Authentic CIPS Certification Exam L5M5 Questions Answers

The Ethical Trading Initiative (ETI) is a leading alliance focused on improving working conditions in global supply chains. The L5M5 study guide (p.260) explains that ETI membership comprises:

Private businesses (such as retailers and brands),

Non-Governmental Organisations (NGOs), and

Trade Unions.

This tripartite approach enables collaboration between commercial, labour, and social interests to improve standards. Governments are not direct members, although their legislation can influence ethical trading. Public sector bodies may adopt ETI principles but are not core members. ETI’s Base Code, founded on ILO conventions, outlines key principles including no forced labour, freedom of association, and fair working conditions.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.260

The L5M5 study guide highlights several tools procurement can use to embed ethics and sustainability into supply chains. These include benchmarking (A), which compares practices against best-in-class organisations; supply chain mapping (C), which provides visibility of all tiers of suppliers to identify risks; and on-site audits (D), which verify supplier compliance with ethical standards directly. Supplier preferencing (B) is a portfolio analysis tool used to understand suppliers’ perspectives, not specifically an ethical improvement tool. Cost analysis (E) is primarily financial and does not ensure ethical compliance. Procurement professionals must apply tools like mapping and audits to identify risks such as forced labour, environmental harm, or corruption.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on supplier evaluation and sustainability tools

The ILO Fundamental Principles of Human Rights apply to governments, as ILO conventions must be ratified and enforced at the national level. The L5M5 study guide (p.271) contrasts this with frameworks aimed at businesses: UN Global Compact (A), SA8000 (C), and OECD Guidelines for Multinational Enterprises (D). Governments are responsible for implementing and enforcing ILO standards, while businesses align with other voluntary or certification frameworks. Procurement professionals must understand which standards apply to suppliers and which are obligations for governments when working internationally.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.271