CIPS Strategic Ethical Leadership L6M1 Exam Dumps: Updated Questions & Answers (October 2025)

(A) Five Qualities of an Effective Leader (10 Points)

Effective leadership is crucial for the success of any organization, particularly in strategic procurement and supply chain management. Below arefive key qualitiesthat define an effective leader:

Vision and Strategic Thinking(2 Points)

A successful leader has aclear visionfor the future and can developstrategic plansto achieve organizational goals.

In procurement, this meansaligning supply chain strategieswith overall business objectives, such as cost reduction, sustainability, and supplier relationship management.

Integrity and Ethical Leadership(2 Points)

Ethical leaders act withhonesty, transparency, and fairness, setting high ethical standards for their teams.

In procurement, integrity ensuresfair supplier selection,compliance with procurement laws, andavoiding corruption or conflicts of interest.

Decision-Making and Problem-Solving Skills(2 Points)

Leaders must analyze complex situations, consider different perspectives, andmake informed decisions.

In supply chain management, this involvesrisk assessment,supplier negotiation, andresolving disruptions (e.g., supply shortages, logistics issues, or geopolitical risks).

Communication and Influence(2 Points)

An effective leaderclearly communicatesthe organization's goals and expectations to internal and external stakeholders.

In procurement, this involvesnegotiating contracts, managing supplier relationships, and ensuring cross-functional collaboration within the organization.

Emotional Intelligence and People Management(2 Points)

Emotional intelligence (EQ) includes self-awareness, empathy, motivation, and social skills, which are essential for managing teams.

In procurement, this helps leadersbuild trust,motivate employees, andhandle conflicts with suppliers or internal teamseffectively.

(B) Role of a Leader in Procurement and Supply Chain Functions (15 Points)

Leaders in procurement and supply chain management play acrucial strategic rolein ensuring the efficiency, sustainability, and ethical integrity of the organization's supply chain. Below arefive key rolesa leader plays:

Setting Strategic Direction in Procurement(3 Points)

A leader definesprocurement objectivesin line with corporate strategy, such ascost reduction, supplier diversity, risk management, and sustainability.

Example: AChief Procurement Officer (CPO)may implement a strategy to reduce reliance on a single supplier anddiversify sourcingto minimize risks.

Ensuring Ethical and Sustainable Procurement(3 Points)

Leaders must establish and enforceethical procurement policiesto avoid fraud, bribery, or unethical supplier practices.

Example: Ensuring compliance withCorporate Social Responsibility (CSR) initiatives, such as sourcing from ethical suppliers who followfair labor practices.

Supplier Relationship and Risk Management(3 Points)

A leader is responsible forbuilding strong supplier relationshipsthat foster trust, reliability, and long-term partnerships.

They alsoidentify and mitigate risksin the supply chain, such assupply disruptions, geopolitical risks, and financial instability of suppliers.

Driving Innovation and Continuous Improvement(3 Points)

Leaders encourage teams to adoptinnovative technologiessuch asArtificial Intelligence (AI), blockchain, and data analyticsin procurement.

Example: Implementinge-procurement systemsto enhance efficiency and transparency in supplier transactions.

Developing and Empowering the Procurement Team(3 Points)

A leader must focus ontalent development, upskilling procurement professionals, and fostering aculture of continuous learning.

Example: Providing training oncontract management, negotiation skills, and supplier evaluation techniquesto enhance team capabilities.

Strategic Ethical Leadership in E-Procurement Implementation: Evaluating InfluencingStyles

In modern procurement management, leadership style significantly impacts the success of strategic initiatives such as the introduction of anE-Procurement system. Pat, as the newly appointedChief Procurement Officer (CPO)of Circle Ltd, must carefully select aninfluencing styleto ensure smooth adoption of the system by his12 procurement assistants. Different influencing styles—assertive, consulting, collaborating, and inspiring—offer distinct advantages and challenges in this scenario. This essay discusses how each of these leadership styles can be applied in Pat’s situation and evaluates their effectiveness.

1. Assertive Leadership Style

Assertive leadership involvesdirectingemployees with confidence and clarity, ensuring compliance through authority. If Pat adopts anassertive approach, he would:

Clearlycommunicatethe decision to implement the E-Procurement system.

Setfirm expectationsfor team members regarding system adoption.

Enforce astrict timelinefor training and compliance.

Effectiveness in This Situation

Advantages:Provides clarity, speeds up decision-making, and ensures quick implementation.

Challenges:Could lead toresistancefrom employees who feel excluded from the decision-making process.

Best Used When:There is anurgent deadlineor when employeeslack knowledgeof alternatives.

Given that procurement assistants may have concerns or fears abouttechnological change, a purelyassertive approach may create resistancerather than engagement.

2. Consulting Leadership Style

A consulting leadership style involvesseeking inputfrom team members before making a final decision. If Pat takes aconsultative approach, he would:

Engageprocurement assistants in discussions on how the new system will impact their work.

Conductsurveys or meetingsto gather feedback.

Allow employees tovoice concernsand propose suggestions.

Effectiveness in This Situation

Advantages:Encouragesbuy-infrom employees, reduces resistance, and improves decision-making.

Challenges:Can betime-consumingif employees havediverging opinionsorlack expertisein E-Procurement.

Best Used When:Employees have valuableexperience or insights, and the leader seeksteam engagement.

Since the system is new to the organization,consultation can help address fears and improve morale, but it should bestructured efficientlyto avoid unnecessary delays.

3. Collaborating Leadership Style

A collaborative leadership style fostersteamworkand shared decision-making, ensuring that all stakeholders work together toward a common goal. If Pat adopts acollaborative approach, he would:

Form across-functional project teamto oversee the E-Procurement implementation.

