CIPS Managing Ethical Procurement and Supply L5M5 Exam Questions in PDF

Free CIPS L5M5 Dumps Questions (page: 3)

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?

  1. Yes ­ any work by under 16s is child labour
  2. Yes ­ Charlie should report his parents to the police
  3. No ­ Charlie is old enough not to be a child
  4. 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



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

  1. It is a body of the WTO
  2. The ILO has a representation and complaints process
  3. The ILO sets standards on health and safety in the workplace and maternity protection
  4. 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



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

  1. Set trade rules between countries
  2. Deal with trade disputes between countries
  3. Strive for full employment and high living standards
  4. 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



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?

  1. Yes ­ reporting on sustainability can drive change and innovation
  2. Yes ­ reporting on sustainability is mandatory and always leads to innovation
  3. No ­ reporting on sustainability will only increase reputation
  4. 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



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

  1. Private businesses
  2. Public sector businesses
  3. Governments
  4. NGOs
  5. 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



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

  1. Prohibition of forced labour
  2. Working hours shall not be excessive
  3. Regular employment to be provided
  4. A working environment free from risk
  5. 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



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

  1. It is industry specific
  2. It is not recognised in some countries
  3. It requires a management system which can be costly to implement
  4. 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



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

  1. Formal economies
  2. Informal economies
  3. Immigrant labour
  4. 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



Share your comments for CIPS L5M5 exam with other users:

M
Mogae Malapela
4/8/2026 6:37:56 AM

This is very interesting

A
Anon
4/6/2026 5:22:54 PM

Are these the same questions you have to pay for in ExamTopics?

L
LRK
3/22/2026 2:38:08 PM

For Question 7 - while the answer description indicates the correct answer, the option no. mentioned is incorrect. Nice and Comprehensive. Thankyou

R
Rian
3/19/2026 9:12:10 AM

This is very good and accurate. Explanation is very helpful even thou some are not 100% right but good enough to pass.

G
Gerrard
3/18/2026 6:58:37 AM

The DP-900 exam can be tricky if you aren't familiar with Microsoft’s specific cloud terminology. I used the practice questions from free-braindumps.com and found them incredibly helpful. The site breaks down core data concepts and Azure services in a way that actually mirrors the real test. As a resutl I passed my exam.

V
Vineet Kumar
3/6/2026 5:26:16 AM

interesting

J
Joe
1/20/2026 8:25:24 AM

Passed this exam 2 days ago. These questions are in the exam. You are safe to use them.

N
NJ
12/24/2025 10:39:07 AM

Helpful to test your preparedness before giving exam

A
Ashwini
12/17/2025 8:24:45 AM

Really helped

J
Jagadesh
12/16/2025 9:57:10 AM

Good explanation

S
shobha
11/29/2025 2:19:59 AM

very helpful

P
Pandithurai
11/12/2025 12:16:21 PM

Question 1, Ans is - Developer,Standard,Professional Direct and Premier

E
Einstein
11/8/2025 4:13:37 AM

Passed this exam in first appointment. Great resource and valid exam dump.

D
David
10/31/2025 4:06:16 PM

Today I wrote this exam and passed, i totally relay on this practice exam. The questions were very tough, these questions are valid and I encounter the same.

T
Thor
10/21/2025 5:16:29 AM

Anyone used this dump recently?

V
Vladimir
9/25/2025 9:11:14 AM

173 question is A not D

K
khaos
9/21/2025 7:07:26 AM

nice questions

K
Katiso Lehasa
9/15/2025 11:21:52 PM

Thanks for the practice questions they helped me a lot.

E
Einstein
9/2/2025 7:42:00 PM

Passed this exam today. All questions are valid and this is not something you can find in ChatGPT.

V
vito
8/22/2025 4:16:51 AM

i need to pass exam for VMware 2V0-11.25

M
Matt
7/31/2025 11:44:40 PM

Great questions.

O
OLERATO
7/1/2025 5:44:14 AM

great dumps to practice for the exam

A
Adekunle willaims
6/9/2025 7:37:29 AM

How reliable and relevant are these questions?? also i can see the last update here was January and definitely new questions would have emerged.

A
Alex
5/24/2025 12:54:15 AM

Can I trust to this source?

S
SPriyak
3/17/2025 11:08:37 AM

can you please provide the CBDA latest test preparation

C
Chandra
11/28/2024 7:17:38 AM

This is the best and only way of passing this exam as it is extremely hard. Good questions and valid dump.

S
Sunak
1/25/2025 9:17:57 AM

Can I use this dumps when I am taking the exam? I mean does somebody look what tabs or windows I have opened ?

F
Frank
2/15/2024 11:36:57 AM

Finally got a change to write this exam and pass it! Valid and accurate!

A
Anonymous User
2/2/2024 6:42:12 PM

Upload this exam please!

N
Nicholas
2/2/2024 6:17:08 PM

Thank you for providing these questions. It helped me a lot with passing my exam.

T
Timi
8/19/2023 5:30:00 PM

my first attempt

B
Blessious Phiri
8/13/2023 10:32:00 AM

very explainable

M
m7md ibrahim
5/26/2023 6:21:00 PM

i think answer of q 462 is variance analysis

T
Tehu
5/25/2023 12:25:00 PM

hi i need see questions

AI Tutor 👋 I’m here to help!