Test Online Free CIPS L5M5 Exam Questions and Answers
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Which of the following are tools that a company can use to improve sustainability across the supply chain? Select THREE
Answer: Explanation:
Benchmarking, Supply Chain Mapping and On-Site Audits are tools to improve sustainability in the supply chain. Supplier preferencing and cost analysis are internal tools but they won't help improve sustainability. Benchmarking helps as it identifies what the standard is in the industry and where people can improve. Mapping improves sustainability as it identifies suppliers that are struggling with environmental issues so action can be taken. And Audits help as it provides primary data on if there are issues. There's a big table of ways companies can improve sustainability across the supply chain on p.118. Other ideas include having a code of conduct and training programmes.
Question 32Selectable Answer
Which of the following is not considered to be an alternative form of dispute resolution?
Answer: Explanation:
Litigation isn't an alternative form of dispute resolution. The others are- they're alternatives TO litigation. P.128
Question 33Selectable Answer
Which of the following is a disadvantage to the ISO14001 standard?
Answer: Explanation:
The correct answer is 2- environmental targets aren't set by ISO, they're set by the organisation. This means that an organisation can set super easy targets, and nothing actually really improves. 1 is incorrect- it's standard across every industry. 3 is incorrect as this isn't a disadvantage. 4 is incorrect because not every company is greenwashing, some genuinely care about the environment. P.209
Question 34Selectable Answer
Ben is the CEO of a medium sized company based in the UK with an annual turnover of £20million. He has a small supply chain that comprises of suppliers based in the UK and China.
Must Ben produce an Anti-Slavery Statement for his business?
Answer: Explanation:
The correct answer is no- this is not a legal requirement. This is because his company has an annual turnover less that £36m. It's only a requirement if you make more money than this. See p.62-63 for more info on the Modern Slavery Act
Question 35Selectable Answer
Labour standards facilitate international trade and there are international regulations to secure this. Is this statement TRUE?
Answer: Explanation:
3 is correct. To work this out, firstly decide if the answer is yes or no. The answer here is no- there are no international regulations on labour standards. Therefore options 1 and 2 are incorrect. Out of 3 and 4, we know that 4 is incorrect because some countries do have labour standards (e.g. the UK has a minimum wage). Therefore by process of elimination option 3 is correct. This is from p.57 of the study guide
Question 36Selectable Answer
The MNE (Multi-National Enterprise) Declaration is designed to promote the ability of multi-national organisations to operate in an ethical and sustainable manner.
Which of the following would be prioritised by the Declaration? Select TWO
Answer: Explanation:
Formal economies and host country labour are prioritised by the MNE Declaration. More on this on p.197
Question 37Selectable Answer
The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?
Answer: Explanation:
The correct answer is no- it is voluntary and not legally binding. The other potential answer (because we discount the ones that start with yes) is incorrect because participants ARE required to publish reports to the UN Global Compact website. Organisations that don't comply are expelled. P.187
Question 38Selectable Answer
The JCT Contract is used most commonly by which industry?
Answer: Explanation:
It is commonly used in Construction. This is mentioned on p.127. JCT produces standard forms of contracts used in the Construction Industry.
Question 39Selectable Answer
The main aim of the ILO is to promote rights at work and improve social protection. Is this TRUE?
Answer: Explanation:
1 is correct. First look at whether the answer is yes or no. It's yes- the ILO (International Labour Organisation) promotes rights at work. Therefore discount options 3 and 4. Between options 1 and 2 option 1 is correct- option 2 describes the purpose of the WTO, not ILO. See p.59.
Question 40Selectable Answer
Ruben is a new Procurement Manager at XYZ Company. He has been charged with buying a new piece of machinery for a factory. Having looked at several options, and considered sustainability, he has opted to buy the more expensive piece of machinery.
In terms of sustainability, why might he have made this choice?
Answer: Explanation:
3 is the correct answer. This question is testing if you know about Whole Life Cycle Costing. You'll have come across this already at level 4 (module 7). It's a big part of sustainability. See p.14 for a quick recap on this. In terms of this question, even if you don't remember life-cycle costing, options 1 2 and 4 can't be right- we don't have information in the question that tells us that the higher priced item is better quality, from a reputable company or environmentally friendly- we just don't know based on the information we've been given so these answers can't be right
