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CIPS L5M5 Exam Syllabus Topics:

TopicDetails
Topic 1
  • 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 2
  • 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 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 (Q84-Q89):

NEW QUESTION # 84
A multinational retail company faces cybersecurity incidents, including unauthorized access to customer payment data and phishing attacks. To strengthen information security, the board seeks a globally recognized framework. The IT team must recommend the most suitable ISO standard for managing these risks systematically. Which ISO standard should the company adopt?

Answer: C

Explanation:
Choice A - ISO 9001 focuses on quality management and ensuring consistent product or service delivery. While it is valuable for improving operational processes, it does not specifically address information security risks or cybersecurity threats.
Choice B - ISO 27001 is the globally recognized standard for Information Security Management Systems (ISMS). It helps organizations systematically manage and improve their cybersecurity practices, protect customer data, and mitigate risks such as unauthorized access and phishing attacks..
Choice C - This standard focuses on sustainable procurement, ensuring ethical and environmental considerations in supply chain management. It is not relevant to cybersecurity.
Choice D- This standard addresses, occupational health and safety (OH&S), helping organizations improve workplace safety and reduce risks of injuries but does not cover information security.
Reference:
LO-3.3; Page 314; Importance of updating internal and governance standards


NEW QUESTION # 85
A discrimination claim has been filed against ASDA Stores Ltd, a leading UK retailer. The claimant alleges discrimination based on skin color and religion, violating the Equality Act 2010. If the claim is successful, what is the maximum compensation award?

Answer: C

Explanation:
Choice D- For a breach of Equality Act 2010, there is no limit on the award of compensation in a discrimination claim. Thus is the correct answer.
Incorrect answer:
Choice A - 90 days' pay per employee is an award relating to dismissal on grounds of redundancy not discrimination.
Choice B - The average award for unfair dismissal is around £10,000 only not discrimination.
Choice C -The maximum penalty that employers had to pay for non-compliance with national living wage law is £20,000 per worker, which is not concerned with discrimination.
Reference:
LO-1.3; Page 40; Role of EDI in securing ethical and sustainable procurement and supply arrangements


NEW QUESTION # 86
A global manufacturing company is looking for a collaborative platform to enhance its environmental, social, and governance (ESG) practices. It requires access to practical tools, peer networking, and resources to tackle challenges such as climate change, water sustainability, and supply chain management.
Which organization would best meet the company's needs?

Answer: C

Explanation:
Option B- GEMI is tailored for businesses seeking tools, resources, and collaborative opportunities to enhance their ESG practices. Unlike other options, GEMI specializes in corporate environmental management and provides solutions to the practical challenges companies face in their operations.
Incorrect answer:
Option A- The IPO primarily supports global procurement professionals and organizations in reducing & optimizing their procurement and supply chain strategies. While it may offer insights into sustainable procurement, it does not specialize in environmental or sustainability management across broader operational areas like GEMI does.
Option C- UNEP sets international environmental agendas and fosters policies at the government level, but it does not provide the practical tools and peer collaboration specifically tailored for businesses.
Option D- Greenpeace is an independent global campaigning organization focused on confronting environmental issues such as climate change, deforestation, and ocean protection through activism and advocacy. Its primary approach involves raising public awareness and pressuring corporations and governments to adopt environmentally friendly practices, rather than providing businesses with practical tools or platforms for internal sustainability improvements.
Reference:
LO-2.1; Page 170; Use of risk mitigation strategies to achieve ESG objectives to secure ethical and sustainable procurement and supply arrangements


NEW QUESTION # 87
Which of the following methods does the ILO use to monitor compliance with labor standards in its member states?

Answer: A

Explanation:
Choice B- The ILO uses a combination of methods to monitor labor standards, such as reporting, investigating which falls under direct observation and complaints mechanism.
Incorrect answer:
Choice A- The ILO does not conduct financial audits of individual companies but relies on reports and investigations at the country level.
Choice C- While the ILO provides technical assistance, it does not directly intervene in national legal systems but works with governments to improve compliance.
Choice D- The ILO does not monitor labor standards through commercial advertising or media but relies on formal mechanisms such as reports, investigations, and dialogues.
Reference:
LO-3.1; Page 255; The role of the UN and ILO in pursuing improved ESG and ethical standards


NEW QUESTION # 88
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 # 89
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