Session 6 MCQs – L3M2

What is the primary purpose of the CIPS Code of Conduct?

• To enforce supplier compliance with trade regulations

• To promote ethical processes in procurement and supply

• To regulate employee salaries in procurement

• To outline financial reporting requirements

What should a CIPS member do if they encounter unethical behaviour?

• Ignore it to maintain supplier relationships

• Conduct an independent investigation

• Report it to a person of authority

• Discuss it with colleagues first

A supplier sends a case of wine to a procurement team. What should the team do?

• Accept the gift if it's low value

• Return the gift and report it to the organisation

• Share the gift among the team

• Keep the gift but disclose it

How should CIPS members act in their professional and personal lives?

• With flexibility to adapt to supplier needs

• In a professional and law-abiding manner

• By prioritizing organisational profits

• By focusing on personal development

Why is declaring conflicts of interest important under the CIPS Code of Conduct?

• To ensure supplier discounts are secured

• To maintain transparency and integrity

• To reduce the need for audits

• To improve supplier relationships

What is a key requirement for CIPS members regarding organisational policies?

• To create new policies annually

• To operate in accordance with them

• To challenge outdated policies

• To align policies with supplier goals

What role does a code of ethics play in an organisation?

• It limits stakeholder engagement

• It aids cohesion in multinational organisations

• It enforces strict financial audits

• It reduces supplier diversity

What does a code of ethics outline?

• Financial forecasting methods

• Acceptable and unacceptable behaviour

• Supplier contract terms

• Employee salary structures

How does a code of ethics protect an organisation?

• By eliminating the need for supplier audits

• By offering protection if a breach occurs

• By ensuring equal pay for employees

• By guaranteeing market share growth

What should procurement professionals do regarding human rights issues?

• Ignore minor violations to maintain relationships

• Conduct due diligence on supplier relationships

• Limit supplier interactions

• Focus solely on contract terms