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CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q29-Q34):

NEW QUESTION # 29
Which term describes the phenomenon where environmental disruptions in the supply chain cause amplified fluctuations in demand or inventory levels as they move upstream?

A. Green Bullwhip Effect
B. Bluewashing
C. Fairwashing
D. Greenwashing

Answer: A

Explanation:
sustainability-related disruptions lead to amplified fluctuations in demand or inventory levels throughout the supply chain.
Incorrect answer:
Option A- Greenwashing refers to the practice of companies misleading consumers about the environmental benefits of their products or operations, without making substantial sustainable improvements.
Option B- Bluewashing refers to a company's attempt to improve its reputation by associating itself with the United Nations or other international organizations without genuine commitment to the causes they claim to support.
Option D- Fairwashing refers to companies falsely claiming to support fair trade practices or other ethical standards to improve their public image without implementing those practices authentically.
Reference:
LO-3.2; Page 282; The benefits and challenges of independent standards in securing ESG objectives in ethical and sustainable procurement and supply arrangements

NEW QUESTION # 30
A group of small-scale coffee farmers in a rural village has been receiving the Fairtrade Premium for their products. During a recent community meeting, they discuss how to allocate the premium funds for the upcoming year. Which of the following projects would best align with the principles of the Fairtrade Premium in addition to the fair trade price?

A. Using the funds to subsidize private education for the children of the wealthiest farmers
B. Investing in building a community health clinic to improve access to healthcare for all villagers
C. Distributing the funds equally among the farmers to use as they see fit
D. Allocating the funds to one farmer to expand their personal farming business

Answer: B

Explanation:
Choice B- This option aligns with the principles of Fair Trade, as the premium is intended to support projects that benefit the community as a whole, fostering development and sustainability.
Incorrect answer:
Choice A- While this might seem fair at first glance, the Fairtrade Premium is not meant for personal distribution. Its purpose is to fund collective projects that benefit the entire community, such as infrastructure, education, or health initiatives.
Choice C- This option does not align with the principles of equity and inclusivity. Fair Trade encourages using the premium to benefit the entire community, particularly the most vulnerable and marginalized groups, rather than focusing on individuals who are already advantaged.
Choice D- Providing funds to a single farmer for personal business expansion is not in line with the collective approach of Fair Trade. The premium is intended to address community-wide challenges and improve the shared resources and infrastructure for all.
Reference:LO-3.3; Page 305; Fairtrade standards that affect the workplace and producers and their implications for procurement and supply

NEW QUESTION # 31
Automation Avenue, a manufacturing company, is struggling with production defects and high waste levels, affecting both quality and costs. To tackle these issues, they aim to adopt a systematic approach to enhance processes and reduce variability. Which methodology would be most effective in addressing defects and improving process quality?

A. ISO 14001
B. Six Sigma
C. Both Six Sigma and ISO 14001
D. WEEE Certificate

Answer: B

Explanation:
Choice A- Six Sigma is specifically designed to improve process quality, reduce defects and enhance efficiency. Thus this is the answer.
Incorrect answer:
Choice B- While ISO 14001 focuses on environmental management and sustainability, it does not directly address process improvement or defect reduction in the same way that Six Sigma does.
Choice C- Integrating both methodologies could provide comprehensive benefits, as Six Sigma can directly address process improvement and defect reduction, while ISO 14001 can enhance environmental performance and compliance. However, if the primary goal is to tackle defects and improve quality, Six Sigma would be the more immediate choice. Using both together can be beneficial for a holistic approach to quality and sustainability.
Choice D- WEEE (Waste Electrical and Electronic Equipment) certification pertains to the recycling and management of electronic waste. It focuses on environmental compliance regarding e-waste and does not address process quality or defect reduction directly. While important for environmental responsibilities, it is not relevant to the company's current challenges related to production defects.
Reference:
LO-1.1; Page 14-15; The role of environmental considerations in securing ethical and sustainable procurement and supply arrangements

NEW QUESTION # 32
Liam, a Procurement Officer at Zenith Corp, oversees a contract with Apex Supplies, a key supplier of essential manufacturing components. After identifying a critical issue in Apex Supplies' delivery process, which TWO documents should Liam complete?

A. Corrective Action Plan and SWOT Analysis
B. KPI's and Root Cause Analysis
C. Root Cause Analysis and Corrective Action Plan
D. SWOT Analysis and KPIs

Answer: C

Explanation:
Choice B- Root Cause Analysis (RCA):This document identifies the underlying reasons for the issue in Spades Ltd's conduct. Conducting a thorough RCA ensures Ruby understands the cause of the problem, enabling effective solutions.
Incorrect answer:
Choice A- While Key Performance Indicators (KPIs) are useful for tracking performance, they do not directly address or resolve specific issues..
Corrective Action Plan (CAP): Once the root cause is identified, a CAP outlines specific steps Spades Ltd must take to address and resolve the issue. It also ensures that measures are put in place to prevent recurrence. Therefore option B is the answer.
Choice C- A SWOT analysis is more strategic, focusing on strengths, weaknesses, opportunities, and threats, rather than resolving specific conduct issues.
Choice D- Neither of these documents directly addresses identifying or fixing a conduct issue.
Reference:
LO-2.2; Page 202-203; Methods to correct non-compliance and create and monitor action plans

NEW QUESTION # 33
The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?

A. Yes - it is voluntary to join, but it is legally binding once signed up
B. No- it is not legally binding and there is no requirement to publish any progress reports
C. No- it is voluntary to join and not legally binding
D. Yes- reports must be filed regularly on process

Answer: C

Explanation:

Reference: LO-3.1; Page 257; The role of the UN and ILO in pursuing improved ESG and Ethical standards

NEW QUESTION # 34
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