An international trade dispute would be resolved by which organisation?
Answer(s): B
Comprehensive and Detailed Explanation From Exact Extract of Documents:The World Trade Organisation (WTO) is responsible for facilitating international trade agreements and resolving disputes between member states. According to the L5M5 study guide (p.87), the WTO provides a dispute settlement mechanism where countries can challenge trade barriers, tariffs, or unfair practices. The UN (A) focuses on peace, security, and development, while the ILO (C) addresses labour standards. Governments (D) do not resolve disputes independently when they are WTO members; instead, they rely on the WTO framework. Procurement professionals must understand the WTO's role, as its rulings influence trade laws, tariffs, and sourcing strategies.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.87
The main aim of the ILO is to promote rights at work and improve social protection. Is this TRUE?
Answer(s): A
Comprehensive and Detailed Explanation From Exact Extract of Documents:The International Labour Organisation (ILO) is a specialised UN agency founded in 1919 to promote labour rights and improve social protection. The L5M5 study guide (p.87) confirms that the ILO's mission includes eliminating child labour, eradicating forced labour, and promoting fair wages and safe workplaces. It does not set trade rules (that is the WTO), nor was it created to drive globalisation. For procurement professionals, understanding the ILO is critical when assessing supplier practices against international labour standards, especially in global supply chains.
Ben is CEO of a UK company with £20m turnover and suppliers in the UK and Chin
Answer(s): C
Comprehensive and Detailed Explanation From Exact Extract of Documents:The UK Modern Slavery Act 2015 requires companies with an annual turnover of £36m or more to publish an annual Anti-Slavery and Human Trafficking Statement. The L5M5 study guide (p.90) confirms that Ben's company, with a turnover of £20m, does not meet the threshold and is therefore not legally required to publish a statement. However, even if not legally required, organisations are encouraged to act responsibly and voluntarily demonstrate compliance with ethical labour practices. Procurement professionals must be aware of turnover thresholds and ensure compliance when operating in larger organisations.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.90
People in the UK earn entitlements to Social Security through National Insurance contributions. Under what circumstances are payments provided? Select THREE
Answer(s): A,B,C
Comprehensive and Detailed Explanation From Exact Extract of Documents:Social Security in the UK provides benefits such as sick pay, redundancy support, pensions, and maternity/paternity payments. The L5M5 study guide (p.93) specifies that payments can be made in cases of sickness (A), loss of employment (B), and retirement (C). Benefits are not provided simply for changing jobs (D) or marriage (E), as these do not affect financial or employment security.Procurement professionals need to understand social security systems, especially when working with international suppliers, since welfare provisions differ globally and affect labour conditions.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.93
Banks, investors, and consumers form which type of stakeholder?
Answer(s): D
Comprehensive and Detailed Explanation From Exact Extract of Documents:Stakeholders are categorised based on their relationship to the organisation. The L5M5 study guide (p.105) explains that connected external stakeholders are outside the organisation but directly linked through financial or contractual relationships. Banks (financiers), investors (shareholders), and consumers (customers) fall into this category. Internal stakeholders (A) include employees and management, while external stakeholders (B) are broader groups such as regulators and communities without direct contracts. "Connected internal stakeholders" (C) is not a valid classification. Procurement professionals must identify and manage stakeholder expectations to maintain ethical, transparent supply chains.
Managing Ethical Procurement and Supply (L5M5) Study Guide, p.105
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