Which of the following is a sign of poor labor conditions in a supply chain?

The selection of suspiciously low labor costs in sub-tier suppliers as an indicator of poor labor conditions highlights a significant concern within ethical sourcing practices. Low labor costs can often signal that suppliers are cutting corners to minimize expenses, which might lead to problematic labor practices. For instance, it may indicate that workers are receiving inadequate wages, which does not meet living standards, or that there are potential violations of labor laws such as unsafe working environments or excessively long hours without proper compensation.

On the contrary, consistent high product quality suggests effective management and possibly good labor conditions, while worker participation in training programs and long-term employment contracts typically reflect stability and investment in employee welfare, which are generally signs of positive labor conditions. Thus, the choice of low labor costs points directly to the risk of exploitation and highlights the need for deeper scrutiny in ethical sourcing assessments.