L5M5 Exam Dumps - Managing Ethical Procurement and Supply

The Wine and Agricultural Ethical Trade Association (WIETA) is an organisation promoting fair trade and ethical practices in South Africa’s wine industry. The L5M5 study guide (p.262) outlines WIETA’s principles, which align with ILO standards. These include prohibition of forced labour, ensuring working hours are not excessive, and providing regular employment rather than temporary or exploitative contracts. Options D and E are not accurate—no workplace can be entirely free of risk, and sick pay is determined by national legislation, not WIETA. Procurement professionals working with agricultural sectors should be aware of such sector-specific ethical trade associations.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.262

The UN’s 17 Sustainable Development Goals (SDGs) form the 2030 Agenda for Sustainable Development. They cover areas such as ending poverty (A), reducing inequality (B), and combatting climate change (C). However, eradicate unethical business practices (D) is not one of the listed goals. The L5M5 study guide (p.4) stresses that while business ethics are important, the SDGs are broader, covering social, environmental, and economic development priorities. Procurement professionals should be able to identify the SDGs, as supply chain policies are increasingly aligned with them to support global sustainability efforts.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.4

Social Security in the UK provides benefits such as sick pay, redundancy support, pensions, and maternity/paternity payments. The L5M5 study guide (p.93) specifies that payments can be made in cases of sickness (A), loss of employment (B), and retirement (C). Benefits are not provided simply for changing jobs (D) or marriage (E), as these do not affect financial or employment security. Procurement professionals need to understand social security systems, especially when working with international suppliers, since welfare provisions differ globally and affect labour conditions.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.93

When cost is the overriding priority, suppliers may compromise on sustainability. The L5M5 study guide explains that cheap materials may be unsustainably sourced (e.g., timber from non-certified forests). This is particularly highlighted in the old syllabus under LO 3.4, which noted risks when cost or speed is prioritised over ESG. Procurement professionals must balance cost, quality, speed, and sustainability to avoid reputational damage and unethical practices. Focusing solely on cost undermines long-term ESG commitments.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, section on sustainability vs cost priorities

ISO14001 is the international standard for Environmental Management Systems (EMS). The L5M5 study guide (p.277) explains that it requires organisations to establish frameworks for monitoring and improving their environmental impact. ISO9001 (A) relates to quality management, ISO28000 (C) to supply chain security, and ISO31000 (D) to risk management. For procurement, suppliers certified with ISO14001 demonstrate a commitment to reducing waste, emissions, and environmental risks, making this highly relevant to CSR and ESG.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.277

The Modern Slavery Act (2015) requires companies with a turnover above £36 million to publish a slavery and human trafficking statement. The L5M5 study guide (p.45) highlights this as a limitation because it excludes smaller businesses, even though they may also operate complex supply chains. The Act applies regardless of where supply chains are located (so A is incorrect), and compliance is mandatory (C is incorrect). Non-compliance can lead to civil proceedings (so D is incorrect). Procurement professionals must be aware of this threshold and ensure compliance in larger organisations.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.45

Expert Determination is a dispute resolution process in which parties appoint an independent expert to decide on a technical matter. According to the L5M5 study guide (p.236), this method is best for disputes involving specialist knowledge, such as intellectual property, chemical formulas, or engineering specifications. The expert’s decision is legally binding. It is not chosen based on contract value (A), geographic scope (B), or interpersonal disputes (D). Procurement professionals should recognise Expert Determination as an efficient way to resolve highly technical disputes without lengthy litigation.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.236

The Health and Safety at Work Act 1974 requires UK employers to ensure that working conditions are safe and that risks to health are managed. According to the L5M5 study guide (p.6), this includes duties such as accident prevention, safe use of equipment, and training employees. While the Working Time Regulations (A) relate to working hours, the Companies Act (B) covers corporate governance, and the Disability Discrimination Act (D) focuses on preventing discrimination, only the Health and Safety at Work Act specifically ensures safe conditions. Procurement professionals must be aware of this when selecting and monitoring suppliers, particularly in high-risk industries.

📖 Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.6