CIPS L4M4 : Ethical and Responsible Sourcing

  • Exam Code: L4M4
  • Exam Name: Ethical and Responsible Sourcing
  • Updated: Nov 12, 2026
  • Q & A: 293 Questions and Answers

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CIPS L4M4 Exam Syllabus Topics:

TopicDetails
Topic 1
  • 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.
Topic 2
  • Understand the key processes that can be applied to the analysis of potential external suppliers:
Topic 3
  • 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 4
  • This section examines analyzing market data, obtaining quotations
  • tenders, and assessing responses. The sub-topics focus on key processes for evaluating potential suppliers.

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

Sourcing products internationally involves extra considerations when looking at the price of the item. Which of the following are additional price considerations for international sourcing? Select TWO

  • A. tariffs
  • B. total life cycle costs
  • C. tax
  • D. batch quantities
  • E. exchange rate
Reveal Solution  Discussion  0

Correct Answer: A,E  🗳️

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Question #2

Phishing is a type of fraud that is commonly associated with which industry?

  • A. IT
  • B. Construction
  • C. Agriculture
  • D. Mining
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #3

Which documents are used to allow the movement of goods?
Export or import license
Non-disclosure agreement
Customs declaration
Conflict of interest declaration

  • A. 1 and 3 only
  • B. 2 and 4 only
  • C. 2 and 3 only
  • D. 1 and 4 only
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

The bill of lading is one of the main documents associated with sea freight within international sourcing.
Which of the following statements represent some of the uses of the bill of lading? Select TWO that apply.

  • A. It provides evidence of the title of ownership of the goods
  • B. It provides evidence of the country of origin of the goods
  • C. It provides evidence that the goods are fully insured in transit
  • D. It provides evidence guaranteeing the use of Incoterms on the goods
  • E. It provides evidence of the contract of carriage for the goods
Reveal Solution  Discussion  0

Correct Answer: A,E  🗳️

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Question #5

Which of the following are signs that modern-day slavery might be taking place within the supply chain?
Select THREE.

  • A. poor quality products
  • B. workers that live on-site
  • C. supplier based in a country with a low score on the Corruption Perception Index
  • D. suppliers who speak English as a second language
  • E. suspiciously low labour costs
Reveal Solution  Discussion  0

Correct Answer: A,B,E  🗳️

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