L5M5 Exam Dumps - CIPS Level 5 Advanced Diploma in Procurement and Supply Questions and Answers

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.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.35

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.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.105

The practice described is known as Direct Trade. Unlike Fair Trade, which follows certification standards set by external bodies, Direct Trade involves companies directly sourcing from producers, often providing higher prices and more investment in local communities. The L5M5 study guide (p.309) explains that Direct Trade is particularly common in coffee and cocoa supply chains, where companies wish to build stronger, transparent, and ethical relationships with producers. It differs from Fair Trade in that it avoids third-party certification costs and focuses on building trust through long-term partnerships. Procurement professionals must understand both models when sourcing ethically in international markets.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.309

Porter’s Creating Shared Value (CSV) concept integrates Corporate Social Responsibility (CSR) with philanthropy (B), meaning that companies can generate economic value while simultaneously creating social value for communities. The L5M5 study guide stresses that businesses can strengthen competitiveness while advancing social and economic conditions where they operate. Unlike traditional philanthropy, CSV embeds social impact into core business strategy rather than being a peripheral activity. Procurement professionals can apply this by selecting suppliers who deliver both economic efficiency and community benefits.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on CSR and shared value

The correct answer is that labour standards vary from country to country. According to the L5M5 study guide (p.85), while international conventions exist (e.g., ILO conventions), there is no single binding international law regulating labour standards across all nations. Instead, each country enforces its own rules regarding wages, hours, and working conditions. Some countries have strict protections, while others may have weak or poorly enforced standards. Therefore, procurement professionals must apply due diligence and supplier audits when sourcing internationally, as ethical risks arise in jurisdictions with lower labour protections.

???? Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.85

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