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[Apr 27, 2026] TrainingQuiz L5M5 Exam Practice Test Questions (Updated 91 Questions)

Pass CIPS L5M5 Exam Info and Free Practice Test

CIPS L5M5 Exam Syllabus Topics:

Topic Details
Topic 1
  • Understand the importance of compliance with ESG (Environmental, Social, and Governance) factors to achieve ethical and sustainable procurement and supply arrangements: This section of the exam measures skills of Supply Chain Specialists and covers methods to ensure compliance with ESG standards in procurement. It includes the use of supply chain mapping, risk management, stakeholder engagement, and contractual terms to secure sustainable practices. Candidates also learn how to monitor supplier performance, handle non-compliance, and utilize third-party auditors to maintain ethical standards. Relationship management strategies, corrective actions, and escalation processes are emphasized as part of ensuring suppliers meet ESG expectations.
Topic 2
  • Understand the impact of ESG (Environmental, Social, and Governance) considerations on ethical and sustainable supply chains: This section of the exam measures the skills of Procurement Managers and covers how ESG principles are applied to secure ethical and sustainable supply chains. It looks at the role of environmental, social, and governance factors in procurement decisions, alongside risks and benefits of ESG adoption. Learners also explore issues such as modern slavery, bribery, and human rights, as well as the importance of diversity, inclusion, and stakeholder management. The section highlights how globalization, culture, and labour practices shape supply strategies and examines potential conflicts that may arise when balancing ESG priorities with business demands.
Topic 3
  • Understand initiatives and standards related to ESG (Environmental, Social, and Governance) that support ethical and sustainable procurement and supply: This section of the exam measures the skills of Procurement Leaders and covers the global frameworks and standards that shape ethical supply practices. It explores international labour standards set by organizations such as the UN and ILO, and labour codes like the Ethical Trading Initiative and SA800. Candidates also examine external environmental frameworks, industry accreditations, and their role in meeting ESG goals. Finally, this section addresses fair trade principles, organizations such as WFTO and Fairtrade International, and the need to align internal governance with global standards.

 

Q44. During the transition period at the end of a contract, which of the following is usually the most difficult or complicated to organise?

 
 
 
 

Q45. Berty Boo Ltd conducts an audit checking compliance with regulations, policies, and risk procedures. What type of audit is this?

 
 
 
 

Q46. Freedom of association is a protected right under the ILO convention. What does this allow workers to do?

 
 
 
 

Q47. The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?

 
 
 
 

Q48. Social security is recognized internationally as a fundamental human right. When sourcing from developing countries, procurement professionals must be mindful of the limited social support available to low-income workers, as neglecting this issue could harm their organization’s reputation. Which of the following is NOT a step toward expanding social security coverage for more people in developing countries?

 
 
 
 

Q49. Why is it important for an organization to regularly review and update its internal governance standards? Select any TWO.

 
 
 
 

Q50. Supply Chain Operations Reference (SCOR) is a model of supply chain mapping used by many procurement professionals. Which of the following are advantages of SCOR? Select TWO

 
 
 
 

Q51. Creating value responsibly for shareholders would sit under which aspect of the sustainability triple bottom line?

 
 
 
 

Q52. Which of the following is NOT one of the four fundamental principles and rights at work recognized by the International Labor Organization (ILO)?

 
 
 
 

Q53. Which of the following is NOT a reason for supply chain mapping?

 
 
 
 

Q54. Which of the following standards is applicable to governments rather than private businesses?

 
 
 
 

Q55. Which scenario best illustrates the inclusion of a community benefits clause in a procurement contract?

 
 
 
 

Q56. What is a monopsony?

 
 
 
 

Q57. Scenario:
Apor is an online retailer of clothing and shoes. It sells four different fashion product lines:
Product 1: Apor has achieved competitive advantage on this product line by producing clothing cheaply. This has been achieved through investment in advanced manufacturing technology, which allows items to be made more cheaply than competitors.
Product 2: Apor is marketing to a younger customer segment for this product and has developed unique features that appeal to teenagers in particular.
Product 3: This product is a specialist type of shoe only purchased by professional dancers. Apor’s strategy is to appeal to this small and specific customer segment, and it achieves advantage through low cost of manufacture. However, demand has been affected recently due to import duty and tax changes.
Product 4: The marketing slogan for this product is “Greener Clothing for the Planet”. Although slightly more expensive than other ranges, Apor achieves advantage through the product’s eco-friendly features, appealing to a smaller, specific segment.
Task:
For each product, match the correct Macro Environment Driver and the correct Source of Competitive Advantage.

Q58. Roogy Ltd, a UK SME, considers implementing its own environmental standard instead of a global one. What is the advantage of this?

 
 
 
 

Q59. Westecs Inc., a leading consumer products manufacturer, has made significant investments in sustainable practices across its supply chains and in promotional advertising. Which of the following is the most likely benefit of this investment?

 
 
 
 

Q60. Which piece of UK legislation includes a provision for transparency in a company’s supply chain?

 
 
 
 

Q61. Nahid Cotton Mills Ltd, a leading manufacturer and exporter of high-quality knitting and cotton yarn in Bangladesh, aims to expand internationally and grow its global market to increase profits. The STEEPLED analysis tool can help assess various macro-environmental factors affecting the business. Which of the following factors fall under the social element of this analysis?

 
 
 
 

Q62. Automation Avenue, a manufacturing company, is struggling with production defects and high waste levels, affecting both quality and costs. To tackle these issues, they aim to adopt a systematic approach to enhance processes and reduce variability. Which methodology would be most effective in addressing defects and improving process quality?

 
 
 
 

Q63. In the power dominance model, which factor is most likely to strengthen the buyers’ power relative to suppliers?

 
 
 
 

Q64. The World Fair Trade Organization (WFTO) aims to help large global businesses expand into new markets, offering better products and fairer prices for consumers. Is this statement accurate?

 
 
 
 

Q65. Liam, a Procurement Officer at Zenith Corp, oversees a contract with Apex Supplies, a key supplier of essential manufacturing components. After identifying a critical issue in Apex Supplies’ delivery process, which TWO documents should Liam complete?

 
 
 
 

Q66. Which labor standard or framework utilizes National Contact Points to promote compliance and resolve disputes related to responsible business conduct?

 
 
 
 

Q67. A large electronics company uses third-party audits to ensure supplier compliance with labor standards. However, one supplier has raised concerns about undergoing multiple audits from different buyers, each with varying requirements. The supplier argues that this is diverting resources from making meaningful labor condition improvements.
Which issue is most relevant to the electronics company?

 
 
 
 

Q68. Which of the following methods does the ILO use to monitor compliance with labor standards in its member states?

 
 
 
 

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