Encourageknowledge sharingandproblem-solvingamong team members.

Ensure that procurement assistants havea role in decision-making, such as selecting the software features they find most useful.

Effectiveness in This Situation

Advantages:Enhancesteamwork, improvesacceptance of change, and utilizes thecollective expertiseof the team.

Challenges:Can lead toslow decision-makingandconflictsif there are disagreements on implementation details.

Best Used When:The project requiresinnovationand teamwork, and when employees havetechnical expertiseorexperiencewith procurement systems.

Sincesuccessful adoptionof an E-Procurement system depends on user engagement,collaboration would be highly effective, but it needsstructured guidancefrom leadership.

4. Inspiring Leadership Style

An inspiring leadership style focuses onmotivating employeesby sharing a vision and fostering enthusiasm. If Pat uses aninspirational approach, he would:

Explain the strategic benefitsof E-Procurement for Circle Ltd, such as cost savings, efficiency, and competitive advantage.

Usestorytelling and case studiesto illustrate successful transformations in similar companies.

Recognize andreward employeeswho embrace the new system.

Effectiveness in This Situation

Advantages:Boostsmorale and motivation, increasescommitment, and reduceschange resistance.

Challenges:Employees may stillneed practical guidanceandstructured trainingalongside motivation.

Best Used When:Change issignificantand requires amindset shift, especially in environments whereinnovation is encouraged.

Since the introduction of E-Procurement isa transformative change, aninspiring leadership approachwould be effective inmotivatingemployees, but it should be paired withpractical implementation strategies.

Conclusion: Choosing the Best Approach

Pat must consider boththe technical challengesof E-Procurement implementation and thehuman factorsinvolved in change management.A blended approachcombining multiple leadership styles would be the most effective strategy:

Start with an inspiring approachtogenerate enthusiasmand ensure employees understand the long-term benefits of E-Procurement.

Use consultation and collaborationto gather feedback and ensure employees feelinvolvedin the change process.

Apply an assertive approach strategically, ensuring that deadlines and key expectations are met.

By combining these leadership styles, Pat cansuccessfully implementthe E-Procurement system while ensuring his team is engaged, motivated, and aligned with the company’s strategic goals.

Stakeholder Classification: Using Mendelow’s Matrix

Stakeholders play a crucial role in the success of an organization, influencing decisions, resources, and operations. To effectively manage stakeholders, organizations need a model that helpsclassify and prioritize stakeholdersbased on their influence and interest. One widely used framework isMendelow’s Stakeholder Matrix.

This essay describesMendelow’s Matrix, evaluates its effectiveness, and discusses itsadvantages and limitations.

Mendelow’s Stakeholder Matrix

Mendelow’s Stakeholder Matrix (1991) is astrategic toolthat classifies stakeholders based ontwo key factors:

Power– The ability of a stakeholder to influence the organization’s decision-making.

Interest– The level of concern a stakeholder has about the organization’s activities.

Based on these factors, stakeholders are placed intoone of four quadrants:

Stakeholder Group

Power

Interest

Management Strategy

Key Players

High

High

Actively engage and involve

Keep Satisfied

High

Low

Monitor closely, engage when necessary

Keep Informed

Low

High

Provide regular updates, listen to concerns

Minimal Effort

Low

Low

Monitor but minimal engagement

1. Key Players (High Power, High Interest)

These stakeholders havesignificant influenceover the organization andstrong interestin its operations.

Examples:✔Senior executives,major shareholders, government regulators.✔Large customers orstrategic suppliers.

Management Strategy:✔Actively involve them in decision-making.✔Consult regularlyand address their concerns immediately.

Evaluation:✔Managing this group well ensuresstrong support for company initiatives.✘Ignoring them can lead tosignificant resistance and business risks.

2. Keep Satisfied (High Power, Low Interest)

These stakeholders havehigh power but low interest, meaning they canaffect the organization significantlyif ignored.

Examples:✔Government bodiesthat enforce regulations but do not intervene unless necessary.✔Wealthy investorswith minimal involvement in daily operations.

Management Strategy:✔Engage periodicallyto keep them satisfied.✔Provideupdates on key decisionswithout overwhelming them.

Evaluation:✔Proper management preventsunexpected opposition.✘If engagement is too frequent, they maylose interestor disengage.

3. Keep Informed (Low Power, High Interest)

These stakeholdersdo not have direct powerbut arehighly interestedin the company’s actions.

Examples:✔Employees, local communities, NGOs concerned about sustainability.✔Small-scale suppliers who depend on the company.

Management Strategy:✔Communicate regularlythrough reports, newsletters, or meetings.✔Listen to concernsand provide transparency.

Evaluation:✔Keeping them engaged buildspositive public relations and internal morale.✘If ignored, they mayescalate concerns to higher-power stakeholders.

4. Minimal Effort (Low Power, Low Interest)

These stakeholders havelittle influence and low interest, meaning theydo not require significantattention.

Examples:✔General publicwho have no direct impact on the company.✔Non-core supplierswith small contracts.

Management Strategy:✔Monitortheir concerns occasionally.✔Avoidunnecessary engagementunless their influence changes.

Evaluation:✔Avoiding excessive engagement savestime and resources.✘If theirinterest or power grows, they may requirereclassification.

Evaluation of Mendelow’s Stakeholder Matrix

Advantages of the Model

✔Simple and Practical– Easy to understand and apply in various industries.✔Helps Prioritize Stakeholders– Ensurescritical stakeholders receive appropriate attention.✔Supports Strategic Decision-Making– Guides communication and engagement efforts.✔Adaptable– Can be used formergers, change management, procurement, and public relations.

