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Free PDF Quiz L6M1 - Strategic Ethical Leadership High Hit-Rate Test Braindumps
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CIPS L6M1 Exam Syllabus Topics:
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Quiz CIPS - L6M1 –Trustable Test Braindumps
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CIPS Strategic Ethical Leadership Sample Questions (Q11-Q16):
NEW QUESTION # 11
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 # 12
SIMULATION
Discuss the role that independent organisations in the third sector can play with regards to ethical business practices. Your answer may make reference to one or more of the following: United Nations, Tradecraft UK, Walk Free Foundation, IMF, ILO. (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 the 3rd sector?
P1 - role of advocate - promoting ethical business practices
P2 - role of watchdog
P3 - role of researcher - example of UNICEF and Cocoa
P4 - role of influencing global policies e.g. ILO Decent Work Agenda
P5 - Decent Work Agenda - explanation
Conclusion - work of third sector is critical to support advances in ethical business practices Example Essay Independent organizations in the third sector, also known as non-governmental organizations (NGOs) and civil society groups, play a crucial role in promoting ethical business practices on a global scale. This essay explores the multifaceted role of independent organizations in advancing ethical business practices and will focus on the work of the United Nations and the International Labour Organization (ILO).
Independent organizations in the third sector serve as advocates for ethical business practices. They raise awareness about ethical issues, such as fair labour practices, environmental sustainability, and responsible supply chain management. By conducting research, publishing reports, and engaging in public discourse, these organizations bring attention to areas where ethical improvements are needed.
Moreover, independent organizations often act as watchdogs, monitoring the actions of businesses and governments to ensure adherence to ethical standards. They use tools like corporate social responsibility (CSR) evaluations and human rights impact assessments to hold organizations accountable for their practices. For instance, NGOs may investigate and expose cases of labour exploitation or environmental violations in global supply chains.
For example, the International Labour Organization (ILO), a specialized agency of the United Nations, initiated efforts to combat child labour and forced labour in the cocoa industry. Children, often working in hazardous conditions, were involved in harvesting cocoa beans, which raised serious ethical and human rights concerns . The ILO along with UNICEF (United Nations Children's Fund) conducted studies, surveys, and assessments to gather data on child labour and forced labour. This resulted in the creation of the Harkin-Engel Protocol. Under the protocol, the chocolate and cocoa industry committed to taking specific actions to eliminate the worst forms of child labour and forced labour from cocoa production, encouraging businesses to adopt responsible sourcing practices, implement traceability measures, and invest in community development programs. While challenges persist, ILO/ UNICEF's efforts have contributed to significant improvements in labour conditions and a greater emphasis on ethical practices in the cocoa supply chain.
Furthermore, the United Nations, particularly the Economic and Social Council (ECOSOC), provides a platform for independent organizations to engage with governments and international institutions on ethical business practices. ECOSOC consults with NGOs, enabling them to contribute to discussions on sustainable development goals, human rights, and economic policies. This engagement ensures that ethical considerations are integrated into global policymaking.
Another example of how third sector organisations contribute to ethical business practices is the International Labour Organization (ILO) conventions, such as the 2018 Decent Work Agend a. This framework encompasses four main pillars
1) Employment: creating jobs and expanding opportunities for all. The goal is to promote full and productive employment, ensure equal pay for equal work, and reduce informal employment. It also emphasizes the importance of addressing unemployment, underemployment, and vulnerable employment, particularly in developing countries.
2) Social Protection: it highlights the need for comprehensive social protection systems. This includes access to essential health services, maternity protection, unemployment benefits, disability benefits, and pensions. Social protection helps individuals and families cope with various economic and social risks.
3) Social Dialogue: the active participation of workers, employers, and governments in decision-making processes related to labour policies and regulations. Social dialogue is essential for achieving fair and equitable labour practices, including collective bargaining and labour rights.
4) Rights at Work: the right to freedom of association, the right to collective bargaining, the elimination of forced labour and child labour, and the elimination of discrimination in the workplace. Ensuring these rights helps create a fair and just work environment.
The Decent Work Agenda represents a comprehensive and integrated approach to labour and employment issues, aiming to improve the well-being of workers and their families while fostering economic growth and development. It addresses the challenges and opportunities arising from changes in the world of work, such as globalization, technological advancements, and demographic shifts.
In conclusion, independent organizations in the third sector are instrumental in advancing ethical business practices globally. Their roles as advocates, monitors, collaborators, and educators are essential in holding businesses and governments accountable for their actions. Through engagement with institutions like the United Nations and initiatives like the ILO's Decent Work Agenda, these organizations contribute to the promotion of ethical practices in business, fostering a more just and sustainable global economy. Their efforts complement the broader goals of achieving social responsibility, human rights, and environmental sustainability in the business world.
