Which of the following are benefits of sustainable business practices? Select TWO
Answer(s): A,B
Comprehensive and Detailed Explanation From Exact Extract of Documents:The L5M5 study guide (p.7) highlights key benefits of sustainability, including increased productivity, reduced waste (A), and gaining competitive advantage (B) in the marketplace. Sustainable practices often improve efficiency, reduce resource consumption, and build stronger reputations, which attract customers and investors. Options C and D are incorrect, as weakened performance and higher spending are not benefits; instead, sustainability enhances resilience and long-term cost savings. Procurement professionals must position sustainability not as a cost burden but as a driver of efficiency, innovation, and brand strength.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.7
Ruben is buying new machinery for his factory. He chooses a more expensive option after considering ESG factors. Why might this be?
Answer(s): C
Comprehensive and Detailed Explanation From Exact Extract of Documents:Procurement often considers Whole Life Cycle Costing (WLCC) rather than upfront cost alone. The L5M5 study guide (p.7) explains that while a product may be more expensive initially, it may be cheaper in the long term due to lower maintenance costs, greater durability, and reduced energy use. This approach supports sustainability by balancing financial and environmental impacts. Options A, B, and D cannot be assumed from the scenario since no evidence supports them. WLCC ensures procurement delivers long-term value, aligning with sustainability goals.
The use of child labour can affect which parties in the supply chain? Select TWO
Answer(s): A,D
Comprehensive and Detailed Explanation From Exact Extract of Documents:Child labour often occurs in the production stage (e.g., farming, mining) and manufacturing stage (e.g., garment sweatshops). According to the L5M5 study guide (p.252), these unethical practices create risks for procurement, as organisations may face reputational damage, legal consequences, and disrupted supply chains. Retailers and suppliers are indirectly affected but are not the primary locations where child labour is found. Procurement professionals must ensure thorough supply chain due diligence, audits, and supplier codes of conduct to prevent child labour risks in procurement decisions.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.252
Under the Equalities Act 2010, which of the following is not a protected characteristic?
Answer(s): D
Comprehensive and Detailed Explanation From Exact Extract of Documents:The Equalities Act 2010 provides legal protection against discrimination in the UK. The L5M5 study guide (p.35) lists the protected characteristics, which include disability, pregnancy and maternity, age, race, sex, sexual orientation, gender reassignment, marriage/civil partnership, and religion/belief. Weight is not included as a protected characteristic. For procurement, understanding equality legislation is vital to ensuring suppliers uphold fair treatment of employees and do not discriminate unlawfully. Organisations must embed these protections into contracts and supplier codes of conduct.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.35
Which of the following tools allows you to assess internal factors or drivers?
Answer(s): A
Comprehensive and Detailed Explanation From Exact Extract of Documents:SWOT analysis examines both internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats). According to the L5M5 study guide (p.55), SWOT is a strategic tool for assessing organisational drivers and making informed procurement decisions. In contrast, STEEPLED analyses external macro-environmental factors (social, technological, economic, environmental, political, legal, ethical, demographic). GDP (Gross Domestic Product) is an economic indicator, not an analysis tool, while ABC analysis categorises suppliers or inventory based on importance and value, not internal strategic drivers.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.55
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