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Free CIPS Socially Responsible Procurement L3M5 Exam Questions

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Question 1

Which of the following are likely to be significant contributors to environmental damage caused by warehouses?

Correct Answer: A. The location of the warehouse itself; B. The use of warehouse handling equipment, for example, forklift trucks; C. Energy consumed by the warehouse building itself
Explanation:

It is unlikely that health and safety legislation will itself create meaningful environmental costs. Probably the opposite.

However, the siting / location of the warehouse itself can be significant: is it near customers / suppli-er thus reducing distances travelled? Do employees need to use vehicles to get to work, or is public transport readily available?

Modern warehouses should be designed in a relatively environmentally-friendly way. For example, well-insulated, using modern materials technology.

And then the materials-handling equipment: again, latest technology can help. A battery-powered forklift creates fewer emissions (potentially including a 'green' power source) than a smoky noisy spluttering old diesel forklift.

(L3M6)


Question 2

'ISO' stands for:

Correct Answer: D. International Organisation for Standardization
Explanation:

International Organisation for Standardization, sometimes known as 'International Standards Or-ganization'.


Question 3

What proportion of energy consumption is accounted for by transport, as opposed to manufacturing and residential, according to the International Energy Authority?

Correct Answer: D. 34%
Explanation:

The answer is 34%, so around one-third of all energy use on the planet is used for transportation.

(Source: IEA, 2017 quoted by Profex Publishing Ltd)

So, say, a European firm sourcing products from, say, China, uses a large amount of energy just to get goods from manufacturer to market. Or a US retailer buying from a supplier across the country, using road transport, is soaking up a large amount of energy.

I read something yesterday (Feb 2022) which I thought was interesting. Imagine someone drives a modern large 4 x 4 'car'. It might weigh, say, 1,500 kilos. The driver might weigh 100 kilos, say. Most such vehicles on the road have no passengers - they are transporting the driver from A to B. Thus to take something weighing 100 kilos from A to B, sufficient energy to transport (1,500 + 100 kilos) must be used.

Compare this to the same person going from A to B on a bicycle, even an electric bicycle.


Question 4

Which one of the following is not a renewable source of energy?

Correct Answer: D. Nuclear
Explanation:

Solar, tidal and wind are all renewables.

Nuclear although 'clean' is not renewable, and has significant end-of-life disposal challenges.


Question 5

Herman E Daly, an ecological economist, wrote that 'there is something fundamentally wrong in treating XXXX as if it were a business in liquidation'. What is XXXX?

Correct Answer: D. The Earth
Explanation:

The correct answer is 'The Earth'.

In other words, we should stop plundering the Earth's resources carelessly.


Question 6

One organisation has published a guide, as part of its Knowledge Summary series, which sets out requirements for ethical behaviour from suppliers. The guide is entitled 'Ethical business practices in purchasing and supply'. Which organisation published the guide?

Correct Answer: B. OECD
Explanation:

The Chartered Institute of Procurement and Supply published this guide.


Question 7

'Whole life cost' can also be known as:

Correct Answer: C. Total cost of ownership
Explanation:

Whole life cost = total cost of ownership (TCO).

This is in contrast to the 'buy cheapest' approach to procurement - all the costs of owning an asset should be considered.


Question 8

'A concept whereby companies integrate social and environmental concerns in their business opera-tions and in their interaction with their stakeholders on a voluntary basis'. What is the European Commission defining here?

Correct Answer: B. Corporate Social Responsibility
Explanation:

The combination of environmental and social concerns, with business, immediately implies CSR.


Question 9

As the Earth's atmosphere warms, greenhouse gases (GHGs) prevent escape of the heat from the Earth. The heat is absorbed primarily by the Earth's:

Correct Answer: B. Oceans
Explanation:

The Earth's oceans absorb most of the heat which is retained.


Question 10

Which is the greatest source overall of noise pollution in the developed world?

Correct Answer: B. Transport
Explanation:

Transport.

Think about it: vehicle engine noise, sirens, rail, overhead aircraft. With engine noise often being a constant buzz.