CIPS Strategic Ethical Leadership - L6M1 Exam Practice Test

See the Answer is the explanation
Explanation:
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
Introduction - what is the 3rd sector?
P1 - role of advocate - promoting ethical business practices
P2 - role of watchdog
P3 - role of researcher - example of UNICEF and Cocoa
P4 - role of influencing global policies e.g. ILO Decent Work Agenda
P5 - Decent Work Agenda - explanation
Conclusion - work of third sector is critical to support advances in ethical business practices Example Essay Independent organizations in the third sector, also known as non-governmental organizations (NGOs) and civil society groups, play a crucial role in promoting ethical business practices on a global scale. This essay explores the multifaceted role of independent organizations in advancing ethical business practices and will focus on the work of the United Nations and the International Labour Organization (ILO).
Independent organizations in the third sector serve as advocates for ethical business practices. They raise awareness about ethical issues, such as fair labour practices, environmental sustainability, and responsible supply chain management. By conducting research, publishing reports, and engaging in public discourse, these organizations bring attention to areas where ethical improvements are needed.
Moreover, independent organizations often act as watchdogs, monitoring the actions of businesses and governments to ensure adherence to ethical standards. They use tools like corporate social responsibility (CSR) evaluations and human rights impact assessments to hold organizations accountable for their practices. For instance, NGOs may investigate and expose cases of labour exploitation or environmental violations in global supply chains.
For example, the International Labour Organization (ILO), a specialized agency of the United Nations, initiated efforts to combat child labour and forced labour in the cocoa industry. Children, often working in hazardous conditions, were involved in harvesting cocoa beans, which raised serious ethical and human rights concerns . The ILO along with UNICEF (United Nations Children's Fund) conducted studies, surveys, and assessments to gather data on child labour and forced labour. This resulted in the creation of the Harkin-Engel Protocol. Under the protocol, the chocolate and cocoa industry committed to taking specific actions to eliminate the worst forms of child labour and forced labour from cocoa production, encouraging businesses to adopt responsible sourcing practices, implement traceability measures, and invest in community development programs. While challenges persist, ILO/ UNICEF's efforts have contributed to significant improvements in labour conditions and a greater emphasis on ethical practices in the cocoa supply chain.
Furthermore, the United Nations, particularly the Economic and Social Council (ECOSOC), provides a platform for independent organizations to engage with governments and international institutions on ethical business practices. ECOSOC consults with NGOs, enabling them to contribute to discussions on sustainable development goals, human rights, and economic policies. This engagement ensures that ethical considerations are integrated into global policymaking.
Another example of how third sector organisations contribute to ethical business practices is the International Labour Organization (ILO) conventions, such as the 2018 Decent Work Agend a. This framework encompasses four main pillars
1) Employment: creating jobs and expanding opportunities for all. The goal is to promote full and productive employment, ensure equal pay for equal work, and reduce informal employment. It also emphasizes the importance of addressing unemployment, underemployment, and vulnerable employment, particularly in developing countries.
2) Social Protection: it highlights the need for comprehensive social protection systems. This includes access to essential health services, maternity protection, unemployment benefits, disability benefits, and pensions. Social protection helps individuals and families cope with various economic and social risks.
3) Social Dialogue: the active participation of workers, employers, and governments in decision-making processes related to labour policies and regulations. Social dialogue is essential for achieving fair and equitable labour practices, including collective bargaining and labour rights.
4) Rights at Work: the right to freedom of association, the right to collective bargaining, the elimination of forced labour and child labour, and the elimination of discrimination in the workplace. Ensuring these rights helps create a fair and just work environment.
The Decent Work Agenda represents a comprehensive and integrated approach to labour and employment issues, aiming to improve the well-being of workers and their families while fostering economic growth and development. It addresses the challenges and opportunities arising from changes in the world of work, such as globalization, technological advancements, and demographic shifts.
In conclusion, independent organizations in the third sector are instrumental in advancing ethical business practices globally. Their roles as advocates, monitors, collaborators, and educators are essential in holding businesses and governments accountable for their actions. Through engagement with institutions like the United Nations and initiatives like the ILO's Decent Work Agenda, these organizations contribute to the promotion of ethical practices in business, fostering a more just and sustainable global economy. Their efforts complement the broader goals of achieving social responsibility, human rights, and environmental sustainability in the business world.
Tutor Notes
- Out of those listed, you could get a lot of content out of the UN and ILO (remember the ILO is part of the UN). These would be my personal choice to pick and learn about because there are lots of examples you could talk about. I chose Cocoa and Child Labour. Other things you could have wrote about include:
- ILO Convention No. 29 (Forced Labour Convention, 1930): This convention requires member states to suppress the use of forced labour in all its forms, including slavery, debt bondage, and forced or compulsory labour.
