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CIPS L6M1 Reliable Practice Questions & Braindumps L6M1 Pdf
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CIPS L6M1 Exam Syllabus Topics:
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CIPS Strategic Ethical Leadership Sample Questions (Q10-Q15):
NEW QUESTION # 10
SIMULATION
Banana Ltd is a international manufacturer and retailer of mobile telephones. It has a complex supply chain, which sources materials such as plastic and rare metals. These rare metals are mined in developing countries. Explain how Banana Ltd can develop a culture to achieve ethical practices (25 points)
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - what is an ethical culture?
P1 - create values and principles - put into writing
P2 - Lead by example
P3 - Transparency, whistleblowing
P4 - Decision making
P5 - Laws
P6 - having consequences for failing to follow the culture
Conclusion - culture isn't static, Banana Ltd needs to constantly update and review Example Essay An ethical culture in the workplace refers to the prevailing set of values, norms, principles, and practices within an organization that prioritize and promote ethical behaviour and decision-making among employees and stakeholders. It represents the collective commitment of an organization to conduct its business in a manner that is morally responsible, socially acceptable, and legally compliant. An ethical culture sets the tone for how employees interact with each other, make decisions, and engage with customers, suppliers, and the broader community. Banana Ltd can achieve this in the following ways:
Ethical Values and Principles: An ethical culture is built on a foundation of clear and well-defined ethical values and principles. These values guide employees in their actions and decisions, helping them distinguish between right and wrong. Banana Ltd should engrain these values and principles in writing by creating a vision statement and creating a formal CSR policy detailing expected behaviour from all employees and stakeholders.
Leadership and Accountability: Ethical leaders play a crucial role in fostering an ethical culture. They set an example by consistently demonstrating ethical behaviour and holding themselves accountable for their actions. Leaders also ensure that ethical standards are consistently applied throughout the organization. Therefore the leaders of Banana Ltd should lead by example. This may be in gaining MCIPS qualifications and other certifications that prove their loyalty to ethical issues.
Transparency and Open Communication: Ethical cultures encourage open and transparent communication. Employees are encouraged to speak up about ethical concerns or violations without fear of retaliation. Transparent processes and reporting mechanisms promote accountability. Banana Ltd could implement a Whistleblowing policy for example, so that if any employee knows of areas of concern, they can escalate this to management, without fear of repercussions.
Ethical Decision-Making: Ethical decision-making is central to an ethical culture. Employees are encouraged to consider the ethical implications of their choices, even when faced with challenging decisions that may have financial or competitive implications. For example with Banana Ltd, this may be actively severing ties with suppliers who are known to employ child labour in the mining of rare metals.
Compliance with Laws and Regulations: Ethical cultures emphasize strict adherence to laws and regulations. Banana Ltd should ensure that all activities are carried out within the boundaries of legal requirements, and violations are not tolerated. For example they should ensure that their HR policies are in line with the Equalities Act. As a large organisation they should also publish a statement about removing Modern Slavery from their supply chain, as per the Modern Slavery Act.
Accountability and Consequences: There are clear consequences for unethical behaviour. Banana Ltd should ensure that accountability mechanisms are in place to address ethical violations, and individuals who breach ethical standards may face disciplinary actions. For example if a supply chain manager is caught accepting an 'acceleration payment' or ' kickback' they should be fired.
An ethical culture in the workplace is essential not only for maintaining a positive organizational reputation but also for fostering a healthy, inclusive, and socially responsible work environment. It contributes to employee morale, customer trust, and long-term business sustainability. It is important for Banana Ltd to not only implement this culture, but to maintain it and constantly review it. The area of ethics and sustainability is constantly evolving so Banana Ltd should look to reassess its policies and processes regularly, and continue to strive to achieve more.
Tutor Notes
- You may have guessed that this question was loosely based on Apple. Apple is a good example of ethics and supply chain issues and is worth looking into as it's an excellent example to bring into an essay on the subject. Here are some links:
- Apple's Supply Chain Is on a Collision Course With Climate Change (bloomberg.com)
- Apple sees bigger supply problems after strong start to year | Reuters
- Will Supply-Chain Issues Kill the Low-Cost Apple Vision Pro? (pcmag.com)
- Other areas you could have mentioned include: cultures are not static; they are constantly evolving and improving. So Banana Ltd needs to regularly assess and refine their ethical practices to stay aligned with changing societal norms and expectations (I.e. what is ethically acceptable one day, may not be the next). You could have also talked about Banana Ltd's responsibility to the environment and local communities (particularly concerning the mining of metals). Mining is a really bad industry for Child Labour.
