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

1. 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) 1 and 2
C) 2 and 4
D) 4 and 1

2. Why is it important for an organization to regularly review and update its internal governance standards? Select any TWO.

A) To increase the number of suppliers bidding on contracts
B) To reduce employee turnover by offering higher salaries
C) To adapt to changes in industry best practices and stakeholder expectations
D) To ensure compliance with evolving legal and regulatory requirements

3. A group of small-scale coffee farmers in a rural village has been receiving the Fairtrade Premium for their products. During a recent community meeting, they discuss how to allocate the premium funds for the upcoming year. Which of the following projects would best align with the principles of the Fairtrade Premium in addition to the fair trade price?

A) Using the funds to subsidize private education for the children of the wealthiest farmers
B) Investing in building a community health clinic to improve access to healthcare for all villagers
C) Distributing the funds equally among the farmers to use as they see fit
D) Allocating the funds to one farmer to expand their personal farming business

4. A procurement officer at a global retail company is responsible for sourcing raw materials for a new product line. With the company committed to ethical sourcing practices, including Fair Trade, the officer aims to clearly communicate Fair Trade requirements to potential suppliers. Where should these requirements be included to ensure compliance?

A) In the specifications section of the tender document
B) In internal emails to the procurement team
C) In the company's annual sustainability report
D) During supplier performance review meetings after contracts are signed

5. 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) Expert Power
B) Legitimate Power
C) Network Power
D) Referent Power

Solutions: