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

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

2. The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?

A) greasing the wheels
B) kickback
C) insider trading
D) bribery

3. A homeowner planning to purchase a new air conditioner notices an energy rating label on each model. This rating scheme provides details on the unit's energy efficiency, cooling capacity, and environmental impact. How does this information assist the buyer in making a decision?

A) It provides clear information on energy efficiency and expected electricity consumption
B) It guarantees that the air conditioner will last for a specific number of years
C) It ensures that all air conditioners have the same level of performance
D) It ensures that the most expensive air conditioner is always the best choice

4. GlobalPharm Ltd, a pharmaceutical company, has engaged a third-party auditor to assess its compliance with regulatory standards. During the audit, the company identifies potential risks. What is the most significant challenge GlobalPharm Ltd might face when working with a third-party auditor?

A) Reduced decision-making authority within management
B) Loss of operational control over manufacturing processes
C) Lack of independence in the auditor's recommendations
D) Reputational damage if non-compliance issues are exposed

5. All of the following are advantages of low-cost country sourcing EXCEPT which one?

A) A wider array of potential suppliers are available
B) Access to new and better process technologies
C) Intellectual property is easily protected
D) Lower wage rates allow lower manufacturing costs

Solutions: