L4M4 Exam Dumps | Why is it important to consider factors such as environmental, social, governance and ethics when analysing

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CIPS
Ethical and Responsible Sourcing
CIPS.L4M4.v2025-11-05.q105
Question 70

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Question 70/105

Why is it important to consider factors such as environmental, social, governance and ethics when analysing tender proposals from the market?
* To ensure adherence to sustainability initiatives
* To improve the process workflow
* To perform supplier spend and monitoring
* To identify potential risks within the supply chain

A. 1 and 2 only

B. 2 and 3 only

C. 3 and 4 only

D. 1 and 4 only

Correct Answer: D

Incorporating Environmental, Social, and Governance (ESG) and ethical considerations into tender analysis is crucial for:
* Adherence to Sustainability Initiatives:Ensuring that suppliers align with the organisation's sustainability goals and legal obligations.
* Risk Identification:Assessing ESG factors helps in identifying potential risks in the supply chain, such as environmental violations or unethical labour practices, which can impact the organisation's reputation and operations.
Exact Extract from Study Guide:
"This unit focuses on responsible procurement practices, ensuring that sourcing decisions align with legal, environmental, and social governance (ESG) principles."

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