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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q39-Q44):

NEW QUESTION # 39
A seafood company in Country Z sources fish from a supplier employing migrant workers. An investigation reveals that the workers were charged excessive recruitment fees, leading to severe debt. Upon arrival, their passports were confiscated, and they were forced to work on fishing vessels for months without fair pay or rest. Those who attempted to leave or report the abuse faced threats of violence. Which labor rights violation best describes this situation?

A. Discrimination
B. Forced labor
C. Child labor
D. Sexual exploitation

Answer: B

Explanation:
Option C- This scenario involves forced labor because:
Workers were subjected to coercion through confiscation of passports and threats of violence.
They were trapped in abusive working conditions due to debts and lack of freedom to leave. The key elements of forced labor include deception during recruitment, coercion, and lack of consent, all of which are evident in this situation.
Incorrect answer:
Option A- The scenario does not mention minors being employed.
Opton B- No evidence of unequal treatment based on characteristics like gender, race, or religion is mentioned.
Option D- The scenario does not involve sexual abuse or coercion.
Reference:
LO-3.1; Page 250-251; Standards set by the United Nations (UN) and the International Labor Organization (ILO)

NEW QUESTION # 40
Green Book Ltd wants to include ESG measures in contracts. Which of the following is not an ESG performance measure?

A. Waste reduction
B. On time in full delivery
C. ED&I (Equality, Diversity & Inclusion)
D. Social value

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.194) confirms that On Time In Full (OTIF) delivery is a standard performance metric but is not an ESG measure. ESG measures include waste reduction (E), social value (S), and ED&I (S), which assess ethical, social, and environmental responsibilities. Procurement professionals must distinguish between operational KPIs and sustainability-focused KPIs to ensure contracts drive both efficiency and ethical responsibility.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.194

NEW QUESTION # 41
Charlie is 13 years old and sometimes helps his parents in their corner shop on weekends, while attending school during the week. Is this an example of child labour?

A. No - Charlie is old enough not to be a child
B. No - helping in a family business does not count as child labour
C. Yes - Charlie should report his parents to the police
D. Yes - any work by under 16s is child labour

Answer: B

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The ILO defines child labour as work that deprives children of their childhood, education, or well-being. According to the L5M5 study guide (p.252), light work, such as assisting in a family business outside school hours, is not considered child labour if it does not interfere with education or harm physical and mental health. Charlie is attending school, completing homework, and only helping part-time in a family-owned shop. Therefore, this is not classified as child labour. The ILO guidelines make clear distinctions between exploitative labour (such as sweatshops or hazardous industries) and permissible family assistance.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.252

NEW QUESTION # 42
Banks, investors, and consumers form which type of stakeholder?

A. External stakeholder
B. Internal stakeholder
C. Connected internal stakeholder
D. Connected external stakeholder

Answer: D

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Stakeholders are categorised based on their relationship to the organisation. The L5M5 study guide (p.105) explains that connected external stakeholders are outside the organisation but directly linked through financial or contractual relationships. Banks (financiers), investors (shareholders), and consumers (customers) fall into this category. Internal stakeholders (A) include employees and management, while external stakeholders (B) are broader groups such as regulators and communities without direct contracts. "Connected internal stakeholders" (C) is not a valid classification. Procurement professionals must identify and manage stakeholder expectations to maintain ethical, transparent supply chains.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.105

NEW QUESTION # 43
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. Context of the organization
B. Support
C. Operation
D. Performance evaluation

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 # 44
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