NEW QUESTION # 11
SIMULATION
Discuss three of the following areas of employment law: minimum wage, overtime and holiday pay, working hours, Health and Safety at Work, equality (25 points).
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - explain which three; minimum wage, working hours, H&S
P1 - minimum wage
P2 - working hours
P3 - H&S
Conclusion - law is always evolving
Example Essay
Employment law in the United Kingdom has evolved over the years to safeguard the rights and interests of employees while providing a framework for fair and equitable employment practices. This essay delves into three crucial areas of employment law: minimum wage, working hours, and health and safety.
Minimum Wage. The National Minimum Wage Act 1998 and subsequent amendments established the legal framework for minimum wage rates in the UK. The current legislation sets different minimum wage rates for various age groups. Currently (2023) for those aged 23 and over the minimum wage is £10.42 per hour. This is rising to £11 in 2024. Younger workers will earn less, with those on an apprenticeship, considerably less. Minimum wage legislation has significantly improved the earnings of low-paid workers and reduced income inequality. It ensures that employees receive a fair wage for their labour, promoting economic stability and social well-being.
Interestingly, not all countries have a minimum wage or set it hourly. For example in Spain, minimum wage is set out monthly (around 1000 euros/ month). Sweden doesn't have a minimum wage at all. Sweden relies on collective bargaining agreements negotiated between employers and labour unions to determine wage rates and employment conditions. These agreements are sector-specific and cover a wide range of industries, effectively setting minimum wage standards at the industry level rather than through legislation. This approach allows for flexibility and tailoring of wage rates to different sectors of the economy but also means that minimum wage levels can vary depending on the specific collective agreement in place within a given industry.
Working Hours: The Working Time Regulations 1998 (WTR) and the EU Working Time Directive establish legal limits on working hours, rest breaks, and paid leave for workers in the UK. The WTR also introduced the concept of the "opt-out," allowing workers to voluntarily exceed the 48-hour weekly working time limit. Working time regulations promote work-life balance, protect employees from excessive working hours, and enhance health and well-being. The "opt-out" provision provides flexibility but must be implemented with respect to workers' rights. It is common in the UK for Junior Doctors to opt out to ensure they have enough time to complete their training within a specific timeframe. Some training programs require a certain number of hours or procedures to be completed during a specific period. Another reason for opting out is the opportunity to earn more money, particularly if overtime is paid at a high rate.
Health and Safety: The Health and Safety at Work Act 1974 is the cornerstone of health and safety legislation in the UK. It places duties on employers to ensure the health, safety, and welfare of their employees, as well as others affected by their work activities. Specific regulations, such as the Management of Health and Safety at Work Regulations 1999, provide additional guidance. One of the main areas this legislation covers is the importance of completing risk assessments. The case of R v. Tangerine Confectionery Ltd (2018) emphasized the importance of risk assessments in preventing workplace accidents. The company was fined for failing to adequately assess the risk of an employee's arm getting trapped in a machine, resulting in serious injury. Health and Safety legislation has led to safer workplaces, reduced accident rates, and improved employee well-being. Employers are legally obligated to identify and mitigate workplace risks, ensuring the protection of their workforce.
In conclusion, UK employment law, encompassing minimum wage, working hours, and health and safety, plays a pivotal role in safeguarding employees' rights, promoting fair labour practices, and ensuring safe working environments. As employment dynamics continue to evolve, it is imperative that employment law remains adaptable, responsive, and protective of employees in an ever-changing work landscape.
NEW QUESTION # 12
SIMULATION
Discuss supplier due diligence in relation to the case study below. How and why should it be implemented? (25 points) Delicious Ltd is a cake manufacturing organisation with complex supply chains. They are based in the UK and source raw ingredients such as sugar and flour internationally. They use over 20 different suppliers, many of whom are in the commodities industry and some from low-cost countries.
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction- what is due diligence - assessing and evaluating suppliers.
Section 1 - how to do due diligence: risk assessments, supplier selection, audits, contracts, continuous processes, communication Section 1 - why - quality issues, risk to business continuity, ethical reasons, customer/ stakeholder requirements Conclusion: it's essential for Delicious Ltd (relate back to case study).
Example Essay
Supplier due diligence is a critical process for organizations like Delicious Ltd, which rely on complex international supply chains to source commodity items. Due diligence involves assessing and evaluating the performance, reliability, and ethical practices of suppliers to ensure they meet the company's standards and requirements.