Tutor Notes
- Out of those listed, you could get a lot of content out of the UN and ILO (remember the ILO is part of the UN). These would be my personal choice to pick and learn about because there are lots of examples you could talk about. I chose Cocoa and Child Labour. Other things you could have wrote about include:
- ILO Convention No. 29 (Forced Labour Convention, 1930): This convention requires member states to suppress the use of forced labour in all its forms, including slavery, debt bondage, and forced or compulsory labour.
- ILO Convention No. 105 (Abolition of Forced Labour Convention, 1957): This convention complements Convention No. 29 and aims to abolish forced labour through measures such as effective enforcement of laws and policies.
- Goal 8 of the United Nations Sustainable Development Goals (SDGs) specifically targets decent work and economic growth. Target 8.7 within this goal calls for the "immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour." The UN promotes the SDGs as a framework for addressing forced labour and related issues.
- The UN provides technical assistance to countries, helping them develop and implement legislation and policies to combat forced labour. This assistance includes capacity building, training, and sharing best practices.
- Tradecraft UK, Walk Free and IMF are also mentioned in the study guide. Here's some info you could have included if you wished to talk about them in your essay:
- Tradecraft = IMPORTANT - as of 2023 this organisation is in Administration. The study guide and exam questions were written before this happened, so may refer to it in the present tense. Your response should mention it in the past tense. Tradecraft was a UK-based Fair Trade Organisation that sold products that were traded fairly in the UK. Their mission was to fight poverty through promoting approaches to trade that will help people in developing countries change their lives. It developed programmes working with poor producers in Africa and Asia. E.g. helped small Indian tea producers negotiate higher prices and get representation on the Tea Board of India. Also helped African Framers negotiate for better PPE and provided training to them so they're more confident to negotiate contract terms such as not allowing late changes to quantities. Traidcraft goes into Administration - One World Shop
- Walk Free Foundation = Aim is to eliminate modern slavery- publishes the Global Slavery Index. They engage in research, advocacy, and awareness-raising activities. Walk Free Foundation Official Website
NEW QUESTION # 13
SIMULATION
Explain what is meant by the following terms: equality, discrimination and diversity (10 points) Discuss 5 benefits to having diversity in an organisation / supply chain (15 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 - managers should be sensitive to these three areas
1) Equality (Equalities Act 2010)
2) Discrimination
3) Diversity
5 benefits:
4) Innovation
5) Avoids groupthink
6) Better market understanding
7) Happier employees
8) Useful in international business
Conclusion - world is interconnected, diversity is a good thing
Example Essay
Managers who are sensitive to the needs and differences of others are effective, successful leaders. For this reason it is important to distinguish between the following terms, which are often confused:
Equality refers to the state of being equal in rights, opportunities, treatment, or status, regardless of factors such as race, gender, age, religion, disability, or other characteristics. It emphasizes fairness, justice, and the absence of discrimination in the treatment of individuals and groups. Equality is shrined into UK law in the Equalities Act 2010 meaning that it is illegal not to treat people the same.
Discrimination is the unjust or prejudicial treatment of individuals or groups based on their differences, either actual or perceived. Discrimination involves actions or practices that disadvantage or harm certain individuals or groups, often leading to unequal treatment and opportunities. For example only hiring white-skinned employees or not letting a woman become a member of a golf club.
Diversity encompasses the range of differences and variations among individuals. Embracing diversity means recognizing, respecting, and valuing differences such as language, background and culture. Diversity goes beyond the visible traits such as race and gender and includes both inherent and acquired attributes such as educational level and political beliefs.
Benefits of Diversity in an Organization/Supply Chain
Enhanced Creativity and Innovation: Diverse teams bring together individuals with varied backgrounds, experiences, and perspectives. This diversity of thought and ideas fosters creativity and innovation as team members approach problems and challenges from different angles. Creative solutions lead to a competitive advantage for an organisation and the ability to adapt to changing market demands.
Improved Decision-Making: Diversity in decision-making helps avoid groupthink, a phenomenon where homogeneous groups tend to conform to a single perspective. Different viewpoints and perspectives lead to more robust discussions and more well-rounded decisions. Organizations thus benefit from a wider range of ideas and strategies to address complex issues.
Broader Market Understanding: Diversity within an organization's workforce reflects the diversity of its customer base and the broader market. Diverse teams are better equipped to understand the needs, preferences, and behaviours of a diverse customer population. This understanding can inform product development, marketing strategies, and customer engagement, leading to increased market share.
Increased Employee Engagement and Satisfaction: An inclusive workplace that values diversity fosters a sense of belonging among employees. Employees are more likely to be engaged and satisfied when they feel their perspectives and contributions are respected and appreciated. Higher job satisfaction can lead to improved retention rates and reduced turnover costs.
Global Competence and Adaptability: In a globalized world, organizations with diverse workforces and supply chains are better equipped to navigate international markets and cultural nuances. Employees from diverse backgrounds bring valuable insights into global business practices, languages, and cultural sensitivities. This global competence enables organizations to expand into new markets and adapt to changing international dynamics.
