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CIPS Level 5 Advanced Diploma in Procurement and Supply Core
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Which of the following statements is TRUE about the adjudication form of dispute resolution? Select TWO
it is an informal process
it is quicker than going through the courts
a decision must be made within 28 days
the decision cannot be legally binding
Explanation:
adjudication is quicker than going through the courts and a decision is made within 28 days. These are the true statements. Decisions can be legally binding and it's a fairly formal process. There's a full table of dispute resolutions on p.169. Itâs pretty much exactly what you saw at Level 4 but worth revising as there are questions about this in the exam.
During the transition period at the end of a contract, which of the following is usually the most difficult or complicated to organise?
returning of physical assets
drawing up an exit strategy
document transfer
knowledge transfer and IP rights
Explanation:
Knowledge transfer and IP rights (Intellectual Property) is often the most difficult aspect of ending a contractual relationship. It's necessary to identify which party is the owner of each, and this can often be difficult to agree on. P.172
Freedom of association is a protected right under the ILO convention. What does this allow workers to do?
have a second job
have work-life balance
join a union
avoid slavery
Explanation:
Freedom of Association is the right to join a union or workers group. P.179
Charlie is 13 years old and sometimes helps his parents in the corner shop that they run. He helps out stocking shelves at weekends. Charlie attends school and completes his homework during weekdays. Is this an example of Child Labour?
yes- any work done by a person under the age of 16 is considered child labour
yes- Charlie should report his parents to the police
no- Charlie is old enough to not be considered a child
no- Child Labour doesn't apply to helping a family business
Explanation:
4 is correct. Child Labour laws do not prevent a kid helping with a family business, providing that they attend school and the work doesn't harm them mentally, physically or socially. This is from p.182 of the study guide
Which of the following statements about the ILO (International Labour Organisation) is incorrect?
it is body of the WTO
the ILO has a representation and complaints process
the ILO sets standards on health and safety in the workplace and maternity protection
a principle of the ILO is to eliminate child labour
Explanation:
1 is incorrect- it's a body of the UN. All other statements are correct- these are from p.183-185. There's a lot in the study guide on the ILO.
the WTO (World Trade Organisation) has several functions. Which of the following is not a function of the WTO?
set trade rules between countries
deal with trade disputes between countries
to strive for full employment and high living standards
to ensure a high level of labour standards
Explanation:
The WTO doesn't deal with labour standards. It does not include labour standards in its guidelines. Labour Standards is dealt with by the ILO. P.186
The Global Compact Principles of the UN are legally binding for the member states who have signed up. Is this TRUE?
yes- reports must be filed regularly on process
yes- it is voluntary to join, but it is legally binding once signed up
no- it is voluntary to join and not legally binding
no- it is not legally binding and there is no requirement to publish any progress reports
Explanation:
The correct answer is no- it is voluntary and not legally binding. The other potential answer (because we discount the ones that start with yes) is incorrect because participants ARE required to publish reports to the UN Global Compact website. Organisations that don't comply are expelled. P.187
What forms of organisation form the Ethical Trading Initiative? Select THREE
private businesses
public sector businesses
governments
NGOs
Trade Unions
Explanation:
Private Businesses, NGOs and Trade Unions form the ETI. P.190
Which of the following are principles of the Wine and Agricultural Ethical Trade Association (WIETA)? Select THREE
prohibition of forced labour
working hours shall not be excessive
regular employment to be provided
a working environment free from risk
automatic sick pay
Explanation:
1 2 and 3 are correct. WIETA comes up on p.192 of the study guide. This isn't an organisation I'm familiar with but I did google it and it's a real organisation in South Africa. CIPS aren't going to expect you to know the 9 principles of the WIETA but you should be able to guess what they are, as they're pretty much the same as the ILO, ETI and other similar ethical associations. Option 4 is incorrect because no workplace is ever going to be free from risk.
Option 5 is incorrect because sick pay is decided at government level in each country rather than by ethical organisations.
SA8000 measures an organisation's social accountability. Which of the following is a disadvantage to this?
it is industry specific
it is not recognised in some countries
it requires a management system which can be costly to implement
it is only applicable to larger organisations
Explanation:
3 is the correct response. It requires a management system to be in place- this is because the system produces ongoing reports. SA8000 is not industry specific and is a global standard. P.195
The MNE (Multi-National Enterprise) Declaration is designed to promote the ability of multi-national organisations to operate in an ethical and sustainable manner.
Which of the following would be prioritised by the Declaration? Select TWO
formal economies
informal economies
immigrant labour
host country labour
Explanation:
Formal economies and host country labour are prioritised by the MNE Declaration. More on this on p.197
Which of the following is a disadvantage to the ISO14001 standard?
it is different across different industries
environmental targets are not set by ISO
organisations are mandated to have an Environmental Policy
All companies use this for is greenwashing
Explanation:
The correct answer is 2- environmental targets aren't set by ISO, they're set by the organisation. This means that an organisation can set super easy targets, and nothing actually really improves. 1 is incorrect- it's standard across every industry. 3 is incorrect as this isn't a disadvantage. 4 is incorrect because not every company is greenwashing, some genuinely care about the environment. P.209
Vincent is a Procurement Manager based at a manufacturing organisation in France. His company are considering signing up to the EU's EMAS system (Eco-Management and Audit Scheme).
Which of the following are advantages of doing this? Select THREE
it focuses the organisation on improving environmental performance
it will increase profits
it allows the organisation to prove it complies with environmental legislation
it will benefit the company's reputation
there is no cost to set up
Explanation:
1 3 and 4 are correct. EMAS will not increase profits and there is usually a set-up cost involved. See p.211 for more information on this. This bit of the study guide is quite interesting, it's worth reading up on EMAS and ISO140001 as it may be useful to your job as well as exams.