CIPS L4M4 Practice Exams
Last updated on Oct 22,2026- Exam Code: L4M4
- Exam Name: Ethical and Responsible Sourcing
- Certification Provider: CIPS
- Latest update: Oct 22,2026
Ishikawa Fishbone
- A . 1 and 2 only
- B . 1 and 3 only
- C . 2 and 3 only
- D . 3 and 4 only
Which legislation relates specifically to the ethical treatment of workers within the supply chain?
- A . Bribery Act 2010
- B . Modern Slavery Act 2015
- C . Equal Pay Act 1970
- D . Health and Safety at Work Act 1974
Why would you use a credit score to appraise a supplier?
- A . to understand the level of risk the supplier poses to your organisation
- B . to understand if their prices reflect market value
- C . to find out how much money the supplier has in the bank
- D . to find out if the supplier has any unethical business practices
Which of the following areas of legislative and regulatory requirements prevent the deliberate limit-ing of supply and the formation of cartels?
- A . data protection
- B . product safety standards
- C . marketplace competition
- D . ethical practice
Which of the following financial documents would show whether a supplier has sufficient funds to pay their subcontractors in the short term?
- A . balance sheet
- B . ESG policy
- C . profit and loss account
- D . cash flow statement
A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance.
Should the company go ahead with the recommendation?
- A . Yes, as it would align with, and help to achieve, sustainability goals
- B . No, ISO standards are too complex for staff and suppliers to understand and follow
- C . No, because ISO standards are only relevant to large organisations
- D . Yes, implementation would guarantee that the company is compliant with all environmental laws
A procurement manager of a medium-sized company has suggested to their executive board that implementing an ISO environmental standard would improve procurement practices and reduce environmental and social impacts. However, some colleagues are concerned about the potential complexity and supplier resistance.
Should the company go ahead with the recommendation?
- A . Yes, as it would align with, and help to achieve, sustainability goals
- B . No, ISO standards are too complex for staff and suppliers to understand and follow
- C . No, because ISO standards are only relevant to large organisations
- D . Yes, implementation would guarantee that the company is compliant with all environmental laws
When assessing social responsibility elements of a supplier’s proposal, what type of supporting evidence could a supplier provide?
- A . Evidence of compliance with fair trade standards
- B . Results of a customer service survey on delivery performance
- C . Quality control reports documenting quality checks in the manufacturing process
- D . Financial statements detailing profit and loss accounts
Which of the following payment mechanisms is most beneficial to the supplier?
- A . open account
- B . cash in advance
- C . sight draft
- D . letter of credit
A company has a requirement for an item that has been identified as strategic on the positioning
model. The company needs to invite competitive tenders and ensure the selected supplier of this item is in a good financial position.
What should the company ask the suppliers to send to show that their current assets cover their current liabilities?
- A . Profit and loss account
- B . Annual turnover
- C . Gearing ratio
- D . Acid test