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  2. CIPS Certification
  3. L5M5 Exam
  4. CIPS.L5M5.v2026-02-26.q77 Dumps
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Question 11

A seafood company in Country Z sources fish from a supplier employing migrant workers. An investigation reveals that the workers were charged excessive recruitment fees, leading to severe debt. Upon arrival, their passports were confiscated, and they were forced to work on fishing vessels for months without fair pay or rest. Those who attempted to leave or report the abuse faced threats of violence. Which labor rights violation best describes this situation?

Correct Answer: C
Option C- This scenario involves forced labor because:
Workers were subjected to coercion through confiscation of passports and threats of violence.
They were trapped in abusive working conditions due to debts and lack of freedom to leave. The key elements of forced labor include deception during recruitment, coercion, and lack of consent, all of which are evident in this situation.
Incorrect answer:
Option A- The scenario does not mention minors being employed.
Opton B- No evidence of unequal treatment based on characteristics like gender, race, or religion is mentioned.
Option D- The scenario does not involve sexual abuse or coercion.
Reference:
LO-3.1; Page 250-251; Standards set by the United Nations (UN) and the International Labor Organization (ILO)
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Question 12

How can integrating social considerations into sustainable procurement and supply create opportunities for accessing new markets? Select any TWO.

Correct Answer: A,C
Choice A- This option is correct. Compliance with international labor standards signals a commitment to ethical practices, which can attract consumers who prioritize sustainability and social responsibility. This appeal can open new markets, particularly among consumers who are willing to pay a premium for ethically sourced products.
Choice B- This option is incorrect. While reducing costs can attract some customers, it often overlooks social considerations and may lead to unethical sourcing practices. Focusing solely on cost does not contribute to sustainable procurement and can limit access to markets that value ethical practices.
Choice C- This option is correct. Partnering with local suppliers and underrepresented groups fosters community engagement and strengthens local economies. Moreover catering for new range of customers who may not have been previously catered for. This approach can help organizations tap into regional markets, build trust with local consumers, and enhance brand loyalty through a commitment to social responsibility.
Incorrect answer:
Choice D- This option is incorrect. Ignoring cultural differences can alienate potential customers and limit market access. Sustainable procurement should consider local customs and preferences to effectively cater to diverse markets. Adapting products to fit local contexts can enhance acceptance and success in new markets.
Choice E- This option is incorrect because prioritizing only speed in delivery can compromise ethical sourcing and sustainability practices. While timely delivery is important for customer satisfaction, focusing exclusively on it can lead to neglecting social and environmental responsibilities. Fast delivery may involve sourcing from suppliers that cut corners on labor standards or environmental protections, ultimately undermining the principles of sustainable procurement. To effectively access new markets, organizations must balance delivery efficiency with ethical sourcing practices, ensuring that both speed and sustainability are prioritized.
Reference:
LO-1.1; Page 20-21; The role of social value considerations in securing ethical and sustainable procurement and supply arrangements
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Question 13

When a major garments factory faces adverse publicity due to alleged child labor, which of the following recognized techniques would be most effective in identifying the root cause of the issue?

Correct Answer: C
Choice C - Supply chain mapping is a technique that enables a comprehensive analysis of the entire supply chain involved in the production and distribution of garment products. It helps identify the origin of the issue and how it spread. Therefore, it is the correct answer.
Incorrect answer:
Choice A - WLC is used to assess the total cost of an asset over its whole life, taking account of its initial cost and the cost of operation, maintenance, upgrade and disposal. It does not help in identifying the child labor issue.
Choice B - Value engineering is a method used to improve the value of a product or process, not primarily focused on issue identification.
Choice D- Six sigma is a methodology aimed at process improvement and reducing defects, not specifically tailored for issue identification.
Reference:
LO-2.1; Page 145; Mapping supply chains to achieve supply chain transparency
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Question 14

The illegitimate use of a person's role for gain is what form of ethical issue?

Correct Answer: B
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.48) defines corruption as the illegitimate use of one's role or position for personal gain. This differs from bribery (A), which is offering or accepting inducements, and fraud (C), which involves deception such as falsifying records or creating phantom suppliers. Slavery (D) refers to forced labour. Procurement professionals must recognise corruption risks, particularly in international supply chains, and implement controls such as segregation of duties, audit trails, and whistleblowing policies.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.48
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Question 15

Fresh Delight, a natural fruit juice company, sources fruit from Citrus Co. under a contract with a "time of the essence" and "retention of title" clause. Citrus Co. delivers fruit every Monday, but Fresh Delight has failed to pay for the last two deliveries. Claiming ownership under the retention of title clause, Citrus Co. attempts to reclaim the most recent delivery. Does Citrus Co. have a valid legal claim to retrieve the goods despite having delivered them?

Correct Answer: A
Choice A- The retention of title clause in the contract means Citrus Co. retains ownership of the goods until Fresh Delight has fully paid for them. Even though the goods were delivered, the failure to pay gives Citrus Co. the right to reclaim them. Ownership (title) does not pass to Fresh Delight until payment is made. Correct answer.
Incorrect answer:
Choice B- While the retention of title clause allows Citrus Co. to reclaim the goods in this case, this right is not absolute. The clause must align with relevant legal frameworks, such as insolvency laws, which may limit Citrus Co.'s ability to reclaim goods in certain situations. Thus, goods cannot always be reclaimed "under any circumstances." Choice C- Signing for delivery does not override a retention of title clause. Even if Fresh Delight accepted and signed for the delivery, the ownership of the goods remains with Citrus Co. until payment is received.
Choice D- Timely delivery has no bearing on the ownership of the goods when a retention of title clause is in place. Ownership is tied to the payment, not the delivery schedule. Hence, Citrus Co. can still reclaim the goods if payment hasn't been made.
Reference:
LO-2.2; Page 190; Monitoring Contract Performance
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