[Jan 31, 2026] CIPS L5M5 Real Exam Questions and Answers FREE [Q45-Q62]

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[Jan 31, 2026] CIPS L5M5 Real Exam Questions and Answers FREE

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 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.
Topic 3	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.

NO.45 The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?

Yes- reports must be filed regularly on process

Yes – it is voluntary to join, but it is legally binding once signed up

No- it is voluntary to join and not legally binding

No- it is not legally binding and there is no requirement to publish any progress reports

NO.46 How do Fair Trade organisations protect producers of raw materials from poor economic conditions?

A standard for working conditions is set

Final products are marketed as Fair Trade

Money is provided to communal funds

A minimum price is set for purchase of items

NO.47 What is the purpose of an IPO (International Procurement Organisation)?

To encourage all organisations to move operations abroad

To identify the most cost-effective manufacturers across the world

To facilitate transport logistics

To run background checks on potential international supply partners

NO.48 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?

Reduced indirect costs

Improved brand image

Unsatisfied shareholders

Increased number of competitors

NO.49 Which of the following statements is TRUE about the adjudication form of dispute resolution? Select TWO

It is an informal process

It is quicker than going through the courts

A decision must be made within 28 days

The decision cannot be legally binding

NO.50 The main aim of the ILO is to promote rights at work and improve social protection. Is this TRUE?

Yes – the ILO is an agency of the UN which deals with labour problems

Yes – the ILO sets trade rules between nations

No – the purpose of the ILO is to increase international trade

No – the ILO was formed in 1975 to encourage globalisation

NO.51 Which of the following is an example where long-term availability of supplies is prioritized over short-term gains?

Reducing quality standards in the short term, accepting that customer rejections will increase in the long term

Selling products manufactured to lower quality standards, resulting in lower unit prices

Choosing a new supplier that is initially more expensive than others in the market to expand the supply base and develop market capacity

Cutting costs in the short term, ultimately leading to a reduced range and variety of suppliers in the market

NO.52 The WTO (World Trade Organisation) has several functions. Which of the following is not a function of the WTO?

Set trade rules between countries

Deal with trade disputes between countries

Strive for full employment and high living standards

Ensure a high level of labour standards

NO.53 Which of the following is NOT a reason for supply chain mapping?

Identifying potential risks and vulnerabilities

Gathering quality data through audits

Understanding and gaining insights into suppliers

Eliminating the need for supplier relationship management

NO.54 The ILO’s fundamental principles and rights at work are binding on which countries?

Only those that have ratified the ILO conventions

All member states of the ILO

Only developed countries

Only countries with high labor standards

NO.55 Roogy Ltd, a UK SME, considers implementing its own environmental standard instead of a global one. What is the advantage of this?

It will be more easily understood by customers

It will be cheaper

It ensures compliance with local regulations

This is a form of greenwashing

NO.56 The illegitimate use of a person’s role for gain is what form of ethical issue?

Bribery

Corruption

Fraud

Slavery

NO.57 Which of the following standard operating procedures do procurement professionals use to prevent fraud within a company?

Allowing a single employee to handle all procurement transactions without oversight

Implementing a whistleblower hotline to report suspicious activities anonymously

Using verbal agreements for procurement contracts to expedite the process

Bypassing formal bidding processes for convenience in purchasing decisions

NO.58 Which of the following statements best describes the potential risks associated with adopting ESG considerations?

ESG initiatives are primarily concerned with social factors and do not impact environmental or governance aspects

Implementing ESG considerations guarantees immediate financial returns and market leadership

Adopting ESG practices eliminates all regulatory scrutiny and compliance requirements

Greenwashing can lead to a loss of consumer trust and brand reputation when companies falsely claim to be environmentally friendly

NO.59 A construction company contracts a supplier to deliver steel beams for a project, with the contract specifying that “time is of the essence,” requiring delivery by January 31. However, due to unexpected delays, the supplier delivers the beams on February 5, causing project delays and financial losses for the construction company.
What is the most likely consequence of the supplier missing the deadline when “time is of the essence” is a contractual condition?

The buyer is required to accept the late delivery without penalty

The buyer can terminate the contract and seek damages for losses incurred

The supplier is entitled to an extension of the delivery deadline

The buyer must renegotiate the contract terms to account for the delay

NO.60 McKesson is a leading healthcare company specializing in wholesale medical supplies and equipment, pharmaceutical distribution, and healthcare technology solutions. Recently, public hospitals placed an urgent request for medical supplies. Which of the following is NOT a method for identifying urgent orders?

Develop a standardized order policy to manage urgent requests, including appropriate cost allocation

Establish economic order quantities (EOQ) based on profit margins

Assess supply chain capability

Identify strategically important customers and leverage goodwill for commercial renegotiations

NO.61 Samir is the Project Manager of a large construction project. Due to the complexity of the build, the main contractor has employed specialist subcontractors. What is the disadvantage of using subcontractors for this work?

Increased costs

Lower quality of work

Less control

Compliance with the law

NO.62 Which of the following is a disadvantage of the ISO14001 standard?

It is different across industries

Environmental targets are not set by ISO

Organisations are mandated to have an Environmental Policy

All companies use this for greenwashing