Exam L5M5 Topic 1 Question 82 Discussion

Actual exam question for CIPS's L5M5 exam
Question #: 82
Topic #: 1
The MNE (Multi-National Enterprise) Declaration is designed to promote ethical and sustainable operations by multinational organisations. Which of the following are prioritised by the Declaration? Select TWO

Suggested Answer: A,D Vote an answer

Comprehensive and Detailed Explanation From Exact Extract of Documents:
The MNE Declaration, also called the ILO Tripartite Declaration of Principles concerning Multinational Enterprises, sets out guidelines for multinational organisations to operate ethically and sustainably. The L5M5 study guide (p.267) explains that the Declaration prioritises formal economies (regulated, tax-paying, legitimate business environments) and host country labour, ensuring that local workers are not exploited. Informal economies and immigrant labour are recognised but not prioritised in the same way. The declaration is tripartite because it involves three groups: governments, employers, and workers' organisations. Procurement professionals working internationally must be aware of these principles when engaging multinational supply chains.
Reference: Managing Ethical Procurement and Supply (L5M5) Study Guide, p.267

by Eartha at May 13, 2026, 03:11 PM

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