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  1. Home
  2. CIPS Certification
  3. L5M5 Exam
  4. CIPS.L5M5.v2025-11-24.q71 Dumps
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Question 56

Which ISO standard is most appropriate for CSR?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
ISO14000 is the family of standards for environmental management, making it the most appropriate for CSR (Corporate Social Responsibility). The L5M5 study guide (p.211) states that ISO14001, in particular, sets requirements for organisations to establish environmental management systems (EMS). ISO9001 relates to quality management, ISO22000 to food safety, and ISO31000 to risk management. For procurement, ISO14000 certification provides assurance that suppliers follow recognised environmental practices, making it highly relevant to CSR and ESG goals.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.211
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Question 57

Which of the following are core Labour Standards of the ILO? Select TWO

Correct Answer: A,B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The International Labour Organisation (ILO) has defined core labour standards. According to the L5M5 study guide (old p.60, new p.88), these include freedom of association (A) and payment of a living wage (B). Other standards include the right to unionise, elimination of forced labour, and restriction of child labour. Equal opportunities (C) and protection from job insecurity (D) are important labour rights but not classified as core ILO standards. Procurement professionals must ensure suppliers comply with these standards to avoid reputational, legal, and operational risks.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.88
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Question 58

Which of the following is a disadvantage of the ISO14001 standard?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
ISO14001 is an international standard for environmental management systems. According to the L5M5 study guide (p.277), one disadvantage is that ISO does not set environmental performance targets itself; instead, it requires organisations to define their own targets. This means some organisations may set very easy or minimal goals, limiting actual environmental improvement. Option A is incorrect as ISO14001 applies consistently across industries. Option C is a requirement, not a disadvantage. Option D is an overgeneralisation-while some firms misuse it for "greenwashing," many genuinely use it to improve sustainability.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.277
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Question 59

How do Fair Trade organisations protect producers of raw materials from poor economic conditions?

Correct Answer: D
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Fair Trade organisations protect producers economically by ensuring a minimum price for raw materials, regardless of market fluctuations. The L5M5 study guide (old p.224, new p.303) explains that this stabilises producer incomes against volatile commodity prices, tariffs, or currency risks. While Fair Trade also involves better working conditions and community investment, the primary economic safeguard is the guaranteed minimum price. Procurement professionals should recognise how Fair Trade contributes to supply chain stability and resilience.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.303
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Question 60

EcoTech Solutions, a small business based in Canada, is exploring the possibility of developing its own environmental management system rather than adopting a widely recognized standard. What are two potential advantages of this approach? Select any TWO

Correct Answer: B,D
Choice B- An organisation specific system can be specifically designed to address local environmental regulations, ensuring the business remains compliant with the laws in its area.
Choice D- This is a advantage, as creating a custom environmental management system could have fewer expenses compared to adopting a global certification, such as ISO.
Incorrect answer:
Choice A- While a custom system could be tailored to local needs, it does not guarantee that customers will find it easier to understand than an internationally recognized standard.
Choice C- This is not necessarily true. Developing a custom system is not inherently greenwashing unless the system is used to falsely claim environmental achievements or mislead consumers.
Reference:
LO-3.2; Page 288-289; Role of industry standards and frameworks used by organizations in securing ESG considerations and ethical standards
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