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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q45-Q50):
NEW QUESTION # 45
Which term describes non-binding recommendations that offer guidance on best practices?
- A. Directives
- B. Guidelines
- C. Regulations
- D. Statutes
Answer: B
Explanation:
Choice A- These are non-binding recommendations or advice that suggest best practices but do not carry the force of law. This A is the correct choice.
Incorrect answer:
Choice B- These are binding legal rules that must be followed as they have the force of law. They come into force on a set date in all of the member states.
Choice C- In legal contexts (e.g., EU), directives set goals that member states must achieve, but each state decides how to implement them.
Choice D- These are formal written laws passed by a legislative body of a government, and they are legally binding.
Reference:
LO-2.2; Page 185; Monitoring Contract Performance
NEW QUESTION # 46
Which of the following form the 'Triple Bottom Line'? Select THREE
- A. people
- B. planet
- C. placement
- D. profit
- E. product
Answer: A,B,D
Explanation:
People, Planet and Profit are the 'triple bottom line' - see p.3 of the study guide. This is also known as the 3Ps
NEW QUESTION # 47
Rashed's company is exploring the adoption of the EU's EMAS (Eco-Management and Audit Scheme). What are the key benefits of implementing EMAS?
1. It helps the organization improve its environmental performance and achieve sustainability goals.
2. It guarantees an immediate increase in sales and revenue.
3. It demonstrates compliance with environmental laws and regulations.
4. It offers no costs or resources required for implementation
- A. 1 and 2 only
- B. 3 and 4 only
- C. 1 and 3 only
- D. 2 and 4 only
Answer: C
Explanation:
Option 1- This is correct. EMAS encourages continuous improvement in environmental performance, which is central to the scheme's purpose.
Option 3- This is correct. One of the key benefits of EMAS is helping organizations demonstrate that they comply with environmental legislation, making it easier to meet legal requirements.
Incorrect answer:
Option 2- This is not correct. While EMAS can enhance reputation, it doesn't guarantee immediate sales or revenue growth.
Option 4- This is incorrect. There are costs involved in setting up and maintaining EMAS, such as for auditing and reporting.
Therefore, the answer is Choice B.
Reference:
LO-3.2; Page 279-280; The benefits and challenges of independent standards in securing ESG objectives in ethical and sustainable procurement and supply arrangements
NEW QUESTION # 48
A company seeks a fair-trade certification that covers its entire business operations instead of just individual products. Which organization offers certification for the entire organization rather than a single product?
- A. Fair Trade USA
- B. Fairtrade International
- C. Fair for Life
- D. Fair Trade Federation
Answer: D
Explanation:
Choice D- Fair Trade Federation is the correct answer! It is a membership-based organization that evaluates and certifies entire businesses that are committed to fair trade principles across all their operations, not just specific products.
Choice A - Fair Trade USA - Certifies individual products, not entire businesses. It allows companies to label specific items as "Fair Trade Certified" rather than certifying the company as a whole.
Choice B - Fair for Life - While it offers certification for supply chains and business practices, it primarily focuses on product certification rather than certifying an entire organization.
Choice C - Fairtrade International - Like Fair Trade USA, it certifies specific products, particularly commodities like coffee, cocoa, and bananas, rather than the entire business.
Reference:
LO-3.3; Page 300-301; Fairtrade international (FI), global fair trade organizations and their implications for procurement and supply
NEW QUESTION # 49
When developing an ESG policy, which of the following steps should be taken first?
- A. Draft the policy
- B. Consult with stakeholders
- C. Identify the need
- D. Gather Information
Answer: C
Explanation:
Steps to take to develop an ESG policy:
1) Identify the need
2) Identify who will take lead responsibility
3) Gather information
4) Draft the policy
5) Consult with stakeholders
6) Approve the policy
7) Procedures
8) Implement the policy
9) Monitor
So the correct answer is D.
Reference:
LO-1.1; Page 32-33; The development of ESG focused procurement and supply policies in securing ethical and sustainable procurement and supply arrangements
NEW QUESTION # 50
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