L5M5 Exam Dumps - Managing Ethical Procurement and Supply

The L5M5 study guide (p.258) explains that blue washing refers to organisations associating with the UN Global Compact to appear legitimate while failing to implement its principles. The term comes from the blue colour of the UN flag. In contrast, greenwashing (A) is when companies exaggerate their environmental credentials. Blue washing is a reputational risk because it undermines genuine CSR initiatives and public trust. Procurement professionals must ensure that CSR commitments are backed by verifiable actions rather than symbolic gestures.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.258

The Equalities Act 2010 provides legal protection against discrimination in the UK. The L5M5 study guide (p.35) lists the protected characteristics, which include disability, pregnancy and maternity, age, race, sex, sexual orientation, gender reassignment, marriage/civil partnership, and religion/belief. Weight is not included as a protected characteristic. For procurement, understanding equality legislation is vital to ensuring suppliers uphold fair treatment of employees and do not discriminate unlawfully. Organisations must embed these protections into contracts and supplier codes of conduct.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.35

The STEEPLED analysis tool examines external macro-environmental factors: Social, Technological, Economic, Environmental, Political, Legal, Ethical, and Demographic. The L5M5 study guide (p.55) confirms that “D” stands for Demographic, reflecting population trends, age structures, and workforce availability. This addition evolved from the earlier PESTLE model, later extended to STEEPLE and STEEPLED. Procurement professionals use this tool to assess external risks and opportunities that may affect supply markets and ethical sourcing.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.55

The L5M5 study guide (old p.67, new p.95) explains that there is no limit to compensation claims for breaches of the Equalities Act 2010. By contrast, unfair dismissal claims (not linked to discrimination) are capped at the lower of £83,682 or 52 weeks’ gross pay. Discrimination claims, however, are unlimited, reflecting the seriousness of breaches. Procurement professionals must ensure suppliers comply with equalities legislation, as non-compliance can lead to unlimited liability and reputational damage.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.95

When a supplier’s conduct breaches expected standards, the appropriate tools are Root Cause Analysis (to identify why the issue occurred) and a Corrective Action Plan (to detail how the supplier will fix and prevent recurrence). The L5M5 study guide (p.228) emphasises that KPIs should already be established at the start of the contract, and a single conduct issue may not mean performance indicators are being missed. SWOT analysis is not suitable in this scenario, as it is a strategic tool rather than a compliance or corrective measure. Corrective actions ensure continuous improvement and supplier accountability, which are essential for ethical supply chain management.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.228

CSR policies allow businesses to integrate ethical, social, and environmental concerns into their operations. The L5M5 study guide (p.28) highlights several benefits: an improved reputation (A), enhanced competitiveness (B) by differentiating the company, and a positive impact on wider society (D). However, CSR policies do not provide protection from all legal issues (C)—illegal activities can still occur despite having a policy. CSR (sometimes referred to as ESG in modern usage) builds stakeholder trust, supports compliance with global sustainability frameworks, and enhances long-term resilience. Procurement teams are particularly important in embedding CSR into supply chains by ensuring supplier compliance and accountability.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.28

The correct answer is that labour standards vary from country to country. According to the L5M5 study guide (p.85), while international conventions exist (e.g., ILO conventions), there is no single binding international law regulating labour standards across all nations. Instead, each country enforces its own rules regarding wages, hours, and working conditions. Some countries have strict protections, while others may have weak or poorly enforced standards. Therefore, procurement professionals must apply due diligence and supplier audits when sourcing internationally, as ethical risks arise in jurisdictions with lower labour protections.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.85

The L5M5 study guide (p.281) states that the advantage of a company creating its own internal environmental standard is that it is generally cheaper than obtaining a recognised certification like ISO14001. This can be more suitable for smaller firms with limited budgets. However, it is not necessarily easier for customers to understand (A), nor does it automatically ensure compliance with regulations (C). It is not inherently greenwashing (D) unless it is misleading. Procurement professionals should balance cost savings against credibility when considering internal versus recognised environmental standards.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.281