L5M5 PDF DUMPS [2025] FOR PRODUCTIVE EXAM PREPARATION

L5M5 PDF Dumps [2025] For Productive Exam Preparation

L5M5 PDF Dumps [2025] For Productive Exam Preparation

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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q114-Q119):

NEW QUESTION # 114
The Payra 1320MW Thermal Power Plant, one of the largest power producers in Bangladesh, recently halted production due to worker strikes over poor working conditions. This situation is a consequence of which of the following?

  • A. Fraud
  • B. Human rights
  • C. Corruption
  • D. Bribery

Answer: B

Explanation:

Choice A is the answer as we can see from above interruption of supply chain is a consequence of human rights abuse. The other factors are not directly related to production stoppage due to poor working conditions. Reference: LO-1.1; Page 52; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements


NEW QUESTION # 115
A seafood company in Country Z sources fish from a supplier employing migrant workers. An investigation reveals that the workers were charged excessive recruitment fees, leading to severe debt. Upon arrival, their passports were confiscated, and they were forced to work on fishing vessels for months without fair pay or rest. Those who attempted to leave or report the abuse faced threats of violence. Which labor rights violation best describes this situation?

  • A. Forced labor
  • B. Sexual exploitation
  • C. Discrimination
  • D. Child labor

Answer: A

Explanation:
Option C- This scenario involves forced labor because:
Workers were subjected to coercion through confiscation of passports and threats of violence.
They were trapped in abusive working conditions due to debts and lack of freedom to leave. The key elements of forced labor include deception during recruitment, coercion, and lack of consent, all of which are evident in this situation.
Incorrect answer:
Option A- The scenario does not mention minors being employed.
Opton B- No evidence of unequal treatment based on characteristics like gender, race, or religion is mentioned.
Option D- The scenario does not involve sexual abuse or coercion.
Reference:
LO-3.1; Page 250-251; Standards set by the United Nations (UN) and the International Labor Organization (ILO)


NEW QUESTION # 116
When a major garments factory faces adverse publicity due to alleged child labor, which of the following recognized techniques would be most effective in identifying the root cause of the issue?

  • A. Value engineering
  • B. Whole life costs
  • C. Six sigma
  • D. Supply chain mapping

Answer: D

Explanation:
Choice C - Supply chain mapping is a technique that enables a comprehensive analysis of the entire supply chain involved in the production and distribution of garment products. It helps identify the origin of the issue and how it spread. Therefore, it is the correct answer.
Incorrect answer:
Choice A - WLC is used to assess the total cost of an asset over its whole life, taking account of its initial cost and the cost of operation, maintenance, upgrade and disposal. It does not help in identifying the child labor issue.
Choice B - Value engineering is a method used to improve the value of a product or process, not primarily focused on issue identification.
Choice D- Six sigma is a methodology aimed at process improvement and reducing defects, not specifically tailored for issue identification.
Reference:
LO-2.1; Page 145; Mapping supply chains to achieve supply chain transparency


NEW QUESTION # 117
EcoSmart Solutions, a company specializing in sustainable construction materials, intends to make a sustainability claim for their product. They are aware of the ISEAL Alliance's guidelines for valid sustainability claims. Which of the following would be considered a valid sustainability claim according to ISEAL Alliance standards?

  • A. The product reduces carbon emissions, but the claim is not supported by any third-party audits or verifications
  • B. The product claims to improve sustainability, but the claims are solely based on anecdotal evidence and not on any recognized environmental criteria or certification
  • C. The product is marketed as "eco-friendly" based on internal environmental policies without any external certification
  • D. The product is made using 100% recycled materials, with claims verified by third-party certification from a recognized sustainability standard

Answer: D

Explanation:
Choice A- This is the correct answer. According to ISEAL Alliance guidelines, a valid sustainability claim must be supported by third-party certification from a credible and recognized sustainability standard, ensuring the claim is verifiable and transparent.
Incorrect answer:
Choice B- This is not a valid claim under ISEAL guidelines because third-party verification is necessary to substantiate any claims related to carbon emissions.
Choice C- This is not a valid claim under ISEAL guidelines. Claims need to be independently verified, and internal policies alone do not provide credibility to the sustainability claim.
Choice D- This is not a valid claim according to ISEAL standards. Claims should be based on verifiable evidence and supported by recognized sustainability standards.
Reference:
LO-3.2; Page 291; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards and Charter of Fair Trade and implications for procurement and supply


NEW QUESTION # 118
How do Fair Trade organizations protect raw material producers from economic hardship?

  • A. They set a minimum price for purchasing the raw materials
  • B. They contribute money to communal funds for local investment
  • C. They establish standards for working conditions
  • D. They ensure the final products are labeled as Fair Trade

Answer: A

Explanation:
Choice B- Fair Trade ensures producers receive a guaranteed minimum price or local living wage for their goods, providing financial security and protection against market fluctuations. This is the correct answer.
Incorrect answer:
Choice A- This is important for community development but does not directly address the immediate economic stability of producers.
Choice C- Although improving working conditions is a key component of Fair Trade, it does not directly protect producers from economic hardships related to pricing or income stability.
Choice D- Labeling products as Fair Trade can help attract ethical consumers, but it doesn't directly protect producers from unstable economic conditions.
Reference:
LO-3.3; Page 295; The World Fair Trade Organization (WFTO) and its principles and Charter of Fair Trade and implications for procurement and supply


NEW QUESTION # 119
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