US CMA Part 2 · Chapter 9 · Question 22 of 23
A US company discovers that one of its overseas suppliers uses child labor, which is not prohibited by local law in that country. Which response best reflects good practice in applying corporate values internationally?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Apply the company's supplier code of conduct, require corrective action and be prepared to end the relationship if the practice continues
Explanation
Organizations should apply their values and ethical standards consistently across all operations and their supply chains, not merely the minimum local legal requirement. A supplier code of conduct, monitoring, remediation requirements and willingness to terminate relationships demonstrate commitment to human rights and protect the company's reputation.
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