ONLINE CIPS L5M5 TRAINING, L5M5 EXAM MATERIALS

Online CIPS L5M5 Training, L5M5 Exam Materials

Online CIPS L5M5 Training, L5M5 Exam Materials

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Tags: Online L5M5 Training, L5M5 Exam Materials, L5M5 Trustworthy Pdf, Updated L5M5 CBT, New L5M5 Exam Book

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q26-Q31):

NEW QUESTION # 26
XYZ Corporation has been acquired by a global company that plans to centralize all sourcing activities and standardize processes. Which factor could help XYZ Corporation gain a competitive advantage through this centralization?

  • A. Ability to use more favorable legislation in different countries and avoid local legal obligations
  • B. Efficiency gains that lead to increased productivity and lower prices
  • C. Improved benchmarking shared data to provide ability to agree prices with global competitors
  • D. Increased due diligence activity resulting in lower governance of suppliers

Answer: C

Explanation:
Choice B- Improved benchmarking and shared data can help a company agree on prices with global competitors and gain a competitive advantage. Option B is the correct answer.
Incorrect answer:
Choice A- Legal obligations have to be maintained from wherever the company is operating. Avoiding or adhering to legislations is not a competitive advantage.
Choice C- Competitive advantage can best be described as what sets an organization apart. Increased efficiency is the result of competitive advantage but not a competitive advantage itself.
Choice D- Increased due diligence activity resulting in lower governance of suppliers is not a competitive advantage for XYZ Corporation.
Reference:
LO-1.2; Page 63-65; Competitive advantage through global sourcing


NEW QUESTION # 27
A discrimination claim has been filed against ASDA Stores Ltd, a leading UK retailer. The claimant alleges discrimination based on skin color and religion, violating the Equality Act 2010. If the claim is successful, what is the maximum compensation award?

  • A. £20,000 per worker
  • B. No limit
  • C. £10,000 only
  • D. 90 days' pay per employee

Answer: B

Explanation:
Choice D- For a breach of Equality Act 2010, there is no limit on the award of compensation in a discrimination claim. Thus is the correct answer.
Incorrect answer:
Choice A - 90 days' pay per employee is an award relating to dismissal on grounds of redundancy not discrimination.
Choice B - The average award for unfair dismissal is around £10,000 only not discrimination.
Choice C -The maximum penalty that employers had to pay for non-compliance with national living wage law is £20,000 per worker, which is not concerned with discrimination.
Reference:
LO-1.3; Page 40; Role of EDI in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 28
The Rampal Power Station, a 1320 MW coal-fired power plant, has recently faced accusations of poor health and safety standards in the workplace. Workers have reported being forced to work without safety masks, exposing them to air pollution. If Rampal Power Station fails to improve its health and safety standards, which of the following is the most likely primary consequence?

  • A. Acquisition of poor quality materials from suppliers
  • B. Destruction of the environment
  • C. Loss of reputation
  • D. Complexity in calculating insurance coverage

Answer: C

Explanation:
Choice B - Loss of reputation and damage to brand is a primary consequence of poor safety standards in the workplace for the power plant.
Incorrect answer:
Choice A - This option suggests that poor health and safety standards might lead to a decrease in the quality of materials sourced. While safety issues can affect worker performance and productivity, they do not directly relate to the quality of materials acquired from suppliers. Poor health and safety standards are more likely to impact employee morale and retention rather than the procurement process.
Choice C -Environmental effect is an indirect consequence for Rampal power plant but more so to the locals living there and natural habitat. If health and safety standards are not improved, it could lead to environmental issues, but this would be a broader consequence rather than a primary one related to workplace conditions.
Choice D-Although in cases of workers injury or death, calculating insurance would be complex, as not all injury and health related costs are covered by insurance, like sick pay, lost time, fines etc. But this is more of a secondary internal challenge and not a primary consequence of the power plant.
Reference:
LO-1.3; Page 99-100; Health and safety standards


NEW QUESTION # 29
Ben & Jerry's products feature a Fair Trade mark, demonstrating their commitment to ethical sourcing. Which of the following strategies do they use to copyright labor standards within their supply chain?

  • A. Offering higher prices for all ingredients, regardless of quality
  • B. Auditing and reporting on labor practices to ensure compliance
  • C. Implementing a policy that allows for flexibility in labor standards based on local laws
  • D. Relying solely on self-reporting from suppliers about labor condition

Answer: B

Explanation:
Choice C- By conducting regular audits and reporting on labor practices, Ben & Jerry's ensures that its suppliers adhere to fair labor standards. This process helps identify and address any issues related to working conditions, wages, and worker rights, thereby promoting accountability and transparency within their supply chain.
Incorrect answer:
Choice A- While paying fair prices is important, simply offering higher prices does not guarantee that labor standards are met.
Choice B- This approach can be misleading because self-reporting may not accurately reflect actual conditions without external verification.
Choice D- This could be misleading as it may suggest that local laws can justify subpar labor practices, which contradicts the fair trade ethos.
Reference:
LO-1.3; Page 88-89; Labor standards and working practices


NEW QUESTION # 30
During the transition phase at the end of a contract, what is typically the most challenging aspect to manage?

  • A. Knowledge transfer and intellectual property (IP) rights
  • B. Returning physical assets
  • C. Developing an exit strategy
  • D. Transferring documents

Answer: C

Explanation:
continuity, and addressing ownership, usage rights, and confidentiality. Mismanagement can have significant operational and legal implications.
Incorrect answer:
Choice B- Developing an exit strategy: This should already be planned during the contract drafting phase, making it less complex at the end stage.
Choice C- While it can involve logistical challenges, it is usually straightforward with clear inventory and tracking.
Choice D- Though it requires careful handling, it is generally a easier procedural task.
Reference:
LO-2.4; Page 240-241; Escalating non-compliance and making exit arrangements


NEW QUESTION # 31
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