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Free CIPS L3M6 Exam Questions

If human rights and labour laws are not fully respected, then there is both ____________ and ___________ risk.

  1. Environmental
  2. Operational
  3. Political
  4. Reputational

Answer(s): B,D

Explanation:

Failure to respect human rights and labour laws in the supply chain introduces:
· Operational Risk: Disruptions due to strikes, legal actions, or supplier instability. · Reputational Risk: Damage to the organization's image from public exposure of unethical practices.
While environmental and political risks may also apply in broader contexts, the CIPS L3M6 module specifically highlights operational and reputational risks as the primary concerns in this scenario, aligning with CSR principles.


Reference:

CIPS L3M6 Study Guide, Section on Risks in CSR Non-Compliance.



When monitoring CSR in the supply chain, procurement teams should focus on investigating low-risk suppliers first, not ones from industries that are known to face particular challenges, for example, fuels, energy and power, chemicals, plastics, and food.

  1. TRUE
  2. FALSE

Answer(s): B

Explanation:

Effective CSR monitoring prioritizes high-risk suppliers, particularly those in industries like fuels, energy, chemicals, plastics, and food, which are prone to environmental, labour, or ethical challenges. Focusing on low-risk suppliers first would be inefficient and fail to address critical vulnerabilities. The CIPS L3M6 module advocates a risk-based approach to supply chain monitoring, targeting areas with the greatest potential for CSR issues.


Reference:

CIPS L3M6 Study Guide, Section on Risk-Based CSR Monitoring.



When monitoring CSR in the supply chain, the risks are higher in countries where legislation is lacking or poorly implemented.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Countries with weak or poorly enforced legislation (e.g., on labour, environmental protection, or anti-corruption) present higher CSR risks in the supply chain. This increases the likelihood of human rights abuses, environmental damage, or unethical practices going unchecked. The CIPS L3M6 module stresses the importance of due diligence in such regions to mitigate these elevated risks.


Reference:

CIPS L3M6 Study Guide, Section on CSR Risks in Global Supply Chains.



Applying CSR principles in the supply chain can attract and retain employees.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Implementing CSR principles, such as fair labour practices and environmental responsibility, enhances an organization's appeal as an employer. Employees are increasingly drawn to companies with strong ethical values, improving attraction and retention rates. The CIPS L3M6 module notes this as a key benefit of CSR, contributing to a motivated and loyal workforce.


Reference:

CIPS L3M6 Study Guide, Section on Benefits of CSR in Supply Chains.



Major areas of focus are gender, race and ethnicity, culture, ability, sexual orientation, age, and socio-economic status.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

These areas--gender, race and ethnicity, culture, ability, sexual orientation, age, and socio-economic status--are critical aspects of diversity and inclusion, which are integral to CSR and social sustainability. The CIPS L3M6 module highlights these as focal points for organizations to ensure equitable practices and address social responsibilities effectively.


Reference:

CIPS L3M6 Study Guide, Section on Diversity and Social Sustainability.



The globally conscious consumer tends to be the younger generation.
What percentage are under the age of 40?

  1. 53%
  2. 58%
  3. 63%
  4. 68%

Answer(s): D

Explanation:

Research cited in the CIPS L3M6 module indicates that globally conscious consumers--those prioritizing sustainability and ethics--are predominantly younger, with approximately 68% being under 40. This reflects a generational shift toward valuing CSR, influencing purchasing decisions and pressuring organizations to adopt sustainable practices.


Reference:

CIPS L3M6 Study Guide, Section on Consumer Trends and CSR.



Organizations can come under pressure from various groups to provide sustainable products and services.
Which of the following are groups of people who may apply pressure?

  1. Customers & consumers
  2. Not-for-profit organizations
  3. Public sector organizations
  4. All the above

Answer(s): D

Explanation:

Pressure for sustainable products and services comes from multiple sources:
· Customers & consumers: Demand ethical and eco-friendly offerings. · Not-for-profit organizations: Advocate for social and environmental causes. · Public sector organizations: Enforce regulations and set procurement standards. The CIPS L3M6 module identifies these groups as key stakeholders driving sustainability in business practices.


Reference:

CIPS L3M6 Study Guide, Section on Stakeholder Pressure for Sustainability.



A holistic approach that considers environmental, social, and economic factors together when entering any business relationship is known as what?

  1. Associated Sustainability
  2. Business Sustainability
  3. Collective Sustainability
  4. Corporate Sustainability

Answer(s): D

Explanation:

Corporate Sustainability refers to a holistic approach integrating environmental (e.g., resource use), social (e.g., labour practices), and economic (e.g., profitability) factors into business relationships. The CIPS L3M6 module defines this as a strategic framework for long-term organizational success and stakeholder value.


Reference:

CIPS L3M6 Study Guide, Section on Corporate Sustainability Definition.



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