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CIPS L4M4 Test Passed : Ethical and Responsible Sourcing

L4M4 actual test
  • Exam Code: L4M4
  • Exam Name: Ethical and Responsible Sourcing
  • Updated: Oct 16, 2026
  • Q & A: 293 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

About CIPS L4M4 Exam

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • Understand options for sourcing requirements from suppliers: This section covers the sourcing process, approaches, options, and award criteria for obtaining requirements from suppliers. The sub-topics provide a foundation for strategic sourcing.
Topic 2
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 3
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.
Topic 4
  • Understand compliance issues when sourcing from suppliers: It explores legislative, regulatory, and organizational requirements for sourcing. It compares the use of audit and other mechanism of feedback.

Reference: https://www.cips.org/qualifications/diploma-in-procurement-supply/ethical-and-responsible-sourcing

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CIPS Ethical and Responsible Sourcing Sample Questions:

Question #1

Ali is the Category Manager at an airplane manufacturing factory. He works with many different suppliers who provide different components for the planes. The company is investing heavily in Environmental and Social Governance and Ali has been asked by the CEO what the best practice is to ensure ethical behaviour from suppliers. Ali has suggested completing Audits. Is this the right thing to do?

  • A. No- audits will only reveal financial issues not ethical ones
  • B. Yes- audits always uncover ethical violations such as modern day slavery
  • C. No- Ali should simply ask the supplier's about their ethical practices
  • D. yes - these can be completed without warning which would give Ali an accurate picture of the supplier's operations
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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Question #2

Why is it important, when awarding high-value contracts, for a buyer to conduct a financial assessment of a supplier?

  • A. The buyer must ensure continuity of supply because financial problems of a supplier could affect the supply
  • B. Financial assessments provide a holistic view of a company's capability, including quality and delivery performance
  • C. If a supplier has a high credit score, this means it pays its own suppliers late, which could result in stock outs
  • D. A supplier who is highly profitable will be charging prices higher than the average market rate
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Curly Cake Incorporated makes lots of different types of confectionary items. Although they are most famous for their cakes, they also have a smaller line of cereal bars and biscuits. Which of the following would be the most appropriate items for Curly Cake Incorporated to outsource? Select TWO

  • A. cereal bars and biscuits
  • B. cleaning
  • C. cakes
  • D. facilities management
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

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Question #4

A buyer of bakery products sees wheat shortages due to poor harvests but demand remains high. How does this affect negotiation?

  • A. Buyer will find it difficult to negotiate lower prices
  • B. Buyer is in a strong position to reduce prices
  • C. Bakery produce will be lower priced as less wheat is available
  • D. Prices will not be affected by shortages as demand is high
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

If a commodity index shows that the price of a commodity is continually rising, what does this indicate about the market?

  • A. the marketplace is a monopoly
  • B. that there is little demand in the marketplace
  • C. there is a threat of substitution
  • D. demand is exceeding supply
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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