CPSM Sustainability & Corporate Social Responsibility in Supply Management

Question 1

A supply manager is incorporating Environmental, Social, and Governance (ESG) criteria into supplier selection. Which of the following is an example of the 'Governance' component of ESG?

Accepted Answer

A supplier's board composition, anti-corruption policies, and executive pay transparency

Answer

Governance in ESG refers to how a company is led and controlled: board structure, shareholder rights, executive compensation transparency, anti-bribery policies, and audit practices. Environmental factors cover emissions and resource use; social factors cover labor practices and community impact.

Question 2

Scope 3 greenhouse gas emissions are MOST relevant to supply managers because they include:

Accepted Answer

Indirect emissions across the value chain, including those from suppliers' operations and purchased goods

Answer

Scope 3 emissions are indirect emissions in a company's value chain — upstream (raw materials, supplier manufacturing) and downstream (product use, end-of-life). For most companies, Scope 3 represents the largest share of their carbon footprint, making supplier emission management critical to sustainability goals.

Question 3

A circular economy approach in supply management emphasizes:

Accepted Answer

Designing products and supply chains to eliminate waste by keeping materials in use through reuse, remanufacturing, and recycling

Answer

The circular economy contrasts with the linear 'take-make-dispose' model by designing waste out of systems: products are repaired, remanufactured, or recycled to keep materials in productive use. Supply managers enable this by sourcing recyclable materials, designing for disassembly, and building reverse logistics capabilities.

Question 4

Conducting a supplier sustainability audit PRIMARILY serves to:

Accepted Answer

Assess whether a supplier's environmental, labor, and social practices meet the buying organization's standards and legal requirements

Answer

Sustainability audits evaluate a supplier's adherence to environmental regulations, labor standards (e.g., no child labor, fair wages), health and safety practices, and community impact. They protect the buying organization from reputational and legal risks associated with non-compliant supply chains.

Question 5

The concept of 'responsible sourcing' in supply management MOST closely aligns with which principle?

Accepted Answer

Ensuring that goods and services are obtained in a way that respects human rights, environmental standards, and ethical business practices throughout the supply chain

Answer

Responsible sourcing means integrating social, environmental, and ethical considerations into procurement decisions — ensuring that cost savings are not achieved through exploitation of workers, environmental degradation, or unethical practices at any tier of the supply chain.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Sustainability & Corporate Social Responsibility in Supply Management