Limitations of the Model

✘Does Not Capture Stakeholder Dynamics– Stakeholder power and interestchange over time, requiring constant reassessment.✘Overlooks Stakeholder Relationships– Some stakeholdersinfluence others(e.g., media can amplify employee concerns).✘Power and Interest Can Be Subjective– Classifying stakeholders requiresjudgment and regular review.

Conclusion

Mendelow’s Stakeholder Matrix is apowerful tool for classifying and managing stakeholdersin any organization. By categorizing stakeholders based onpower and interest, leaders candevelop effective engagement strategiesandmitigate risks associated with key stakeholders. However,stakeholder influence is fluid, soongoing analysisis necessary for long-term success. Despite its limitations, this model remainsa fundamental framework for strategic stakeholder management.

Introduction

Effective leadership plays a crucial role in the success of a business, especially in small enterprises whereemployee motivation, supplier management, and operational efficiencydirectly impact profitability. Leadership styles should be adaptable to differentsituations, team dynamics, and external challenges.

Sarah, the manager of a small cake shop, adopts theContingency Approach to Leadership, which means sheadjusts her leadership style based on the specific circumstances her business faces. This essay will first explainwhat the Contingency Approach isand then discusshow Sarah can apply it to ensure her cake shop thrives.

1. What is the Contingency Approach to Leadership? (5 Points)

Definition

TheContingency Approach to Leadershipsuggests thatthere is no single best way to lead—instead, thebest leadership style depends on the situation. A leader must evaluateenvironmental factors, team capabilities, business challenges, and supplier relationshipsto determine the most effective leadership style.

Key Principles of the Contingency Approach

Situational Adaptability– Leaders must adjust their behavior based on thecontext, team skills, and challenges.

Flexibility in Decision-Making– Some situations requireauthoritative leadership, while others benefit from acollaborative approach.

Focus on Environmental Factors– External factors such asmarket trends, customer demand, and supplier reliabilityinfluence leadership decisions.

Influence of Team Maturity– The leadership approach changes depending on whether employees arehighly skilled and independentorrequire supervision and guidance.

Example of the Contingency Approach

If Sarah’s cake shopfaces a sudden staff shortage, she may need to adopt adirective leadership style, giving clear instructions to manage the crisis.

If she isintroducing a new product line, she mightcollaborate with her team, encouraging creativity and innovation.

2. How Sarah Can Use the Contingency Approach to Ensure Business Success (20 Points)

Sarah’scake shopoperates in a highlycustomer-focusedindustry wherequality, efficiency, and customer serviceare essential. Applying theContingency Approacheffectively can help herimprove operations, manage staff effectively, and strengthen supplier relationships.

(A) Adjusting Leadership Style for Employee Management

Sarahemploys 8 staff memberswith varying skill levels, meaning she musttailor her leadership style to each employee’s capabilities.

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Byadapting her approachto different staff members, Sarah ensureshigh productivity, job satisfaction, and skill developmentwithin her team.

(B) Supplier Relationship Management

Sarah’s cake shop depends onlocal suppliersfor ingredients such as flour, sugar, and dairy. Acontingency approachhelps her manage these relationships effectively:

Handling Reliable Suppliers (Low-Risk Situations)

Uses acollaborative leadership style, fostering stronglong-term relationships.

Worksclosely with supplierstonegotiate bulk discountsand ensure high-quality ingredients.

Dealing with Supplier Disruptions (High-Risk Situations)

Usesdirective leadershipto make quickalternative sourcing decisions.

If a supplierfails to deliver ingredients on time, Sarah mustquickly find replacementsto keep operations running smoothly.

Byadapting her approach based on supplier reliability, Sarah ensuresconsistent ingredient supply, cost efficiency, and business continuity.

(C) Responding to Business Challenges and Market Changes

The food industry ishighly competitive, and Sarah mustadjust her leadership approachto respond effectively toexternal challengessuch as:

Seasonal Demand Fluctuations (Christmas, Weddings, Special Events)

Uses aparticipative approach, involving her team in planning for high-demand periods.

Encourages staff tosuggest new cake designs, flavors, and promotional offers.

Handling Customer Complaints and Service Issues

Uses acustomer-focused leadership approach, ensuring that employees prioritizecustomer satisfaction and feedback resolution.

Trains employees ineffective communication and problem-solving.

Implementing New Technologies (e.g., Online Ordering System)

Uses acoaching approach, training staffstep-by-step on the new systemwhile gathering their feedback.

Bystaying flexible and responsive, Sarah ensures that hercake shop remains competitive, innovative, and customer-focused.

(D) Managing Workload and Crisis Situations

In any small business, unexpected crises can arise, such asstaff shortages, equipmentbreakdowns, or raw material shortages. Sarah can usedifferent leadership styles based on urgency:

Crisis Situations (e.g., Oven Malfunction, Sudden Staff Absences)

Uses adirective approach, givingclear instructionsto ensurequick problem resolution.

Example: If a bakercalls in sick on a busy day, Sarahreallocates tasks immediatelyto keep up with orders.

Daily Operations (Stable Work Conditions)

Uses aparticipative approach, allowing employees to contribute ideas forimproving workflows and efficiency.

By usingcontingency-based leadership, Sarah ensures her cake shop runssmoothly under different circumstances.

(E) Encouraging Teamwork and Employee Motivation

A successful cake shoprequires a motivated, engaged team. Sarah can usedifferent leadership techniquesto build astrong team culture:

Team Meetings and Brainstorming

Uses ademocratic approach, encouraging employees to sharecreative cake designs and customer engagement strategies.

Recognizing Employee Achievements

Uses asupportive approach, rewarding employees forexceptional performance and customer service.

Byadapting to different employee needs, Sarahbuilds a motivated, skilled, and loyal team, reducing turnover and improving overall performance.

