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

1. Mahfuz, a Procurement Officer at GreenLine Industries, manages a contract with a supplier of key raw materials. He recently noticed the supplier's non-compliance with the company's CSR (Corporate Social Responsibility) policy. Despite addressing the issue in a meeting, no significant improvements have been made. What should Mahfuz do next?

A) Issue an ultimatum
B) Make a financial claim
C) Escalate the issue to a senior manager
D) Terminate the contract

2. 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) Setting recycling targets
C) A sustainability policy statement
D) An environmental policy statement

3. A global aerospace manufacturer collaborates closely with a supplier to develop a highly specialized component requiring advanced technical expertise and customization. The supplier invests significant resources in co-designing and producing the component to meet the manufacturer's specific requirements. This partnership is built on strong relationships and mutual commitment.
Which type of relationship on the CIPS relationship spectrum best describes this scenario?

A) Bespoke
B) Transactional
C) Moderate
D) Partnership

4. A supplier has contracted to deliver a customized piece of machinery to a manufacturing company under a "payment following performance" clause. After delivery, the buyer delays payment, citing the need for additional testing to verify compliance with the agreed specifications.
What is the greatest risk the supplier faces under this "payment following performance" system in this scenario?

A) The buyer might demand additional goods or services at no extra cost
B) The buyer might reject the machinery without valid reasons
C) The supplier might receive full payment before addressing the buyer's concerns
D) The supplier might fail to deliver on time and face penalties

5. Westecs Inc., a leading consumer products manufacturer, has made significant investments in sustainable practices across its supply chains and in promotional advertising. Which of the following is the most likely benefit of this investment?

A) Improved brand image
B) Increased number of competitors
C) Reduced indirect costs
D) Unsatisfied shareholders

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