CertsPoint
See all results for ""
Exams About Us
Sign In Get Started
Exam Overview
Exam Code L4M4
Exam Name Ethical and Responsible Sourcing
Vendor CIPS
Total Questions 302
Last Updated 26-Oct, 2026
Why CertsPoint?
  • Latest & Verified Questions
  • Detailed Explanations
  • Regular Updates
  • Full-Length Practice Tests
  • Boost Your Exam Confidence

PDF Study Materials

Downloadable guides and resources

Practice Tests

Full-length tests with real exam experience

Progress Tracking

Monitor your performance and improvement

Study Anywhere

Access on desktop, tablet, and mobile

Excellent
4.6 (398 Up Votes)
Secure Payment Privacy Protected Money Back Guarantee

Free L4M4 Practice Questions

Explore 5 free practice questions for the CIPS L4M4 exam and review the answers and explanations to support your preparation.

  1. Question 1

    Single answer

    In which circumstances would a procurement manager effectively use competitive tendering for the award of contracts?

    • Option A:

      When the value of the procurement is high and special tooling is a major factor


      Correct
    • Option B:

      When the requirement is needed urgently and price is not the most important factor


      Correct
    • Option C:

      When the suppliers have technical expertise, and the value of the procurement is relatively high


      Correct
    • Option D:

      When the specification is likely to be continuously reviewed as the contract progresses

      Correct
    Show Answer & Explanation Hide Answer & Explanation

    Correct Answer: C

    Explanation

    Competitive tendering is ideal for high-value contracts where technical expertise is essential. This method supports responsible sourcing by ensuring quality and aligning the supplier’s capabilities with the buyer’s needs, as required in more complex procurement scenarios.

  2. Question 2

    Single answer

    According to the CIPS code of conduct, which laws should a procurement professional adhere to?

    • Option A:

      all laws within the country they work in


      Correct
    • Option B:

      all international procurement legislation


      Correct
    • Option C:

      all laws published by international organisations such as ILO


      Correct
    • Option D:

      all laws within countries they have business and contracts in

      Correct
    Show Answer & Explanation Hide Answer & Explanation

    Correct Answer: D

    Explanation

    The CIPS Code of Conduct says to adhere to all laws of countries in which I practice. So if you're in the UK and procure stuff from China, you need to abide by both UK and Chinese laws, not just UK laws.

    There's no international procurement laws- these are all different for different countries.

    ILO doesn't publish laws.

  3. Question 3

    Single answer

    A company has a low gearing of 20%. This shows that the company relies on equity capital and should therefore have less difficulty coping during tough economic times. Is this statement TRUE?

    • Option A:

      Yes- a low gearing ratio means the company's finances are made up of equity rather than debt


      Correct
    • Option B:

      Yes- a low gearing ratio shows that the business is solvent and can deal with supply chain disruptions easily


      Correct
    • Option C:

      No- a low gearing suggests that the company is financed by long-term debt rather than equity


      Correct
    • Option D:

      No- a low gearing shows you that a company isn't likely to be profitable

      Correct
    Show Answer & Explanation Hide Answer & Explanation

    Correct Answer: A

    Explanation

    the correct answer is 'Yes- a low gearing ratio means the company's finances are made up of equity rather than debt'.

    Remember low gearing = good (based on equity), high gearing = bad (based on debt). Anything over 50% is considered high.

    The two no answers are therefore incorrect and you can discount these straight away. The other yes answer is one of those answers which COULD be true, but isn't always true, and we'd need more information to know for sure. When you get options like this there will be one that is always right and one which is sometimes right - so always pick the always right one.

    Dealing with supply chain disruptions is complex, and depending what the disruption is, how big it is, what the industry is etc determines whether a supplier can handle it or not. Because there's more factors to consider than just gearing, this isn't the right answer.

  4. Question 4

    Multiple answers

    Which of the following are signs that modern-day slavery might be taking place within the supply chain? Select THREE.

    • Option A:

      suspiciously low labour costs


      Correct
    • Option B:

      poor quality products


      Correct
    • Option C:

      workers that live on-site


      Correct
    • Option D:

      suppliers who speak English as a second language


      Correct
    • Option E:

      supplier based in a country with a low score on the Corruption Perception Index

      Correct
    Show Answer & Explanation Hide Answer & Explanation

    Correct Answer: A, B, C

    Explanation

    The correct answers are; suspiciously low labour costs, workers living on site and poor quality products (as this signals that the workforce may be unskilled).

    A low score on the CPI is a good thing (high scores are more likely to signify slavery concerns) and just because someone speaks English as a second language doesn't mean you automatically need to be suspicious. That would be prejudice.

  5. Question 5

    Multiple answers

    Foresttors Plc is negotiating a new contract for the procurement of timber, a crucial component of its production operations. The company has incorporated environmental, social, and governance (ESG) reporting requirements into the contractual terms. Is this a valid approach?

    • Option A:

      No. ESG is not within the scope of a contractual document and should always be treated informally


      Correct
    • Option B:

      No. Suppliers cannot be legally responsible for ESG compliance; this should be the buying organisation


      Correct
    • Option C:

      Yes, providing the contract does not require a supplier to do anything differently for ESG than they have done previously


      Correct
    • Option D:

      Yes. This helps to demonstrate the importance of compliance with ESG

      Correct
    Show Answer & Explanation Hide Answer & Explanation

    Correct Answer: D

    Explanation

    Embedding ESG/ethical clauses and reporting in contracts is a key mechanism to implement responsible sourcing, set clear expectations, and enable monitoring and remedies. Suppliers can be held to contractual ESG obligations where these are defined and agreed.

    [Reference: CIPS L4M4 Study Guide (v2): LO “Implementation” – contractual clauses for ethics/ESG, monitoring and enforcement., , ]