Conclusion

TheContingency Approach to Leadershipis aneffective strategy for Sarahas it allows her toadapt to various challenges in her cake shop, ensuring smooth operations, strong supplier management, and motivated employees.

Bymodifying her leadership stylebased on thesituation, employee skill levels, supplier performance, and business challenges, Sarah can:✅Develop a high-performing teamby offering the right mix of guidance and independence.✅Manage supplier relationships effectivelyby adjusting her leadership approach based on reliability and market conditions.✅Handle operational challenges efficiently, ensuringbusiness continuity and customer satisfaction.

Ultimately,flexibility and adaptabilityare key to her success, making theContingency Approach an ideal leadership style for small business management.

Assessing Readiness for Change and Decision-Making: Fred’s Approach as Head of Procurement

Fred’s recent promotion fromProcurement Executive to Head of ProcurementatSilly Name Companypresents him with an opportunity to implement hisideas for departmental improvement. However, as someone who has worked in thesame organization for 15 years, Fred must firstassess the department’s readiness for changebefore implementingradical reforms. Failure to do so could lead toresistance, disruption, and inefficiency. This essay exploreshow Fred can evaluate change readiness, and how this assessment willinfluence his decision-making.

Assessing the Readiness for Change

To successfully introducechanges in procurement, Fred must evaluatekey factorsthat determine whether the department is ready to accept and implementnew ideas.

1. Understanding the Organizational Culture

Fred should assess whether the company culturesupports innovation and changeor prefersstability and routine.

Indicators of Readiness:✔A culture thatembraces innovation and continuous improvement.✔Employees whoactively propose new ideasand improvements.

Potential Barriers:✘A culture resistant to change, where employees prefer"the waythings have always been done."✘A history offailed change initiatives, causing skepticism.

Assessment Method:✔Surveys or feedback sessionsto gauge employee attitudes toward change.✔Observing past change efforts—were they successful or met with resistance?

2. Evaluating Employee Buy-in and Mindset

Fred needs toassess whether employees are open to new ways of workingor if they fear change due to job security concerns, workload increases, or lack of skills.

Indicators of Readiness:✔Employeesexpress willingnessto adopt new tools and processes.✔Staff membersdemonstrate adaptabilityto past procedural updates.

Potential Barriers:✘Employees fear that changesmight make their jobs redundant.✘Resistance due tolack of understanding or training.

Assessment Method:✔Conductone-on-one discussionsoranonymous surveyson employee perceptions of change.✔Identifychange championswho are enthusiastic about improvements.

3. Analyzing Current Processes and Pain Points

Before implementingradical changes, Fred must determine ifcurrent procurement processesare inefficient or if employees feel the need for change.

Indicators of Readiness:✔Procurement staff expressfrustrationwith outdated systems.✔Frequentdelays, bottlenecks, or inefficienciesin procurement processes.

Potential Barriers:✘Employees feel the current processeswork well enoughand resist changing them.✘Lack of data to justify why new processes would bebetter than existing ones.

Assessment Method:✔Conduct aprocess auditto evaluate inefficiencies.✔UseKPIs (Key Performance Indicators)to measure procurement effectiveness.

4. Assessing Resource Availability

Even if the department isopen to change, Fred must ensure there aresufficient resources(budget, technology, and expertise) to implement his ideas.

Indicators of Readiness:✔A budget exists toinvest in new tools, training, or staff.✔The organization is willing tocommit resourcesfor change implementation.

Potential Barriers:✘Limited financial resourcesmay delay or scale down initiatives.✘Employees lack thetechnical skillsto adapt to new procurement methods.

Assessment Method:✔Check theprocurement budgetand forecast costs for proposed changes.✔Evaluate if thecurrent team has the skillsneeded or requires training.

5. Leadership and Senior Management Support

Withoutsupport from senior management, Fred’s effortsmay not succeed. He must assesshow committed leadership isto change.

Indicators of Readiness:✔Senior leadersprioritize procurement transformation.✔Executives provideclear sponsorship and communicationabout improvements.

Potential Barriers:✘Leaders havecompeting prioritiesand are not fully committed.✘Conflicting objectivesbetween departments slow down decision-making.

Assessment Method:✔Schedulemeetings with senior managementto discuss alignment.✔Seek anexecutive sponsorto advocate for procurement reforms.

How Readiness Assessment Impacts Fred’s Decision-Making

After evaluating the department’schange readiness, Fred’s approach to implementing changes will depend on the findings.

1. If Readiness is High:

Fred can proceed withbigger, transformative changes.

He can introduceautomation tools, new supplier strategies, or restructuring initiatives.

A detailedchange management planshould be developed, outlining:✔Timelinesfor implementation.✔Training programsto upskill employees.✔Performance metricsto track improvements.

2. If Readiness is Moderate:

Fred should implementgradual, phased changesrather than radical reforms.

He may need toeducate employeeson the benefits of change before pushing large initiatives.

Focus onquick winsthat build momentum, such as:✔Smallprocess optimizations.✔Minorpolicy adjustments.✔Pilot projectsto test new ideas before full-scale rollout.

3. If Readiness is Low:

Fred mustaddress employee concerns firstbefore implementing major changes.

He should focus oncommunication and engagementto create a culture more open to change.

Strategies toincrease readinessinclude:✔Organizingworkshops and discussionsto explain the need for change.✔Showcasingcase studies of successful procurement transformations.✔Gaining senior leadership supportto drive top-down change.

Conclusion

For Fred to successfully implement hisprocurement transformation ideas, he must first assess whetherthe department is ready for change. By evaluatingorganizational culture, employee mindset, process efficiency, resource availability, and senior management support, he can determine theright strategy—whether to proceed withradical changes, implementgradual improvements, or firstincrease change readiness. His decisions should be guided byemployee engagement, clear communication, and alignment with business goals, ensuring that changesenhance procurement efficiency without causing unnecessary disruption.

