CIPS L5M5 Exam Dumps

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The L5M5 study guide (p.8) outlines the six key components of a CSR plan: CSR Assessment, CSR Strategy and Refinement, Implementation Plan and Activities (C), Commitment to Stakeholder Engagement (D), and Verification and Evaluation of Results (E). An introduction (A) and financial analysis (B) may support a CSR plan but are not listed as key components. Procurement professionals should ensure CSR plans are robust, measurable, and involve stakeholder engagement to gain legitimacy and trust.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.8

Comprehensive and Detailed Explanation From Exact Extract of Documents:

The UN Global Compact is primarily aimed at businesses. The L5M5 study guide (p.258) clarifies that while NGOs and other organisations can engage, the Compact is designed to encourage corporate responsibility in human rights, labour, environment, and anti-corruption. Since 2003, cities and public sector organisations can also join under different frameworks, but businesses remain the main focus. For procurement, this means suppliers aligned with the UN Global Compact are more likely to demonstrate compliance with global ethical standards.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.258

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.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.252

Comprehensive and Detailed Explanation From Exact Extract of Documents:

A touch point is defined in the L5M5 study guide (old p.85, new p.112) as a stage in the supply chain where risks or problems may occur, impacting costs or performance. Examples include transport (risk of damage or loss) and quality control (risk of defective goods). Identifying touch points enables procurement professionals to implement risk mitigation strategies, such as insurance, supplier audits, or contingency planning, thereby strengthening supply chain resilience.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.112

Comprehensive and Detailed Explanation From Exact Extract of Documents:

A monopsony exists when there is only one buyer in a market but multiple sellers. For example, in the defence industry, a government may be the sole buyer of military equipment such as submarines. This contrasts with a monopoly, where only one seller dominates the market. The L5M5 study guide (p.127) explains that monopsony can create power imbalances, as the buyer holds significant leverage over suppliers, potentially leading to unfair contract terms. Ethical procurement requires recognising such risks and ensuring that dominant buyers do not exploit suppliers unfairly.

Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.127