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CIPS L3M6 Exam Questions
Socially Responsible Warehousing and Distribution (Page 3 )

Updated On: 16-Feb-2026
Page 3 of 43
PDF with 210 Questions

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.



Excessive use of natural resources would not indicate a lack of or disregard for CSR and wouldn't damage the organization's reputation.

  1. TRUE
  2. FALSE

Answer(s): B

Explanation:

Excessive use of natural resources directly contradicts CSR principles, particularly those related to environmental sustainability (e.g., UN Global Compact Principles 7-9). It indicates a disregard for long-term ecological balance and can severely damage an organization's reputation, as stakeholders increasingly demand environmentally responsible practices. The CIPS L3M6 module emphasizes that resource overuse is a key indicator of poor CSR performance.


Reference:

CIPS L3M6 Study Guide, Section on CSR and Environmental Responsibility.



Healthy diversity in the supply chain, e.g., elements from different countries or diversity in terms of the ethnic and cultural backgrounds of the employees, can bring benefits to an organization; however, there could be cultural barriers or difficulties that arise due to working in different time zones.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Diversity in the supply chain--geographical, cultural, or ethnic--can enhance innovation, resilience,

and market reach, benefiting organizations. However, it also introduces challenges such as cultural misunderstandings or logistical issues from differing time zones. The CIPS L3M6 module recognizes these dual aspects, advocating for strategies to manage diversity effectively as part of sustainable procurement and CSR.


Reference:

CIPS L3M6 Study Guide, Section on Diversity in Supply Chains.






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