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CIPS Ethical and Responsible Sourcing Sample Questions (Q32-Q37):

NEW QUESTION # 32
When evaluating a supplier's proposal in relation to ESC (Environmental, Social, Governance, and ethical elements), it is common to send questionnaires to suppliers requesting information, which can later be scored.
Which of the following questions would be assessing any of the ESC criteria?
* Could you provide details on your manufacturing and raw material costs as part of an open-book pricing contract?
* How do you promote equal opportunity for your employees, customers, and suppliers?
* What is the annual turnover and profitability of your company?
* Does your company have an anti-bribery policy?

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

Answer: B

Explanation:
Questions about equal opportunity and anti-bribery policies assess the supplier's commitment to social and ethical standards. These aspects are part of the ESC criteria, which align with responsible sourcing practices by ensuring suppliers maintain ethical workforce practices and governance.

NEW QUESTION # 33
Achieving the 'five rights of procurement' is one of the key objectives of procurement managers. Which of the following are not considered one of the 5 rights? Select TWO.

A. quality
B. ethics
C. environment
D. quantity
E. time

Answer: B,C

Explanation:
ethics and environment are not a 'right of procurement'.
The 5 rights are price, quality, quantity, time and place.

NEW QUESTION # 34
Which of the following should be considered when calculating ratios relating to a supplier's liquidity?

A. receivables
B. profit
C. reserves
D. inventory

Answer: D

NEW QUESTION # 35
Ramesh is an IT category manager within the UK's National Health Service and is responsible for the procurement of a new high-value network system, which will be used across multiple doctors'practices and community health centres. Ramesh has reviewed the different tender approaches and has concluded that the use of a restricted tender is the most appropriate. Which of the following statements is true for a restricted tender process?

A. Suppliers responding to the tender are pre-qualified
B. Direct negotiations occur prior to suppliers submitting their offer
C. The contract will be awarded strictly on pricing criteria
D. It is only relevant when there are few suppliers in the market

Answer: A

Explanation:
In a restricted tender process, suppliers are pre-qualified through a selection process before being invited to submit tenders. This approach is suitable when there is a need to ensure that only capable suppliers are considered, often due to the complexity or high value of the procurement. It is not limited to situations with few suppliers, and direct negotiations typically occur after tender submissions, not before. Contracts are awarded based on multiple criteria, not solely on price.
Reference:
CIPS Level 4 Diploma in Procurement and Supply, L4M4 Study Guide, Section 2.2: Tendering Procedures

NEW QUESTION # 36
Polygon Incorporated is a new company in the mining industry, which often gets bad press due to issues of sustainability. Which of the following should Polygon Incorporated consider when developing sustainable business practices?

A. people, profit, planet
B. economic, ethical and environmental
C. efficiency, effectiveness, impact
D. fraud, bribery and corruption

Answer: A

Explanation:
The three pillars of sustainability are profit, people and planet. This may also be referred to as social, economic and environmental.

NEW QUESTION # 37
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