Clear L5M5 Exam & Free L5M5 Exam Questions

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Quiz 2025 High-quality L5M5: Clear Managing Ethical Procurement and Supply (L5M5) Exam

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q16-Q21):

NEW QUESTION # 16
Rahul, a procurement officer at a textile manufacturing company, aims to engage employees in integrating ESG (environmental, social, and governance) standards into daily operations. Is this an effective strategy?

A. No, for implementing ESG standards there is no need to raise awareness
B. No, because in raising ESG awareness workers have nothing to do
C. Yes. Because, Employees are the best promoters and they feel valued if they involved
D. Yes, because workers have the right to association and CBA

Answer: C

Explanation:
Choice D- Involving employees in raising sustainability awareness is a good strategy because by involving them, they feel valued and empowered, leading to increased engagement, ownership, and better promotion of sustainability practices. This is the correct answer.
Incorrect answer:
Choice A - This option is incorrect because raising awareness is a crucial step in implementing ESG initiatives. Without awareness, employees may lack the knowledge and motivation to adopt ESG practices, which can hinder the success of such efforts.
Choice B - This option is incorrect because the right to association and collective bargaining (CBA) refers to labor rights, not to ESG awareness. While these rights are important in the workplace, they do not justify involving workers in sustainability initiatives specifically.
Choice C - This option is incorrect because workers/employees are integral to the implementation of ESG practices. They play a key role in daily operations and can influence the organization's sustainability efforts. Claiming they have "nothing to do" disregards their potential contributions and undermines their importance in achieving ESG goals.
Reference:
LO-2.4; Page 224-225; Worker representation, processes and audit trails

NEW QUESTION # 17
Social security is recognized internationally as a fundamental human right. When sourcing from developing countries, procurement professionals must be mindful of the limited social support available to low-income workers, as neglecting this issue could harm their organization's reputation. Which of the following is NOT a step toward expanding social security coverage for more people in developing countries?

A. Separate social security benefits from a person's employment status
B. Increase costs of informal economy benefits
C. Improve tax collection to finance the extension
D. Increase costs of formal sector benefits

Answer: D

Explanation:

Therefore Choice D is a not a way in which social security can be extended as we need to reduce costs of formal sector benefits. Reference: LO-1.3; Page 94; Wages and social security arrangements

NEW QUESTION # 18
Which of the following are effective ways to promote equality in the supply chain? Select any TWO.
1. Fair payment policy
2. Having business integrity
3. Share documents and information on equality
4. Working with businesses that are run by men as they are more hard working

A. 1 and 2
B. 2 and 4
C. 3 and 4
D. 1 and 3

Answer: D

Explanation:
Choice 1- Having a fair payment policy indicates respect which is one of the ways of ensuring equality in supply chain.
Choice 3- Share documents and information on equality is a way of supporting the supply chain to achieve equality.
Incorrect answer:
Choice 2- While important, business integrity primarily relates to ethical practices and transparency, but does not specifically address equality in the supply chain.
Choice 4- This statement perpetuates gender bias and does not support equality. It is not a valid approach to achieving equality in the supply chain.
Therefore, the correct answer is Option C
Reference:
LO-1.1; Page 36; Role of EDI in securing ethical and sustainable procurement and supply arrangements

NEW QUESTION # 19
According to CIPS, demand management enables an organization to align its capacity with fluctuations in demand. Effective demand management ensures that products or services are available to the right people at the right time and place. Which of the following actions must the organization take to successfully manage demand?
1. Organization must keep their warehouses full of safety stock to meet demand effectively
2. Organizations must divert funds from other operational activities in order to acquire inventories
3. Organization must be prepared to respond to volatile events
4. Organizations must involve stakeholder in the process for real time information about demand

A. 4 and 1
B. 3 and 4
C. 1 and 2
D. 2 and 3

Answer: B

Explanation:
Based on the figure from the study guide, demand can be managed in four ways. Among the given options, Choices 3 and 4 are included. Therefore, the correct answer is Option C.

Reference: LO-1.4; Page 109; Demand Management and the need for urgent orders

NEW QUESTION # 20
Abed, the CEO of a manufacturing firm, plans to introduce an ESG policy. During a board meeting, concerns were raised about potential employee resistance to the initiative. What could be the most likely cause of this resistance?

A. A good ESG strategy promotes innovation
B. ESG policies require extra resources in both time and money
C. ESG policies require change which the employees are afraid of
D. Negative publicity

Answer: C

Explanation:
Choice D- ESG policies require change and many employees are worried by change. Thus D is the correct answer!
Incorrect answer:
Choice A- ESG agendas increases business reputation and does not negatively publicize.
Choice B- Requiring extra resources is a matter of the management and does not concern the employees.
Choice C- Promoting innovation is a positive effect of ESG policies and leads to more engaged employees.
Reference:
LO-1.1; Page 7; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains

NEW QUESTION # 21
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Clear L5M5 Exam & Free L5M5 Exam Questions

Quiz 2025 High-quality L5M5: Clear Managing Ethical Procurement and Supply (L5M5) Exam

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q16-Q21):

Free PDF Pass-Sure L5M5 - Clear Managing Ethical Procurement and Supply (L5M5) Exam

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