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CIPS L5M5 Exam Syllabus Topics:

Topic	Details
Topic 1	Understand initiatives and standards related to ESG (Environmental, Social, and Governance) that support ethical and sustainable procurement and supply: This section of the exam measures the skills of Procurement Leaders and covers the global frameworks and standards that shape ethical supply practices. It explores international labour standards set by organizations such as the UN and ILO, and labour codes like the Ethical Trading Initiative and SA800. Candidates also examine external environmental frameworks, industry accreditations, and their role in meeting ESG goals. Finally, this section addresses fair trade principles, organizations such as WFTO and Fairtrade International, and the need to align internal governance with global standards.
Topic 2	Understand the impact of ESG (Environmental, Social, and Governance) considerations on ethical and sustainable supply chains: This section of the exam measures the skills of Procurement Managers and covers how ESG principles are applied to secure ethical and sustainable supply chains. It looks at the role of environmental, social, and governance factors in procurement decisions, alongside risks and benefits of ESG adoption. Learners also explore issues such as modern slavery, bribery, and human rights, as well as the importance of diversity, inclusion, and stakeholder management. The section highlights how globalization, culture, and labour practices shape supply strategies and examines potential conflicts that may arise when balancing ESG priorities with business demands.
Topic 3	Understand the importance of compliance with ESG (Environmental, Social, and Governance) factors to achieve ethical and sustainable procurement and supply arrangements: This section of the exam measures skills of Supply Chain Specialists and covers methods to ensure compliance with ESG standards in procurement. It includes the use of supply chain mapping, risk management, stakeholder engagement, and contractual terms to secure sustainable practices. Candidates also learn how to monitor supplier performance, handle non-compliance, and utilize third-party auditors to maintain ethical standards. Relationship management strategies, corrective actions, and escalation processes are emphasized as part of ensuring suppliers meet ESG expectations.

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q32-Q37):

NEW QUESTION # 32
Patrick, a Category Manager, is procuring a high-cost item with many suppliers available and low switching costs. According to the Kraljic Matrix, what type of supplier is this?

A. Leverage
B. Routine
C. Strategic
D. Bottleneck

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
In the Kraljic Matrix, leverage items are high value but have many suppliers and low switching costs. The L5M5 study guide (old p.108, new p.154) explains that buyers have strong negotiation power in leverage situations and can achieve cost savings without high risk. Bottleneck items (B) are low-value but high-risk due to limited suppliers, routine items (C) are low-value and low-risk, and strategic items (D) are high-value and high-risk. Procurement professionals must use leverage strategically to maximise value.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.154

NEW QUESTION # 33
The right to freedom of association and collective bargaining primarily pertains to which of the following?

A. The right of employers to dismiss workers
B. The right of governments to regulate labor markets
C. The right of workers to form and join trade unions
D. The right of workers to demand minimum wage

Answer: C

Explanation:
Option B- Option B is correct because it explicitly describes workers' rights to form and join trade unions, which is central to this principle.
Incorrect answer:
Option A- The right of employers to dismiss workers is unrelated to freedom of association.
Option C- While governments may regulate labor markets, this is not the essence of freedom of association.
Option D- Minimum wage is a separate labor issue and not directly tied to freedom of association or collective bargaining rights.
Reference:
LO-3.1; Page 249-250; Standards set by the United Nations (UN) and the International Labor Organization (ILO)

NEW QUESTION # 34
Samir is the Project Manager of a large construction project. Due to the complexity of the build, the main contractor has employed specialist subcontractors. What is the disadvantage of using subcontractors for this work?

A. Increased costs
B. Compliance with the law
C. Less control
D. Lower quality of work

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The disadvantage of subcontracting is less control over performance. The L5M5 study guide (p.156) notes that while subcontracting allows access to specialist expertise, it creates additional risks for project delivery, as the main contractor remains accountable for subcontractor performance. Problems such as delays, quality issues, or non-compliance can occur, and these are more difficult to manage indirectly. Increased costs (A) are not always true since subcontracting can be cost-effective, while lower quality (B) depends on subcontractor capability. Compliance with the law (D) is a requirement, not a disadvantage. Procurement professionals must carefully manage subcontractors through clear contracts, monitoring, and accountability measures.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.156

NEW QUESTION # 35
A multinational retail company faces cybersecurity incidents, including unauthorized access to customer payment data and phishing attacks. To strengthen information security, the board seeks a globally recognized framework. The IT team must recommend the most suitable ISO standard for managing these risks systematically. Which ISO standard should the company adopt?

A. ISO 20400
B. ISO 45001
C. ISO 9001
D. ISO 27001

Answer: D

Explanation:
Choice A - ISO 9001 focuses on quality management and ensuring consistent product or service delivery. While it is valuable for improving operational processes, it does not specifically address information security risks or cybersecurity threats.
Choice B - ISO 27001 is the globally recognized standard for Information Security Management Systems (ISMS). It helps organizations systematically manage and improve their cybersecurity practices, protect customer data, and mitigate risks such as unauthorized access and phishing attacks..
Choice C - This standard focuses on sustainable procurement, ensuring ethical and environmental considerations in supply chain management. It is not relevant to cybersecurity.
Choice D- This standard addresses, occupational health and safety (OH&S), helping organizations improve workplace safety and reduce risks of injuries but does not cover information security.
Reference:
LO-3.3; Page 314; Importance of updating internal and governance standards

NEW QUESTION # 36
Ms. Nabila plans to create a CSR plan by involving all internal and external stakeholders of the company. Which TWO key components should she prioritize for the CSR plan?

A. Financial Analysis
B. Philanthropic responsibility
C. Introduction
D. Refinement
E. CSR Strategy

Answer: D,E

Explanation:
Key components of a CSR plan
* CSR assessment
* CSR strategy
* CSR commitment to stakeholder engagement
* Implementation plan and activities
* Verification and evaluation of results
* Refinement
Reference:
LO-1.1; Page 8; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains

NEW QUESTION # 37
......

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L5M5 Test Dumps Demo - L5M5 Exams Training

L5M5 Exams Training, Valid L5M5 Test Dumps

CIPS L5M5 Exam Syllabus Topics:

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q32-Q37):

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