- ILO Convention No. 105 (Abolition of Forced Labour Convention, 1957): This convention complements Convention No. 29 and aims to abolish forced labour through measures such as effective enforcement of laws and policies.
- Goal 8 of the United Nations Sustainable Development Goals (SDGs) specifically targets decent work and economic growth. Target 8.7 within this goal calls for the "immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking and secure the prohibition and elimination of the worst forms of child labour." The UN promotes the SDGs as a framework for addressing forced labour and related issues.
- The UN provides technical assistance to countries, helping them develop and implement legislation and policies to combat forced labour. This assistance includes capacity building, training, and sharing best practices.
- Tradecraft UK, Walk Free and IMF are also mentioned in the study guide. Here's some info you could have included if you wished to talk about them in your essay:
- Tradecraft = IMPORTANT - as of 2023 this organisation is in Administration. The study guide and exam questions were written before this happened, so may refer to it in the present tense. Your response should mention it in the past tense. Tradecraft was a UK-based Fair Trade Organisation that sold products that were traded fairly in the UK. Their mission was to fight poverty through promoting approaches to trade that will help people in developing countries change their lives. It developed programmes working with poor producers in Africa and Asia. E.g. helped small Indian tea producers negotiate higher prices and get representation on the Tea Board of India. Also helped African Framers negotiate for better PPE and provided training to them so they're more confident to negotiate contract terms such as not allowing late changes to quantities. Traidcraft goes into Administration - One World Shop
- Walk Free Foundation = Aim is to eliminate modern slavery- publishes the Global Slavery Index. They engage in research, advocacy, and awareness-raising activities. Walk Free Foundation Official Website

See the Answer is the explanation
Explanation:
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 contingency theory?
Each factor in a paragraph: external environment, technology, size, culture, goals, leader style, the people Conclusion - there is no universally 'right' way to structure an organisation, and it can change over time.
Example Essay
The Contingency Model of organization is a management and organizational theory that suggests there is no one-size-fits-all approach to organizing and managing a company. Instead, it proposes that the most effective organizational structure and management style depend on various external and internal factors, often referred to as contingencies. The core idea behind this model is that the optimal way to organize and manage an organization is contingent upon the unique circumstances or contingencies it faces.
Key factors that should be considered in the Contingency Model of Organization include:
Environmental Factors: The external environment, including factors like the industry in which the organization operates, economic conditions, competition, and legal and regulatory requirements, can greatly influence the organization's structure and strategy. An organisation should consider STEEPLED factors and Porter's 5 Forces when deciding which company structure would be most appropriate.
Technology: The nature of the organization's technology and the rate of technological change can impact its structure and processes. Some organizations may need to be more flexible and adaptive due to rapidly changing technologies, while others may rely on stable and proven technologies. For example, does the organisational structure allow people to work remotely from home?
Organizational Size: The size of the organization can affect its structure and management practices. Smaller organizations might have a more informal structure, while larger ones may require more formal hierarchies. For example a small organisation would not benefit from a bureaucratic structure, but a large organisation may need several levels of management and a degree of bureaucracy.
Organizational Culture: The culture of the organization, including its values, norms, and beliefs, can influence how it is structured and managed. For instance, an innovative and entrepreneurial culture may lead to a flatter, more decentralized structure.
Goals and Strategy: The goals and strategy of the organization play a crucial role in determining its structure and management style. Different strategies, such as cost leadership, differentiation, or innovation, may require different organizational structures and approaches.
Leadership Style: The leadership style of top management can impact the organization's structure and culture. Leaders with a preference for centralization may create a more hierarchical structure, while those who favour decentralization may opt for a flatter structure.
Human Resources: The skills, abilities, and motivation of the workforce can influence how an organization is structured and managed. A highly skilled and motivated workforce may require less supervision and a more decentralized structure.
The important thing to note with the Contingency Theory is that the organization's needs and circumstances can change over time, so what works best today may not be suitable in the future. Organizations must continuously assess and adapt their structures and management practices as contingencies evolve.
In essence, the Contingency Model recognizes that there is no universally optimal way to organize and manage an organization. Instead, managers must carefully assess and consider the various contingencies that affect their organization and make decisions accordingly. This approach promotes flexibility and adaptability in organizational design and management, allowing companies to better respond to changing circumstances and maximize their effectiveness.
Tutor Notes
- Another way this could come up as a question is related to a case study. You may be asked to pick out factors which would effect the way an organisation is structured.