Here's how supplier due diligence can be implemented:
Risk Assessment: Begin by identifying the potential risks within the supply chain. This may include geopolitical risks, natural disasters, economic instability, and even supplier-specific risks like production delays or quality issues. It should also look at ethical considerations such as the use of forced or child labour in the supply chain and the working conditions of those employed by suppliers.
Supplier Selection: Carefully select suppliers based on criteria such as their track record, reputation, financial stability, quality control processes, and ethical practices. Delicious Ltd should consider multiple sources for critical raw materials such as sugar and flour to diversify risk. This means if one supplier goes bust, or is unable to provide the required quantities, Delicious Ltd can source materials elsewhere. The Kraljic Matrix would be a useful tool here.
Audits and Inspections: Delicious Ltd can conduct regular audits and inspections of suppliers' facilities and practices to ensure they meet the company's standards. These audits can include quality checks, ethical compliance checks, and supply chain continuity assessments. They can use an independent 3rd party to do this.
Contractual Agreements: Delicious Ltd should define clear terms and conditions in supplier contracts, specifying quality requirements, delivery schedules, pricing structures, and dispute resolution mechanisms. These contracts should reflect the results of due diligence assessments.
Continuous Monitoring: Establish a system for ongoing monitoring of suppliers' performance. This includes regular communication, feedback mechanisms, and performance reviews to ensure suppliers maintain the desired standards. Delicious Ltd could use the Demming Plan Do Check Act cycle here.
Contingency Planning: Develop contingency plans for potential supply chain disruptions. This could involve identifying alternative suppliers or establishing safety stock levels for critical raw materials. For example, by holding a surplus stock of flour in it's own warehouse, Delicious Ltd mitigates the risk of late deliveries interrupting production.
Transparency and Reporting: Delicious Ltd should be transparent about supplier due diligence efforts with stakeholders, including customers, investors, and regulatory bodies. They should regularly report on compliance with ethical and sustainability standards and can publish findings on their website.
For Delicious Ltd, implementing supplier due diligence is essential for several reasons:
Quality Assurance: Ensuring the quality of raw ingredients is crucial for a cake manufacturing organization like Delicious Ltd. By conducting due diligence, the company can verify that suppliers meet specific quality standards, which is essential for producing consistent and high-quality products. If an ingredient such as flour was contaminated, this may result in Delicious Ltd's customers falling ill. This is a risk that needs to be eliminated.
Supply Chain Reliability: International supply chains can be susceptible to disruptions, such as natural disasters, political instability, or economic fluctuations. Supplier due diligence helps identify potential risks within the supply chain and allows the company to develop contingency plans to minimize disruptions.
Ethical Sourcing: Customers and stakeholders increasingly demand transparency and ethical sourcing practices. Due diligence enables Delicious Ltd to assess whether suppliers adhere to ethical standards, such as fair labour practices and environmental sustainability, which can protect the company's reputation and market position. Delicious Ltd risk losing customers, and thus profit, if they fail to conduct due diligence.
Cost Control: By evaluating suppliers' financial stability and pricing structures, the company can negotiate better deals, optimize costs, and avoid unexpected price hikes or financial risks associated with supplier instability.
In conclusion, implementing supplier due diligence is essential for Delicious Ltd due to its complex international supply chains. It helps ensure quality, reliability, and ethical practices among suppliers, while also mitigating risks associated with the supply chain. By effectively implementing due diligence processes, the company can enhance its reputation, protect against disruptions, and maintain cost control.
Tutor Notes
- Remember that due diligence isn't just about ethics. That's a big part of it (checking supply chains for modern day slavery etc). Due diligence is about getting the 5 Rights of Procurement (remember this from Level 4?), it's about ensuring supply chain security and continuity, and about risk aversion too.
- To improve on the essay above you could talk more in detail about where you can get information on suppliers, such as D&B and Companies House for financial information, customer references and checking registrations such as ISO14001. Some of these are specific to the UK, so Delicious Ltd may need to look at international equivalents. You don't have to know what these are for the exam though so don't worry!
- How deep you conduct supplier due diligence depends on how important the supplier is to you. You could mention this in your conclusion and bring it back to Delicious Ltd - the flour supplier is probably very important, but the supplier of stationary for the workers in the office is probably less so. So Delicious need to do thorough due diligence on the flour supplier and less on the stationary guys. Kraljic is the tool for this.
