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

1. The ILO's fundamental principles and rights at work are binding on which countries?

A) All member states of the ILO
B) Only developed countries
C) Only countries with high labor standards
D) Only those that have ratified the ILO conventions

2. A company frequently ships high-value goods internationally, and the logistics team identifies a significant risk of financial loss due to potential cargo theft or damage during transit. To mitigate this risk, the company hires an external freight forwarder who provides insurance coverage and assumes full responsibility for the goods while in transit.
What is the most appropriate risk management strategy in this scenario?

A) Transfer
B) Terminate
C) Tolerate
D) Treat

3. 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) Modern Slavery
B) Corruption
C) Fraudulent activity
D) Bribe

4. Which of the following strategies is primarily designed to lower business costs while also considering social and environmental impacts?

A) Value Engineering
B) Increasing Product Prices
C) Outsourcing
D) Cutting Workforce Salaries

5. Mahfuz, a Procurement Officer at GreenLine Industries, manages a contract with a supplier of key raw materials. He recently noticed the supplier's non-compliance with the company's CSR (Corporate Social Responsibility) policy. Despite addressing the issue in a meeting, no significant improvements have been made. What should Mahfuz do next?

A) Issue an ultimatum
B) Terminate the contract
C) Make a financial claim
D) Escalate the issue to a senior manager

Solutions: