Managing Ethical Procurement and Supply Exam Questions PDF download

QUESTION: 9

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?

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

Answer(s): D

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

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QUESTION: 10

Which of the following statements about the ILO (International Labour Organisation) is incorrect?

It is a body of the WTO
The ILO has a representation and complaints process
The ILO sets standards on health and safety in the workplace and maternity protection
A principle of the ILO is to eliminate child labour

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The ILO (International Labour Organisation) is an agency of the United Nations (UN), not the WTO. The L5M5 study guide (p.249) explains that the ILO promotes labour rights globally, sets international standards, and provides mechanisms for complaints and representation. Its principles include eliminating child labour, eradicating forced labour, and promoting safe and fair working conditions, including maternity protection. By contrast, the WTO (World Trade Organisation) deals with trade rules and disputes, not labour standards. This distinction is essential in procurement, as professionals must understand which bodies regulate trade versus labour practices.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.249

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QUESTION: 11

The WTO (World Trade Organisation) has several functions.
Which of the following is not a function of the WTO?

Set trade rules between countries
Deal with trade disputes between countries
Strive for full employment and high living standards
Ensure a high level of labour standards

Answer(s): D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The WTO's main functions include setting international trade rules, facilitating agreements, resolving disputes between member countries, and supporting global trade liberalisation. It also works to promote economic growth and development, indirectly aiming for higher employment and better living standards. However, the WTO does not set or enforce labour standards--this role belongs to the International Labour Organisation (ILO), which specifically governs employment rights, child labour elimination, and health and safety at work. The L5M5 study guide (p.256) emphasises the importance for procurement professionals to distinguish between global trade institutions such as the WTO and labour-focused organisations like the ILO.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.256

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QUESTION: 12

Nicolas is the Head of Procurement at Penny Dolittle Manufacturing Company. He is introducing an ESG agenda to the company's procurement strategy, especially regarding sustainability. Nicolas believes an advantage of this is that it will drive innovation. Is he correct?

Yes reporting on sustainability can drive change and innovation
Yes reporting on sustainability is mandatory and always leads to innovation
No reporting on sustainability will only increase reputation
No reporting on sustainability will increase costs

Answer(s): A

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The L5M5 study guide (p.182) states that sustainability reporting and the adoption of ESG (Environmental, Social, Governance) principles can stimulate organisational change and innovation. By measuring and reporting on sustainability, companies often seek new technologies, processes, and supply models to improve performance and meet ESG commitments. Reporting is not mandatory in all cases, so option B is incorrect.
While sustainability may improve reputation and sometimes costs, these are not the key focus of this question. CIPS guidance stresses that sustainability reporting can drive innovation--procurement can encourage suppliers to develop new sustainable practices, products, and approaches.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.182

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QUESTION: 13

What forms of organisation form the Ethical Trading Initiative (ETI)? Select THREE

Private businesses
Public sector businesses
Governments
NGOs
Trade Unions

Answer(s): A,D,E

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The Ethical Trading Initiative (ETI) is a leading alliance focused on improving working conditions in global supply chains. The L5M5 study guide (p.260) explains that ETI membership comprises:

Private businesses (such as retailers and brands),

Non-Governmental Organisations (NGOs), and

Trade Unions.

This tripartite approach enables collaboration between commercial, labour, and social interests to improve standards. Governments are not direct members, although their legislation can influence ethical trading. Public sector bodies may adopt ETI principles but are not core members. ETI's Base Code, founded on ILO conventions, outlines key principles including no forced labour, freedom of association, and fair working conditions.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.260

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QUESTION: 14

Which of the following are principles of the Wine and Agricultural Ethical Trade Association (WIETA)? Select THREE

Prohibition of forced labour
Working hours shall not be excessive
Regular employment to be provided
A working environment free from risk
Automatic sick pay

Answer(s): A,B,C

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The Wine and Agricultural Ethical Trade Association (WIETA) is an organisation promoting fair trade and ethical practices in South Africa's wine industry. The L5M5 study guide (p.262) outlines WIETA's principles, which align with ILO standards. These include prohibition of forced labour, ensuring working hours are not excessive, and providing regular employment rather than temporary or exploitative contracts. Options D and E are not accurate--no workplace can be entirely free of risk, and sick pay is determined by national legislation, not WIETA. Procurement professionals working with agricultural sectors should be aware of such sector-specific ethical trade associations.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.262

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QUESTION: 15

SA8000 measures an organisation's social accountability.
Which of the following is a disadvantage of this standard?

It is industry specific
It is not recognised in some countries
It requires a management system which can be costly to implement
It is only applicable to larger organisations

Answer(s): C

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

SA8000 is an internationally recognised certification standard for social accountability. It requires organisations to adopt management systems to monitor compliance with social standards, including child labour elimination, safe working conditions, and fair wages. According to the L5M5 study guide (p.264), one disadvantage is the cost of implementing and maintaining the management system, which can be resource-intensive for smaller organisations. SA8000 is not industry-specific, is recognised globally, and is applicable to both large and small organisations. However, the investment in audits, training, and compliance documentation can be significant, making this a barrier for some companies.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.264

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QUESTION: 16

The MNE (Multi-National Enterprise) Declaration is designed to promote ethical and sustainable operations by multinational organisations.
Which of the following are prioritised by the Declaration? Select TWO

Formal economies
Informal economies
Immigrant labour
Host country labour

Answer(s): A,D

Explanation:

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The MNE Declaration, also called the ILO Tripartite Declaration of Principles concerning Multinational Enterprises, sets out guidelines for multinational organisations to operate ethically and sustainably. The L5M5 study guide (p.267) explains that the Declaration prioritises formal economies (regulated, tax-paying, legitimate business environments) and host country labour, ensuring that local workers are not exploited. Informal economies and immigrant labour are recognised but not prioritised in the same way. The declaration is tripartite because it involves three groups: governments, employers, and workers' organisations. Procurement professionals working internationally must be aware of these principles when engaging multinational supply chains.

Reference:

Managing Ethical Procurement and Supply (L5M5) Study Guide, p.267

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CIPS Managing Ethical Procurement and Supply L5M5 Exam Questions in PDF

Free CIPS L5M5 Dumps Questions (page: 13)

QUESTION: 9

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QUESTION: 11

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QUESTION: 16

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