What is a primary concern with businesses using sub-contractors?

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

The primary concern with businesses using sub-contractors is the risk of modern slavery practices. This issue arises because sub-contractors may operate with less oversight and regulation compared to primary contractors. This lack of oversight can create an environment where unethical labor practices, including forced labor, human trafficking, and exploitation of workers, can occur.

Businesses that engage sub-contractors need to be vigilant about their sourcing practices to ensure that all levels of their supply chain uphold ethical labor standards. Failure to address these risks not only undermines the company's commitment to ethical sourcing but can also lead to severe reputational damage, legal repercussions, and a loss of consumer trust. The awareness and action taken toward preventing modern slavery are crucial components of responsible sourcing and ethical supply chain management.

In contrast, while increased operational costs, limited financial resources, and reduced product quality can all present challenges when working with sub-contractors, they do not inherently carry the same ethical implications or potential for human rights violations that the risk of modern slavery does.

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