What is a potential indicator of slavery related to supplier location?

Enhance your understanding of CIPS Ethical and Responsible Sourcing. Use flashcards and multiple choice questions to prepare. Get ready for the CIPS exam!

The correct answer is based on the understanding that countries with poor scores in the Corruption Perceptions Index often have weaker governance, insufficient enforcement of labor laws, and a lack of protective measures for workers. This environment can create conditions that are conducive to modern slavery and exploitation.

In nations with high corruption, supply chains may not be monitored effectively, economic hardships may drive vulnerable populations into exploitative labor situations, and government resources to improve conditions for workers may be lacking. Thus, a supplier based in such a location can be a significant risk factor for slavery-related practices within their operations.

By contrast, suppliers in nations with high scores on the Corruption Perceptions Index generally benefit from better governance and more rigorous anti-slavery regulations. Suppliers with high labor costs may also provide better working conditions and remuneration, while proximity to shipping ports does not inherently correlate with slavery risk. Therefore, the context of governance and corruption is critical in assessing potential risks related to slavery in supply chains.

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