Exam L4M4 Topic 1 Question 74 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 74
Topic #: 1

What course of action should be taken when an audit of a supplier identifies evidence of human rights malpractice?

A. Remove all business and inform press organisations to escalate to government authorities B. Allow the supplier to complete current orders while pursuing alternatives C. Immediately raise the issue with the supplier and jointly develop a timely action plan before a repeat audit D. Immediately halt all orders and switch to an alternative source of supply

Suggested Answer: C Vote an answer

CIPS promotes a constructive and corrective approach when suppliers fall short of ethical standards, especially on critical issues like human rights. Immediately cutting ties can harm workers further and disrupt supply without addressing root causes. A responsible sourcing approach requires buyers to engage suppliers, escalate the concern, and establish a corrective action plan with monitoring to ensure compliance. Only if the supplier refuses to act or breaches persist should termination occur. This supports continuous improvement, supplier development, and ethical due diligence, reflecting global standards such as the UN Guiding Principles on Business and Human Rights.
Reference: CIPS L4M4 Study Guide (v2), LO: "Implementation" - audits, corrective action plans, ethical risk management.

by Lewis at Jul 07, 2026, 06:38 AM

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