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

1. 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) Greenpeace
C) United Nations Environment Programme (UNEP)
D) Global Environmental Management Initiative (GEMI)

2. What is the primary purpose of a supplier code of conduct?

A) To define the penalties for non-compliance in supplier contracts
B) To establish the expectations and standards for supplier behavior and practices
C) To ensure suppliers take full responsibility for product quality
D) To outline the payment terms and delivery schedules for suppliers

3. Ahmed Electronics is conducting an audit to assess its compliance with regulatory requirements, security protocols, and risk management policies. What type of audit does this represent?

A) compliance audit
B) benchmarking audit
C) external audit
D) 3rd party audit

4. The World Fair Trade Organization (WFTO) aims to help large global businesses expand into new markets, offering better products and fairer prices for consumers. Is this statement accurate?

A) No, the WFTO focuses on supporting smaller and disadvantaged producers
B) No, the WFTO primarily focuses on diminishing the influence of multinational corporations
C) Yes, the WFTO provides financial aid to international companies
D) Yes, the WFTO establishes global rules to safeguard consumers

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

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