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

1. A leading coffee retailer has launched an initiative to purchase raw materials, such as coffee beans, directly from farmers instead of through intermediaries like exporters. By adopting a partnership approach and investing in the local community, what is this practice called?

A) Fair Trade
B) Direct Trade
C) Trade Initiative
D) World Trade

2. Forced labor, including all forms of modern slavery, remains a significant issue affecting many supply chains. Procurement professionals and suppliers must collaborate to effectively eliminate forced labor. Which of the following strategies can procurement professionals use to address forced labor practices?
1. Boycotting the goods produced from modern slavery
2. Inclusion of anti-slavery and human trafficking clauses in contracts
3. Training for employees and suppliers to raise awareness of slavery issues
4. Treat all women and men fairly at work

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

3. The right to freedom of association and collective bargaining primarily pertains to which of the following?

A) The right of governments to regulate labor markets
B) The right of workers to demand minimum wage
C) The right of employers to dismiss workers
D) The right of workers to form and join trade unions

4. Fresh Delight, a natural fruit juice company, sources fruit from Citrus Co. under a contract with a "time of the essence" and "retention of title" clause. Citrus Co. delivers fruit every Monday, but Fresh Delight has failed to pay for the last two deliveries. Claiming ownership under the retention of title clause, Citrus Co. attempts to reclaim the most recent delivery. Does Citrus Co. have a valid legal claim to retrieve the goods despite having delivered them?

A) Yes - the product still belongs to Citrus Co
B) No - if the delivery was made on time, it belongs to Fresh Delight
C) Yes - the product can be reclaimed under any circumstances
D) No - if Fresh Delight signed for the delivery, Citrus Co. has no right to reclaim it

5. Why is it important for an organization to regularly review and update its internal governance standards? Select any TWO.

A) To adapt to changes in industry best practices and stakeholder expectations
B) To ensure compliance with evolving legal and regulatory requirements
C) To increase the number of suppliers bidding on contracts
D) To reduce employee turnover by offering higher salaries

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