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CIPS L5M5 Exam Syllabus Topics:

Topic	Details
Topic 1	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 2	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.
Topic 3	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.

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q49-Q54):

NEW QUESTION # 49
Which of the following is an example of an organisation updating an internal governance standard?

A. An IT provider updates an SOP to reflect a new version of cyber security software
B. A manufacturer achieves ISO 9001 for the first time
C. Shareholders at a publishing house receive an additional dividend
D. A construction company begins to pay subcontractors the living wage

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Internal governance standards are the policies, procedures, and practices that guide how an organisation operates internally. According to the L5M5 study guide (p.313), updating a Standard Operating Procedure (SOP) is an example of strengthening internal governance. This ensures compliance, consistency, and risk management within an organisation's operations. By contrast, achieving ISO 9001 (A) involves external certification, paying a living wage (C) relates to external social responsibility, and paying dividends (D) relates to shareholder rewards, not governance. Procurement professionals must understand governance frameworks because robust internal governance ensures compliance with ethical procurement standards and reduces risks of malpractice.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.313

NEW QUESTION # 50
Patrick, a Category Manager, is procuring a high-cost item with many suppliers available and low switching costs. According to the Kraljic Matrix, what type of supplier is this?

A. Routine
B. Strategic
C. Leverage
D. Bottleneck

Answer: C

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
In the Kraljic Matrix, leverage items are high value but have many suppliers and low switching costs. The L5M5 study guide (old p.108, new p.154) explains that buyers have strong negotiation power in leverage situations and can achieve cost savings without high risk. Bottleneck items (B) are low-value but high-risk due to limited suppliers, routine items (C) are low-value and low-risk, and strategic items (D) are high-value and high-risk. Procurement professionals must use leverage strategically to maximise value.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.154

NEW QUESTION # 51
Ben is CEO of a UK company with £20m turnover and suppliers in the UK and Chin a. Must Ben produce an Anti-Slavery Statement for his business?

A. No - this is not a legal requirement for his company
B. No - the government will produce this for him
C. Yes - it is compulsory for all companies in the UK
D. Yes - it must be published on his website

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The UK Modern Slavery Act 2015 requires companies with an annual turnover of £36m or more to publish an annual Anti-Slavery and Human Trafficking Statement. The L5M5 study guide (p.90) confirms that Ben's company, with a turnover of £20m, does not meet the threshold and is therefore not legally required to publish a statement. However, even if not legally required, organisations are encouraged to act responsibly and voluntarily demonstrate compliance with ethical labour practices. Procurement professionals must be aware of turnover thresholds and ensure compliance when operating in larger organisations.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.90

NEW QUESTION # 52
Creating value responsibly for shareholders would sit under which aspect of the sustainability triple bottom line?

A. Economic
B. Legal
C. Environmental
D. Social

Answer: A

Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The economic pillar of the Triple Bottom Line refers to the creation of financial value while maintaining responsibility toward stakeholders. The L5M5 study guide (p.179) explains that sustainability in procurement is not only about compliance with social and environmental standards but also about ensuring financial viability. Activities such as delivering shareholder returns, managing costs, and achieving long-term profitability fall under the economic dimension. "Legal" is not one of the TBL pillars, and while law supports governance, it is not itself a sustainability principle. Therefore, creating value for shareholders through responsible economic performance is clearly categorised under the economic aspect of TBL.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.179

NEW QUESTION # 53
The Payra 1320MW Thermal Power Plant, one of the largest power producers in Bangladesh, recently halted production due to worker strikes over poor working conditions. This situation is a consequence of which of the following?

A. Human rights
B. Corruption
C. Fraud
D. Bribery

Answer: A

Explanation:

Choice A is the answer as we can see from above interruption of supply chain is a consequence of human rights abuse. The other factors are not directly related to production stoppage due to poor working conditions. Reference: LO-1.1; Page 52; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements

NEW QUESTION # 54
......

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Pass Guaranteed Updated CIPS - Reliable L5M5 Test Dumps

Pass Guaranteed Quiz 2026 CIPS L5M5 Marvelous Reliable Test Dumps

CIPS L5M5 Exam Syllabus Topics:

CIPS Managing Ethical Procurement and Supply (L5M5) Sample Questions (Q49-Q54):