L3M6 Exam Questions and Answers | Exam-Dumps (Page: 2)

QUESTION: 9

Excessive use of natural resources would not indicate a lack of or disregard for CSR and wouldn't damage the organization's reputation.

TRUE
FALSE

Answer(s): B

Explanation:

Excessive use of natural resources directly contradicts CSR principles, particularly those related to environmental sustainability (e.g., UN Global Compact Principles 7-9). It indicates a disregard for long-term ecological balance and can severely damage an organization's reputation, as stakeholders increasingly demand environmentally responsible practices. The CIPS L3M6 module emphasizes that resource overuse is a key indicator of poor CSR performance.

Reference:

CIPS L3M6 Study Guide, Section on CSR and Environmental Responsibility.

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QUESTION: 10

Healthy diversity in the supply chain, e.g., elements from different countries or diversity in terms of the ethnic and cultural backgrounds of the employees, can bring benefits to an organization; however, there could be cultural barriers or difficulties that arise due to working in different time zones.

TRUE
FALSE

Answer(s): A

Explanation:

Diversity in the supply chain--geographical, cultural, or ethnic--can enhance innovation, resilience,

and market reach, benefiting organizations. However, it also introduces challenges such as cultural misunderstandings or logistical issues from differing time zones. The CIPS L3M6 module recognizes these dual aspects, advocating for strategies to manage diversity effectively as part of sustainable procurement and CSR.

Reference:

CIPS L3M6 Study Guide, Section on Diversity in Supply Chains.

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QUESTION: 11

Buying traditional lightbulbs is OK because they're cheaper.

TRUE
FALSE

Answer(s): B

Explanation:

While traditional (incandescent) lightbulbs may be cheaper upfront, they are less energy-efficient and have a shorter lifespan compared to sustainable alternatives like LED bulbs. The CIPS L3M6 module stresses whole-life costing in sustainable procurement, where environmental impact and long-term costs outweigh initial savings. Choosing traditional bulbs contradicts CSR goals of reducing energy consumption and environmental harm.

Reference:

CIPS L3M6 Study Guide, Section on Sustainable Procurement and Whole-Life Costing.

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QUESTION: 12

Not-for-profit organizations have well-defined procurement policies that uphold the goals of sustainable procurement.
Which of the following organizations fall into the not-for-profit definition?

Apple
Oxfam
Pepsi
Save the Children
The Red Cross
The United Nations

Answer(s): B,D,E,F

Explanation:

Not-for-profit organizations operate without the primary goal of profit, focusing instead on social or environmental missions. From the list:
· Oxfam, Save the Children, The Red Cross, and The United Nations are not-for-profit entities dedicated to humanitarian, developmental, or peacekeeping goals, often with sustainable procurement policies aligned with CSR.
· Apple and Pepsi are for-profit corporations focused on commercial success. The CIPS L3M6 module highlights not-for-profits as key players in sustainable procurement due to their mission-driven nature.

Reference:

CIPS L3M6 Study Guide, Section on Organizational Types and Sustainable Procurement.

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QUESTION: 13

The public sector does not have a duty to implement sustainable procurement.

TRUE
FALSE

Answer(s): B

Explanation:

The public sector has a clear duty to implement sustainable procurement, often mandated by government policies and regulations. This involves balancing economic, social, and environmental factors in purchasing decisions to benefit society and taxpayers. The CIPS L3M6 module emphasizes that public sector organizations are expected to lead by example in sustainability, given their influence and accountability to the public.

Reference:

CIPS L3M6 Study Guide, Section on Public Sector and Sustainable Procurement.

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QUESTION: 14

The ISO 20400 is designed to help organizations to do what?

Manage supplier relations
Reduce their impact on the environment
Tackle human rights issues
All the above

Answer(s): D

Explanation:

ISO 20400, launched in 2017, is the world's first international standard for sustainable procurement.
It provides guidance for organizations to:
· Manage supplier relations: Ensuring ethical and sustainable practices in the supply chain. · Reduce environmental impact: Promoting eco-friendly purchasing decisions. · Tackle human rights issues: Addressing social responsibilities like fair labor practices. The CIPS L3M6 module recognizes ISO 20400 as a comprehensive framework integrating all these aspects into procurement strategies.

Reference:

CIPS L3M6 Study Guide, Section on ISO 20400 and Sustainable Procurement.

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QUESTION: 15

Under corporate governance, ________ are appointed by the _________ and are responsible for upholding the governance.

Directors
Shareholders
Staff
Stakeholders

Answer(s): A,B

Explanation:

Under corporate governance, directors are appointed by shareholders to oversee the organization's operations and ensure adherence to ethical, legal, and sustainable practices. Directors are accountable for upholding governance principles, balancing the interests of shareholders and other stakeholders. The CIPS L3M6 module outlines this relationship as fundamental to effective CSR and sustainability governance.

Reference:

CIPS L3M6 Study Guide, Section on Corporate Governance Structure.

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QUESTION: 16

What does CDP stand for?

Carbon Disclosure Programme
Carbon Disclosure Project
Company Disclosure Programme
Company Disclosure Project

Answer(s): B

Explanation:

CDP stands for Carbon Disclosure Project, a global non-profit organization that runs a disclosure system for organizations, cities, states, and regions to report and manage their environmental impacts, particularly carbon emissions. The CIPS L3M6 module identifies CDP as a key tool for environmental transparency in sustainability initiatives.

Reference:

CIPS L3M6 Study Guide, Section on CDP and Environmental Reporting.

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CIPS L3M6 Exam (page: 2) CIPS Socially Responsible Warehousing and Distribution Updated on: 12-Feb-2026

QUESTION: 9

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QUESTION: 10

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QUESTION: 11

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QUESTION: 12

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QUESTION: 13

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QUESTION: 14

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QUESTION: 15

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QUESTION: 16

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CIPS L3M6 Exam (page: 2)
CIPS Socially Responsible Warehousing and Distribution
Updated on: 12-Feb-2026