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.

Essay Plan

Intro – what is an ethical culture?

P1 – create values and principles – put into writing

P2 – Lead by example

P3 – Transparency, whistleblowing

P4 – Decision making

P5 – Laws

P6 – having consequences for failing to follow the culture

Conclusion – culture isn’t static, Banana Ltd needs to constantly update and review

Example Essay

An ethical culture in the workplace refers to the prevailing set of values, norms, principles, and practices within an organization that prioritize and promote ethical behaviour and decision-making among employees and stakeholders. It represents the collective commitment of an organization to conduct its business in a manner that is morally responsible, socially acceptable, and legally compliant. An ethical culture sets the tone for how employees interact with each other, make decisions, and engage with customers, suppliers, and the broader community. Banana Ltd can achieve this in the following ways:

Ethical Values and Principles: An ethical culture is built on a foundation of clear and well-defined ethical values and principles. These values guide employees in their actions and decisions, helping them distinguish between right and wrong. Banana Ltd should engrain these values and principles in writing by creating a vision statement and creating a formal CSR policy detailing expected behaviour from all employees and stakeholders.

Leadership and Accountability: Ethical leaders play a crucial role in fostering an ethical culture. They set an example by consistently demonstrating ethical behaviour and holding themselves accountable for their actions. Leaders also ensure that ethical standards are consistently applied throughout the organization. Therefore the leaders of Banana Ltd should lead by example. This may be in gaining MCIPS qualifications and other certifications that prove their loyalty to ethical issues.

Transparency and Open Communication: Ethical cultures encourage open and transparent communication. Employees are encouraged to speak up about ethical concerns or violations without fear of retaliation. Transparent processes and reporting mechanisms promote accountability. Banana Ltd could implement a Whistleblowing policy for example, so that if any employee knows of areas of concern, they can escalate this to management, without fear of repercussions.

Ethical Decision-Making: Ethical decision-making is central to an ethical culture. Employees are encouraged to consider the ethical implications of their choices, even when faced with challenging decisions that may have financial or competitive implications. For example with Banana Ltd, this may be actively severing ties with suppliers who are known to employ child labour in the mining of rare metals.

Compliance with Laws and Regulations: Ethical cultures emphasize strict adherence to laws and regulations. Banana Ltd should ensure that all activities are carried out within the boundaries of legal requirements, and violations are not tolerated. For example they shouldensure that their HR policies are in line with the Equalities Act. As a large organisation they should also publish a statement about removing Modern Slavery from their supply chain, as per the Modern Slavery Act.

Accountability and Consequences: There are clear consequences for unethical behaviour. Banana Ltd should ensure that accountability mechanisms are in place to address ethical violations, and individuals who breach ethical standards may face disciplinary actions. For example if a supply chain manager is caught accepting an ‘acceleration payment’ or ‘ kickback’ they should be fired.

An ethical culture in the workplace is essential not only for maintaining a positive organizational reputation but also for fostering a healthy, inclusive, and socially responsible work environment. It contributes to employee morale, customer trust, and long-term business sustainability. It is important for Banana Ltd to not only implement this culture, but to maintain it and constantly review it. The area of ethics and sustainability is constantly evolving so Banana Ltd should look to reassess its policies and processes regularly, and continue to strive to achieve more.

Tutor Notes

- You may have guessed that this question was loosely based on Apple. Apple is a good example of ethics and supply chain issues and is worth looking into as it’s an excellent example to bring into an essay on the subject. Here are some links:

- Apple’s Supply Chain Is on a Collision Course With Climate Change (bloomberg.com)

- Apple sees bigger supply problems after strong start to year | Reuters

- Will Supply-Chain Issues Kill the Low-Cost Apple Vision Pro? (pcmag.com)

- Other areas you could have mentioned include: cultures are not static; they are constantly evolving and improving. So Banana Ltd needs to regularly assess and refine their ethical practices to stay aligned with changing societal norms and expectations (I.e. what is ethically acceptable one day, may not be the next). You could have also talked about Banana Ltd's responsibility to the environment and local communities (particularly concerning the mining of metals). Mining is a really bad industry for Child Labour.

Evaluation of Autocratic and Affiliative Leadership Approaches (25 Points)

Leadership approaches vary based on organizational needs, culture, and objectives. Below is anin-depth evaluationofAutocratic LeadershipandAffiliative Leadership, focusing on theircharacteristics, advantages, disadvantages, and suitabilityin procurement and supply chain management.

1. Autocratic Leadership (12.5 Points)

Definition and Characteristics

Autocratic leadership is acommand-and-controlapproach where decision-making is centralized, and the leaderexerts full authorityover subordinates. Employees havelittle to no inputin decisions.

Key Features:

The leadermakes all critical decisionswithout consulting the team.

Stricttop-down communicationis followed.

Highly structured and rule-basedmanagement.

Focus onefficiency, discipline, and control.

Suitable forcrisis management, military organizations, and high-risk industries.

Advantages of Autocratic Leadership

✅Quick Decision-Making:

Since decisions are made by one leader, the process is fast and efficient, especially intime-sensitive situationssuch as supply chain disruptions.

✅Clear Chain of Command:

Employees have a clear understanding ofwho is in charge, reducing confusion and ensuring a structured workflow.

✅Improved Accountability:

Withstrict supervision, employees remain focused on their tasks, leading to higher productivity.

✅Effective in Crisis Situations:

In procurement, during a supply chain disruption (e.g., a supplier bankruptcy), a leader must makeimmediate decisionsto secure alternative suppliers.

