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Free CIPS L3M6 Exam Questions (page: 2)

Page 2 of 28
PDF with 210 Questions

Directors are only expected to generate profits. They are not expected to promote ethics, fairness, transparency, and accountability in all their dealings, both internally and externally.

  1. TRUE
  2. FALSE

Answer(s): B

Explanation:

Directors of organizations are not solely tasked with generating profits. According to the principles of Corporate Social Responsibility (CSR) and corporate governance outlined in the CIPS L3M6 framework, directors have a broader responsibility that includes promoting ethics, fairness, transparency, and accountability. These elements are integral to sustainable business practices and are expected in dealings with internal stakeholders (e.g., employees) and external stakeholders (e.g., suppliers, communities). The focus on profit alone neglects the social and environmental dimensions of sustainability, which are critical for long-term organizational success and reputation. This aligns with the modern view of corporate governance, where directors must balance economic objectives with ethical and sustainable practices.


Reference:

CIPS L3M6 Study Guide, Section on Corporate Governance and CSR Principles.



The CDP has 4 dimensions.
What are they?

  1. Disclosure, awareness, morals, and leadership
  2. Discovery, awareness, management, and leadership
  3. Discovery, awareness, morals, and leadership
  4. Disclosure, awareness, management, and leadership

Answer(s): D

Explanation:

The CDP (Carbon Disclosure Project) is a global disclosure system that helps organizations measure and manage their environmental impacts. It operates on four key dimensions: disclosure, awareness, management, and leadership. These dimensions represent a progression:
· Disclosure: Reporting environmental data transparently. · Awareness: Understanding the organization's environmental impact.
· Management: Taking steps to mitigate those impacts.
· Leadership: Demonstrating best practices in environmental stewardship. These align with the CDP's methodology for assessing organizations' environmental performance, as recognized in the CIPS L3M6 framework under sustainability reporting.


Reference:

CIPS L3M6 Study Guide, Section on Environmental Reporting and CDP Framework.



The UN Sustainable Development Goals offer organizations around the world a roadmap to business growth while addressing social and environmental goals.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

The United Nations Sustainable Development Goals (SDGs), launched in 2015, consist of 17 goals aimed at transforming the world by 2030. They provide a framework for organizations to achieve business growth while addressing critical social (e.g., poverty, education) and environmental (e.g., climate action, clean energy) challenges. The SDGs encourage businesses to integrate sustainability into their strategies, fostering innovation and long-term profitability alongside societal benefits. This is a core concept in the CIPS L3M6 module, emphasizing the alignment of business objectives with global sustainability targets.


Reference:

CIPS L3M6 Study Guide, Section on UN Sustainable Development Goals.



The UN Sustainable Development Goals are not based on `shared values'. Organizations consider social and environmental efforts as add-ons to business as usual.

  1. TRUE
  2. FALSE

Answer(s): B

Explanation:

The UN SDGs are fundamentally rooted in `shared values'--global principles aimed at ensuring prosperity, equity, and environmental protection for all. They are not optional add-ons but integral to sustainable business practices. The CIPS L3M6 module highlights that organizations adopting the SDGs embed social and environmental efforts into their core strategies, rather than treating them as peripheral activities. This shift reflects a move away from `business as usual' toward a holistic approach to sustainability.


Reference:

CIPS L3M6 Study Guide, Section on UN SDGs and Shared Values.



How many principles are there in the UN Global Compact?

  1. 8
  2. 10
  3. 12
  4. 14

Answer(s): B

Explanation:

The UN Global Compact is a voluntary initiative that encourages businesses to adopt sustainable and socially responsible policies. It consists of 10 principles, categorized under four areas: human rights, labour, environment, and anti-corruption. These principles provide a universal framework for ethical business conduct, and organizations signing the compact commit to aligning their operations with these standards. The CIPS L3M6 module emphasizes the importance of these 10 principles in promoting CSR globally.


Reference:

CIPS L3M6 Study Guide, Section on UN Global Compact Principles.



There are 4 sections that sit under the principles of the UN Global Compact. Correctly select the 4 from the list below.

  1. Anti-corruption
  2. Commercial
  3. Human Rights
  4. Labour
  5. Residential

  6. The Environment

Answer(s): A,C,D,F

Explanation:

The UN Global Compact's 10 principles are grouped into four sections:
1. Human Rights (Principles 1-2): Businesses should support and respect human rights and avoid complicity in abuses.
2. Labour (Principles 3-6): Uphold freedom of association, eliminate forced/child labour, and promote non-discrimination.
3. The Environment (Principles 7-9): Support environmental responsibility, encourage sustainable technologies, and undertake initiatives to promote greater environmental care.
4. Anti-corruption (Principle 10): Work against corruption in all its forms. `Commercial' and `Residential' are not part of the framework, as it focuses on ethical and sustainable practices rather than operational sectors. This is detailed in the CIPS L3M6 study material.


Reference:

CIPS L3M6 Study Guide, Section on UN Global Compact Structure.



According to the UN Global Compact, organizations should make sure that they are not complicit in human rights abuses.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Principle 2 of the UN Global Compact explicitly states that businesses should ensure they are not complicit in human rights abuses. This includes indirect involvement, such as through supply chain partners or business relationships. The CIPS L3M6 module underscores this as a critical aspect of CSR, requiring organizations to conduct due diligence to prevent association with human rights violations, thereby protecting their reputation and ethical standing.


Reference:

CIPS L3M6 Study Guide, Section on UN Global Compact, Principle 2.



An exceptionally low base price could indicate poor working conditions further down the supply chain and could result in lower quality.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

An exceptionally low base price often signals cost-cutting measures in the supply chain, which can include poor working conditions (e.g., low wages, unsafe environments) and compromises on quality (e.g., substandard materials). The CIPS L3M6 module highlights that sustainable procurement involves assessing such risks, as low prices may reflect unethical practices that contradict CSR principles. This can lead to reputational damage and legal liabilities for organizations.


Reference:

CIPS L3M6 Study Guide, Section on Sustainable Procurement and Supply Chain Risks.



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