Trading Initiative (ETI)? Select THREE

  • A. Governments
  • B. Public sector businesses
  • C. Trade Unions
  • D. NGOs
  • E. Private businesses

Answer: C,D,E

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The Ethical Trading Initiative (ETI) is a leading alliance focused on improving working conditions in global supply chains. The L5M5 study guide (p.260) explains that ETI membership comprises:
Private businesses (such as retailers and brands),
Non-Governmental Organisations (NGOs), and
Trade Unions.
This tripartite approach enables collaboration between commercial, labour, and social interests to improve standards. Governments are not direct members, although their legislation can influence ethical trading. Public sector bodies may adopt ETI principles but are not core members. ETI's Base Code, founded on ILO conventions, outlines key principles including no forced labour, freedom of association, and fair working conditions.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.260


NEW QUESTION # 50
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. 2 and 3
  • B. 2 and 4
  • C. 1 and 2
  • D. 4 and 1

Answer: A

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 # 51
EcoTech Solutions, a small business based in Canada, is exploring the possibility of developing its own environmental management system rather than adopting a widely recognized standard. What are two potential advantages of this approach? Select any TWO

  • A. It ensures compliance with local regulations and requirements
  • B. This is a form of greenwashing
  • C. It may be simpler for customers to understand
  • D. It could result in lower implementation costs

Answer: A,D

Explanation:
Choice B- An organisation specific system can be specifically designed to address local environmental regulations, ensuring the business remains compliant with the laws in its area.
Choice D- This is a advantage, as creating a custom environmental management system could have fewer expenses compared to adopting a global certification, such as ISO.
Incorrect answer:
Choice A- While a custom system could be tailored to local needs, it does not guarantee that customers will find it easier to understand than an internationally recognized standard.
Choice C- This is not necessarily true. Developing a custom system is not inherently greenwashing unless the system is used to falsely claim environmental achievements or mislead consumers.
Reference:
LO-3.2; Page 288-289; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards


NEW QUESTION # 52
In 1999, the UN launched the Global Compact, a principle-based framework for sustainable business. Which of the following areas are covered by the Global Compact? Select THREE

  • A. Human rights
  • B. Anti-corruption
  • C. Environment
  • D. Racism
  • E. Minimum wage

Answer: A,B,C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The UN Global Compact is based on ten principles derived from UN declarations. According to the L5M5 study guide (p.249), the areas covered are: human rights (A), labour standards, environment (B), and anti-corruption (C). "Racism" (D) is not listed specifically; instead, the Compact addresses non-discrimination as part of labour rights. "Minimum wage" (E) is not a universal standard in the Compact, though labour standards cover fair conditions of work. Procurement professionals should align supply strategies with these principles to support global sustainability and ethical practice.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.249


NEW QUESTION # 53
......

CIPS L5M5 Dumps - Secret To Pass in First Attempt: https://www.ipassleader.com/CIPS/L5M5-practice-exam-dumps.html

L5M5 Dumps - Grab Out For [NEW-2026] CIPS Exam: https://drive.google.com/open?id=1RjyGIrq7X__nTcW5WPcbYgyPEl4WYomp