Disadvantages of Autocratic Leadership

❌Lack of Employee Engagement & Motivation:

Since employeeshave no voice in decision-making, they may feel undervalued, leading tolow morale and high turnover.

❌Reduced Innovation & Creativity:

Employees are not encouraged toshare new ideas or problem-solving approaches, which can limit procurement process improvements.

❌Potential for Micromanagement:

Autocratic leaders tend tooversee every detail, leading toinefficiencyandlack of trustin the team.

Suitability in Procurement & Supply Chain

✅Best suited forhighly regulated industries(e.g., government procurement, defense supply chains).✅Effective inemergency situations(e.g., supplier failure, legal compliance issues).❌Not ideal forcollaborative procurement environmentswhere supplier relationships and teamwork are crucial.

2. Affiliative Leadership (12.5 Points)

Definition and Characteristics

Affiliative leadership is apeople-firstleadership style that prioritizesemployee well-being, relationships, and harmonywithin teams.

Key Features:

Focus onempathy and emotional intelligence.

The leaderbuilds strong team bondsand fosters apositive workplace culture.

Employees are encouraged tocollaborateand voice their opinions.

Suitable for organizations undergoingchange, stress, or morale issues.

Advantages of Affiliative Leadership

✅Boosts Employee Morale and Motivation:

Employees feelvalued and supported, leading tohigher job satisfaction and retention.

✅Encourages Collaboration and Innovation:

Unlike autocratic leadership, an affiliative leaderwelcomes team input, encouraging creative solutions in procurement strategies.

✅Strengthens Supplier Relationships:

In procurement, affiliative leadershipimproves negotiations and long-term supplier partnershipsthroughtrust and open communication.

✅Effective During Organizational Change:

This approachhelps teams adapttonew procurement strategies, digital transformations, or policy changessmoothly.

Disadvantages of Affiliative Leadership

❌Lack of Firm Decision-Making:

Leaders mayavoid conflict or tough decisionsto maintain team harmony, leading toslow decision-making.

❌Risk of Lower Performance Expectations:

Overemphasizing relationshipsmay reduce accountability, leading tounderperformancein procurement teams.

❌Not Suitable for Crisis Management:

In urgent procurement situations (e.g., contract disputes, legal violations), an affiliative leadermay struggle to enforce discipline.

Suitability in Procurement & Supply Chain

✅Best forrelationship-driven roles(e.g., supplier relationship management, collaborative procurement).✅Effective inteam-building and change management(e.g., transitioning to digital procurement systems).❌Not ideal forhigh-risk decision-making environments(e.g., crisis procurement, compliance enforcement).

A screenshot of a computer AI-generated content may be incorrect.

Which Leadership Style is Best for Procurement?

For short-term crises, regulatory compliance, or high-risk procurement→Autocratic Leadershipis better.

For long-term supplier management, teamwork, and innovation→Affiliative Leadershipis more effective.

A balanced approach (situational leadership)thatcombines elements of bothstyles is often the most effective strategy in procurement.

This evaluation provides astructured, detailed comparisonthat aligns with CIPS L6M1 exam expectations.

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one wayyou could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.

Essay Plan

Introduction – modern slavery is an issue due to complex international supply chains

P1 – risk – subcontracting or outsourcing

P2 – risk – lack of visibility

P3 - risk - other countries not having strong laws against it

P4 – mitigate – supplier due diligence

P5 – mitigate – traceability e.g. blockchain

P6 – mitigate – training

P7 – mitigate – collaboration and reporting

P8 – example – DJ Houghton

Conclusion – modern slavery is risk legally and ethically and also to business reputation

Example Essay

Modern slavery, a grave violation of human rights, poses a significant risk to supply chains across the globe. As organizations increasingly rely on complex and globalized supply networks, the risk of unwittingly engaging with suppliers that exploit forced labour and human trafficking becomes ever more concerning. This essay explores the risks associated with modern slavery in the supply chain and suggests possible mitigation strategies for supply chain managers. To illustrate the real-world implications of these risks, I will reference the legal case of Antuzis & Ors v DJ Houghton Ltd.

Modern slavery, which includes practices like forced labour and human trafficking, can infiltrate supply chains in various ways. One significant entry point is through subcontracting and outsourcing. As supply chains become increasingly complex, organizations often rely on subcontractors and suppliers further down the chain. Unfortunately, these lower-tier suppliers may engage in exploitative labour practices to cut costs, which can go unnoticed by the primary organization.

Moreover, the lack of transparency within supply chains poses a considerable risk. Limited visibility into sub-tier suppliers and subcontractors makes it challenging to assess their labour practices. This lack of transparency creates opportunities for modern slavery to thrive undetected, posing a significant risk to organizations and their stakeholders.

Additionally, globalization plays a role in the risk equation. Sourcing materials and products internationally increases the risk of encountering suppliers operating in regions with weaker labour protections and lax enforcement of anti-slavery laws. This is particularly true in countries with less stringent child working laws such as in South East Asia.

Supply chain managers play a crucial role in identifying and mitigating the risk of modern slavery in the supply chain. Several strategies can be employed to address this risk effectively:

Firstly, comprehensive supplier due diligence is paramount. This involves conducting thorough assessments of suppliers, including lower-tier suppliers, to evaluate their labour practices, compliance with anti-slavery laws, and adherence to ethical standards. It also entails implementing regular audits and inspections of suppliers to ensure compliance with labour laws and ethical standards. An organisation can employ a third party to conduct these audits, to ensure that the results are authentic.

Secondly, establishing transparency and traceability within the supply chain is essential. This can be achieved by meticulously mapping the supply chain, identifying potential risks, and ensuring visibility into lower-tier suppliers. Modern technology, such as blockchain and supply chain management software, can be instrumental in tracking and tracing the origins of products and materials.

