100% PASS QUIZ FANTASTIC CIPS RELIABLE L5M5 STUDY NOTES

100% Pass Quiz Fantastic CIPS Reliable L5M5 Study Notes

100% Pass Quiz Fantastic CIPS Reliable L5M5 Study Notes

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q12-Q17):

NEW QUESTION # 12
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. Yes, because workers have the right to association and CBA
  • B. No, because in raising ESG awareness workers have nothing to do
  • C. No, for implementing ESG standards there is no need to raise awareness
  • D. Yes. Because, Employees are the best promoters and they feel valued if they involved

Answer: D

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 # 13
A Fair Trade-certified coffee cooperative located in a rural area is undergoing an audit to assess its compliance with Fair Trade standards. During the audit, several non-compliance issues are identified, requiring immediate corrective action to align with International Labour Organization (ILO) standards.
For each identified breach, match the corresponding Fair Trade Principle with the most relevant ILO Standard by selecting the appropriate option and placing it in the table below.
Breach 1: Workers in the coffee processing plant are exposed to prolonged noise levels during their shifts. However, many employees do not have or are not using proper hearing protection, raising serious concerns about potential hearing damage.
Breach 2: A significant number of workers, particularly local laborers, receive wages below the living wage threshold. This has resulted in financial hardship for their families, despite the cooperative's Fair Trade certification.
Breach 3: The cooperative is engaged in environmentally harmful waste disposal practices, frequently dumping waste into nearby streams. This has led to increasing concerns among local communities and environmental advocacy groups regarding the negative impact on the local ecosystem.
Breach 4: The cooperative exhibits gender-based employment disparities, where women are not appointed to certain roles, particularly managerial and supervisory positions. Additionally, the required uniforms for these roles fail to accommodate women, further restricting their opportunities due to health and safety regulations.

  • A. No discrimination, gender equity, freedom of association: Employers must ensure gender equality in hiring practices and provide equal opportunities for all workers, regardless of gender.
  • B. Respect to the environment: Employers must adopt practices that reduce environmental impact and ensure that the working environment does not harm the local ecosystem
  • C. Good working conditions: Workers must be provided with a safe working environment that meets all health and safety standards, including protective equipment
  • D. Fair Payment: Workers must receive fair wages that meet the minimum living wage requirements.

Answer: A,B,C,D

Explanation:

Good Working Conditions → A) Workers must be provided with a safe working environment that meets all health and safety standards, including protective equipment. The Fair-Trade principle of good working conditions emphasizes that workers should have access to a safe, healthy, and supportive work environment. ILO Principle A aligns with this by requiring safety measures such as protective equipment to ensure worker well-being. Fair Payment → C) Workers must receive fair wages that meet the minimum living wage requirements.


NEW QUESTION # 14
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 change which the employees are afraid of
  • C. ESG policies require extra resources in both time and money
  • D. Negative publicity

Answer: B

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 # 15
Which of the following is a requirement for an Environmental Management System (EMS) according to ISO 14001?

  • A. Periodic reviews conducted by external auditors
  • B. An environmental policy statement
  • C. Setting recycling targets
  • D. A sustainability policy statement

Answer: B

Explanation:
Choice B - Under ISO 14001: Environmental Management System (EMS), an organization is required to establish, implement, and maintain an environmental policy statement that reflects its commitment to environmental protection, regulatory compliance, and continuous improvement.
Incorrect answer:
Choice A - While sustainability is important, ISO 14001 specifically requires an environmental policy statement, not a sustainability policy. Sustainability encompasses a broader scope, including social and economic factors, whereas ISO 14001 focuses primarily on environmental aspects.
Choice C - ISO 14001 does not mandate specific recycling targets. Instead, it requires organizations to identify their environmental aspects and impacts, set environmental objectives, and develop action plans. Recycling may be one of the objectives, but it is not a mandatory requirement.
Choice D- While ISO 14001 requires periodic reviews (such as internal audits and management reviews), external audits are not mandatory unless the organization seeks ISO 14001 certification. Certification audits are conducted by third-party auditors, but internal audits and management reviews are the primary monitoring mechanisms required by the standard.
Reference:
LO-3.2; Page 284-285; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards


NEW QUESTION # 16
Company X's CSR initiatives focus on community support through profit donations to local charities, organizing employee volunteer days, and providing scholarships for underprivileged students. In contrast, its ESG practices prioritize environmental sustainability by reducing its carbon footprint with renewable energy, cutting waste by 20% in five years, and promoting leadership diversity.
What distinguishes Company X's CSR initiatives from its ESG practices?

  • A. CSR initiatives emphasize community support, while ESG practices target environmental sustainability and governance improvements
  • B. CSR initiatives only involve philanthropic activities, whereas ESG practices focus solely on environmental sustainability
  • C. There is no distinction; both CSR and ESG are the same
  • D. CSR initiatives are mandatory for compliance, while ESG practices are optional

Answer: A

Explanation:
Choice A- Correct Answer. This option accurately reflects the difference between CSR and ESG. The CSR initiatives are centered on community support and philanthropic efforts (like donations and volunteer programs) which are basically factors at a top level, while the ESG practices focus on quantifiable goals related to environmental impact and governance structures (such as reducing carbon emissions and ensuring diversity in leadership).
Incorrect answer:
Choice B- This option is misleading. CSR initiatives are generally voluntary efforts that companies undertake to demonstrate social responsibility, while ESG practices can be driven by regulatory requirements in some sectors, but they are often also voluntary. Many companies adopt ESG standards to attract investors and manage risk, but it's not accurate to categorize CSR as mandatory.
Choice C- This option oversimplifies both concepts. While CSR often includes philanthropic activities, it can also involve ethical labor practices, community engagement, and more. Similarly, ESG encompasses environmental, social, and governance factors, not just environmental sustainability. Therefore, this option doesn't capture the full scope of either concept.
Choice D- This option is incorrect. While CSR and ESG are related and can overlap, they are distinct concepts. CSR focuses more on a company's ethical obligations and contributions to society, while ESG refers to specific metrics like KPI's to assess a company's impact on environmental and social issues and its governance practices.
Reference:
LO-1.1; Page 5, Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains


NEW QUESTION # 17
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