- Because this is a case study question, you don't have to bring in any real life examples. But if the question was more open e.g. discuss how a procurement manager can do Due Diligence, you could talk about a real life example, so have one in your back pocket for the exam
- For a really high score you could mention this: Home - KnowTheChain
NEW QUESTION # 13
SIMULATION
What is meant by ethical supply chain management? (5 points). Discuss how the following can impact upon a supply chain and ways a supply chain manager can mitigate the risks: corporate governance, bribery and corruption, insider trading and discrimination (20 points)
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Intro - ethical supply chain management = environment, society and wellbeing of stakeholders P1 - corporate governance P2 - bribery and corruption P3 - insider trading P4 - discrimination Conclusion - Upholding these ethical principles not only benefits the organization but also contributes to a more just and responsible global business environment.
Example Essay
Ethical supply chain management involves the integration of ethical principles and practices into every aspect of a supply chain's operations. It focuses on ensuring that the supply chain not only meets its goals of efficiency, cost-effectiveness, and profitability but also operates in a manner that is socially responsible and aligned with moral values. Ethical supply chain management aims to create value while considering the impact on the environment, society, and the well-being of all stakeholders involved, particularly those that have traditionally been exploited or marginalised. Supply chain managers play a pivotal role in establishing and upholding ethical standards within the supply chain.
Corporate Governance:
Corporate governance refers to the framework of rules, practices, and processes by which a company is directed and controlled. It encompasses the relationships among the company's management, its board of directors, shareholders, and other stakeholders. Supply chain managers should ensure that their organization's corporate governance practices are transparent, accountable, and aligned with ethical standards.
For example, the Enron scandal in the early 2000s serves as a stark reminder of the consequences of poor corporate governance. Enron's executives engaged in unethical and fraudulent practices, leading to the company's collapse. This scandal highlighted the importance of transparent corporate governance to prevent such lapses.
Supply chain managers can contribute to ethical corporate governance by establishing mechanisms for transparency, accountability, legal compliance, and ethical oversight within the supply chain.
Bribery and Corruption:
Bribery involves the offering, giving, receiving, or soliciting of something of value with the aim of influencing the actions of an official or other person in a position of authority. Corruption, on the other hand, encompasses a broader range of dishonest or unethical behaviour, including bribery, embezzlement, and abuse of power. Supply chain managers must actively combat bribery and corruption within the supply chain.
One prominent example of bribery and corruption in the supply chain is the case of the Brazilian construction giant Odebrecht. The company was involved in a vast bribery scheme across Latin America, implicating high-ranking politicians and business leaders. This case underscores the far-reaching consequences of unethical practices within the supply chain.
To mitigate the risk of bribery and corruption, supply chain managers should implement anti-bribery policies, conduct due diligence on suppliers, establish reporting mechanisms, and regularly audit and monitor the supply chain for compliance.
Insider Trading:
Insider trading involves trading securities based on non-public, material information. It is a form of market abuse that undermines fairness and transparency in financial markets. Supply chain managers should address insider trading risks within the organization.
A well-known example of insider trading is the case of Martha Stewart, the American businesswoman and television personality. Stewart sold her shares in a pharmaceutical company, ImClone Systems, based on non-public information about the FDA's impending rejection of the company's drug application. She was later convicted of insider trading.
To prevent insider trading, supply chain managers can limit access to sensitive information, educate employees about insider trading laws, establish monitoring and reporting mechanisms, and ensure legal compliance.
Discrimination:
Discrimination involves treating individuals unfairly or unequally based on their characteristics, such as race, gender, age, or disability. Discrimination within the supply chain can have detrimental social and legal consequences.
To combat discrimination, supply chain managers should promote equal opportunity, implement diversity initiatives, conduct training and awareness programs, and enforce non-discrimination policies throughout the supply chain.
In conclusion, ethical supply chain management is integral to an organization's overall sustainability and reputation. Supply chain managers should actively manage ethics in areas such as corporate governance, bribery, corruption, insider trading, and discrimination to ensure that the supply chain operates ethically, complies with legal standards, and aligns with moral values. Upholding these ethical principles not only benefits the organization but also contributes to a more just and responsible global business environment.
Tutor Notes
- For a higher score you should mention some of the legislation surrounding these areas:
- Corporate Governance = Companies Act 2006: This legislation lays out the statutory duties of company directors and officers, addresses corporate governance issues, and provides requirements for financial reporting, disclosure, and shareholder rights.
- Corporate Governance = UK Corporate Governance Code: Although not a law, this code issued by the Financial Reporting Council (FRC) sets out principles of good corporate governance that UK-listed companies are encouraged to follow. It provides guidelines on board composition, transparency, accountability, and more.
