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NEW QUESTION # 79
Green Book Ltd wants to include ESG measures in contracts. Which of the following is not an ESG performance measure?
Answer: D
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
The L5M5 study guide (p.194) confirms that On Time In Full (OTIF) delivery is a standard performance metric but is not an ESG measure. ESG measures include waste reduction (E), social value (S), and ED&I (S), which assess ethical, social, and environmental responsibilities. Procurement professionals must distinguish between operational KPIs and sustainability-focused KPIs to ensure contracts drive both efficiency and ethical responsibility.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.194
NEW QUESTION # 80
The Payra 1320MW Thermal Power Plant, one of the largest power producers in Bangladesh, recently halted production due to worker strikes over poor working conditions. This situation is a consequence of which of the following?
Answer: B
Explanation:
Choice A is the answer as we can see from above interruption of supply chain is a consequence of human rights abuse. The other factors are not directly related to production stoppage due to poor working conditions. Reference: LO-1.1; Page 52; Issues impacting ethical and sustainable procurement and supply: modern slavery, bribery, corruption, fraud and human rights infringements
NEW QUESTION # 81
Which of the following are benefits to sustainable business practices? Select TWO
Answer: B,C
Explanation:
The two benefits are increased productivity and reduced waste and competitive advantage. The other two options are potential downsides. These types of questions in the exam are pretty straight forward-just look for the logical answer. Benefits and risks of sustainable practices are explained on p.11-14
NEW QUESTION # 82
Peacock Clothing Manufacturing has a superior IT system compared to competitors. What form of competitive advantage is this?
Answer: A
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Competitive advantage refers to unique capabilities that give an organisation an edge in the market. The L5M5 study guide (old p.39, new p.63) explains that superior IT systems fall under process advantages, as they directly influence how efficiently orders are taken, materials are managed, and operations are executed. Culture (A) refers to organisational values and behaviours, IP (C) refers to patents or trademarks, and People (D) refers to skills or talent. For procurement, recognising process-driven advantages helps identify supplier strengths and strategic sourcing opportunities.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.63
NEW QUESTION # 83
The unethical practice of using information that is not publicly available to trade on the stock market is commonly known as what?
Answer: C
Explanation:
Comprehensive and Detailed Explanation From Exact Extract of Documents:
Insider trading occurs when individuals use confidential or non-public information to gain an unfair advantage in stock market trading. The L5M5 study guide (p.3) identifies insider trading as an example of unethical business behaviour. It is illegal in most jurisdictions because it undermines market fairness and investor confidence. Bribery (A) and kickbacks (B) involve corrupt practices in procurement, while "greasing the wheels" (D) refers to facilitation payments. Procurement professionals must avoid insider trading directly and indirectly (e.g., suppliers disclosing confidential financial information) to maintain ethical compliance and governance.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.3
NEW QUESTION # 84
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