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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q51-Q56):

NEW QUESTION # 51
The ILO's fundamental principles and rights at work are binding on which countries?

• A. Only developed countries
• B. Only those that have ratified the ILO conventions
• C. Only countries with high labor standards
• D. All member states of the ILO

Answer: D

Explanation:
Choice B- This is the correct answer. The International Labor Organization (ILO) requires all member states to uphold its fundamental principles and rights at work, even if they have not ratified the specific conventions associated with these principles. These fundamental principles are part of the ILO Declaration on Fundamental Principles and Rights at Work (1998), which includes:
Freedom of association and the right to collective bargaining.
Elimination of forced or compulsory labor.
Abolition of child labor.
Elimination of discrimination in respect of employment and occupation.
When a country joins the ILO, it automatically accepts an obligation to respect, promote, and realize these fundamental principles, regardless of whether it has formally ratified the associated conventions. This reflects the ILO's commitment to promoting universal labor standards and protecting workers' rights globally.
Incorrect answer:
Choice A- This is incorrect because the fundamental principles apply to all member states, not just those that ratified specific conventions.
Choice C- The principles are universal and apply to all member states, regardless of economic status.
Choice D- Even countries with weak labor standards are obligated to promote these principles as ILO members. So, this is not the answer.
Reference:
LO-3.1; Page 248-249; Standards set by the United Nations (UN) and the International Labor Organization (ILO)

 

NEW QUESTION # 52
Which of the following strategies can procurement professionals use to effectively manage language and cultural barriers in global sourcing?
1. Improving foreign language skills
2. Think and act with an open mind
3. Insisting that English is the only business language used
4. Ensuring proper documentation for all the imports to comply with regulations

• A. 4 and 1
• B. 2 and 4
• C. 2 and 3
• D. 1 and 2

Answer: D

Explanation:
Managing language and cultural barriers
O View culture within the language
O Choose location carefully
O Know and communicate business goals
O Check and monitor relationships
O Communicate well
O Improve foreign language skills
O Think and act with an open mind
O Have patience
O Be respectful
The correct answer is Option A.
Reference:
LO-1.3; Page 82-84; Language and culture

 

NEW QUESTION # 53
The World Fair Trade Organization (WFTO) aims to help large global businesses expand into new markets, offering better products and fairer prices for consumers. Is this statement accurate?

• A. No, the WFTO primarily focuses on diminishing the influence of multinational corporations
• B. Yes, the WFTO provides financial aid to international companies
• C. No, the WFTO focuses on supporting smaller and disadvantaged producers
• D. Yes, the WFTO establishes global rules to safeguard consumers

Answer: C

Explanation:
Choice C- This is correct. The WFTO's mission is to support small and disadvantaged producers, ensuring fair wages, ethical trade practices, and market access.
Incorrect answer:
Choice A- This is incorrect. The WFTO does not focus on diminishing multinational corporations but works to empower disadvantaged producers.
Choice B- The WFTO does not establish global regulations but promotes fair trade practices and ethical business standards for producers and consumers, therefore this is wrong.
Choice D- This is incorrect. The WFTO's mission does not involve providing financial aid to businesses; it focuses on promoting fair trade principles.
Reference:
LO-3.3; Page 294-295; The World Fair Trade Organization (WFTO) and its principles

 

NEW QUESTION # 54
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?

• A. ISO 20400
• B. ISO 27001
• C. ISO 45001
• D. ISO 9001

Answer: B

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 # 55
Which of the following form the 'Triple Bottom Line'? Select THREE

• A. planet
• B. people
• C. placement
• D. product
• E. profit

Answer: A,B,E

Explanation:
People, Planet and Profit are the 'triple bottom line' - see p.3 of the study guide. This is also known as the 3Ps

 

NEW QUESTION # 56
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