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CIPS L4M8 exam : Procurement and Supply in Practice
- Exam Code: L4M8
- Exam Name: Procurement and Supply in Practice
- Updated: Oct 29, 2026
- Q & A: 198 Questions and Answers
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CIPS L4M8 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Application of Procurement Cycle | 25% | - Key stages of procurement cycle in practice
|
| Whole Life Asset & Cost Management | 25% | - Total cost of ownership concept
|
| Ethics, Responsibility & Compliance | 25% | - Ethical and responsible sourcing application
|
| Sourcing Process & Supplier Management | 25% | - Stages of strategic sourcing
|
CIPS Procurement and Supply in Practice Sample Questions:
Question #1
How does positive social impact present itself?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Organizations which display good behavior create a positive social impact. The community in which they are based and to which they supply will benefit from the following.
1. High employment
2. Fair wages
3. low pollution
4. sustainable resources
5. Engagement and movement with local organization
Question #2
Explain why the behavior of an organization with which you are familiar could affect its business.
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
The social impact of an organization is formed by various behaviors. If an organization; behavior is poor this will create social impact which is likely to be reflected in the business performance. Organizations which display poor behavior face outcomes such as the following.
1. Reduce brand loyalty
2. Difficulty in recruiting
3. Negative media coverage
4. Reduced sales/profit
5. reputation damage
Question #3
Why is it important to have adequate procedures in place within an organization in relation to bribery?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Bribery is the act of giving someone something of value to persuade them to do something that benefits you.
Ethical and responsible sourcing requires conducting due diligence on bribery before going into contractual relationship because failure to this might lead to loss in reputation.
In other for an organization to defend itself against a case of suspected bribery, the United Kingdom bribery Act introduced in 2010 suggests that organizations should have adequate procedures' in place.
The following are six procedures an organization should have in place to be able to defend itself against bribery
1) Proportionate procedure
2) Top level commitment
3) risk assessment
4) due diligence
5) communication
6) monitoring and reviewing
Question #4
What are five recognized types of modern slavery?
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
Modern slavery is against ethical and responsible sourcing. Modern slavery is one of the areas to understudy for procurement professionals to carry out ethical and responsible sourcing and this is recognized in five ways.
1. Human trafficking: The process of seeking, recruiting, transporting and exploiting individuals to work against their will. Often human trafficking includes violence, deception, and coercion.
2. Bonded labour (debt bondage): This is an individual's promise to provide service through ex-ploitation as repayment, or part thereof, of a dept or other obligation.
3. Forced labour: Work that people are forced to do with the treat of punishment if it is not carried out.
4. Children labour: The exploitative and illegal employment of children.
5. Domestic slavery: Individuals exploited through working in private households for little or no money in return for living accommodation.
* Refer to the question column for response
Question #5
Research the ethical standard or accreditations of an industry with which you are familiar
Reveal Solution Discussion 0Correct Answer:
See the answer in explanation.
Explanation:
If a supplier is accredited or is a member of an association that promotes good ethical conduct, a statement to this effect is likely to be featured on its company documentation. This could be in a form of letters after the organization name or the authorized use of logo.
Accreditation information should be verified by procurement professionals either asking organiza-tion for certification to prove membership or accreditation or checking on a professional register.
Below are associated bodies that form some industries.
1. ISO 14001 - for quality management
2. CIPS - for procurement and Supply
3. Red Tractor - NGO Registered in the UK, promoting human right
4. Amnesty International - human right
5. Carbon Trust - For Carbon neutral status.
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