Thirdly, organizations should develop and communicate a robust supplier code of conduct that explicitly prohibits modern slavery and outlines the consequences for non-compliance. Encouragingsuppliers to adopt similar codes of conduct within their own operations can help create a network of ethical supply chain partners.

Moreover, regular risk assessments and impact analyses are critical. These assessments should consider geographical, industry-specific, and supplier-specific factors and help organizations understand the potential consequences of modern slavery-related risks on their reputation and bottom line.

Training and education are also essential components of mitigation strategies. Employees and suppliers should be educated on identifying and reporting instances of modern slavery, and awareness should be raised about the legal and ethical obligations surrounding this issue.

Lastly, collaboration and reporting are crucial. Organizations should collaborate with industry associations, NGOs, and government bodies to share best practices and improve industry-wide efforts against modern slavery. Transparent reporting on efforts to mitigate modern slavery risks demonstrates a commitment to addressing the issue and fosters trust with stakeholders.

The case of Antuzis & Ors v DJ Houghton Ltd serves as a stark reminder of the potential legal consequences of failing to address modern slavery in the supply chain. In this case, the court found that the company, DJ Houghton Ltd, had subjected workers to deplorable working conditions, effectively amounting to modern slavery. What sets this case apart is that the court held the directors personally liable for breaches of their duty of care to the workers. This case underscores the legal liabilities and reputational damage that organizations and their leadership can face if they neglect their responsibilities in the supply chain.

In Conclusion, modern slavery poses a significant risk to supply chains, jeopardizing ethical values, legal compliance, and corporate reputations. Supply chain managers have a crucial role in identifying and mitigating this risk by implementing due diligence, transparency measures, and ethical standards. By taking proactive steps to combat modern slavery, supply chain managers can protect their organizations and uphold their moral and legal obligations in an increasingly interconnected global economy. The case of Antuzis & Ors v DJ Houghton Ltd serves as a compelling reminder of the real-world consequences of failing to address this critical issue

Tutor Notes

- The case study mentioned above is an excellent one to use in an essay about Modern Slavery. DJ Houghton Ltd was charged £1m in 2016 for trafficking migrant workers from Lithuania to various egg farms in the UK. They were subjected to inhumane conditions, income below minimum wage, they failed to provide adequate facilities to eat, wash and rest, and threatened workers with fighting dogs. The company’s Gangmaster Licence was also revoked. Antuzis & Ors v DJ Houghton Ltd | Addleshaw Goddard LLP

- Your answer may also make reference to ethical standards and accreditations such as Fair Trade, using the CIPS Code of Conduct, Modern Slavery Act, having a strong CSR policy, appointing an ethical Ombudsman, ILO Conventions and the 2018 Decent Work Agenda, SA8000. Mentioning these extra bits would likely get you a distinction.

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.

Essay Plan

Intro – what is supply chain diversity?

1. Supplier diversity program and targets

2. Help SMEs build capacity to work with Tom

3. Collaboration and networking

4. Provide financial help

5. Uncomplicate procurement processes to allow SMEs to bid easier

Conclusion – supply chain diversity benefits the industry as a whole

Example Essay

Supply chain diversity refers to the practice of intentionally including a variety of suppliers from different backgrounds, ownership structures, and demographics in a company's supply chain. It is a win-win approach to supply chain management. The primary goal of supply chain diversity is to promote fairness, equality, and inclusivity within the supply chain, while also reaping the benefits of a diverse supplier base. Tom, as a Supply Chain manager, can employ several strategies to encourage supply chain diversity, with a specific focus on inclusivity for SMEs:

Supplier Diversity Programmes and Targets: Implementing a supplier diversity program is a proactive step to encourage SME participation in the supply chain. Tom can establish clear goals and guidelines for procurement such as encouraging bids from diverse suppliers, including SMEs, minority-owned, women-owned, and disabled-owned businesses. These programs can set targets and track progress to ensure inclusivity. One example would be to set a target of X number of suppliers being SMEs.

Capacity Building and Training: Tom can work with SMEs to build their capacity and capabilities to meet the requirements of the automobile manufacturing industry. This could involve providing training, mentorship, and resources to help SMEs meet quality, safety, and compliance standards. By investing in their development, SMEs can become more competitive suppliers.

Supplier Collaboration and Networking: Encouraging collaboration and networking among suppliers can create a supportive ecosystem for SMEs. Tom can organize events, workshops, and forums where SMEs can connect with larger suppliers and industry experts. Building these relationships can lead to partnerships and subcontracting opportunities, enabling SMEs to enter the supply chain.

Supplier Development Funds: Allocating funds specifically for supplier development can be a powerful incentive. Tom can establish a fund to help SMEs invest in equipment, technology, and process improvements necessary to meet the manufacturing industry's demands. These funds can be offered as grants, low-interest loans, or equity investments.

Streamlined Procurement Processes: Simplifying and streamlining the procurement process can make it easier for SMEs to participate in tendering opportunities. Tom can reduce bureaucratic hurdles and provide clear guidelines for SMEs to bid for contracts. In the automotive industry, suppliers are often required to have a certain cash flow and metrics such as gearing ratios. By reducing the financial requirements to bid for a contract, this would allow more SMEs to apply to work with Tom’s company. Moreover digitizing procurement processes can also enhance accessibility and transparency, making it more SME-friendly.

In addition to these strategies, Tom should ensure that diversity and inclusivity considerations are integrated into the organization's overall supply chain strategy and corporate culture. This includes regular monitoring and reporting on diversity metrics, encouraging supplier diversity as a key performance indicator, and promoting awareness and education on diversity and inclusivity among employees and suppliers. By implementing supplier diversity strategies, Tom can foster a more inclusive and diverse supply chain in the UK's automobile manufacturing industry, benefiting not only SMEs but also the industry as a whole through enhanced innovation, competitiveness, and sustainability.

