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Pass Guaranteed 2025 L5M5: Managing Ethical Procurement and Supply (L5M5) Useful Valid Braindumps Questions

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q43-Q48):

NEW QUESTION # 43
Demand forecasting collects data on a company's supply capacity for an item, including current and projected supply categorized by industry and product end use. Is this statement TRUE?

A. Yes - it is primarily used by manufacturing companies within the supply chain
B. Yes - it gathers information about both supply and demand
C. No - supply forecasting predicts short- and long-term prices and trends
D. No - demand forecasting analyzes a company's demand for an item, including current and projected demand

Answer: D

Explanation:
Demand forecasting involves analyzing a company's demand for a specific item or SKU, including current and projected demand categorized by industry and product end use. Therefore, the correct answer is Choice A.
Reference:
LO-1.4; Page 114; Short term commercial gains and long term availability

NEW QUESTION # 44
Which of the following methods does the ILO use to monitor compliance with labor standards in its member states?

A. Direct intervention in national legal systems
B. Only direct financial audits of companies
C. Reporting system, direct observations, and complaints mechanism
D. Monitoring through commercial advertising and media channels

Answer: C

Explanation:
Choice B- The ILO uses a combination of methods to monitor labor standards, such as reporting, investigating which falls under direct observation and complaints mechanism.
Incorrect answer:
Choice A- The ILO does not conduct financial audits of individual companies but relies on reports and investigations at the country level.
Choice C- While the ILO provides technical assistance, it does not directly intervene in national legal systems but works with governments to improve compliance.
Choice D- The ILO does not monitor labor standards through commercial advertising or media but relies on formal mechanisms such as reports, investigations, and dialogues.
Reference:
LO-3.1; Page 255; The role of the UN and ILO in pursuing improved ESG and ethical standards

NEW QUESTION # 45
A company dedicated to sustainable procurement is evaluating its processes to integrate Fair Trade goods. At which stage of the procurement process can Fair Trade requirements be most strategically incorporated?

A. After contract award, during supplier performance evaluation
B. During pre-procurement planning and market research
C. During tender specification development and supplier evaluation
D. When monitoring supplier compliance during the contract term

Answer: C

Explanation:
Choice D- This is the most strategic stage for including Fair Trade requirements, as it ensures suppliers are aware of the criteria upfront and allows for evaluation based on their adherence to these standards.
Incorrect answer:
Choice A - While monitoring suppliers post-contract is important, it's reactive rather than strategic. The ability to enforce Fair Trade requirements is limited if they weren't specified from the start.
Choice B - This stage helps identify Fair Trade suppliers and assess feasibility but doesn't directly bind suppliers to comply with Fair Trade standards.
Choice C - Compliance monitoring is crucial for maintaining standards, but it's not the stage where requirements are introduced.
Reference:
LO-3.3; Page 311-312; Fairtrade standards that affect the workplace and producers and their implications for procurement and supply

NEW QUESTION # 46
EcoTech Solutions, a small business based in Canada, is exploring the possibility of developing its own environmental management system rather than adopting a widely recognized standard. What are two potential advantages of this approach? Select any TWO

A. This is a form of greenwashing
B. It could result in lower implementation costs
C. It may be simpler for customers to understand
D. It ensures compliance with local regulations and requirements

Answer: B,D

Explanation:
Choice B- An organisation specific system can be specifically designed to address local environmental regulations, ensuring the business remains compliant with the laws in its area.
Choice D- This is a advantage, as creating a custom environmental management system could have fewer expenses compared to adopting a global certification, such as ISO.
Incorrect answer:
Choice A- While a custom system could be tailored to local needs, it does not guarantee that customers will find it easier to understand than an internationally recognized standard.
Choice C- This is not necessarily true. Developing a custom system is not inherently greenwashing unless the system is used to falsely claim environmental achievements or mislead consumers.
Reference:
LO-3.2; Page 288-289; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards

NEW QUESTION # 47
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 9001
C. ISO 45001
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 # 48
......

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