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Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing
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CIPS Ethical and Responsible Sourcing Sample Questions:
Commodities are items which can be traded on the stock exchange. These are generally divided into four categories. What are these four categories?
- A. energy, agriculture, metals, livestock
- B. chemicals, agriculture, metals and livestock
- C. fruit, vegetables, meat and dairy
- D. metals, energy, elements and agriculture
Correct Answer: A 🗳️
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A buyer evaluates a supplier's ethical and social practices during the pre-qualification stage of the supplier onboarding process. Which of the following variables would trigger further follow-up activities?
- A. On discovering that no employees can work without agreeing to the buyer organisation's code of conduct
- B. On discovering that trade (labour) union memberships are not permitted by the supplier in its place of work
- C. If the supplier's employees have a good understanding of their employment rights
- D. When staff are unionised and appropriate time is provided for union activities
Correct Answer: B 🗳️
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Which of the following are reasons to outsource part of a business to an external supplier? Select TWO.
- A. the reduction in the need to continually invest in new machinery
- B. the product or service is core to the organisation
- C. there are more resources in-house
- D. overheads can be kept as effective as possible
Correct Answer: A,D 🗳️
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You have been asked to purchase 500 pens of a specific brand. You decided to use a weighted points system for assessment of proposals. Is this approach appropriate?
- A. Yes, you should follow the same procurement process irrespective of the circumstances
- B. No, it is not necessary, as in this case, you are mainly concerned with price
- C. Yes, a weighted points system is always the best way to evaluate suppliers' bids
- D. No, you should only use a weighted points system for high-spend procurement
Correct Answer: B 🗳️
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Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?
- A. No- Ali should simply ask the supplier's about their ethical practices
- B. Yes- audits always uncover ethical violations such as modern day slavery
- C. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations
- D. No- audits will only reveal financial issues not ethical ones
Correct Answer: C 🗳️
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