Free CIPS L3M6 Exam Questions (page: 4)

Businesses are held to high standards by customers.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Customers increasingly expect businesses to operate responsibly, demanding transparency, ethical practices, and sustainability. This consumer pressure drives organizations to adopt CSR and sustainable procurement practices to meet these high standards. The CIPS L3M6 module notes that customer expectations are a significant motivator for businesses to enhance their social and environmental performance.


Reference:

CIPS L3M6 Study Guide, Section on Stakeholder Expectations and CSR.



Consumers want to see companies operating with integrity, but shareholders are not that interested.

  1. TRUE
  2. FALSE

Answer(s): B

Explanation:

Both consumers and shareholders are interested in companies operating with integrity. Consumers demand ethical practices, while shareholders, as stakeholders, also value integrity as it enhances long-term profitability and reduces risks (e.g., reputational damage). The CIPS L3M6 module highlights that CSR aligns the interests of all stakeholders, including shareholders, who benefit from sustainable and ethical operations.


Reference:

CIPS L3M6 Study Guide, Section on Stakeholder Interests and CSR.



What does CSR stand for?

  1. Company Social Response
  2. Company Social Responsibility
  3. Corporate Social Response
  4. Corporate Social Responsibility

Answer(s): D

Explanation:

CSR stands for Corporate Social Responsibility, a management concept where organizations integrate social, environmental, and economic concerns into their operations and stakeholder interactions. The CIPS L3M6 module defines CSR as a cornerstone of sustainable business practices, emphasizing its role in balancing profit with purpose.


Reference:

CIPS L3M6 Study Guide, Section on CSR Definition and Principles.



The goal of CSR policies is to achieve a balance of economic, environmental, and social objectives whilst meeting stakeholders' expectations.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

The primary goal of CSR policies is to harmonize economic profitability with environmental stewardship and social responsibility, while addressing the expectations of stakeholders (e.g., customers, employees, shareholders). This triple-bottom-line approach--people, planet, profit--is a key concept in the CIPS L3M6 module, ensuring sustainable outcomes for organizations and society.


Reference:

CIPS L3M6 Study Guide, Section on CSR Goals and Triple Bottom Line.



Organizations that wish to establish a CSR strategy can look for guidance from organizations that have already been successful in their initiatives.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Organizations developing a CSR strategy can benefit from benchmarking against those with proven success in CSR initiatives. This involves learning from best practices, frameworks, and case studies of organizations that have effectively integrated social, environmental, and economic goals. The CIPS L3M6 module encourages this approach, noting that collaboration and knowledge-sharing with successful entities (e.g., signatories to the UN Global Compact or CDP leaders) can accelerate CSR adoption and improve outcomes.


Reference:

CIPS L3M6 Study Guide, Section on CSR Strategy Development.



The _____ runs the global disclosure system that enables organizations, cities, states, and regions to measure and manage their environmental impacts.

  1. Carbon Disclosure Programme
  2. Carbon Disclosure Project
  3. Company Disclosure Programme
  4. Company Disclosure Project

Answer(s): B

Explanation:

The Carbon Disclosure Project (CDP) is the organization that operates a global disclosure system, allowing entities to report and manage their environmental impacts, particularly in areas like carbon emissions, water usage, and deforestation. The CIPS L3M6 module identifies the CDP as a critical tool for transparency and accountability in sustainability efforts, widely used by businesses and public sector organizations.


Reference:

CIPS L3M6 Study Guide, Section on CDP and Environmental Disclosure.



The CDP has identified 120 organizations that are leaders in climate change and in reducing carbon emissions.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

The CDP annually recognizes organizations as leaders in climate action through its `A List', which includes those excelling in reducing carbon emissions and addressing climate change.
While the exact number varies yearly, the CIPS L3M6 module references the CDP's identification of around 120 organizations as a benchmark figure for leadership in this area, based on historical data. This reflects their commitment to environmental management and leadership dimensions.


Reference:

CIPS L3M6 Study Guide, Section on CDP Leadership Recognition.



Monitoring CSR in the supply chain is done with the intention to create continuous improvements in their suppliers' performance, which has mutual benefits.

  1. TRUE
  2. FALSE

Answer(s): A

Explanation:

Monitoring CSR in the supply chain aims to ensure suppliers adhere to ethical, social, and environmental standards, driving continuous improvement in their performance. This benefits suppliers by enhancing their practices and competitiveness, while the buying organization gains improved quality, reduced risks, and a stronger reputation. The CIPS L3M6 module emphasizes this collaborative approach as a cornerstone of sustainable procurement.


Reference:

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



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