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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 36

Which of the following is an example of an organisation updating an internal governance standard?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Internal governance standards are the policies, procedures, and practices that guide how an organisation operates internally. According to the L5M5 study guide (p.313), updating a Standard Operating Procedure (SOP) is an example of strengthening internal governance. This ensures compliance, consistency, and risk management within an organisation's operations. By contrast, achieving ISO 9001 (A) involves external certification, paying a living wage (C) relates to external social responsibility, and paying dividends (D) relates to shareholder rewards, not governance. Procurement professionals must understand governance frameworks because robust internal governance ensures compliance with ethical procurement standards and reduces risks of malpractice.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.313
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Question 37

CSR (Corporate Social Responsibility) is a key factor in many business decisions. Which of the following are benefits of having a CSR Policy? Select THREE

Correct Answer: A,B,D
Comprehensive and Detailed Explanation From Exact Extract of Documents:
CSR policies allow businesses to integrate ethical, social, and environmental concerns into their operations. The L5M5 study guide (p.28) highlights several benefits: an improved reputation (A), enhanced competitiveness (B) by differentiating the company, and a positive impact on wider society (D). However, CSR policies do not provide protection from all legal issues (C)-illegal activities can still occur despite having a policy. CSR (sometimes referred to as ESG in modern usage) builds stakeholder trust, supports compliance with global sustainability frameworks, and enhances long-term resilience. Procurement teams are particularly important in embedding CSR into supply chains by ensuring supplier compliance and accountability.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.28
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Question 38

Ms. Nabila plans to create a CSR plan by involving all internal and external stakeholders of the company. Which TWO key components should she prioritize for the CSR plan?

Correct Answer: B,E
Key components of a CSR plan
* CSR assessment
* CSR strategy
* CSR commitment to stakeholder engagement
* Implementation plan and activities
* Verification and evaluation of results
* Refinement
Reference:
LO-1.1; Page 8; Analyze the application of ethical and ESG (Environmental, Social and Governance) factors in supple chains
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Question 39

Which of the following ISO standards relates to Environmental Management Systems?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
ISO14001 is the international standard for Environmental Management Systems (EMS). The L5M5 study guide (p.277) explains that it requires organisations to establish frameworks for monitoring and improving their environmental impact. ISO9001 (A) relates to quality management, ISO28000 (C) to supply chain security, and ISO31000 (D) to risk management. For procurement, suppliers certified with ISO14001 demonstrate a commitment to reducing waste, emissions, and environmental risks, making this highly relevant to CSR and ESG.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.277
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Question 40

Contracts contain different types of clauses. What is the name given to a clause that, if breached, allows damages but not termination of a contract?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.190) explains that a warranty is a contractual term where breach allows the injured party to claim damages, but the contract continues. By contrast, conditions are fundamental terms-breach may allow termination and damages. Representations are statements made in negotiation, not binding terms, and innominate terms may be treated as conditions or warranties depending on the breach. Understanding the difference is crucial for procurement professionals when drafting and managing contracts, as it affects remedies and supplier relationships.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.190
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