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Title: Free PDF 2026 Pass-Sure CIPS L5M5: Valid Dumps Managing Ethical Procurement and [Print This Page]
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Title: Free PDF 2026 Pass-Sure CIPS L5M5: Valid Dumps Managing Ethical Procurement and
P.S. Free 2026 CIPS L5M5 dumps are available on Google Drive shared by TopExamCollection: https://drive.google.com/open?id=102qwvpivfbKcxA3W4tpr1MI5NkD3bux_
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CIPS L5M5 Exam Syllabus Topics:
TopicDetails
Topic 1
  • 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.
Topic 2
  • 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 3
  • 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.

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q86-Q91):NEW QUESTION # 86
Which scenario best illustrates the inclusion of a community benefits clause in a procurement contract?
Answer: A
Explanation:
Choice B- A community benefits clause is included in procurement contracts to promote social and economic benefits for local communities. This often includes actions like creating job opportunities, providing training, or supporting local businesses, as described in option B.
Incorrect answer:
Choice A- Focuses on cost reduction rather than community benefits.
Choice C- Relates more to environmental considerations than community development.
Choice D- This option is about enforcement mechanisms, not generating community benefits.
Reference:
LO-2.2; Page 186-187; Monitoring Contract Performance

NEW QUESTION # 87
What is the term for a clause in a contract that, if breached, allows the injured party to claim damages but does not result in the termination of the contract?
Answer: D
Explanation:
Choice C- A warranty in a contract is a term that, if breached, allows the injured party to claim damages but does not give them the right to terminate the entire contract. Therefore, this is the answer.
Incorrect answer:
Choice A- A representation is a statement made by one party to another, often during pre-contractual negotiations, to induce them to enter into a contract. Representations are not terms of the contract, so their breach does not directly impact the contract itself in the same way as a condition, warranty, or innominate term. Since the question specifies a contractual clause, representation cannot be the correct answer.
Choice B- A condition is a fundamental term of the contract. Breaching a condition gives the injured party the right to: Terminate the contract, and Claim damages. The question explicitly states that the clause should not allow for termination of the contract. Therefore, a condition does not fit the criteria.
Choice D- An innominate term does not have a predefined classification as a condition or warranty. Its treatment depends on the severity of the breach: If the breach is serious, it could lead to termination (similar to a condition) or if the breach is minor, it only results in damages (similar to a warranty). Since the question specifies a clause that does not allow for termination regardless of the breach's impact, this term is too flexible to be the correct answer.
Reference:
LO-2.2; Page 190-191; Monitoring Contract Performance

NEW QUESTION # 88
Which framework is designed to promote ethical labor practices and social responsibility in global supply chains, addressing issues such as worker rights, health and safety, and fair wages?
Answer: A
Explanation:
Option A- The Ethical Trading Initiative (ETI) is a UK-based organization that works to improve the working conditions in global supply chains by promoting ethical labor practices. It provides guidelines and a platform for businesses to commit to ensuring workers' rights are upheld, including fair wages, safe working conditions, and the elimination of child labor and forced labor.
Incorrect answer:
Option B- While WIETA (Wine and Agricultural Ethical Trading Alliance) focuses on improving conditions within the South African wine industry, it is more specific to that sector and geography.
Option C- SA8000 is a certification standard for social accountability that focuses on labor rights but is not a framework or initiative aimed at ethical trading across industries.
Option D- The OECD (Organization for Economic Co-operation and Development) provides guidelines on responsible business conduct, but it is broader in scope and not solely focused on labor practices within supply chains.
Reference:
LO-3.1; Page 260-262; Labor codes of conduct: Ethical Trading Initiative (ETI) and Social Accountability International's standard SA8000

NEW QUESTION # 89
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?
Answer: D
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 # 90
The WTO (World Trade Organisation) has several functions. Which of the following is not a function of the WTO?
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The WTO's main functions include setting international trade rules, facilitating agreements, resolving disputes between member countries, and supporting global trade liberalisation. It also works to promote economic growth and development, indirectly aiming for higher employment and better living standards. However, the WTO does not set or enforce labour standards-this role belongs to the International Labour Organisation (ILO), which specifically governs employment rights, child labour elimination, and health and safety at work. The L5M5 study guide (p.256) emphasises the importance for procurement professionals to distinguish between global trade institutions such as the WTO and labour-focused organisations like the ILO.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.256

NEW QUESTION # 91
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