In summary, diversity in an organization or supply chain brings a multitude of benefits, including enhanced creativity, improved decision-making, better market understanding, increased employee engagement, and global competence. Embracing diversity not only aligns with principles of equality and reduces discrimination, but also contributes to an organization's overall success and sustainability in a diverse and interconnected world.
Tutor Notes
- To gain extra points in an essay like this, you could bring in some real life examples of discrimination and diversity. The best one I can think of at the moment is Birmingham City Council which is currently in the news for pay discrimination https://www.bbc.com/news/uk-england-birmingham-66730165
- You could also use some quotes on the topic as part of the introduction or conclusion:
- "Diversity is not about how we differ. Diversity is about embracing one another's uniqueness." - Ola Joseph
- "We all should know that diversity makes for a rich tapestry, and we must understand that all the threads of the tapestry are equal in value no matter their colour." - Maya Angelou
- "Diversity is not a compliance issue. Diversity is a growth strategy." - Tiffany Jana
- Study guide p. 198
- Additional reading: The Business Case For Diversity is Now Overwhelming. Here's Why | World Economic Forum (weforum.org)
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
SIMULATION
Explain and evaluate how a Leader can use Management by Objectives (10 points). Discuss THREE ways to measure the effectiveness of leadership (15 points)
Answer:
Explanation:
See the Answer is the explanation
Explanation:
Management by Objectives (MBO) and Measuring Leadership Effectiveness
Part 1: How a Leader Can Use Management by Objectives (MBO) (10 Points) Definition of Management by Objectives (MBO) Management by Objectives (MBO) is a leadership approach where leaders and employees set specific, measurable goals that align with the organization's strategic objectives. Developed by Peter Drucker, MBO emphasizes clear goal setting, performance tracking, and employee involvement.
How a Leader Can Use MBO Effectively
Setting Clear Objectives
Leaders work with employees to establish SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).
Example: A procurement leader may set an objective to reduce supplier costs by 10% within six months.
Aligning Individual and Organizational Goals
Ensures employees understand how their goals contribute to the company's success.
Example: A CPO (Chief Procurement Officer) aligns procurement cost-saving goals with the finance department's budget objectives.
Regular Performance Monitoring
Leaders conduct periodic reviews to track progress and provide feedback.
Example: Monthly progress check-ins ensure employees stay on track toward procurement efficiency goals.
Providing Support and Resources
Leaders remove obstacles and provide training or tools to help employees achieve their objectives.
Example: Implementing new procurement software to improve efficiency.
Performance Evaluation and Rewards
Employees are evaluated based on objective achievements, and success is rewarded (e.g., bonuses, promotions).
Example: Procurement staff meeting targets could receive performance-based incentives.
Evaluation of MBO's Effectiveness
✔ Pros: Improves goal clarity, accountability, and motivation.
✘ Cons: Can be rigid if objectives are too fixed, ignoring external changes.
Part 2: Three Ways to Measure Leadership Effectiveness (15 Points)
A leader's effectiveness is crucial for team performance, motivation, and achieving strategic objectives. Below are three key ways to measure leadership effectiveness.
1. Employee Engagement and Satisfaction
Definition: The level of motivation, commitment, and job satisfaction employees have under a leader.
How to Measure:
Conduct employee engagement surveys (e.g., using Likert scale questions).
Measure retention rates-low turnover indicates effective leadership.
Track employee feedback in performance reviews.
Why It's Important:
✔ A highly engaged workforce is more productive and innovative.
✔ Employees who trust leadership stay longer and contribute more.
2. Achievement of Organizational and Team Goals
Definition: The ability of a leader to drive the team toward achieving company objectives.
How to Measure:
Compare actual vs. target performance metrics (e.g., cost savings in procurement).
Analyze key performance indicators (KPIs) like project completion rates.
Track efficiency improvements in processes under the leader's direction.
Why It's Important:
✔ Demonstrates how well a leader can set, communicate, and execute strategic goals.
✔ Ensures leadership is focused on tangible results, not just employee relationships.
3. Adaptability and Problem-Solving Ability
Definition: A leader's ability to navigate challenges, handle change, and innovate under pressure.
How to Measure:
Assess how a leader handles crises or disruptions (e.g., supply chain breakdowns).
Review decision-making effectiveness during uncertain situations.
Gather 360-degree feedback from peers, subordinates, and senior leaders.
Why It's Important:
✔ Business environments change-leaders must adapt quickly to remain effective.
✔ Ensures that leadership is proactive rather than reactive in problem-solving.
Conclusion
A leader can use Management by Objectives (MBO) to drive performance through goal-setting, alignment, monitoring, and evaluation. Leadership effectiveness can be measured through employee engagement, goal achievement, and adaptability, ensuring that leaders not only set objectives but also inspire teams, navigate challenges, and deliver measurable success.
NEW QUESTION # 16
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