Tutor Notes

- I don’t think the study guide covers  supply chain diversity as well as it could. This question is taken from p. 204. Other options they mention in the book include; changing the organisational culture, getting commitment from senior leaders, integrating diversity into the corporate vision and joint ventures with SMEs.

- However there are a lot of really interesting online resources about supply chain diversity and the benefits. And some really good case stories about it. I’d recommend reading: Increasing SME Participation in Supply Chains — Deecon Consulting and looking at the Federation of Small Businesses FSB｜The Federation of Small Businesses | FSB, The Federation of Small Businesses also this initiative is really innovative: Support your SME supply chain - Heart of the City (theheartofthecity.com)

Overall explanation

Below you will find how you can plan and draft the essay. Remember this is an example of one way you could approach the question. At Level 6 the questions are much more open so your response may be completely different and that's okay.

Essay Plan

Intro – stress has impacts both for employee and employer

P1 – how stress impacts on employees

P2 – factors that lead to stress – quote HSE

P3 – how an organisation can look after workforce

Conclusion – stress has far reaching consequences

Example Essay

Workplace stress is a prevalent issue that can have profound effects on employees and organizational performance. Stress arises from various sources and can significantly impact an individual's well-being, productivity, and job satisfaction. Recognizing the importance of addressing workplace stress, organizations have adopted strategies to mitigate its adverse effects. This essay explores the impact of workplace stress on employees, the factors contributing to stress, and organizational strategies for stress reduction.

Impact of Workplace Stress on Employees:

Physical Health Effects: Persistent workplace stress can lead to physical health issues such as headaches, digestive problems, and hypertension. In extreme cases, it has been known for stress to cause heart-attacks.

Mental Health Implications: Stress is closely linked to mental health disorders like anxiety and depression. Employees experiencing high levels of stress are at greater risk of developing these conditions, leading to decreased concentration, motivation, and overall job satisfaction.

Decreased Productivity: Stressed employees often find it challenging to focus on tasks, leading to reduced productivity and lower quality work. This can affect project timelines and overall organizational performance.

Increased Absenteeism: Stress-related illnesses can lead to increased absenteeism, impacting team dynamics and workload distribution. Absences can also result in increased costs for organizations.

Low Morale and Job Satisfaction: A stressed workforce may experience reduced job satisfaction and morale. This can lead to decreased engagement, a higher turnover rate, and difficulties in attracting and retaining talent.

Factors Contributing to Workplace Stress: The Health and Safety Executive (HSE) Management Standards of 2003 have identified six causes of work-related stress:

Lack of Support: Insufficient support from supervisors or peers can exacerbate stress, as employees may feel isolated and unsupported in challenging situations.

Excessive Workload (Demands): High workloads, unrealistic deadlines, and excessive overtime can overwhelm employees, leading to stress.

Lack of Control: Employees who have limited autonomy or decision-making authority may feel stressed due to a perceived lack of control over their work.

Role Ambiguity: Unclear job roles and responsibilities can create confusion and stress, as employees struggle to meet undefined expectations.

Change and Uncertainty: Frequent organizational changes, such as restructuring or layoffs, can create job insecurity and stress among employees.

Workplace Relationships: Poor relationships with colleagues or supervisors can contribute significantly to workplace stress. For example bullying or harassment in the workplace.

Organizational Strategies for Stress Reduction:

HSE Management Standards: Organizations can adopt the HSE Management Standards as aframework to identify and address stressors. This involves assessing workplace conditions related to the six stress factors and taking action to improve them.

Mental Health Support: Offer employee assistance programs (EAPs), mental health resources, and counselling services to help employees cope with stress and mental health challenges.

Training and Education: Provide training on stress management, resilience, and work-life balance to empower employees with coping strategies.

Workload Management: Ensure workload distribution is reasonable and aligned with employees' capabilities. Encourage breaks and discourage excessive overtime.

Communication: Promote open and transparent communication channels to address concerns, clarify roles, and keep employees informed about organizational changes.

Flexible Working Arrangements: Offer flexible working options, such as remote work or flexible hours, to help employees achieve a better work-life balance.

Leadership Training: Train managers to recognize signs of stress, provide support, and create a supportive and inclusive work environment.

In conclusion, workplace stress has far-reaching consequences on employees and organizational outcomes. A recent study by CIPD has shown that stress is the leading cause of long-term absence from work. Recognizing the sources of stress, organizations can implement strategies, and use the HSE Management Standards, to mitigate its impact. By fostering a supportive and healthy work environment, organizations can reduce stress levels, enhance employee well-being, and improve overall performance.

Tutor Notes

- I really wanted to add studying for CIPS when you have a full-time job is a factor that can lead to stress in the workplace. It’s definitely not a wrong answer, but an examiner may not share my sense of humour haha

- I’ve chosen to write this essay in bullet points to show you how it can be done. This is a useful style if you’re running out of time, and if English isn’t your first language. The important thing with answering CIPS questions is to actually answer the question. You don’t need ‘posh’ language like ‘furthermore’ and ‘moreover’. You can get a good score by writing simply and succinctly.

- HSE Management Standards 2003 identifies six causes of work-related stress that I wrote about above. Here’s a fun mnemonic to help you learn them: - SDCRRC – stress does create really crappy realities

- The study guide doesn’t talk about this, but you could mention Mental Health First Aid Courses, which are growing in popularity, and also the use of confidential counselling.

- Your essay could have mentioned Hatton vs Sutherland (2002). This case is an important precedent – it shows that just because a workplace offers confidential counselling to employees, this does not negate responsibility for employee stress – the company is still liable for causing you stress.