- Bribery and Corruption: Bribery Act 2010: This act is the primary legislation governing bribery and corruption in the UK. It introduced strict anti-bribery provisions, including criminal offenses related to bribery, both domestically and internationally.
- Insider Trading: Criminal Justice Act 1993: Part V of this act includes provisions related to insider dealing (insider trading) offenses. It criminalizes the misuse of insider information in relation to securities and other financial instruments.
- Discrimination: Equality Act 2010: This comprehensive legislation addresses discrimination on various grounds, including age, disability, gender, race, religion or belief, sexual orientation, and gender reassignment. It provides protection against discrimination in employment, education, housing, and other areas of public life.
NEW QUESTION # 14
SIMULATION
Explain, with examples, how a Procurement Professional can apply the CIPS Code of Conduct in relation to ethical business practices (25 points).
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Overall explanation
Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.
Essay Plan
Introduction - what is it?
Paragraph 1 - standing
Paragraph 2- integrity
Paragraph 3 - promote
Paragraph 4 - proficiency
paragraph 5 - regulations
Conclusion - it's super important
Example Essay
The CIPS (Chartered Institute of Procurement & Supply) Code of Conduct serves as a guiding framework for procurement and supply chain professionals to maintain ethical standards and professional integrity in their work. This essay will explore how procurement professionals can apply various aspects of the CIPS Code of Conduct to ensure ethical business practices. It will address each of the five core principles outlined in the Code of Conduct: Standing, Integrity, Promotion, Proficiency, and Regulations, providing relevant examples for each.
Standing:
One of the key principles of the CIPS Code of Conduct is to enhance and protect the standing of the profession. Procurement professionals can apply this by avoiding conduct that would bring the profession or CIPS into disrepute. For example, if a procurement manager discovers evidence of bid rigging among potential suppliers, adhering to this principle would involve promptly reporting the suspicious activity to their organization's compliance department. By doing so, they not only uphold professional standards, but also safeguard the organization's reputation.
Integrity:
Maintaining personal and professional integrity is fundamental to ethical business practices. The Code of Conduct emphasizes that procurement professionals should never engage in conduct, either professional or personal, that would bring the profession or CIPS into disrepute. For instance, if a supply chain manager is offered an extravagant gift by a vendor during negotiations, they should decline the gift and report the offer to their supervisor or compliance department. This action upholds personal and professional integrity, ensuring impartiality in supplier selection.
Promotion:
Procurement professionals can actively promote ethical practices within their organizations and supply chains, aligning with the Code of Conduct. For example, they can advocate for sustainable and ethical sourcing practices. If a procurement manager selects suppliers who adhere to fair labour standards and environmentally responsible practices, they set an example that encourages others to prioritize ethical practices. By actively promoting these principles, they contribute to a culture of integrity and social responsibility.
Proficiency:
Enhancing and protecting the standing of the profession also involves a commitment to proficiency. Procurement professionals can apply this principle by continually developing and maintaining their professional skills and competencies. For instance, attending training programs and industry conferences regularly can help them stay updated on the latest ethical standards and best practices. Pursuing certifications related to ethical sourcing, such as sustainable supply chain management credentials, further demonstrates their commitment to proficiency.
Regulations:
The CIPS Code of Conduct underscores the importance of compliance with relevant laws and regulations in procurement and supply chain management. Procurement professionals should ensure that all sourcing activities align with legal requirements. For example, they can conduct due diligence to confirm that suppliers adhere to anti-corruption laws, trade restrictions, and environmental regulations. This not only minimizes legal and ethical risks but also ensures ethical conduct within the supply chain.
Conclusion:
In conclusion, procurement professionals play a crucial role in maintaining ethical business practices by applying the principles outlined in the CIPS Code of Conduct. By adhering to these principles related to Standing, Integrity, Promotion, Proficiency, and Regulations, they contribute to the ethical and responsible functioning of their organizations and the broader supply chain industry. Upholding ethical standards not only safeguards professional integrity but also fosters trust and transparency in procurement and supply chain management.
Tutor Notes
- The CIPS code of conduct has come up as a 25 point question in Level 4 and Level 5 exams, so there is no reason to believe it couldn't come up at Level 6. Nothing has changed in terms of content, but at this Level be prepared to give more examples of it being applied in practice.
- Another way this could be asked is in relation to a case study. E.g. Mark is a procurement professional and X and Y are going on at his organisation. Using the CIPS Code of Conduct, what should he do about X and Y?
NEW QUESTION # 15
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