LATEST CIPS L5M5 LEARNING MATERIALS - VALID L5M5 STUDY PLAN

Latest CIPS L5M5 Learning Materials - Valid L5M5 Study Plan

Latest CIPS L5M5 Learning Materials - Valid L5M5 Study Plan

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q28-Q33):

NEW QUESTION # 28
Global sourcing often increases carbon emissions due to the long distances goods must travel. Which of the following strategies can help reduce this environmental impact?

  • A. Increasing reliance on air freight for faster delivery
  • B. Focusing exclusively on sourcing from local markets regardless of cost
  • C. Consolidating shipments to reduce the number of trips made
  • D. Sourcing from multiple distant suppliers to ensure competitive pricing

Answer: C

Explanation:
Choice B- Consolidating shipments means combining multiple orders into fewer deliveries, which reduces the total number of trips required. This approach leads to lower carbon emissions per unit of goods transported and enhances efficiency in logistics. Thus is the correct answer.
Incorrect answer:
Choice A- Using air freight can actually increase carbon emissions significantly compared to other transportation methods like shipping or rail. While it may expedite delivery, it is one of the most environmentally harmful ways to transport goods over long distances.
Choice C- While this strategy may help in achieving lower costs, it can increase carbon emissions due to the greater number of shipments required. Sourcing from many distant suppliers often leads to less efficient logistics and higher environmental impact.
Choice D- Although sourcing locally can significantly reduce transportation-related emissions, focusing solely on local markets may not always be practical or cost-effective. It can limit access to certain products, materials, or pricing advantages that global sourcing might provide. A balanced approach considering both environmental impact and cost is often necessary.
Reference:
LO-1.2; Page 79; ESG considerations in global sourcing


NEW QUESTION # 29
Despite Mr. Benjamin being galling, he is the boss, and employees recognize that he has worked hard to earn his management position. When he gives orders, you comply because you acknowledge his authority. What type of power does Mr. Benjamin hold?

  • A. Network Power
  • B. Expert Power
  • C. Referent Power
  • D. Legitimate Power

Answer: D

Explanation:
Choice B- The correct answer is legitimate power, as it stems from a person's position within the organization. Mr. Benjamin's authority as a manager grants him the power to give orders, and employees are expected to comply due to his status and role.
Incorrect answer:
Choice A- Expert power is possessed by someone who has skills, knowledge or expertise in a certain area. In this situation Mr Benjamin does not have any expertise of any area.
Choice C-Nothing about strong interpersonal relationship skills is mentioned here which people with referent power have.
Choice D-Network power stakeholders usually have access to valuable connections or are central to a powerful group. So again nothing about these qualities are mentioned about Mr Benjamin.
Reference:
LO-1.4; Page 124; Responsible use of power relationships


NEW QUESTION # 30
Which of the following best defines the concept of total landed costs?

  • A. The sum of all logistics cost related to a product
  • B. The difference between the product and logistics related cost
  • C. The sum of all product and logistics related cost
  • D. The lowest logistics cost of a product

Answer: C

Explanation:
According to the study guide, the correct answer is Choice C. Total landed cost refers to the complete cost of delivering a product to its final destination. This includes the original product price, transportation costs, fees, customs and duty charges, currency exchange rates, and handling costs.
Reference:
LO-1.4; Page 107; Demand Management and the need for urgent orders


NEW QUESTION # 31
Company X's CSR initiatives focus on community support through profit donations to local charities, organizing employee volunteer days, and providing scholarships for underprivileged students. In contrast, its ESG practices prioritize environmental sustainability by reducing its carbon footprint with renewable energy, cutting waste by 20% in five years, and promoting leadership diversity.
What distinguishes Company X's CSR initiatives from its ESG practices?

  • A. CSR initiatives only involve philanthropic activities, whereas ESG practices focus solely on environmental sustainability
  • B. CSR initiatives are mandatory for compliance, while ESG practices are optional
  • C. CSR initiatives emphasize community support, while ESG practices target environmental sustainability and governance improvements
  • D. There is no distinction; both CSR and ESG are the same

Answer: C

Explanation:
Choice A- Correct Answer. This option accurately reflects the difference between CSR and ESG. The CSR initiatives are centered on community support and philanthropic efforts (like donations and volunteer programs) which are basically factors at a top level, while the ESG practices focus on quantifiable goals related to environmental impact and governance structures (such as reducing carbon emissions and ensuring diversity in leadership).
Incorrect answer:
Choice B- This option is misleading. CSR initiatives are generally voluntary efforts that companies undertake to demonstrate social responsibility, while ESG practices can be driven by regulatory requirements in some sectors, but they are often also voluntary. Many companies adopt ESG standards to attract investors and manage risk, but it's not accurate to categorize CSR as mandatory.
Choice C- This option oversimplifies both concepts. While CSR often includes philanthropic activities, it can also involve ethical labor practices, community engagement, and more. Similarly, ESG encompasses environmental, social, and governance factors, not just environmental sustainability. Therefore, this option doesn't capture the full scope of either concept.
Choice D- This option is incorrect. While CSR and ESG are related and can overlap, they are distinct concepts. CSR focuses more on a company's ethical obligations and contributions to society, while ESG refers to specific metrics like KPI's to assess a company's impact on environmental and social issues and its governance practices.
Reference:
LO-1.1; Page 5, Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains


NEW QUESTION # 32
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. Support
  • C. Operation
  • D. Context of the organization

Answer: C

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 # 33
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