- You could also be asked pros and cons of the contingency theory (pro: very flexible, highly responsive to changes con: people don't know where they stand, harder to find accountability)
- It's covered in detail in the studyguide but it's quite a simple concept - the best structure for an organisation depends on lots of different factors.

See the Answer is the explanation
Explanation:
Introduction
Effective leadership plays a crucial role in the success of a business, especially in small enterprises where employee motivation, supplier management, and operational efficiency directly impact profitability. Leadership styles should be adaptable to different situations, team dynamics, and external challenges.
Sarah, the manager of a small cake shop, adopts the Contingency Approach to Leadership, which means she adjusts her leadership style based on the specific circumstances her business faces. This essay will first explain what the Contingency Approach is and then discuss how Sarah can apply it to ensure her cake shop thrives.
1. What is the Contingency Approach to Leadership? (5 Points)
Definition
The Contingency Approach to Leadership suggests that there is no single best way to lead-instead, the best leadership style depends on the situation. A leader must evaluate environmental factors, team capabilities, business challenges, and supplier relationships to determine the most effective leadership style.
Key Principles of the Contingency Approach
Situational Adaptability - Leaders must adjust their behavior based on the context, team skills, and challenges.
Flexibility in Decision-Making - Some situations require authoritative leadership, while others benefit from a collaborative approach.
Focus on Environmental Factors - External factors such as market trends, customer demand, and supplier reliability influence leadership decisions.
Influence of Team Maturity - The leadership approach changes depending on whether employees are highly skilled and independent or require supervision and guidance.
Example of the Contingency Approach
If Sarah's cake shop faces a sudden staff shortage, she may need to adopt a directive leadership style, giving clear instructions to manage the crisis.
If she is introducing a new product line, she might collaborate with her team, encouraging creativity and innovation.
2. How Sarah Can Use the Contingency Approach to Ensure Business Success (20 Points) Sarah's cake shop operates in a highly customer-focused industry where quality, efficiency, and customer service are essential. Applying the Contingency Approach effectively can help her improve operations, manage staff effectively, and strengthen supplier relationships.
(A) Adjusting Leadership Style for Employee Management
Sarah employs 8 staff members with varying skill levels, meaning she must tailor her leadership style to each employee's capabilities.

By adapting her approach to different staff members, Sarah ensures high productivity, job satisfaction, and skill development within her team.
(B) Supplier Relationship Management
Sarah's cake shop depends on local suppliers for ingredients such as flour, sugar, and dairy. A contingency approach helps her manage these relationships effectively:
Handling Reliable Suppliers (Low-Risk Situations)
Uses a collaborative leadership style, fostering strong long-term relationships.
Works closely with suppliers to negotiate bulk discounts and ensure high-quality ingredients.
Dealing with Supplier Disruptions (High-Risk Situations)
Uses directive leadership to make quick alternative sourcing decisions.
If a supplier fails to deliver ingredients on time, Sarah must quickly find replacements to keep operations running smoothly.
By adapting her approach based on supplier reliability, Sarah ensures consistent ingredient supply, cost efficiency, and business continuity.
(C) Responding to Business Challenges and Market Changes
The food industry is highly competitive, and Sarah must adjust her leadership approach to respond effectively to external challenges such as:
Seasonal Demand Fluctuations (Christmas, Weddings, Special Events)
Uses a participative approach, involving her team in planning for high-demand periods.
Encourages staff to suggest new cake designs, flavors, and promotional offers.
Handling Customer Complaints and Service Issues
Uses a customer-focused leadership approach, ensuring that employees prioritize customer satisfaction and feedback resolution.
Trains employees in effective communication and problem-solving.
Implementing New Technologies (e.g., Online Ordering System)
Uses a coaching approach, training staff step-by-step on the new system while gathering their feedback.
By staying flexible and responsive, Sarah ensures that her cake shop remains competitive, innovative, and customer-focused.
(D) Managing Workload and Crisis Situations
In any small business, unexpected crises can arise, such as staff shortages, equipment breakdowns, or raw material shortages. Sarah can use different leadership styles based on urgency:
Crisis Situations (e.g., Oven Malfunction, Sudden Staff Absences)
Uses a directive approach, giving clear instructions to ensure quick problem resolution.
Example: If a baker calls in sick on a busy day, Sarah reallocates tasks immediately to keep up with orders.
Daily Operations (Stable Work Conditions)
Uses a participative approach, allowing employees to contribute ideas for improving workflows and efficiency.
By using contingency-based leadership, Sarah ensures her cake shop runs smoothly under different circumstances.
