CIMA BA4 · Chapter 8 · Question 5 of 10
A manufacturer pays suppliers in developing countries a fair price, monitors their labour conditions and refuses to use child labour. Which area of CSR does this primarily address?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Responsible supply chain management and human rights
Explanation
Ensuring fair dealing with suppliers and acceptable labour conditions throughout the supply chain is a central part of CSR concerning human rights and ethical sourcing. Dividends, capital structure and tax planning are financial decisions with little direct link to these issues.
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