CIPS L4M2 Exam - Topic 2 Question 33 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 33
Topic #: 2

The procurement team of a global supermarket has created a business case for a corporate social responsibility (CSR) sourcing strategy to meet the corporate objective of sustainability. This would require sourcing only from suppliers who meet ethical standards, a reduction in plastic, and using recycled material where possible. Which of the following business benefits would be mentioned in the business case? Select TWO that apply:

AFulfilment of a business objective

BIncreased capacity

CLeverage of technology

DImproved brand equity

EReduced cost

Show Suggested Answer

Suggested Answer: B

Those items make up small portion of spend and the supply risk is low. So it is tactical item according to Kraljic portfolio matrix. Procurement should bundle these items into larger contracts, simplify procurement process.

LO 2, AC 2.1

by Arthur at Apr 28, 2024, 05:23 AM

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Ling

9 months ago

A is essential for any CSR strategy!

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Mohammad

9 months ago

Wait, can they really reduce costs while being ethical?

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Soledad

10 months ago

Improved brand equity is a no-brainer!

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Ocie

10 months ago

I think E could be a stretch, though.

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Heidy

10 months ago

Definitely A and D! Those are key benefits.

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Audria

10 months ago

I agree with Flo about brand equity, but I wonder if leveraging technology could also be relevant in this context.

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Bea

11 months ago

I practiced a similar question, and I think reduced cost might not apply here since CSR often involves higher upfront costs.

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Flo

11 months ago

I'm not entirely sure, but I feel like improved brand equity could be a strong point too. It makes sense that consumers would support ethical brands.

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Laura

11 months ago

I remember discussing how fulfilling a business objective is crucial for CSR strategies, so I think A is definitely one of the benefits.

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Malika

11 months ago

I feel pretty confident about this. Fulfillment of the business objective and improved brand equity seem like the obvious choices here.

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Gene

11 months ago

I'm a bit confused - is reduced cost really a likely benefit of a CSR strategy? I'll have to re-read the question carefully.

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Maira

11 months ago

Okay, I think I've got this. The key is to focus on the business benefits that align with the stated objectives of sustainability and ethical sourcing.

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Flo

11 months ago

Hmm, I'm not sure about this one. I'll need to think carefully about which benefits would be most relevant to a CSR sourcing strategy.

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Casie

11 months ago

This seems straightforward - the business case would likely highlight the benefits of meeting the corporate sustainability objective and improving brand equity.

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Willard

11 months ago

I'm a bit confused by the wording of some of these options. I'll need to re-read them a few times to make sure I understand.

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Charlie

11 months ago

I think it's similar to that practice scenario where we had to outline the main goals and subjects involved. I feel like the subject's name is definitely needed.

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Merlyn

11 months ago

Okay, let's see. The goals of SIEM implementation include dashboarding, performance enhancement, and trend analysis. So the one that's not a goal must be the answer.

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Keith

11 months ago

I'm pretty confident on this one. The longer the term to maturity, the more sensitive the bond price is to changes in interest rates. So the risk and potential return are both higher.

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Gary

1 year ago

I bet the procurement team is feeling 'green' with envy, trying to come up with all these benefits. Maybe they should just say 'because it's the right thing to do'.

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Edgar

1 year ago

D) Improved brand equity

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Lilli

1 year ago

A) Fulfilment of a business objective

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Hoa

1 year ago

Increased capacity (B)? That's about as relevant as a unicorn riding a skateboard. This is a sustainability initiative, not an expansion plan.

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Leatha

1 year ago

Leverage of technology (C) could also play a role in implementing a sustainable sourcing strategy.

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Jaleesa

1 year ago

Reduced cost (E) is also a significant business benefit that would be mentioned in the business case.

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Gertude

1 year ago

Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.

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Milly

1 year ago

Leverage of technology (C)? Really? I don't see how that would be a key benefit in this case. They're talking about sourcing and materials, not tech upgrades.

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Niesha

1 year ago

Reduced cost (E) is an interesting one. I'm not sure if that would be a benefit, since sustainable practices often come with a higher price tag.

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Felton

1 year ago

Fulfilment of a business objective (A) is important too. Aligning with CSR goals can help the supermarket differentiate itself in the market.

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Bernardo

1 year ago

Improved brand equity (D) would also be mentioned in the business case. Consumers are increasingly valuing companies that prioritize sustainability.

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Eden

1 year ago

Reduced cost (E) is definitely a benefit. Sustainable practices can actually lead to cost savings in the long run.

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Vi

1 year ago

D) Improved brand equity

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Christiane

1 year ago

A) Fulfilment of a business objective

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Casandra

1 year ago

Fulfilment of a business objective (A) is a no-brainer. This aligns with the corporate goal of sustainability, so it has to be in the business case.

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Sherell

1 year ago

I'm not sure about D), but I think E) Reduced cost could also be mentioned in the business case.

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Kristian

1 year ago

I agree with Ryann. I also think D) Improved brand equity would be mentioned as a business benefit.

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Ryann

1 year ago

I think A) Fulfilment of a business objective would be mentioned in the business case.

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Freida

1 year ago

Reduced cost could also be a significant benefit, as using recycled materials can lead to cost savings.

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Cyril

1 year ago

I agree with Mona. D) Improved brand equity would also be a key benefit mentioned.

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Xenia

1 year ago

A business case for a CSR sourcing strategy should definitely mention improved brand equity (D) as a key benefit. Customers these days really care about sustainability and ethical practices.

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James

1 year ago

Increased capacity (B) and leverage of technology (C) may not be directly related to a CSR sourcing strategy, but they could still play a role in overall business success.

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Shad

1 year ago

Fulfilment of a business objective (A) is important to show alignment with overall corporate goals.

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Lavelle

1 year ago

Reduced cost (E) could also be a significant business benefit of sourcing ethically and sustainably.

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Carey

1 year ago

Improved brand equity (D) would definitely be a key benefit of a CSR sourcing strategy.

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Mona

1 year ago

I think A) Fulfilment of a business objective would be mentioned in the business case.

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