(E) Encouraging Teamwork and Employee Motivation
A successful cake shop requires a motivated, engaged team. Sarah can use different leadership techniques to build a strong team culture:
Team Meetings and Brainstorming
Uses a democratic approach, encouraging employees to share creative cake designs and customer engagement strategies.
Recognizing Employee Achievements
Uses a supportive approach, rewarding employees for exceptional performance and customer service.
By adapting to different employee needs, Sarah builds a motivated, skilled, and loyal team, reducing turnover and improving overall performance.
Conclusion
The Contingency Approach to Leadership is an effective strategy for Sarah as it allows her to adapt to various challenges in her cake shop, ensuring smooth operations, strong supplier management, and motivated employees.
By modifying her leadership style based on the situation, employee skill levels, supplier performance, and business challenges, Sarah can:
✅ Develop a high-performing team by offering the right mix of guidance and independence.
✅ Manage supplier relationships effectively by adjusting her leadership approach based on reliability and market conditions.
✅ Handle operational challenges efficiently, ensuring business continuity and customer satisfaction.
Ultimately, flexibility and adaptability are key to her success, making the Contingency Approach an ideal leadership style for small business management.

See the Answer is the explanation
Explanation:
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 a framework 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.

See the Answer is the explanation
Explanation:
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 - explain which three; minimum wage, working hours, H&S
P1 - minimum wage
P2 - working hours
P3 - H&S
Conclusion - law is always evolving
Example Essay
Employment law in the United Kingdom has evolved over the years to safeguard the rights and interests of employees while providing a framework for fair and equitable employment practices. This essay delves into three crucial areas of employment law: minimum wage, working hours, and health and safety.
Minimum Wage. The National Minimum Wage Act 1998 and subsequent amendments established the legal framework for minimum wage rates in the UK. The current legislation sets different minimum wage rates for various age groups. Currently (2023) for those aged 23 and over the minimum wage is £10.42 per hour. This is rising to £11 in 2024. Younger workers will earn less, with those on an apprenticeship, considerably less. Minimum wage legislation has significantly improved the earnings of low-paid workers and reduced income inequality. It ensures that employees receive a fair wage for their labour, promoting economic stability and social well-being.
Interestingly, not all countries have a minimum wage or set it hourly. For example in Spain, minimum wage is set out monthly (around 1000 euros/ month). Sweden doesn't have a minimum wage at all. Sweden relies on collective bargaining agreements negotiated between employers and labour unions to determine wage rates and employment conditions. These agreements are sector-specific and cover a wide range of industries, effectively setting minimum wage standards at the industry level rather than through legislation. This approach allows for flexibility and tailoring of wage rates to different sectors of the economy but also means that minimum wage levels can vary depending on the specific collective agreement in place within a given industry.
Working Hours: The Working Time Regulations 1998 (WTR) and the EU Working Time Directive establish legal limits on working hours, rest breaks, and paid leave for workers in the UK. The WTR also introduced the concept of the "opt-out," allowing workers to voluntarily exceed the 48-hour weekly working time limit. Working time regulations promote work-life balance, protect employees from excessive working hours, and enhance health and well-being. The "opt-out" provision provides flexibility but must be implemented with respect to workers' rights. It is common in the UK for Junior Doctors to opt out to ensure they have enough time to complete their training within a specific timeframe. Some training programs require a certain number of hours or procedures to be completed during a specific period. Another reason for opting out is the opportunity to earn more money, particularly if overtime is paid at a high rate.
Health and Safety: The Health and Safety at Work Act 1974 is the cornerstone of health and safety legislation in the UK. It places duties on employers to ensure the health, safety, and welfare of their employees, as well as others affected by their work activities. Specific regulations, such as the Management of Health and Safety at Work Regulations 1999, provide additional guidance. One of the main areas this legislation covers is the importance of completing risk assessments. The case of R v. Tangerine Confectionery Ltd (2018) emphasized the importance of risk assessments in preventing workplace accidents. The company was fined for failing to adequately assess the risk of an employee's arm getting trapped in a machine, resulting in serious injury. Health and Safety legislation has led to safer workplaces, reduced accident rates, and improved employee well-being. Employers are legally obligated to identify and mitigate workplace risks, ensuring the protection of their workforce.
In conclusion, UK employment law, encompassing minimum wage, working hours, and health and safety, plays a pivotal role in safeguarding employees' rights, promoting fair labour practices, and ensuring safe working environments. As employment dynamics continue to evolve, it is imperative that employment law remains adaptable, responsive, and protective of employees in an ever-changing work landscape.